Paul Colborne, President and CEO, of Surge Energy Inc. (TSX: SGY) (OTCQX: SGYEF), joins us to for a comprehensive overview of the value proposition in this leading intermediate Canadian public oil company that produces ~24,000 boepd (89% light and medium gravity conventional crude oil). Surge has a dominant operational position in two core areas in some of the most economic oil plays in North America. Its Sparky and SE Saskatchewan premium, low risk, conventional oil assets possess large reservoirs, low recovery factors, high netbacks, quick well payouts, and a significant 12+ year development drilling inventory. As a result of continued successful drilling and waterflood results, on June 1, 2026 the Company upwardly revised its 2026 capital budget and production guidance. Surge's 2026 exit production guidance increased from 23,000 boepd to 24,000 boepd, and 2026 average production guidance increased from 23,000 boepd to 23,375 boepd. Budgeted capital expenditures for 2026 are now estimated to be $175 million, as compared to Surge's original capital guidance of $150 million, with $16 million of the incremental capital being allocated to additional drilling, and the remaining $9 million being directed towards accelerating Surge's waterflood programs, primarily focused in the Sparky core area. During Q2/26, Surge generated adjusted funds flow ("AFF")1 of $91.5 million ($0.92 per share), and cash flow from operating activities of $95.3 million ($0.95 per share). This represents an increase of 26 percent in AFF, as compared to Q2/25 AFF of $72.8 million, and a 69 percent increase in cash flow from operating activities, as compared to $56.3 million in Q2/25. During Q2/26, the Company spent $32.8 million on property, plant, and equipment expenditures. On this basis, Surge generated $58.7 million in free cash flow ("FCF")1 in the second quarter, representing 64 percent of Q2/26 AFF. With the Company's longer-term primary corporate goals of maximizing FCF, enhancing shareholder returns, and reducing net debt, Surge's Board and Management allocated Q2/26 FCF to the following initiatives: $12.9 million to the Company's monthly cash dividend ($0.52 per share, per annum); $15.0 million towards share buybacks under Surge's Normal Course Issuer Bid ("NCIB"), repurchasing 1,564,300 shares; $16.7 million reduction in net debt, reducing net debt by 8 percent during the quarter, from $213.3 million as at March 31, 2026, to $196.6 million as at June 30, 2026; and $10.8 million of FCF was allocated to the strategic acquisition of the Hansman Lake gas plant, centrally located in the Sparky core area, which was previously leased by the Company. The Hansman Lake plant has 14 mmcf/d of capacity and controls a significant portion of the gas produced by both Surge and third parties in the Provost/Cadogan area. This acquisition of a 100 percent owned and operated gas plant in this core operating area is expected to increase Surge's FCF by an estimated $4.6 million annually, beginning in Q3/26. Surge's Q2/26 drilling program consisted of 12 gross (11.5 net) wells drilled during the quarter, comprised of the following: 4 gross (4.0 net) producing wells drilled in Sparky; 5 gross (5.0 net) dedicated injectors drilled in Sparky; and 3 gross (2.5 net) producing wells drilled in SE Saskatchewan. Due to wet spring weather, only 4 of the producing wells were brought on production late in Q2/26, with the remaining wells being brought on production in Q3/26. Paul then takes us through a high level review of their company strategy on returning capital to shareholders, their growth wedge, their hedging strategy, and key value drivers on tap for the balance of this year and looking out many years into the future. If you have any questions for Paul regarding Surge Energy then please email those into us at Fleck@kereport.com or Shad@kereport.com. Click here to follow the latest news from Surge Energy For more market commentary & interview summaries, subscribe to our Substacks: The KE Report: https://kereport.substack.com/ Shad’s resource market commentary: https://excelsiorprosperity.substack.com/ Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.