RE:I love megyou never know MEG could retest 7 or a little higher.
I'm not sure at this point, it all depends on oil prices into the new year.
as someone pointed out MEG has hedges in place in q4 and q1 -17 I think, which was a good thing from a protecting CF point of view and making free cashflow on every barrel, at some point hedges might hurt more than help, but from what I'm reading oil prices are capped once new production comes back online be it from North sea, or USA shale and even canadian oilsands are expected to grow as well.
where this new equilibrium is I'm not sure, I have heard discussions around 60 wti but that's all they are discussions and maybe some wishful thinking, no one knows.
Trump could also influence the market with renewed pressure on Iran who continues to play games and test nuclear experiments by importing heavy water.
a re-enstatement of oil exports quotas will greatly influencve oil prices at least in the short term.
more wars in middle east, more attacks in Nigeria, who really knows.
so right now MEG is a good bet but still has risk with higher debt levels, so can they lower debt now in advance of maturing debt in 2 years.
to be fully honest, I 'm still have a long position but I sold some out of money call options to make some money while we wait for the oil market to get balanced.
I'm a buyer if the price is right and I'll sell more calls if the price is right.
I wish we could get up-to-date short reports on Meg just to see how many closed their books at hopefully over 8 as they paniced.
GLTA