RE:RE:RE:RE:Overcashtango00 wrote: Not sure where you get your numbers from but MEG is nowhere near 2 bucks EPs at 70 oil. WCS has little to do with SPR now as SPR is down to a trickle compared to months ago. WCS is landlocked oil that can't get out fast enough. there is no quick fix on that one. TMX will help in a year. i like the de leverage but the interest saved is lost on the increasing royalties hitting q1. MEG needs 80-90 oil to look good
Let's look at 2020, which was a terrible year. Meg's production was 82,000 boe/d, had netbacks of $19 and generated $130 million of free cash flow.
I don't think anybody is forecasting $19 netbacks for Meg next year, even with WCS blowout and higher royalties.
For 2023 Meg will be producing at least 100,000 boe/d and there will be at least 17-19 million less shares than there was in 2020.
Meg can continue to chip away at debt, even during a downturn. Meg has completely transformed itself over the past few years with rapid deleveraging and now even a steady reduction in shares.