#Sustainability #USA #Houston #Financial Performance #Surge Energy

Surge Energy America Announces Strong 2025 Sustainability and Financial Performance

Surge Energy US Holdings Company, better known as Surge Energy, recently declared impressive achievements in both sustainability and financial performance for the year 2025. This independent oil and natural gas company, based in Houston, Texas, continues to set benchmarks in its operational efficiency while demonstrating a commitment to environmental responsibility.

Record-Breaking Operational Highlights

In 2025, Surge Energy achieved its highest-ever annual production level, reaching an astonishing 64,403 net barrels of oil equivalent per day. This signifies not only the effective management of its resources but also the capacity to meet rising energy demands while adhering to sound environmental practices.

Additionally, the company maintained top-tier lease operating expense unit costs, leading to elevated free cash flow and a reduction in net debt, which is immensely beneficial for shareholders and investors alike.

Sustainability Achievements

Surge Energy's dedication to sustainability is evident through its remarkable achievements over the past year. The company maintained zero employee recordable injuries for the fifth consecutive year, showcasing its commitment to worker safety. Notably, since the inception of its recycling program, Surge has successfully conserved over 7 billion gallons of fresh water. This conservation effort includes utilizing produced water for operational needs, thereby protecting vital water resources.

Moreover, the company has invested significantly in water infrastructure, which has yielded considerable environmental benefits; more than 4.2 million truck trips and over 124,000 metric tons of CO2e emissions have been eliminated through the use of water pipelines. The 2025 pipeline operations alone were responsible for alleviating over 19,000 metric tons of CO2e emissions, promoting cleaner operations.

In line with its sustainability strategy, Surge Energy also initiated a focused Plug and Abandonment (PA) program in 2023, targeting not just the reduction of inactive wells but also the minimization of associated environmental liabilities. To date, 104 wells have been successfully plugged and abandoned, decreasing the inactive well count by an impressive 91% in their Moss Creek asset.

Financial Milestones

From a financial perspective, the company's achievements in 2025 showcase robust performance metrics. With a trailblazing 0.2x leverage ratio at year-end, Surge Energy has attained industry-leading levels of financial stability. This accomplishment reflects prudent management practices and aligns with shareholders' expectations for a thriving business.

The continuation of free cash flow generation, marking the sixth consecutive year, has resulted in a cash balance of $590 million alongside a reduction in net debt down to $160 million by the end of 2025. These financial results underscore Surge Energy's resilience and robust operational framework, enabling the company to adapt to market dynamics effectively.

A Message from Leadership

In the words of CEO Linhua Guan, "The Company had another record-breaking year in 2025 and continued to deliver impressive financial and operational results in a responsible manner. I am proud of what the Surge team of over 200 Texans has achieved in 2025 and look forward to our continued responsible growth in our second decade as a company." This sentiment echoes the overall ethos at Surge Energy, where commitment to excellence meets dedication to sustainability.

About Surge Energy

Surge Energy is dedicated to the sustainable development, exploitation, and production of oil and natural gas reserves, primarily located in the Midland Basin of West Texas. As of December 31, 2025, the company holds approximately 180,000 net acres in the Permian Basin, illustrating its strategic positioning for future growth. For more information regarding Surge Energy's initiatives and performance, visit www.SurgeEnergyA.com.