Q1 2014 results are out - production increased 56% ... and record numbers in every key metric - here's the full meal deal
- Achieved a record first quarter average production rate of 15,024 boe per day, an increase of 56 percent from 9,636 boe per day in the same period of 2013. This excellent growth in production was achieved despite extremely harsh cold winter conditions in Alberta and Saskatchewan for January and February, which caused downtime to Surge of more than 650 boepd of net production for the quarter.
- Funds from operations increased 109 percent to a record $53.8 million in the first quarter of 2014 as compared to the same period in 2013.
- Achieved records for both operating and corporate netback in the first quarter of 2014. Surge's corporate netback increased 49 percent to $44.82 per boe in the first quarter of 2014 from $30.10 per boe in the first quarter of 2013.
- Increased Surge's oil and natural gas liquids production weighting by 18 percent to 84 percent in the first quarter of 2014 from 71 percent in the first quarter of 2013.
- Approximately 93 percent of Surge's revenue resulted from oil and natural gas liquids production in the first quarter of 2014.
- Reduced G&A per boe by 33 percent in the first quarter of 2014 as compared to the same period in 2013. Surge has had excellent results with respect to managing and reducing costs. The Company's G&A costs have dropped from over $3.50 per boe in the second quarter of 2013 to $2.15 per boe in the first quarter of 2014.
- Achieved a 100 percent success rate drilling 20 gross (13.96 net) wells.
- Completed an accretive acquisition that added approximately 1,250 boepd of high netback, long life, light and medium gravity crude oil production, strategically focussed in the Company's core area of SE Saskatchewan.
- Increased the Company's dividend by four percent from $0.52 per share per year ($0.04333 per share per month), to $0.54 per share per year ($0.045 per share per month).
- Announced a $429 million strategic business combination with Longview Oil Corp. ("Longview"). The proposed transaction is accretive to Surge on all metrics, and adds concentrated reserves, production, land, and operations that are contiguous with Surge's existing core areas in SE Saskatchewan and central Alberta.
- Announced that, upon the successful completion of the business combination with Longview, Surge plans to increase the Company's annual dividend 11 percent to $0.60 per share ($0.050 per share per month) from $0.54 per share per annum ($0.045 per share per month) currently.