Overview

* Surge Energy Q3 production averaged 23,622 boepd, exceeding Co's budget estimates

* Surge Energy decreased net debt by C$11.7 mln in Q3 2025

Outlook

* Surge Energy forecasts 2026 production at 23,000 boepd, 88% liquids

* Company anticipates 2026 free cash flow of C$95 mln at US$65 WTI

* Surge plans $150 mln in 2026 exploration and development expenditures

Result Drivers

* PRODUCTION OUTPERFORMANCE - Surge exceeded production targets due to successful drilling and waterflood operations in Sparky and SE Saskatchewan

* STRATEGIC ACQUISITIONS - Acquisition of Mannville lands added 25 drilling locations, enhancing future production potential

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Oil C$140.79

Sales mln

Q3 Net C$7.20

Income mln

Q3 Capex C$38.48

mln

Q3 Cash C$66.39

Flow mln

from

Operatin

g

Activiti

es

Q3 -C$17,69

Operatin 0

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Surge Energy Inc (Alberta) ( ZPTAF ) is C$9.00, about 26.8% above its November 5 closing price of C$6.59

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)