Surge Energy (SGY) Corporate presentation summary

Asset quality and operational focus

• Maintains a high-quality, light/medium oil asset base with over 3 billion barrels of OOIP and low decline rates, supporting a 16-year drilling inventory.

• Core operations are concentrated in Sparky and SE Saskatchewan, which together account for about 90% of production and 95% of capital and cash flow weighting.

• Sparky area production has grown by 675% since 2011, now exceeding 14,500 boepd, with a focus on horizontal and multi-lateral drilling and waterfloods.

• SE Saskatchewan delivers high operating netbacks and industry-leading well performance, with over 600 million barrels OOIP and more than 300 net drilling locations.

Financial performance and capital allocation

• 2026 guidance targets 24,000 boepd exit production (89% liquids), $335 million adjusted funds flow, and $145 million free cash flow at US$80 WTI.

• Capital budget increased to $175 million, with $16 million for additional drilling and $9 million for waterflood expansion.

• Shareholder returns include a $0.52/share annual dividend (5.5% yield), $30–$40 million in share buybacks, and ongoing net debt reduction.

• Maintains a low dividend payout ratio of 15% of forecasted 2026 cash flow, with two dividend increases in the past four years.

Strategic advantages and risk management

• Focuses on conventional reservoirs with low capital risk, predictable development, and enhanced recovery through waterfloods.

• Hedging program in place to minimize commodity price volatility, with crude oil, natural gas, and FX contracts extending into 2027.

• Debt maturities are termed out to late 2028 and 2029, with $250 million undrawn capacity for financial flexibility.

• $1.2 billion in tax pools enables tax-efficient free cash flow distribution.