MEG Energy Corp MEGEF

Disappointing

[jleer42]

They are talking about debt reduction, but are focusing on year-over-year. Net debt reduction for the quarter is $6 million USD or $8 million CAD.
 

Shares outstanding decreased by 2.5 million. 4.9 million shares were repurchased, but 2.5 million were issued for stock options and vesting RSU and PSU’s
 

Production was down about 4% compared to Q4
 

I wasn’t expecting gangbusters, but this is very disappointing. I need to dig into capital projects and turnarounds to see what I might be missing, but at first glance blah…

 

[Moemoney42]

Agreed I'm not really impressed, but shouldn't one look at 'Long Term Debt" for the full picture as opposed to "net Debt" Long term has gone from $1.581 billion down to $1.466 billion = $115 million lower. I've never been a big fan of share buybacks and the shell game that's played stock options.. I say give me a divi instead.. :-/

[jleer42]

I think it is most important to understand the total debt picture, as its different constituents have different implications.  Net debt looks at non-current debt (long-term), current debt, cash, and cash equivalents. Here long-term decreased by $112 million and short-term debt by $3 million. Those are the numbers they provide which don't match the debt repayment of $117 they also

[ztransforms173]

Debt went down because they spent $107 million they had on hand at the end of 2022. Almost all of the debt decrease had nothing to do with Q1 operations. By focusing on long-term debt they ignore the fact that it wasn't due to Q1 operations. At best they are cherry picking stats to look good. Seriously, which financials did you look at ? Adjusted funds flow (“AFF”) of $274 million, or

[PabloLafortune]

Most of the difference vs Q1 2022 is because of WTI and WCS differential (US$51 vs US$80 I guess).  Also, do they buy condensate ahead of when they ship the bitumen? Because if they do, that would have a negative impact on the bottom line as WTI goes down and a positive one as WTI goes up.