MEG Energy Corp T.MEG

Top Pick Details

[retiredcf]

First stock in the clip. GLTA

https://www.bnnbloomberg.ca/video/shows/market-call/2024/11/21/eric-nuttalls-top-picks-meg-energy-arc-resources-and-tamarack-valley-energy/

MEG Energy (MEG TSX)

MEG is trading at a 10 per cent/14 per cent free cashflow yield at $70/$80 WTI and is returning all of it back to shareholders in the form of share buybacks. With over 35 years of stay-flat high quality inventory MEG offers oil bulls strong leverage to a rising oil price in the years ahead.

TOP PICK
MEG Energy Corp(MEG-T)
21/11/2024

Thinks it can work at $70 oil. Generates 10% FCF yield at $70 oil. Reached final debt targets, so all free cashflow should return to shareholders mostly in form of buybacks. Over the next 5 years, compounding effect should expand FCF yield from 10% to 20%. If oil goes to $80, you go from 14% FCF to 55%. Inventory depth would allow them to achieve this. Yield is 1.5%.

Update next week should allow for short covering or for $$ to come back into the name. Trades at material discount to peers.

(Analysts’ price target is $32.57)
Oil / Gas

Eric Nuttall
$26.57
Owned

[dogatcat]

Nuttal owns MEG in his fund but he has sold it personally (he use to own it).  Not a ringing endoresement.  The guy is a slimfest.   Only one of his top picks does he own personally....ARC,     If these analysts don't own a stock personally , you shouldn't buy it! 

[robert41]

Love Meg thx Eric. I think I'll listen to Eric over some anonymous poster, it's certainly worked incredibly well.