Surge Energy (SGY) investor relations material

Executive summary

• Q3 revenue rose 34% YoY to $192.3 million and adjusted funds flow (AFF) rose 14% to $80.0 million; production averaged 22,736 boepd, delayed by wet weather.

• 2027 plan targets 25,000 boepd exit production and $145 million FCF at US$80 WTI, alongside a proposed 6% base dividend increase.

Financial highlights

• Q3 petroleum and natural gas revenue was $192.3 million, up 34% YoY; nine-month revenue was $559.0 million, up 26%.

• Q3 cash flow from operating activities was $73.5 million, up 11% YoY; AFF was $80.0 million, up 14%, or $0.81 per basic share.

• Q3 net income was $4.0 million, down 44% YoY; nine-month net income was $48.7 million, up 3%.

• Q3 FCF was $15.6 million versus $33.2 million YoY; nine-month FCF was $95.6 million versus $95.2 million.

• Q3 capital expenditures on property, plant and equipment were $60.7 million; net capital expenditures, including acquisitions and dispositions, were $63.2 million, up 64% YoY.

Outlook and guidance

• 2027 guidance at US$80 WTI: 24,500 boepd average and 25,000 boepd exit production, both 90% liquids; AFF $370 million, operating cash flow $355 million and FCF $145 million.

• 2027 capital expenditures are budgeted at $210 million, including ~$25 million for waterflood development; 76 net wells planned, with over 95% of development spending in Sparky and SE Saskatchewan.

• At US$75 / US$85 WTI, forecast AFF is $335 million / $405 million and FCF is $110 million / $180 million, respectively.

• 2027 production exit guidance rises from 24,000 boepd in 2026 to 25,000 boepd; October 2026 monthly production exceeded the 2026 exit target.