OTCPK:ZPTA.F

Stock Analysis Report

Executive Summary

Surge Energy Inc. engages in the exploration, development, and production of oil and gas in western Canada.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.

Share Price & News

How has Surge Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

OTCPK:ZPTA.F

2.1%

US Oil and Gas

2.1%

US Market


1 Year Return

-53.1%

OTCPK:ZPTA.F

-23.1%

US Oil and Gas

-0.04%

US Market

ZPTA.F underperformed the Oil and Gas industry which returned -22.7% over the past year.

ZPTA.F underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

ZPTA.FIndustryMarket
7 Day3.3%2.1%2.1%
30 Day-13.8%-8.8%-3.2%
90 Day-13.7%-7.5%2.8%
1 Year-49.8%-53.1%-20.3%-23.1%2.2%-0.04%
3 Year-46.7%-54.1%-6.6%-15.0%41.5%32.3%
5 Year-85.5%-89.3%-33.6%-42.6%55.0%37.8%

Price Volatility Vs. Market

How volatile is Surge Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Surge Energy undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Surge Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Surge Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Surge Energy is loss making, we can't compare its value to the US Oil and Gas industry average.

Surge Energy is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Surge Energy, we can't assess if its growth is good value.


Price Based on Value of Assets

Surge Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Surge Energy expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

77.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Surge Energy's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Surge Energy is not considered high growth as it is expected to be loss making for the next 1-3 years.

Surge Energy's revenue growth is expected to exceed the United States of America market average.

Unable to compare Surge Energy's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Surge Energy's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Surge Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Surge Energy performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Surge Energy does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Surge Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Surge Energy's 1-year growth to the US Oil and Gas industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Surge Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Surge Energy has efficiently used its assets last year compared to the US Oil and Gas industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Surge Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Surge Energy's financial position?


Financial Position Analysis

Surge Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Surge Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Surge Energy's level of debt (47.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (43.4% vs 47.2% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Surge Energy has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Surge Energy has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -94.8% per year.


Next Steps

Dividend

What is Surge Energy's current dividend yield, its reliability and sustainability?

8.85%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Surge Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Surge Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Surge Energy's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Surge Energy has been paying a dividend for less than 10 years.

Surge Energy has only been paying a dividend for 6 years, and since then dividends per share have fallen.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Surge Energy's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Paul Colborne (60yo)

6.3yrs

Tenure

CA$2,092,642

Compensation

Mr. Paul Colborne has been the President and Chief Executive Officer of Surge Energy Inc. since May 08, 2013 and has been Director since April 13, 2010. Mr. Colborne serves as the President at StarValley O ...


CEO Compensation Analysis

Paul's remuneration is about average for companies of similar size in United States of America.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.0yrs

Average Tenure

The average tenure for the Surge Energy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

64yo

Average Age

The tenure for the Surge Energy board of directors is about average.


Insider Trading

More shares have been bought than sold by Surge Energy individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$12,56720 Jun 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares14,427
Max PriceCA$0.87
BuyCA$4,66805 Jun 19
Murray Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$0.93
BuyCA$2,79731 May 19
Murray Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$0.93
BuyCA$14,79617 May 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares14,288
Max PriceCA$1.15
BuyCA$95,81717 Apr 19
Robert Leach
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares80,000
Max PriceCA$1.20
BuyCA$1,24522 Mar 19
Jared Ducs
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,200
Max PriceCA$1.04
BuyCA$31,13421 Mar 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares30,000
Max PriceCA$1.04
BuyCA$12,41420 Mar 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares11,907
Max PriceCA$1.04
BuyCA$15,18615 Mar 19
James Stannard
EntityIndividual
Shares15,000
Max PriceCA$1.01
BuyCA$20,06426 Feb 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares19,437
Max PriceCA$1.11
BuyCA$2,32725 Feb 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares2,441
Max PriceCA$0.95
BuyCA$4,45128 Jan 19
Peter O'Neil
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,600
Max PriceCA$0.97
BuyCA$2,31522 Jan 19
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares2,092
Max PriceCA$1.11
BuyCA$78,54609 Jan 19
James Pasieka
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares70,600
Max PriceCA$1.11
BuyCA$12,09020 Dec 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares10,800
Max PriceCA$1.12
BuyCA$5,29314 Dec 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$1.06
BuyCA$11,23806 Dec 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$1.12
BuyCA$30,69205 Dec 18
James Stannard
EntityIndividual
Shares25,000
Max PriceCA$1.23
BuyCA$20,06030 Nov 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares17,161
Max PriceCA$1.75
BuyCA$1,98021 Nov 18
Murray Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceCA$1.32
BuyCA$31,70720 Nov 18
James Stannard
EntityIndividual
Shares25,000
Max PriceCA$1.27
BuyCA$3,23919 Nov 18
Murray Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceCA$1.30
BuyCA$95,82722 Oct 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares53,695
Max PriceCA$1.96
BuyCA$1,75617 Oct 18
Jared Ducs
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceCA$1.76
BuyCA$114,54304 Oct 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares55,000
Max PriceCA$2.09
BuyCA$20,13427 Sep 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$2.01
SellCA$10,31726 Sep 18
Rod Monden
EntityIndividual
Role
Controller
Controller
Shares5,000
Max PriceCA$2.06
BuyCA$20,79025 Sep 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$2.08
BuyCA$38,08024 Sep 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.93
BuyCA$67,28920 Sep 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares35,488
Max PriceCA$1.93
BuyCA$18,03912 Sep 18
Keith MacDonald
EntityIndividual
Shares10,000
Max PriceCA$1.80
BuyCA$80,34612 Sep 18
Paul Colborne
EntityIndividual
Role
Chief Executive Officer
President
Shares45,000
Max PriceCA$1.88

Ownership Breakdown


Management Team

  • Paul Colborne (60yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CA$2.09m
  • Margaret Elekes

    Senior Vice President of Land & Business Development

    • Tenure: 1.0yrs
    • Compensation: CA$1.19m
  • Murray Bye

    Chief Operating Officer

    • Tenure: 1.0yrs
    • Compensation: CA$1.26m
  • Michael Bennett

    Corporate Secretary

    • Tenure: 0.0yrs
  • Rod Monden

    Controller

    • Tenure: 0.0yrs
    • Compensation: CA$564.84k
  • Jared Ducs

    Chief Financial Officer

    • Tenure: 1.0yrs
    • Compensation: CA$653.83k

Board Members

  • Paul Colborne (60yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CA$2.09m
  • Jim Pasieka (65yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: CA$158.00k
  • Dan O'Neil (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$127.50k
  • Rob Leach (59yo)

    Lead Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$133.00k
  • Daryl Gilbert (67yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: CA$123.50k
  • Murray Smith (69yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: CA$128.50k
  • Marion Burnyeat

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$100.00k
  • Michelle Gramatke

    Director

    • Tenure: 0.3yrs
  • Allison Maher

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$99.00k

Company Information

Surge Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surge Energy Inc.
  • Ticker: ZPTA.F
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$354.885m
  • Listing Market Cap: CA$266.761m
  • Shares outstanding: 314.06m
  • Website: https://www.surgeenergy.ca

Number of Employees


Location

  • Surge Energy Inc.
  • 635 – 8th Avenue SW
  • Suite 2100
  • Calgary
  • Alberta
  • T2P 3M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGYTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1998
41ZDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1998
ZPTA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1998

Biography

Surge Energy Inc. engages in the exploration, development, and production of oil and gas in western Canada. It holds interest in the Greater Sawn Lake assets located in Northern Alberta; Nipisi property lo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:18
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.