Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

MEG Energy Corp T.MEG

Alternate Symbol(s):  MEGEF

MEG Energy Corp. is a Canada-based energy company focused on in-situ thermal oil production in the southern Athabasca oil 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 economic recovery of oil. 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

Bullboard Posts
Post by shambano1on Apr 07, 2016 6:23am
156 Views
Post# 24739687

Beware of q1 report

Beware of q1 reportMeg has stabslized above 6 with oil finding some support around 35 -36 WTI as USA priduction starts to decline for real. Oil prices will likely recover back into the mid 40's by fall as USA priduction heads towards 8.5 million a day, which will be 1.2 million lower than at the highest day rate of 9.7 million. This is all positive for oil prices but before we get into Q3-q4 we have q1-q2 to deal with. Q1 report for many oil companies will not be pretty, so be careful chasing these companies which I estimate will fall back and possible retest their lows in done cases. I don't think Meg will retest it's 52 week low but I think it will fall back when they report since they have been losing money for most of q1. Of course it will depend on how much money they are loosing, operating costs and current netbacks but don't kid yourself, q1 was negative cash flow. I see Meg retesting 5 on a real bad report but this can also be influenced by the pipeline sale and timing of said sale. The pipeline sale had been slow because I think Meg would prefer to keep the pipeline and the lower costs it gives them than sell it than sell it and increase operating costs. Nobody is going to pay top dollar and then sign a long term transport deal with meg at low rates. So as oil prices recover in h1-16 maybe Meg will get profitable again and keep the pipeline asset. Plus I haven't heard any news about Devon selling their interest in access?? So we are in a wait and see game and who will blink first. I also think there a friendly offer on the table for a takeover but the price is not what the board is willing to accept At this time. I think the offer is 10-12 range and the board would prefer 16-18 range if not higher. How do you value long life assets in a low for longer environment?? I like Meg as a long term investment but with short term volatility. Dyodd
Bullboard Posts