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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

Post by CashHungryon Nov 09, 2021 1:42pm
210 Views
Post# 34105722

Today's Price ?Decline - Conference Call

Today's Price ?Decline - Conference CallI did not hear anything alarming and certainly did not get a sense of some extraordinary investment is CO2 capture that should impact future results.  The reasons I can see why the shares went a little negative after a positive report are:

1) Shares have only given up yesterday's speculative gains.  When there wasn't any big or biggish news announced the shares naturally pulled back.

2) No one was expecting a dividend or buyback, but it was not unreasonable to expect a little guidance as to when shareholders should expect returns considering they are close to meeting initial debt targets.  At the very least they could have said that shareholder returns will be a priority within some vague time frame.  In this market companies will get punished if they don't emphasize that the objective of eventually implementing  dividends and/or buybacks is a priority

3) Inflationary pressures were disclosed without the question being asked so no doubt this raises some concern

4) Production numbers for '22 might be impacted more than some estimated due to a planned shutdown that will be longer than previous shutdowns (28 days vs 21 days).  If analysts were predicting 21 days then they will need to revise their 22 production forecasts downwards 1-2 k 

Despite my above comments, i am still optimistic about MEG and believe some goods news will come Nov 29 about shareholder returns, and I suspect by that time the differential will have narrowed to further spur optimism.
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