Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 Betteryear2on Dec 12, 2021 10:34pm
344 Views
Post# 34223874

Canada's oil patch leads shareholder payout boom in energy

Canada's oil patch leads shareholder payout boom in energy

North American oil and gas producers are swimming in record levels of free cash flow as the price of oil climbs, and companies keep a tight lid on spending due to COVID-19. That "meteoric rise" translated to more rewards for shareholders in the third quarter, according to Evaluate Energy, especially in Canada's oil patch.

A group of 84 Canadian and U.S. producers tracked by the London-based industry data provider raked in a combined US$32.5 billion in operating revenue in the third quarter of this year, the highest level recorded since 2018. At the same time, Evaluate Energy found flat capital spending of around 55 per cent of operating cash flow was a "major factor" keeping producers flush.

Free cash flow - the difference between funds from operations and capital expenditures - reached a record $19.1 billion for the companies tracked in the report. That's more than $8 billion higher than the previous record total from last quarter. It also dwarfs the pre-pandemic average of $1.7 billion between 2018 and Q1 2020, Evaluate Energy said in research released on Thursday.

"Producers have made clear their desire over the past few months to return as much free cash flow as possible to shareholders," senior oil and gas analyst Mark Young wrote in the report. "Should cash flow outpace board or regulatorily-approved plans, the vast majority of producers plan to direct excess cash towards strengthening balance sheets."

Young found producers in Canada's oil sands put the lowest portion of operating cash into capital spending, dropping below 25 per cent in Q3. They were also the only group to commit over 15 per cent of total cash outlay towards shareholder returns.

Eric Nuttall, senior portfolio manager at Toronto-based Ninepoint Partners, and a staunch advocate of investment in Canada's energy sector, also expects the payouts to continue as oil marches higher and balance sheets grow stronger. He manages the firm's roughly $860 million Canada-focused energy fund.

"It's only going to get better, not only as the oil price goes up, but as balance sheets get paid down more and more and more," he said at a recent virtual event. "I want 50 per cent of your free cash flow for my unit holders. We've been through a tough time. [For] seven years, they've been the worst bear market in history. They need to get paid."

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

https://ca.finance.yahoo.com/news/canadas-oil-patch-leads-shareholder-payout-boom-in-energy-report-132929781.html

 
<< Previous
Bullboard Posts
Next >>