MEG Energy Corp

MEG-T

TSE:MEG

3.03
0.18 (6.32%)
MEG Energy is a pure play Canadian oil sands producer engaged in exploration in Northern Alberta. All of its oil reserves are more than 1,000 feet below the surface and so they depend on steam-assisted ...
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Analysis and Opinions about MEG-T

Signal
Opinion
Expert
COMMENT
COMMENT
April 3, 2020

ATH vs HSE vs MEG? The clear stand out is MEG, who is 55% hedged at $59 oil prices. ATH has a high cost project with Hangingstone and is burning cash, although they have enough liquidity for the next 9 months. He would never own HSE, because of their ESG issues. All bets are off for all of them if $25 oil prices remain in 2021.

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ATH vs HSE vs MEG? The clear stand out is MEG, who is 55% hedged at $59 oil prices. ATH has a high cost project with Hangingstone and is burning cash, although they have enough liquidity for the next 9 months. He would never own HSE, because of their ESG issues. All bets are off for all of them if $25 oil prices remain in 2021.

PAST TOP PICK
PAST TOP PICK
April 3, 2020
(A Top Pick Apr 26/19, Down 62%) A high quality asset holding. It remains a core holding and he loves how management is operating through these difficult times.
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(A Top Pick Apr 26/19, Down 62%) A high quality asset holding. It remains a core holding and he loves how management is operating through these difficult times.
TOP PICK
TOP PICK
April 3, 2020
They have a very good hedge book -- 55% hedged at $59 WTI. When oil prices recover back to normal it will become one of the top takeout targets. Yield 0% (Analysts’ price target is $3.98)
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They have a very good hedge book -- 55% hedged at $59 WTI. When oil prices recover back to normal it will become one of the top takeout targets. Yield 0% (Analysts’ price target is $3.98)
PAST TOP PICK
PAST TOP PICK
March 6, 2020
(A Top Pick Apr 26/19, Down 4%) They are 70% hedged at $60 WTI for the first half of the year -- this may be helping them hold their value relative to peers right now. They still generate $250 million of excess cash flow at $47 oil prices. They have 30 plus years of reserves and are trading at 80% reserve blow down values.
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(A Top Pick Apr 26/19, Down 4%) They are 70% hedged at $60 WTI for the first half of the year -- this may be helping them hold their value relative to peers right now. They still generate $250 million of excess cash flow at $47 oil prices. They have 30 plus years of reserves and are trading at 80% reserve blow down values.
TOP PICK
TOP PICK
March 6, 2020
It has 68 years of reserves and are 70% hedged for the first half of this year at $60 oil prices. They have many billions in tax losses that could be very valuable to a large international player. He thinks it could trade back up to $9 with normalized oil prices towards $60. Yield 0% (Analysts’ price target is $8.49)
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It has 68 years of reserves and are 70% hedged for the first half of this year at $60 oil prices. They have many billions in tax losses that could be very valuable to a large international player. He thinks it could trade back up to $9 with normalized oil prices towards $60. Yield 0% (Analysts’ price target is $8.49)
PAST TOP PICK
PAST TOP PICK
February 12, 2020
(A Top Pick Mar 08/19, Up 33%) There has been a massive buyer in the market for this stock. He sold out in December and just re-bought at around current price levels. It has direct exposure to heavy oil price strengthening. Crude by rail rates are increasing and is allowing heavy oil inventory to begin dropping. They are using their free cash flow to pay down debt rapidly. They have 68 years of production inventory. He thinks they will become a take out target by a large oil player soon. The stock price could go to $9-$10.
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MEG Energy Corp (MEG-T)
February 12, 2020
(A Top Pick Mar 08/19, Up 33%) There has been a massive buyer in the market for this stock. He sold out in December and just re-bought at around current price levels. It has direct exposure to heavy oil price strengthening. Crude by rail rates are increasing and is allowing heavy oil inventory to begin dropping. They are using their free cash flow to pay down debt rapidly. They have 68 years of production inventory. He thinks they will become a take out target by a large oil player soon. The stock price could go to $9-$10.
BUY
BUY
December 19, 2019
They are the number one target in Canada for M&A. There are a list of potential acquires where it makes a lot of sense. They have enormous tax pools. It is trading at a 29% free cash flow yield. They are over levered. He sees a 25% upside from here.
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MEG Energy Corp (MEG-T)
December 19, 2019
They are the number one target in Canada for M&A. There are a list of potential acquires where it makes a lot of sense. They have enormous tax pools. It is trading at a 29% free cash flow yield. They are over levered. He sees a 25% upside from here.
COMMENT
COMMENT
November 15, 2019
Cenovus or MEG? He likes MEG for the prospect of M&A. They have great tax pools and is deeply discounted. CVE provides exposure to heavy oil production and Alberta monetizing their rail position. He would prefer MEG, because of its relative valuation. Both have a good investment case.
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MEG Energy Corp (MEG-T)
November 15, 2019
Cenovus or MEG? He likes MEG for the prospect of M&A. They have great tax pools and is deeply discounted. CVE provides exposure to heavy oil production and Alberta monetizing their rail position. He would prefer MEG, because of its relative valuation. Both have a good investment case.
BUY
BUY
October 11, 2019

