RE:WOW: MEG Analysis: Can Fund Growth INTERNALLY @ USD WTI 50..Eigen337 wrote:
This is BASED upon the GROWTH that CAN BE achieved once they reach the magic BROWNFIELD 13,000 bbl/d expansion.
So this is HOW the story goes:
They need SUSTAINED USD WTI 50+ (during 2017) to IMPLEMENT their present eMSAGP Phase 2B expansion from the 2016 WADP production of 81,245 bbl/d to EXIT 2017 at 86,000 to 89,000 bbl/d..
Afterwards, in 2018; they need USD WTI 55 to EMBARK on the 13,000 bbl/d brownfield expansion {around C$ 390 million in 2018 and 2019}) , fund the remaining C$ 80 million eMSAGP Phase 2B (C$ 320 million in 2017), and invest in the sustaining and mainteance capital and turnaround expenditures plus other R&D and marketing intiatives.
Production:
Early 2019: 106,000 to 109,000 {expected guidance is for 100,000 bbl/d}
Early 2020: 119,000 to 122,000 {expected guidance is for 113,000 bbl/d}
ONCE they reach this stage:
They can INTERNALLY FUND EXPANSIONS 10,000 to 20,000 bbl/d at a time at WTI USD 50 on their way to the CL rated capacity of 210,000 bbl/d..
WITHOUT ever doing a BD !!!
This is my opinion only.
Eigen337
good post...
once investors see meg as making money and on its way of establishing a 210,000 b/d oil output...the share price will go into the teens and $20 plus will not be far behind....