RE:Energy spells *** Opportunity ***- I LIKE your DILIGENT and DETAILED ASSET ANALYSIS but your SCOPE of CAPITAL STRUCTURE is FLAWED
- MEG BOUGHT their shares in Q2/2024 BELIEVING that the MARKET SHARE PRICE VALUATION was UNDERVALUING the INTRINSIC WORTH of the company's FUTURE CASH FLOWS {at the CURRENT 110,000 bbls/d BOP rate, MEG has RESERVES for 30+ years of production for Chistina Lake ALONE}
- MEG has ALREADY SET ASIDE $ 300 million [in total] in GROWTH CAPEX for THREE YEARS (from 2024 to 2026) to take BOP from 110,000 bbls/d to as HIGH as 135,000 bbls/d DEPENDING on the SIZING of the OPTIMIZED third PROCESSING TRAIN
- they also STATED that they HAVE NO INTENTION to TAKE NET DEBT LOWER THAN USD 600 million
- so:
* growth taken care of
* SELF-DECLARED NO MONEY for DEBT REDUCTION
* what else is LEFT but SHARE BUYBACKS ?
- personally, I would like them to BUYOUT NVA in an ALL SHARE TRANSACTION but the BODs DON'T 'SEEM' to HAVE the KILLER COPORATE RAIDER INSTINCT
- NOW that they are at the 100% RETURN TO SHAREHOLDERS FRAMEWORK and the share price has DECREASED, they will get to BUY SHARES @ $ 24+ per share
z173