Surge Energy America Achieves Industry-Leading Balance Sheet Milestones with Less Than 0.2x Net Leverage and $1.5 Billion Liquidity

HOUSTON, Oct. 31, 2025 /PRNewswire/ -- Surge Energy US Holdings Company ("Surge Energy" or the "Company") today announced a significant financial milestone, underscoring its position as one of the most disciplined and resilient private operators in the industry. As of September 30, 2025, the Company reported approximately $1.5 billion in liquidity and less than 0.2x net leverage ratio, providing an industry-leading balance sheet that enables counter-cyclical investment and disciplined long-term growth.

"Our financial strategy has been consistent which is to generate strong cash flow, maintain capital discipline, and preserve financial strength," said Chief Financial Officer Travis Guidry. "With minimal net debt and substantial liquidity, we are positioned not only to weather commodity cycles but to invest opportunistically in bolt-ons, farm-ins, and infrastructure when conditions are most attractive. This balance sheet strength is a direct result of our team's innovation and operational excellence which has led to many accomplishments including lease operating expenses including workover under $5 per barrel of oil equivalent since 2019 and drilling and completing over 650 horizontal wells in the Midland Basin with 100% success."

"Our people have built this company from the ground up over the past decade, and today's milestone reflects both their hard work and long-term vision," added Chief Executive Officer Linhua Guan. "By combining financial strength with operational excellence, Surge is uniquely positioned to deliver sustainable value while continuing to grow responsibly in one of the most competitive basins in the world."

Net leverage ratio is defined as total gross debt less balance sheet cash divided by trailing twelve months adjusted earnings before interest, depreciation, depletion, amortization, and exploration expenses. Liquidity is defined as balance sheet cash plus availability on the Company's revolving credit facility. 

About Surge Energy

Surge Energy is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and currently holds approximately 180,000 net acres in the Permian Basin as of September 9, 2025. For more information, visit our website at www.SurgeEnergyA.com.

Investor Relations
Email: InvestorRelations@SurgeEnergyA.com
Phone: 832-333-2400

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SOURCE Surge Energy