Surge Energy Reaches Remarkable Financial Milestone with $1.5B
Surge Energy Announces Major Financial Milestone
HOUSTON / -- Surge Energy US Holdings Company, commonly known as Surge Energy, has recently reached an impressive financial milestone that highlights its strong position in the private energy sector. With a reported liquidity of approximately $1.5 billion and a remarkably low net leverage ratio of less than 0.2x as of a recent reporting date, Surge Energy showcases an industry-leading balance sheet. This robust fiscal health not only positions Surge Energy favorably but also facilitates counter-cyclical investments and fosters disciplined long-term growth.
Strategic Financial Approach
The Chief Financial Officer, Travis Guidry, emphasized the company's unwavering financial strategy, which focuses on generating strong cash flows while maintaining strict capital discipline and robust financial integrity. "With minimal net debt and significant liquidity, we are well-prepared to navigate commodity cycles. We are also positioned to seize opportunities for strategic acquisitions, form impactful partnerships, and enhance our infrastructure when market conditions are most favorable," he noted.
Operational Achievements
Surge Energy's financial strength is a testament to its commitment to operational excellence and innovation. Under their management, the company has recorded various accomplishments, including maintaining lease operating expenses, including workovers, below $5 per barrel of oil equivalent since 2019. Furthermore, Surge Energy has successfully drilled and completed over 650 horizontal wells in the Midland Basin, achieving a remarkable 100% success rate.
Leadership's Vision
Chief Executive Officer Linhua Guan expressed pride in the team's achievements, stating, "The workforce has built this company from the ground up over the last decade, and this financial milestone reflects their hard work and strategic vision. By balancing our financial capabilities with operational excellence, Surge is not only poised to provide sustainable value but also to grow responsibly in one of the world’s most competitive oil basins.”
Understanding Net Leverage and Liquidity
In the finance world, net leverage ratio is a critical measurement. It is defined as total gross debt minus available balance sheet cash divided by the trailing twelve months’ adjusted earnings before accounting for interest, depreciation, depletion, amortization, and exploration expenses. Meanwhile, liquidity encompasses the sum of cash on hand and the available credit through the Company's revolving credit facility, indicating the firm’s capacity to manage unexpected financial needs.
About Surge Energy
Surge Energy is a notable independent oil and natural gas company, dedicated to the development, exploitation, production, and acquisition of oil and gas reserves specifically within the Midland Basin of West Texas. Headquartered in Houston, Texas, the company holds approximately 180,000 net acres in the Permian Basin as of a recent date. Surge Energy is resolute in its mission of fostering sustainable growth and operational excellence in the energy industry.
Frequently Asked Questions
What recent financial milestone has Surge Energy achieved?
Surge Energy has announced a significant financial milestone, reporting a liquidity of $1.5 billion and a net leverage ratio of less than 0.2x.
How does Surge Energy maintain its financial strength?
The company focuses on generating strong cash flow, capital discipline, and preserving financial strength to navigate market fluctuations.
What are some notable operational achievements by Surge Energy?
Surge Energy has successfully drilled and completed over 650 horizontal wells in the Midland Basin and maintained low lease operating expenses since 2019.
Who is the CEO of Surge Energy?
Linhua Guan is the Chief Executive Officer of Surge Energy and has overseen its significant growth over the past decade.
What is Surge Energy's focus in the energy market?
Surge Energy is focused on the development, exploitation, and acquisition of oil and natural gas reserves, primarily in the Midland Basin region.
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