Good Call Good Earnings Good Pipeline Potential
with oil prices where they are today it was a mircale that results were as good as they were, time and time again we are hearing cuts to production and cuts to capex - MEG is simply saying that we are being patient, managing our cash flow better through hedging and hoping to continue to lower cost per barrel. From the call it sounds like they will sell the pipeline that will be a positive short term but will add roughly $3 to production cost gong forward, Husky sold their pipeline and a real premim that if MEG can get a similar valuation might be worth it and it would definitely exceed analyst exectations. They reiterated on the call they have mulitple offers on the table but are being very patient (probably becayse of the price recovery to $45 WTI - this stock is on a nice trajectory and doing all the right things