Surge Energy Inc. · TSX:SGY
Surge Energy — Investor Presentation (May 2026)
29 slides from Surge Energy's investor presentation, May 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 Summer 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 Strong drilling and operational results continue to drive outperformance, highlighted by: • Achieving average production of 23,893 boepd (89% liquids) in Q1/26, exceeding budgeted 2026 production estimates of 23,000 boepd; • Generating adjusted funds flow (“AFF”)1 of $70.9 million
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: 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 increasingly focused on FCF Despite oil prices dropping significantly in 2025 (US$11 per bbl as a key metric (and risk-assessment tool) in evalu
Slide 7: Significant Exposure to Rising Oil Prices
Significant Exposure to Rising Oil Prices In 2026, Surge anticipates generating $145 million of Free Cash Flow1 at US$75 WTI pricing! 2026e Adjusted Funds Flow1 & Free Cash Flow Sensitivity $350 MM $195 MM 2026e AFF 2026e Capex 2026e FCF $170 MM $300 MM $145 MM Budget Pricing $120 MM $250 MM $95 MM
Slide 8: NAV Sensitivity to Rising Oil Prices
NAV Sensitivity to Rising Oil Prices 88% 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 9: Attractive Dividend: Low Payout Ratio
Attractive Dividend: Low Payout Ratio Surge’s $0.52 per share annual base cash dividend is accompanied by a low dividend payout ratio of 16% of forecasted 2026 cash flow Q1/26 Dividend Payout Surge has increased its base cash dividend TWICE over the past four years (23% in total) AND maintained a lo
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 – February 2026) Surge's average IP90 ra
Slide 18: Analyst Coverage
Analyst Coverage SGY 12-Month Financial Institution Analyst Email Address Target Price Acumen Capital Partners Trevor Reynolds treynolds@acumencapital.com $13.25 ATB Cormark Capital Markets Amir Arif aarif@atb.com $12.00 BMO Capital Markets Jeremy McCrea jeremy.mccrea@bmo.com $12.00 Canaccord Genuit
Slide 19: Leadership
Leadership Paul Colborne Jared Ducs Murray Bye Derek Christie Margaret Elekes President and CEO Chief Financial Officer Chief Operating Officer Senior Vice President, Senior Vice President, Exploration Land and Business Development Dan Kelly Grant Cutforth Vice President, Finance Vice President, Bus
Slide 20: Board of Directors
Board of Directors Paul Colborne Daryl H. Gilbert 3,4 Allison Maher 4,5 President & CEO Independent Director Independent Director Jim Pasieka1 Michelle Gramatke2,5 Board Committees Chairman Independent Director 1. Chair of the Board 2. Member of the Compensation, Nominating and Corporate Governance
Slide 21: Appendix
Appendix
Slide 22: 2025 Reserves and Net Asset Value
2025 Reserves and Net Asset Value Dec. 31, 2025 GLJ Reserves Oil Equivalent 1 Oil & Liquids BTax NPV10 Gross Reserves Total Reserves (%) ($MM)2,3 (Mboe) Proved Developed Producing (PDP) 37,961 90% $613 Total Proved (1P) (282 net locations) 67,068 90% $974 Total Proved Plus Probable (2P) (361 net loc
Slide 23: Significant Liquidity
Significant Liquidity Debt structure supports return of capital framework Surge’s current drawn debt has long-dated maturities, termed out through late 2028 and 2029, with attractive interest rates. Debt Composition ($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 expanded waterflood pilot in the greater Hope Valley area and anticipated update on its military action, terrorism, trade disputes, and international responses thereto); risks This presentation contains forward- OHML waterflood pilot; Surge’s 2026 capital prog
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 March 2026), without new drilling. GLJ’s 2025 year-end reserves have a PDP decline Assuming a January 1, 2026 reference date, the Company will have over >1,000 feet of natural gas.
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, & Free the Compan
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, & Adjusted Funds Flow per boe Net debt is a capital management measure calculated as bank debt, senior unsecured notes, Net operating expens
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