MEG Is PLAYING IT SAFE: ONLY 10 CENTS QUARTERLY Dividend On July 25, 2024, MEG's Board of Directors approved the initiation of a base dividend program under which the Corporation intends to pay a cash dividend each quarter, subject to Board of Directors' approval. MEG's new base dividend program recognizes its high-quality 50-year 2P reserve life, low production decline, and long-term sustaining break-even price structure below US$50/bbl WTI. MEG has matured into a leading pure play in situ thermal oil producer, focused on delivering FCF and sustainable shareholder cash distributions.
An inaugural cash dividend of $0.10 per share has been declared for payment on October 15, 2024 to shareholders of record on September 17, 2024. This dividend equates to an approximate 1.5% annual yield at MEG's current share price, a level that is positioned to grow through disciplined capital allocation.
Declaration of dividends is at the sole discretion of the Board of Directors and will continue to be evaluated on a quarterly basis. Future declarations will be dependent on, among other things, the prevailing business environment, MEG's financial and operating results and financial condition, the need for funds to finance ongoing operations or growth and other business conditions which the Corporation's Board of Directors considers relevant.
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- 10 CENTS quarterly dividend was my INITIAL THOUGHT given the VERY CONSERVATIVE and DEFENSIVE MEG PLAYBOOK
- however, I INCREASED IT to 15 to 20 CENTS on the 'EXPECTATION' of HIGHER WCS prices and 20,000 bbls/d PIPELINE EGRESS on the the TMX pipeline
- NOW, MEG is 'THINKING'; it is BETTER to START SLOW and BUILD IT UP given the $ 100 million per YEAR GROWTH CAPEX to get to the 125,000 bbls/d BOP in 2026
- also, they DEFINITELY DON'T WANT to DECLARE a DIVIDEND and then REDUCE or ELIMINATE IT due to the HOSTILE PRICING and DEMAND ENVIRONMENT
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