Notice MEG still going higher while others are falling backMEG has tremendous torque to higher oil prices and also remendous takeover potential.
investors are taking profits in SU and CVE and CNQ today and buying up MEG because they were so downbeaten and every analyst I know was writting them off as debt burdened and wouldn't survive.
a few points
MEG's assets are very high quality long lasting and low operating costs.
MEG's maintenance capital is only 170 million for 2016 and they still saved 30 million of this figure for increasing produciton.
MEG has a very low shares outstanding so any takeover deal would be very affordable and then the debt could be restructured or refinanced at much lwoer interest rates.
MEG is much less risky after the OPEC deal than before and at least they have time to increase produciton and continue to lower costs.
a by product of owning MEG is there takeover potential, so you get superior returns for taking a small risk that the OPEC deal will fall aprt or that others will not follow suit.
I'm long an dbiased so DYODD