MEG Energy Corp T.MEG

Alternate Symbol(s): MEGEF

Energy Oil & Gas E&P

MEG Energy Corp. is a Canada-based energy company focused on sustainable in-situ thermal oil production in the southern Athabasca region of Alberta, Canada. The Company is engaged in the development of enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the responsible economic recovery of oil, as well as lower carbon emissions. It transports and sells thermal oil (AWB) to customers throughout North America and internationally. The Company owns a 100% interest in over 410 square miles of mineral leases in the southern Athabasca oil region of Alberta, Canada and is primarily engaged in sustainable in situ thermal oil production at its Christina Lake Project. Christina Lake Project is a multi-phased project, located 150 kilometers south of Fort McMurray in northeast Alberta. It comprised of approximately 200 square kilometers of leases.

TSX:MEG - Post by User

MEG Energy Corp

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Comment by wallop13on Apr 15, 2016 1:04pm

44 Views

Post# 24771845

RE:RE:RE:RE:meg's future

wallop13 wrote: So what multiple are you using for your valuation (3x 5x 10x 20x)? And what do you project the CFPS to be at $60? I'm going to look now to see what I think it will be.

Okay, so here's what I think.

I think 8X P/CF is fair given MEG's long life, growth prospects, location and ability to reduce costs. I think cash flow will be 500 million at $60 WTI. 500 million with a P/CF ratio of 8x gives us a share price of $17.78. That figure is based on no major cost reductions (energy east, technology advancements) that will come with time.

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