RE:RE:Over You couldnt be more wrong.. no doubt there's a lot of uncertainty at the moment and MEG moves on larger swings than other O&G due to many factors. But I think we need to remember a few things:
- MEG has bought down substantial debt, completely different company than it was a year ago
- MEG has purchased back close to 8% of its share pool this year
- Completely unhedged going into 2023
- WCS differentials will get better as SPR releases stop
- even at $70 oil, MEG still produces an EPS of about $2/share which would put a very conservative value of $20/share
Will Oil drop below $70... maybe in the short term but even Biden has made clear that producers can be confident that $70 is a floor.
Then of course there are the multitude of geopolitical challenges that can send WTI right back into $80+ overnight. I think at current prices MEG is a steal of a deal and I wouldnt be surprised if another large cap started taking a position at these prices for a potential take over in the New Year. Is it worth selling your position now and potentially missing out on these catalysts... I certainly don't think so