RE:RE:Houston we have a problemIf oil stays here or highter, MEG will definitely trade higher than CVE. A big part of the current share price is a discount for the high debt level. CVE also has a fair amount of debt after the HSE deal, but nothing like MEG.
Eigen337 wrote:
Hedges:
Only ~ 22% of BOP is HEDGED {29K bbls/d @ Enhanced WTI price of USD 46.18 / bbl.} in Q3 and Q4/2021 !!!
SO FAR, MEG is UNHEDGED for 2022 !!!???!!!
Debt:
USD 396 million of the 6.5% 2025 senior secured second lien notes are NOT A THREAT AT THIS TIME
MORE LARGE pieces of this debt will get CHOPPED OFF in Q3, Q4/2021 and Q1/2022 if strip prices stay above WTI USD 65 per barrel
2027 and 2029 senior unsecured notes are a LONG RUNWAY to REPAYMENT
L3RUS:
MEG will DRAMATICALLY IMPROVE OPERATING MARGINS that will be ONE OF THE HIGHEST in the SAGD industry
Share Price:
MEG 'should' ALWAYS OUTPERFORM peers since it has a WORLD CLASS ASSET {low cost / low decline} with SUPERIOR MANAGEMENT, LEADING TECHNICAL PROFICIENCY and STRONG DIVERSIFIED PIPELINE EGRESS !!!???!!!
The CHANCES are AGAINST IT but I 'would' NOT be SURPRISED if the SP of MEG OVERTAKES the SP of CVE ?????!!!?????
This is PURE SPECULATION.
Eigen337