MEG Energy Corp T.MEG

Alternate Symbol(s): MEGEF

Energy Oil & Gas E&P

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.

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MEG Energy Corp > Out from Raymond James

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Comment by MigraineCallon Nov 14, 2022 4:53pm

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Post# 35097960

RE:RE:Out from Raymond James

Yes there are some headwinds, but also some potential upside factors looking forward as well:

- We have an OPEC meeting Dec 4, where there are rumors of another cut already, .5M bbls
- OPEC production missed by .2M bbls in Oct as countries can't even meet their quotas
- Shale oil DUC count rising as frac spreads are maxed out, shale oil output is flattening
- SPR Emergency Midterm Releases fizzling out and ending in Dec, now only around .3 to .4M bpd, and mostly light sweet
- PADD2 refineries to come back online
- Severe finished product shortfalls in PADD1, mainly diesel, HO, and jet, but gasoline as well
- TMX coming online in 2023Q3
- Russian oil embargos and price cap may lower amount of Russian oil supply
- Indian oil demand increasing
- China demand increasing
- European Energy Crisis, huge industrial sectors shuttered due to lack of energy supply
- geopolitical risks developing over the winter in ________ (fill in a country name here)

I added 10,000 more MEG shares at close today. Anything under $20 is a steal for this company.

churchofnutsacc wrote:

2021Gamble wrote: MEG Energy Downgraded to Market Perform at Raymond James

14 Nov 2022 11:15 ET

11:15 AM EST, 11/14/2022 (MT Newswires) -- MEG Energy Corp. (MEG.TO) was downgraded to Market Perform from Outperform at Raymond James.

Analyst Michael Shaw maintained a price target of $22 on shares of the Calgary-based oil sands producer.

"MEG is facing a number of headwinds going into 2023," Shaw said in a note to clients. "Top among them is the persistently high differential on heavy sour barrels in both the USGC and Western Canada."

"While we agree with MEG's assessment that the abnormal heavy differentials will not last forever, it is difficult to assess when the US SPR releases or the impact of heavy Russian barrels trying to find a home will end," the analyst said.

"...MEG remains one of the best ways to play Western Canadian heavy oil prices," Shaw said. "Its long-lived, low decline, and low sustaining capex project make it an attractive investment over the long-term. As a tactical measure, we are lowering our rating to Market Perform to reflect current headwinds and relative valuation."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 20.24, Change: -0.29, Percent Change: -1.41

They will most likley free cashflow over $1 per share for Q4, even with these differentials. And I can't imagine the differentials getting WORSE from here (I know, famous last words) - so I don't understand what these analysts are smoking.