Shares in Senex Energy Ltd (ASX: SXY) are lifting on Thursday, up 4.7% to $3.55 per share at the time of writing.
Today's Senex share price surge comes after the company released its FY2021 annual report to the market punctuated by increased reserves and strong free cash flow generation prospects.
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Why is the Senex share price surging on Thursday?
Senex this morning provided its annual report for the year ended 30 June 2021. The energy group had already released its full-year results and FY2022 outlook on 19 August.
However, today's report, combined with rising energy demand, has helped boost the Senex share price higher on Thursday.
The Aussie natural gas producer doubled production levels and tripled its earnings before interest, tax, depreciation and amortisation (EBITDA) in FY2021.
The group also upped its 2P and 3P reserves during the year. Senex boasted 2P reserves of 767 pentajoules (PJ) and 3P reserves of 1,016 PJ as at year-end. That, alongside a bolstered balance sheet on the back of its Cooper Basin business sale, has helped strengthen Senex's position going into FY2022.
The Aussie energy group had previously announced a full-year dividend of 5 cents per share, bringing the total FY21 dividend to 13 cents per share (inclusive of a 4 cents per share special dividend).
Investors appear pleased with this morning's annual report release with the Senex share price climbing higher. Shares in the gas producer are outpacing the S&P/ASX 200 Index (ASX: XJO) which is up more than 1% at the time of writing.
Senex also used its annual report release to highlight its commitment to sustainability and a low carbon future. The group is targeting a "low-cost, low-carbon, high-return business with a long-life asset base and high growth trajectory".
Investors look to be buying into the company's vision and strong FY2021 showing with the Senex share price now up more than 40% year to date.
