Surge Energy (SGY) Q3 2025 earnings summary

Executive summary

• Q3 2025 production averaged 23,622 boepd (88% liquids), exceeding budget by over 1,100 boepd.

• Adjusted funds flow (AFF) was $70.1 million, with free cash flow (FCF) of $37.2 million, representing 53% of AFF.

• Strategic acquisition of Mannville (Sparky) lands for $5.7 million, adding over 25 drilling locations.

• Appointment of Myles Bosman to the Board of Directors, effective November 5, 2025.

Financial highlights

• Total Q3 2025 revenue was $143.3 million, down 12% year-over-year; nine-month revenue was $445.2 million, down 10%.

• Net income for Q3 2025 was $7.2 million, down 58% year-over-year; nine-month net income was $47.4 million.

• Net operating expenses decreased 6% year-over-year to $17.69/boe.

• Net debt reduced by $11.7 million in Q3 to $217.4 million; $250 million credit facility undrawn.

• $12.9 million distributed in dividends; $0.7 million in share buybacks; total $25.3 million returned to shareholders.

Outlook and guidance

• 2026 capital budget set at $150 million, down $45 million from 2024, focused on Sparky and SE Saskatchewan core areas.

• 2026 production guidance: 23,000 boepd (88% liquids); forecasted AFF of $265 million and FCF of $95 million at US$65 WTI.

• Annual dividend of $51.5 million ($0.52/share), representing less than 20% of forecasted AFF.

• Majority of excess FCF in 2026 to be allocated to net debt reduction and share repurchases.