Surge Energy Inc. · TSX:SGY
Surge Energy — Investor Presentation (November 2026)
28 slides from Surge Energy's investor presentation, November 2026
Slide 1: Premium Oil Assets Driving Free Cash Flow and Shareholder Returns
TSX: SGY OTCQX: SGYEF Premium Oil Assets Driving Free Cash Flow and Shareholder Returns CORPORATE PRESENTATION Fall 2026
Slide 2: The Surge Value Proposition
The Surge Value Proposition High quality assets and strategic capital allocation maximize shareholder value and returns $$$ + + = High Quality Disciplined Capital Proven Management Maximize Free Cash Flow Conventional Assets Allocation and Board and Shareholder Returns • Light/medium oil asset base
Slide 3: Proven Business Strategy
Proven Business Strategy Focused on sustainable returns and enhancing free cash flow Surge executes on a simple, DISCIPLINED repeatable business strategy: CAPITAL ALLOCATION Undertake low cost, low risk • Develop high quality conventional oil projects that support sustainability reservoirs with prov
Slide 4: Recent Highlights
Recent Highlights On November 4th, Surge released its 2027 capital and operating budget, notably: • Increasing production guidance by another 1,000 boepd to 25,000 boepd (90% liquids) exit 2027; • Expanding its capital program to $210 million, including $25 million allocated to waterflood developmen
Slide 5: Corporate Guidance for 2027
Corporate Guidance for 2027 Key Guidance & Assumptions1,6 $75 WTI $80 WTI $85 WTI 2027 Adjusted Funds Flow2 $335 MM $370 MM $405 MM Focused on balanced 2027 Cash Flow From Operating Activities3 $320 MM $355 MM $390 MM returns and enhancing 2027 Free Cash Flow2 $110 MM $145 MM $180 MM 2027 Free Cash
Slide 6: Maximizing Free Cash Flow
Maximizing Free Cash Flow1 Surge’s shareholder returns-based business model focuses on generating excess FCF1 In recent years, the oil and gas industry has Free Cash Flow and Oil Price increasingly focused on FCF as a key metric $160 MM $90 (and risk-assessment tool) in evaluating a US$80.00 US$80.0
Slide 7: NAV Sensitivity to Rising Oil Prices
NAV Sensitivity to Rising Oil Prices 90% liquids-weighted portfolio positions Surge for significant oil price upside YE2025 NAV Per Share Sensitivity To Oil Prices $25.00 $22.44 $19.99 $20.00 $17.10 $15.19 $15.00 $14.33 $13.06 $13.14 $11.04 $10.00 $8.92 $7.62 $5.00 $0.00 YE 2025 Reserve Report (~$65
Slide 8: Attractive Dividend: Low Payout Ratio
Attractive Dividend: Low Payout Ratio Surge’s $0.55 per share annual base cash dividend is accompanied by a low dividend payout ratio of 15% of forecasted 2027 cash flow Q3/26 Dividend Payout Surge has increased its base cash dividend three times over the past four years (31% in total) AND maintaine
Slide 9: Compelling Opportunity For Energy Investors
Energy will continue to offer investors an attractive value Compelling proposition in 2027 and beyond Opportunity For Oil and Gas Demand Do Not Peak Energy Investors Current While global oil demand is at an all-time high, global crude inventories remain near the lowest levels on record since at leas
Slide 10: Spotlight: Sparky and SE Saskatchewan
Spotlight: Sparky and SE Saskatchewan Surge offers exposure to three of the top four conventional oil growth plays in Canada
Slide 11: Advantages Of Conventional Reservoirs
Advantages Of Conventional reservoirs offer lower risk, predictable, repeatable development with Conventional opportunity to improve recovery factors Reservoirs Surge proactively targets low risk conventional reservoirs and currently has >3 billion barrels of net OOIP with a 6.5% recovery factor (cu
Slide 12: Core Area Focused
Core Area Focused Sparky and SE Saskatchewan provide exceptional economics and a depth of drilling inventory Sparky SE Saskatchewan Light/medium crude oil production with compelling Highly focused, operated asset base with excellent light returns. Low on-stream costs with extensive drilling oil oper
Slide 13: A One-of-a-Kind Position
Sparky/Mannville >11 Billion Barrel Trend One of Canada’s Largest Accumulations of Oil A One-of-a-Kind Position Alberta Lloydminster Surge holds a dominant land position and is drilling Edmonton a mix of horizontal multi-frac and open hole multi- ~60km Hope Valley lateral (OHML) horizontal wells in
Slide 14: Sparky Long-Term Growth Potential
Sparky Long-Term Growth Potential Pad drilling, advanced horizontal multi-stage fracturing technology, and multi-lateral horizontal success have unlocked the potential of the Sparky play Sparky Core Area Production Growth ~15,000 boepd >1.5 billion OOIP net to SGY bbls (internally estimated) Primary
