Surge Energy (SGY) Q2 2026 earnings summary

Executive summary

• Q2 2026 production averaged 22,865 boepd (89% liquids), impacted by a five-week third-party gas plant outage, but all volumes are now back online.

• 1H 2026 production averaged 23,376 boepd, exceeding initial guidance of 23,000 boepd.

• Upward revision of 2026 capital budget to $175 million and production guidance to 24,000 boepd exit rate.

• Strong drilling and waterflood results in Sparky and SE Saskatchewan core areas.

Financial highlights

• Q2 2026 petroleum and natural gas revenue rose 48% year-over-year to $208.7 million.

• Adjusted funds flow (AFF) was $91.5 million ($0.92/share), up 26% year-over-year.

• Net income for Q2 2026 was $69.4 million ($0.69/share), up 117% year-over-year.

• Free cash flow (FCF) for Q2 2026 was $58.7 million, representing 64% of AFF.

• Net operating expenses per boe decreased 6% sequentially to $17.49.

Outlook and guidance

• 2026 exit production guidance increased to 24,000 boepd (89% liquids); average production guidance raised to 23,375 boepd.

• Estimated 2026 AFF of $335 million ($3.39/share) and cash flow from operating activities of $320 million ($3.24/share).

• Annual base dividend of $0.52/share ($51.5 million total), representing ~15% of forecasted AFF.

• Focus on continued net debt reduction and share repurchases.