MEG Energy Corp T.MEG

Shubham Garg O&G outlook

[jleer42]

MEG at 1:50:15

https://www.youtube.com/watch?v=eUo7HoG_V2Q

[cashtango00]

appears MEG has dropped below the 1.2b debt target and is now going to be using 50% of FCF for share buy backs.  I suppose it would be far more advantageous for investors if the stock hung around 15-16 to maximize that.  

[jleer42]

The debt surprised me, as of the Oct presentation it is still "Once the US$1.2bn net debt target is reached MEG intends to increase the percentage of free cash flow allocated to share buybacks to approximately 50% with the remainder applied to further debt reduction" 

[churchofnutsacc]

There's a footnote on Slide 6 of the presentation that indicates they are working off net debt as of June 30th. I'm sure we will get a clearer picture of th net debt next month.

[jleer42]

Didn't get through the whole thing before, it is 4 1/2 hours long. In the Q&A MEG comes up again at 4:02:55 Really worth a listen as he discusses the thesis as to why MEG is so good. High points are the number of big investors who know the true value of MEG which is why the Husky offer wouldn't go thorugh. With the 50% FCF going to share buybacks the margin traders will be eliminated