RE:RE:RE:Q3 ResultsHightowntrader wrote: HighOctane89 wrote: The numbers look good on the quarter with production of 102,000 bpd and 66% of sales volume sold at the US gulf coast . Impressive FCF and that they hit their debt target over 6 weeks ago , that means MEG has and will operate the entire Q4 on a 50/50 split between buybacks and debt reduction . This quarter supports the takeover therory as buying MEG would be a simple bolt-on acquisition of 100,000 bpd production complete with pipeline access to US markets .
Nice to see you here HO.
I'm liking the news, but I keep wondering one thing... Why can't they release little tidbits of info to the public on a more regular basis, and stop making the public wait for quarterly news?
If it's a strategy to buy back more shares cheaper, it is definately working for them... Otherwise I think they should have dropped the 50/50 FCF news 6 weeks ago and let it give them a boost. Since the talk of a buyout has come up about MEG for years now, they should keep the share price as high as possible at all times.
I agree Httrader , this BOD doesn't talk any more than is required but they are producing results . The Canadian market seems totally unable to properly value this sector which I expect is due to a lack of expertise on O&G analysis combined with a misguided publicity and policy war on the industry . Biden is running out of SPR barrels , the US gov't has no clear direction , Russian embargo goes into effect Dec 5th ,TMX will be online in late 2023 and freezing temperatures are already present in western Canada and the northern plaines states . Sooner or later one of these events will spark some interest , its just a matter of what and when .
A lot of companies released results today , it will be interesting to see if MEG gets any press tomorrow . You'd think record production , solid earnings and debt reduction would rate a mention but we'll see . MEG sells over 50% of its production at US gulf coast prices due to its pipeline access and offsets currency debt adjustments with increased CDN$ revenue after conversion and expenses in C$ . Either way , at least you know the company has cash and continues to buyback shares . At 300M shares , its one of the smallest share count in the sector , I'm not sure how many people know that .