Slide 15: A Light Oil Balance
Production/Support Mix SE Saskatchewan Production % of Total (boepd) Production Aquifer 4,750 60 High Recovery Factor A Light Oil Balance Waterflood 2,100 26 Low Decline Primary 1,150 14 Small % of Total Prod Total 8,000 100 Surge’s operational track record of success in SE Surge Land Saskatchewan m
Slide 16: SE Saskatchewan Key Growth Driver
SE Saskatchewan Key Growth Driver High operating netback1 light oil production and reserves from low risk, proven conventional reservoirs >600 million bbls OOIP net to SGY (internally estimated) SE Saskatchewan Frobisher Average IP90 By Operator (2022 – 2026) Surge's average IP90 rate for the 99 Fro
Slide 17: Analyst Coverage
Analyst Coverage SGY 12-Month Financial Institution Analyst Email Address Target Price Acumen Capital Partners Trevor Reynolds [email protected] $15.50 ATB Cormark Capital Markets Amir Arif [email protected] $16.00 BMO Capital Markets Jeremy McCrea [email protected] $14.00 Canaccord Genuit
Slide 18: Leadership
Leadership Paul Colborne Jared Ducs Murray Bye Derek Christie Margaret Elekes President and CEO Chief Financial Officer Chief Operating Officer Senior Vice President, Senior Vice President, Exploration Land and Business Development Dan Kelly Grant Cutforth Vice President, Finance Vice President, Bus
Slide 19: Board of Directors
Board of Directors Paul Colborne Daryl H. Gilbert 3,4 Allison Maher 4,5 President & CEO Independent Director Independent Director Jim Pasieka1 Michelle Gramatke2,5 Board Committees Chairman Independent Director 1. Chair of the Board 2. Member of the Compensation, Nominating and Corporate Governance
Slide 20: Appendix
Appendix
Slide 21: 2025 Reserves and Net Asset Value
2025 Reserves and Net Asset Value Dec. 31, 2025 GLJ Reserves @ US$75 WTI flat pricing Oil Equivalent Oil & Liquids BTax NPV10 Gross Reserves1 Total Reserves (Mboe) (%) ($MM)2,3 Proved Developed Producing (PDP) 40,374 90% $846 Total Proved (1P) (282 net locations) 69,758 90% $1,315 Total Proved Plus
Slide 22: Significant Liquidity
Significant Liquidity Debt structure supports return of capital framework Surge’s current drawn debt has long-dated maturities, termed out through late 2028 and 2029, with attractive interest rates. Debt Composition ($MM) Debt Maturity Schedule $51 $200 $Millions $175 $160 $175 $250 $120 $48 $80 $40
Slide 23: Hedging Program
Hedging Program Minimizing the impact of volatility in global markets and crude oil pricing Crude Oil Derivative Contracts Natural Gas Derivative Contracts WTI: Swaps WTI: 3 Way WCS: Swaps MSW: Swaps Avg. Swaps Avg. Avg. Sold Bought Avg. Sold Avg. Period Volumes Price Volumes Put Put Call Volumes Pr
Slide 24: Advisories - Forward-Looking Statements
Advisories - Forward-Looking Statements This presentation contains forward-looking statements. The use of and exchange rates; the availability of labour, services and drilling equipment; the availability of such governments, including the introduction of regulatory barriers to trade and the potentia
Slide 25: Advisories - Oil and Gas Advisories
Advisories - Oil and Gas Advisories The term “boe” means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of unbooked locations. Of the 143 net booked locations identified herein, 115 net are Proved Drilling Inventory natural gas. Boe may be misleading, particularly if used in isol
Slide 26: Advisories - Non-GAAP & Other Financial Measures
Advisories - Non-GAAP & Other Financial Measures This presentation includes references to non-GAAP and other financial measures used by the Adjusted Funds Flow & Adjusted Funds Flow Per Share Free Cash Flow, Excess Free Cash Flow, Free Cash Flow Yield, & Free Company to evaluate its financial perfor
Slide 27: Advisories - Non-GAAP & Other Financial Measures
Advisories - Non-GAAP & Other Financial Measures Net Debt Net Operating Expenses & Net Operating Expenses per boe Operating Netback, Operating Netback per boe, & Adjusted Funds Flow per boe Net debt is a capital management measure, calculated as current assets, less bank debt, Net operating expenses
Slide 28: Corporate Information
Corporate Information TSX First Lien Lending Syndicate SGY.TO National Bank of Canada ATB Financial BDC Capital BMO Financial Group Scotiabank Auditor Registrar & Transfer Agent KPMG LLP Odyssey Trust Surge Energy Centennial Place, East Tower Legal Counsel Investor Contacts 1200 - 520 3rd Ave SW Cal