Post by
ztransforms173 on May 31, 2023 4:04pm
MEG Expects To Pay A Staggering 20+% Royalty Rate in Q2/2023
- POST-PAYOUT is expected to be triggered this quarter (Q2/2023)
- in the May 2023 Investor Presentation, they guided a 25% royalty rate on the following assumptions:
* WTI: USD 80/bbl.
* WTI/AWB Price Differential at Edmonton: USD 18.50/bbl.
* F/X: USD = 1.32 C$ {.7576}
- presently:
** WTI: ~ USD 68/bbl.
** WTI/WCS Price Differential at Edmonton: USD 13.90/bbl. [ 5/30/2023 July 2023 contract close]
** F/X USD 0.7372 = 1 C$
- that is a lot of previous FREE CASH FLOW going to the Alberta Treasury coffers
z173
Comment by
Fuzman5902 on Jun 01, 2023 4:29pm
Yes it is & hopefully it's going to get worse, not as if we didn't know this was coming.
Comment by
Olliethegoalie on Jun 02, 2023 7:41am
Who do they pay the Royalties to?
Comment by
jleer42 on Jun 02, 2023 9:49am
The government. Easiest to think of it as a tax. They start at a flat rate - I think 5% - once the well recovers its costs the rate will go up. Post pay-out there is a sliding scale with royalties of 10% - 40%. I'm not a royalty expert, so the above may not be exact, but the general idea is correct.
Comment by
wkrpradio on Jun 06, 2023 8:09pm
It's only fair since AB suffered many lean years since the last energy boom.