Surge Energy Inc. · TSX:SGY
Surge Energy — Investor Presentation (March 2026)
29 slides from Surge Energy's investor presentation, March 2026
Slide 1: Premium Oil Assets Driving Free Cash Flow and Shareholder Returns
TSX: SGY Premium Oil Assets Driving Free Cash Flow and Shareholder Returns CORPORATE PRESENTATION Spring 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: 2025 Highlights
2025 Highlights Surge continued to outperform budgeted estimates throughout 2025, highlighted by: • Achieving average production of 23,491 boepd (88% liquids), more than 1,000 boepd higher than initial 2025 production guidance of 22,500 boepd; • Generating adjusted funds flow (“AFF”)1 of $279.2 mill
Slide 5: Corporate Guidance for 2026
Corporate Guidance for 2026 Key Guidance & Assumptions1 US$65 WTI6 US$75 WTI6 US$85 WTI6 2026 Adjusted Funds Flow2 $265 MM $315 MM $365 MM Focused on returns and 2026 Cash Flow From Operating Activities3 $245 MM $295 MM $345 MM enhancing free cash 2026 Free Cash Flow2 $95 MM $145 MM $195 MM flow whi
Slide 6: Return of Capital Framework
Return of Capital Framework Surge is well positioned to deliver returns to shareholders through its base dividend and excess free cash flow (FCF)1 2026 Guidance Cash Flow @ US$65 WTI: $245 MM Allocation of Excess FCF (After Base Dividend) 2026 Share Capital Budget Buybacks Share $150 MM Debt (up to
Slide 7: Attractive Dividend: Low Payout Ratio
Attractive Dividend: Low Payout Ratio Surge’s attractive $0.52 per share annual base cash dividend is accompanied by a low dividend payout ratio of less than 20% of forecasted 2026 cash flow. 2025 Dividend Payout Surge has increased its base cash dividend TWICE over the past three years (23% in tota
Slide 8: Compelling Opportunity For Energy Investors
Energy will continue to offer investors an attractive value Compelling proposition in 2026 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 9: Spotlight: Sparky and SE Saskatchewan
Spotlight: Sparky and SE Saskatchewan Surge offers exposure to three of the top five conventional oil growth plays in Canada
Slide 10: 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 11: 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 12: A One-of-a-Kind Position
Sparky Over 11 Billion Barrel Trend One of Canada’s Largest Accumulations of Oil A One-of-a-Kind Alberta Lloydminster Position Edmonton ~60km Hope Surge holds a dominant land position and is drilling Valley Saskatchewan a mix of horizontal multi-frac and open hole multi- lateral (OHML) horizontal w
Slide 13: 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 >14,000 boepd >1.5 billion OOIP net to SGY bbls (internally estimated) Primary
Slide 14: SE Saskatchewan: A Light Oil Balance
SE Saskatchewan A Light Oil Balance Surge’s operational track record of success in SE Saskatchewan Manitoba Surge Land Saskatchewan makes this an exciting growth area Midale Subcrop Frobisher Subcrop Alida Subcrop Area Benefits Ratcliffe Subcrop • Organic growth opportunities • Strategic acquisition
Slide 15: 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 (January 2022 – November 2025) Surge's average IP90 ra
Slide 16: Analyst Coverage
Analyst Coverage SGY 12-Month Financial Institution Analyst Email Address Target Price Acumen Capital Partners Trevor Reynolds treynolds@acumencapital.com $10.00 ATB Cormark Capital Markets Amir Arif aarif@atb.com $9.75 BMO Capital Markets Jeremy McCrea jeremy.mccrea@bmo.com $10.00 Canaccord Genuity
Slide 17: Leadership
Leadership Paul Colborne Jared Ducs Murray Bye Derek Christie Margaret Elekes President and CEO Chief Financial Officer Chief Operating Officer Senior Vice President, Senior Vice President, Exploration Land and Business Development Dan Kelly Grant Cutforth Vice President, Finance Vice President, Bus
Slide 18: Board of Directors
Board of Directors Paul Colborne Daryl H. Gilbert 3,4 Allison Maher 4,5 President & CEO Independent Director Independent Director Jim Pasieka1 Michelle Gramatke2,5 Board Committees Chairman Independent Director 1. Chair of the Board 2. Member of the Compensation, Nominating and Corporate Governance
Slide 19: Appendix
Appendix
Slide 20: 2025 Reserves and Net Asset Value
2025 Reserves and Net Asset Value Dec. 31, 2025 GLJ Reserves Oil Equivalent 1 Oil & Liquids BTax NPV10 Gross Reserves Total Reserves (%) ($MM)2,3 (Mboe) Proved Developed Producing (PDP) 37,961 90% $613 Total Proved (1P) (282 net locations) 67,068 90% $974 Total Proved Plus Probable (2P) (361 net loc
Slide 21: Sparky Core Area Reserves
Sparky Core Area Reserves Surge Dec 31, 2025 GLJ Sparky Core Area Reserves Oil Equivalent Net Booked Oil Gas NGL’s Total Reserves Oil & Liquids BTax NPV10 Gross Reserves Locations (Mbbl) (Mmcf) (Mbbl) (Mboe) (%) ($MM) Proved Developed Producing (PDP) n/a 18,281 17,495 324 21,521 87% $443 Total Prove
Slide 22: SE Saskatchewan Core Area Reserves
SE Saskatchewan Core Area Reserves Surge Dec 31, 2025 GLJ SE Sask/MB Area Reserves Oil Equivalent Net Booked Oil Gas NGL’s Total Reserves Oil & Liquids BTax NPV10 Gross Reserves Locations (Mbbl) (Mmcf) (Mbbl) (Mboe) (%) ($MM) Proved Developed Producing (PDP) n/a 9,969 2,972 440 10,904 95% $283 Total
Slide 23: Significant Liquidity
Significant Liquidity Debt structure supports return of capital framework Surge’s current drawn debt has long-dated maturities, termed out through late 2028 and 2029, with attractive interest rates. Debt Composition ($MM) Debt Maturity Schedule $200 $Millions $175 $160 $175 $250 $120 $48 $80 $40 $48
Slide 24: 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 25: Advisories - Forward-Looking Statements
Advisories - Forward-Looking Statements to execute an active drilling program at both the Sparky and SE Saskatchewan anticipated due to a number of factors and risks. These include, but are not This presentation contains forward- core areas during the first half of 2026 and the number of wells to be
Slide 26: 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 estimated average 2026 production (23,000 boepd). Assuming a January 1, 2026 reference date, the Company will have over >1,000 gross natural gas. Boe may be misleading, part
Slide 27: 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 and timing of decommissioning programs to achieve greater capital efficiencies and as Free Cash Flow, Excess Free Cash Flow, Free Cash Flow Yield, and the Company t
Slide 28: 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, and Adjusted Funds Flow per boe Net debt is a capital management measure calculated as bank debt, senior unsecured notes, Net operating expe
Slide 29: Corporate Information
Corporate Information TSX First Lien Lending Syndicate SGY.TO National Bank of Canada ATB Financial BDC Capital BMO Financial Group Auditor Registrar & Transfer Agent Surge Energy KPMG LLP Odyssey Trust Centennial Place, East Tower 1200 - 520 3rd Ave SW Legal Counsel Investor Contacts Calgary, AB T2