EPS of $0.15 missed estimates of $0.1733 and revenues of $152.66M missed estimates of $158.8M. SGY delivered an increase in production of more than 22% over the prior year, and despite a drop in the price of oil, Surge's cash flow from operations increased by 4%. Management noted for its outlook it intends to continue to pay down debts, conduct share buybacks, and the possibility of a special dividend. The results were OK, it has traded sideways for roughly a year, but it is paying a ~6.0% dividend. Like most oil and gas stocks right now, it is trading at a cheap valuation, paying a good dividend, and has a strong balance sheet. We like the company's potential for a special dividend, and it is well-capitalized. If an investor has a positive outlook on the price of oil, we would be comfortable buying here.
5i Research Answer: