Surge Energy stock is rising: Is SGY a buy?

3 min read | August 20, 2021 12:28 PM EDT | By Shreya Biswas

Surge Energy stock is rising: Is SGY a buy? — Image source: Mark Hall,Shutterstock

Surge Energy-Astra Oil Deal

On Wednesday, August 18, Surge Energy said that it has purchased Astra Oil in an all-stock deal that was valued at C$ 160 million, which is said to have included C$ 13.5 million in debt.

With Astra’s assets being mainly situated in the southeastern part Saskatchewan, reports have noted that this could mean Surge Energy’s re-entry in the province’s market.

The merged entity will include a total of about 850 net development drilling sites, Surge Energy pointed.

Also read: Petroteq Energy (TSXV:PQE): Why is this oil & gas company trending?

Surge Energy Inc (TSX:SGY) stock and financial performance

Stocks of Surge Energy have grown by more than 40 per cent in the past one year. Although the oil stock notes a decline of nearly 13 per cent for the last six months, it has surged by about 47 per cent this year.

SGY scrip is up by almost 210 per cent from its 52-week low of C$ 1.21, which was recorded on October 20, 2020.

Surge Energy records a low price-to-earnings (P/E) ratio of 5.9, for which it is ranked among the top ‘undervalued’ stocks on the Toronto Stock Exchange (TSX).

On the financial front, the oil company posted a petroleum and natural gas revenue of C$ 58.74 per barrel of oil equivalent (BOE) in the second quarter of 2021. This noted an increase of 200 per cent year-over-year (YoY) from that of C$ 19.58 per BOE in Q2 2020.

Bottomline

Surge Energy has noted the purchase of Astra Oil is in line with its business plan of acquiring “high quality, light and medium gravity crude oil reservoirs”.

Investors interested in SGY stock could explore it further and take an investment call based on thorough research.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.