/biz/ - Business & Finance

>>55180525
Surge apparently doesn't have a very encouraging history from a shareholder's perspective. WTI Realist absolutely demolished Surge in a recent article and even posted the full article on ceo.ca.
https://cdn-ceo-ca.s3.amazonaws.com/1i680dj-Surge+Energy+Old+Dogs+New+Tricks.pdf
TL;DR the company tends to focus on short term stuff while ignoring long term. They make acquisitions to get quick adds to boe/d but tend to ignore developing those acquired assets and leave them to decline on their own. They pay out dividends that become unsustainable and their wells in the key areas they focus on are very leveraged to oil prices. After reading the article I had to conclude it's probably not a stock I want to own.

>>55147948
I don't have any info on stuff like sand prices or markets, or tubing or anything like that. I suppose you could look at the area-specific rig counts and extrapolate that there is probably more fracking/OFS demand in those areas, aka Permian and Eagle Ford. Although Eagle Ford apparently is a more swingy play so maybe focusing on Permian is better. Canadian shale is also a big consumer and I would wager production growth over there will happen more over time, but at a slower rate because of the limited and "artificially" suppressed infrastructure growth. Canada has so much fucking gas and loads of oil too but lack of market access and slow permitting of pipelines and power plants and whatnot has made the growth in production slow and steady which I actually like. In the US there will still be some production growth but it seems to be plateauing

Canadian plays are better, lower breakevens, but also much less oil relative to gas production. It's like 90% liquids in the US shale while in Western Canada Sedimentary Basin there are three zones: dry gas, wet gas, and oil. NE B.C. is more gas weighted generally and Alberta is more liquids weighted. I don't remember exactly but I think the oil area in WCSB is like 60% liquids. But yeah as seen in the chart at >>55146957 Canadian plays have lower breakevens. They also have lower decline rates so they pay out better in the long run. This is why I like Canadian natty producers like Tourmaline. Shubham Garg has good educational videos on this stuff like this here https://youtu.be/6a4e4QB1B18 if you're interested in learning, very long videos and densely packed with info. I also follow WTI realist, brilliant guy and 2/3 of the paywall articles are readable for free: https://wtirealist.substack.com/