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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

Comment by Konaboyon Apr 21, 2022 5:05pm
191 Views
Post# 34621903

RE:RE:RE:RE:Very pleasantly surprised

RE:RE:RE:RE:Very pleasantly surprised Well, let's call this a little fact checking exercise against BSW's methodology.  Calling MEG a pure play bitumen takes a lot of other factors out of the equation (ugh, mixed production would be messy)

Using the WCS prices on this site:  https://economicdashboard.alberta.ca/oilprice, if we average Dec/Jan/Feb we get ~$66USD/b, multiply by exchange of 1.27, and we get realized blended product sales of $84 per barrel by the BayStreetWolf model.

Comparing this to MEG's 2021 report, pages 9 and 11, they had a Q4 blended (WCS) sale price of $82.43.  So all other things being equal, the numbers should roll out very similar to Q4 2021.

If on the other hand the sales are booked as per prevailing WTI/WCS price on the day of production, and we use pricing for Jan/Feb/Mar, then we are going to see a very very significant jump, something more like (66+80+95)/3 = ~$83USD * 1.26 = ~105CDN/barrel for WCS.

BIG difference from the $84.  I'm not going to extrapolate into FCF, too many other factors to consider.

I guess we'll see soon enough.  And hey, I could also be completely out to lunch here, so feel free to knock me down, I'm just learning as I go.





Fuzman5902 wrote: Ok I'll bite 

How much FCF @ $ 80.15





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