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Summary

  • Three insiders have purchased Surge Energy stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • Two of these three insiders increased their holdings by more than 10%.

Surge Energy (OTCPK:ZPTAF) explores for, develops, produces, and markets petroleum and natural gas reserves primarily in Western Canada.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Surge Energy's insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Paul ColborneDirectorApril 10-17385,0002,329,147 shares+19.8%
Robert LeachDirectorApril 1750,000251,058 shares+24.9%
Maxwell LofCFOApril 162826,806 shares+4.3%

There have been 435,282 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Surge Energy's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 2014435,2820
March 201400
February 2014130,0000
January 201400
December 2013050,000
November 2013020,472
October 201300
September 201300
August 201300
July 2013240,3900
June 2013702,2800
May 201300
April 201300
March 201300
February 201300
January 2013310,5000

There have been 1,818,452 shares purchased, and there have been 70,472 shares sold by insiders since January 2013.

Financials

Surge Energy reported the full-year 2013 financial results on March 20 with the following highlights:

RevenueC$271.9 million
Funds from operations [FFO]C$133.2 million
Net lossC$9.9 million
Net debtC$305.3 million
Oil production10,769 boe/d

The three insiders purchased their shares after these results.

Outlook

Surge Energy's 2014 guidance is as follows:

Production16,125 boe/d
FFOC$246 million
DividendC$96 million

Competition

Surge Energy's competitors include Raging River Exploration (OTC:RRENF) and Bonavista Energy Corporation (OTCPK:BNPUF). Here is a table comparing these companies.

CompanyZPTAFRRENFBNPUF
Market Cap:1.15B1.48B3.15B
Qtrly Rev Growth (yoy):0.500.770.11
Revenue:226.51M163.24M855.90M
EBITDA:125.39M118.48M470.11M
Operating Margin:-0.060.270.12
Net Income:-10.08M44.24M50.45M
EPS:-0.100.270.26
P/E:N/A31.2861.45
P/S:4.989.063.62
P/B:1.203.661.33
Dividend Yield:7.8%0.0%4.9%

Surge Energy has the highest dividend yield among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
RRENF0208,800
BNPUF01,655,374

Only Surge Energy has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Surge Energy, and there have not been any insiders selling Surge Energy during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

(click to enlarge)

(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $6.22 (C$6.84) to $6.40 (C$7.04). I believe Surge Energy could be a good pick below $6.40 based on the intensive insider buying.

(click to enlarge)

(Source: Investor presentation)

Source: Surge Energy: 3 Different Insiders Have Purchased Shares This Month