TSE:MEG
MEG Energy Corp (MEG.TO)
Financials 
Technical Analysis 
Jun 26, 2026, 12:00 amThis summary was created by AI, based on 10 opinions in the last 12 months.
MEG Energy Corp (MEG-T) has been a focal point among analysts, particularly following its acquisition by Cenovus Energy (CVE). Despite being viewed as a special company that has consistently delivered impressive long-term returns, market sentiment remains challenged due to the ongoing depressed valuations in the sector. Analysts express disappointment over the takeover, fearing the loss of potential from a company with strong fundamentals and capital discipline. While some experts highlight the growth potential of CVE, others emphasize the importance of considering natural gas exposure for better overall growth in the energy sector. Currently, the situation is fluid, with a shareholder vote delayed and uncertainty surrounding the deal, leading most analysts to recommend holding onto shares until more clarity emerges.
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Premium content
Will continue to owns shares.
Can't find better names.
Singular asset (oil).
Excellent balance sheet - almost 0 debt.
High oil prices good for business.
Trading at ~4x cash flow.
35 years of reserves.
Expecting ~$45-$50 share price.
Eric NuttallPremium contentBelieves energy space very strong.
Company buying back lots of shares.
Long life asset with lots of cash flow.
Tax pools also valuable.
Oil above $75 is very good for business.
Robert LauzonThesis hasn't changed. If you're bullish oil, he can't find a better name. The largest weighting in his fund at around 12%. 50% of free cashflow goes to shareholders, the rest goes to pay down debt. Solid name.
Eric Nuttall
Editor's Note; This should be added to the rest of today's (Monday) Market Call comments. Energy stocks have had similar patterns. You could gingerly step into energy since there should be an eventual breakout. MEG is going sideways and therefore falls into the typical energy pattern. It has an OK chart. Buy at the bottom of the range.
Premium contentShould meet final debt target by end of this year. After that, has committed 100% of free cashflow to shareholders and buying back stock. Remains incredibly bullish on it, more than a double from here.
Eric NuttallPremium contentGenerating $1.2b in free cash flow, despite lower energy prices, makes MEG a TOP PICK. It has been prudently using some cash reserves to retire debt and buy back shares. The company just received a credit rating upgrade. It trades at 1.5x book and supports a ROE of 14%. We recommend a stop-loss at $15, looking to achieve $26 -- upside potential of 26%. Yield 0%
(Analysts’ price target is $26.21)Profit fell 78% on lower oil prices; to 28c per share from $1.15. Revenue fell 3.3% on a 5.2% increase in production.
Debt was reduced by $117M and buybacks were $103M. EPS did miss estimates by 28%.
The stock is cheap at 8X earnings. The balance sheet is improving.
Despite the miss, what it can control (production) was good, and it is priced very well.
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Lots of leverage to oil prices, long-life reserves. Strong free cashflow yield where oil prices are today. If oil sits between $70-80 over the next 5 years, hold for yield, decreased debt, share buybacks, potential dividend growth.
Jamie Murray Doesn't own either. Usually sticks with light oil, but see his Top Picks. If he had to choose, he'd pick MEG: larger market cap, better liquidity and institutional ownership.
ATH is more focused on debt reduction. It does buybacks, and he prefers dividends for income. Rocky stock performance.
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Still sees meaningful upside. Expecting $80 oil going forward which is good for bottom line. At least 35 years of stay flat inventory. Expecting final debt target in Q1 2024. 100% of cash flow expected to be returned in 2024. Expecting a 6x multiple for a $37 share price. Will continue to own shares.