Surge Energy Inc. (TSX: SGY) announced today its 2022 budget guidance. The firm said it is maintaining its current production levels of 21,500 boepd for next year.
“Surge’s focus in 2022 continues to be on disciplined capital allocation, with cash flow strategically allocated between capital projects, net debt repayment, and a fundamental goal of reinstating the Company’s dividend and shareholder returns focused business model,” said the company in its statement.
Part of this strategy is maximizing cash flow, projecting a $255 million cash flow from operations and $131 million free cash flow in 2022. This further points the company to an estimated exit 2022 net debt to cash flow from operating activities at 0.75 times.
For its capital program, the firm is estimating $124 million in exploration and development expenditures for 2022. Further, 85% of this budget is said to be “focused in its two, top-tier core medium and light gravity conventional crude oil plays in the Sparky and SE Saskatchewan.”
Surge Energy last traded at $6.26 on the TSX.
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