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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 Sep 23, 2016 10:20am
143 Views
Post# 25270061

MEG good points and bad points

MEG good points and bad pointsgood points:

1-low sustain capital which means they can maintain production at current levels or even a little higher with low capital projects.  

2-low decline oil produciton, again this means it costs less to maintain current production in a shale oil company that has to keep drilling to replace high declinging production.  Yes they ahve made great inroads in lowering their break even costs but also don't forget that this happens on the ebst of the ebst sweet spots and those seem to be more in the permian basin than other basins.

3-low operating costs for energy and administration costs and these costs have gone down again in 2017 to some the lowest in SAGD operators.  MEG has the lowest SDOR ratio in the industry.

4-high quality assets like Access pipeline and stroage facility that can be sold for cold hard cash to resolve some of the debt worrys.

5-low shares outstanding and 30% of the shares are controlled by other oil companies or investment company's.

6-JV possibilities in order to start brownfield expansions and add 29K-30K of new produciton thereby lowering costs per barrel

7- debt is coveenat light and doesn't start to amture until 2020\


BAD points

1-high debt levels

2-high debt levels

3-high debt levels

4-maybe add shorters trying to bring MEG down
Bullboard Posts