RBC Greg Pardy SEES MEG OUTPRICING CVE In 2024 That led him to upgrade MEG Energy Corp. to “outperform” from “sector perform” with a $31 target, up from $27 and above the $27.77 average on the Street, according to Refinitiv data.
“Our third-quarter outlook for MEG incorporates bitumen production of 102,000 barrels per day (vs. 98,000 bbl/d previously), up 19 per cent sequentially following planned turnaround activities at Christina Lake completed in the second quarter,” he said. “We peg MEG’s third-quarter bitumen realization at $98/bbl, with all-in operating costs at $8.28/bbl (excluding estimated power sales of $38-million) and royalty rate of 26 per cent (on net revenue). All said, our third-quarter operating cash flow estimate for MEG sits at $470-million ($1.65 per share) with estimated free cash flow of approximately $372 million in the context of $98-million of capital investment. We peg MEG’s net debt (company definition) at $1.0-billion (US$747-million) as of September 30 (before working capital movements)—down from $1.32-billion on June 30 — amid common share repurchases of $58 million. Our 2024 outlook for MEG factors in production of 105,000 bbl/d amid a $525 million capital spending program.”
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THANKS 'retiredcf' from the CVE SH BB:
retiredcf - (10/10/2023 8:14:53 AM)