Surge Energy (SGY) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 average production of 24,319 boepd (88% liquids), surpassing exit guidance; annual average production was 24,158 boepd (87% liquids).

• Over 90% of production now from Sparky and SE Saskatchewan core areas, following non-core asset divestitures.

• Strategic focus on high netback, low-cost, light and medium gravity crude oil reservoirs.

• Returned $61.2 million to shareholders in 2024 via dividends and share buybacks.

Financial highlights

• Q4 2024 adjusted funds flow (AFF) was $76.1 million, up 5% sequentially; annual AFF was $294.1 million, up 1% year-over-year.

• Q4 2024 cash flow from operating activities was $64.8 million; annual cash flow was $278.6 million, up 5% year-over-year.

• Free cash flow for 2024 was $99 million, representing 34% of AFF.

• Net debt reduced by 15% to $247.1 million at year-end 2024.

• Net income for 2024 was a loss of $53.7 million, including a non-cash impairment charge of $96.5 million.

• Q4 2024 oil sales were $158.4 million; total revenue for 2024 was $656.7 million.

Outlook and guidance

• 2025 average production guidance is 22,500 boepd (91% liquids), with current production exceeding this level.

• Estimated 2025 AFF of $275 million and cash flow from operating activities of $255 million.

• 2025 capital program includes drilling 65 net wells, all in Sparky and SE Saskatchewan core areas, with $170 million budgeted.

• Annual base dividend of $0.52 per share, representing 19% of forecasted 2025 AFF.

• Over 900 net internally estimated drilling locations, providing a 12-year inventory.