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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 cashtango00on Nov 10, 2022 8:39am
519 Views
Post# 35087763

nice report.

nice report.A solid but expected result for MEG.  The market still not buying the narrative that there will soon be a 25-30% return of capital to many of these energy plays.  Interesting to note that TD has 12 month target of 21cdn and RBC is 23 CDN for MEG although their models are based on 80-85 WTI and 18-20 WTI/WCS spread.  If you are more bullish on energy, those models seem low in valuation.  Nuttall has WTI at 150 and WTI/WCS spread at 10 so he's got MEG at around 45.  Nuttalls numbers are ridiculous so my belief is we are somewhere in the middle.  Keep in mind, MEG's royalties go up near the end of 2022 as they hit payout on the project, so that will adversely affect cashflows.  I think MEG will have a decent move in the next 12 months, probably into the mid to high 20s, but WTI is the big wildcard obviously.  
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