RE:Expecting a rise into earningsgenerally speaking q3 will not be pretty for amny CND O&G companies from what I can see.
yes things are getting better but oil prices were generally lower for most of q3 so don't expect big numbers.
the devil will be in the details and again bad news is over publisized to scare weak hands and then the smart money will oad up.
I think we will continued improvement on the cost side which will help netbacks but with low oil prices it won't be gangbusters.
q4 with wti over 50 will certainly improved the numbers and maybe this is were we will get the biggest bankg for our bucks.
the market is pricing in lower for longer so MEG needs to prove they will lower debt, and increase produciton and so far they have not down this and this is why our SP sucks right now, at least that's my explanation for it.
because thelast time wti was over 50 MEG was over 6 or even 7, so this can only be explained by risk of owning a high debt company in a lower for longer market.
but there are some reason to be confident that oil will rise to over 60 in 2017.
even with the increase in oil drill rigs, uSA lower 48 oi produciton has been steadily dropping and a small increase in permian drilling will not change that or at least oil produciton will not climb in 2017 to any big numbers, maybe 100,000 bpd but max 200,000 bpd and I don 't beleive the high number will be hit not in 2017, maybe 2018.
MEG will survive because teh assets of very high quality and low operating costs, but they need to lwoer debt in order to get some breathing room so they can grow production in 2017.
then and only then will the SP finally make some nice gains IMHO.
GLTA