Heavy oil? He is bullish on heavy oil as countries like Venezuela have seen production fall to 20 year lows. Mexico is declining as well. This is good for Canada, but we are still pipeline constrained. At $60 WTI and $15 heavy oil differentials he likes CVE-T, MEG-T and BTE-T.

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MEG Energy Corp (MEG-T)
October 11, 2019

Heavy oil? He is bullish on heavy oil as countries like Venezuela have seen production fall to 20 year lows. Mexico is declining as well. This is good for Canada, but we are still pipeline constrained. At $60 WTI and $15 heavy oil differentials he likes CVE-T, MEG-T and BTE-T.

COMMENT
COMMENT
October 11, 2019

A takeout target? MEG-T is not his largest holding as they have more leverage than he is comfortable with. Their low cost structure and 65 years of production life, he sees them being able to de-leverage themselves back to 2 times cash flow over the next two years. The company will generate over 20% free cash yield at $55 WTI prices and $17.50 heavy oil differential. This makes them the #1 M&A target in Canada -- maybe CVE-T.

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MEG Energy Corp (MEG-T)
October 11, 2019

A takeout target? MEG-T is not his largest holding as they have more leverage than he is comfortable with. Their low cost structure and 65 years of production life, he sees them being able to de-leverage themselves back to 2 times cash flow over the next two years. The company will generate over 20% free cash yield at $55 WTI prices and $17.50 heavy oil differential. This makes them the #1 M&A target in Canada -- maybe CVE-T.

PAST TOP PICK
PAST TOP PICK
August 30, 2019
(A Top Pick Aug 17/18, Down 32%) Trading at a 40% or almost $600 million yearly of free cash flow yield. But debt to cash flow is 4x. They know that, so they're paying down debt. He projects that to be 2x in 2.5 years. At that time, they can pay a generous dividend or privatize.
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MEG Energy Corp (MEG-T)
August 30, 2019
(A Top Pick Aug 17/18, Down 32%) Trading at a 40% or almost $600 million yearly of free cash flow yield. But debt to cash flow is 4x. They know that, so they're paying down debt. He projects that to be 2x in 2.5 years. At that time, they can pay a generous dividend or privatize.
TOP PICK
TOP PICK
August 30, 2019
(See his other comments this day.) Trading at near 40% free cash flow yield. They have 68 years of production. They're paying down debt with their hefty cash flow. They can privatize down the road. (Analysts’ price target is $7.57)
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MEG Energy Corp (MEG-T)
August 30, 2019
(See his other comments this day.) Trading at near 40% free cash flow yield. They have 68 years of production. They're paying down debt with their hefty cash flow. They can privatize down the road. (Analysts’ price target is $7.57)
WAIT
WAIT
August 26, 2019
The debt is high (95% of equity) but they are working through it. He likes the company. It will react if we get $70 oil. It could be a 10 bagger! People have to take a long term nature on these things. He would take a look at it in October. (Analysts’ price target is $7.63)
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MEG Energy Corp (MEG-T)
August 26, 2019
The debt is high (95% of equity) but they are working through it. He likes the company. It will react if we get $70 oil. It could be a 10 bagger! People have to take a long term nature on these things. He would take a look at it in October. (Analysts’ price target is $7.63)
PAST TOP PICK
PAST TOP PICK
July 19, 2019
(A Top Pick Jul 20/18, Down 40%) They need to pay down debt. They trade at a 37% free cash flow yield. It's the biggest name in his fund. Their biggest knock is their balance sheet, 4x debt-to-cash flow. They should NOT be buying back stocks, but instead pay down debt. He expects them to arrive at an industry level of 2-2.5x cash-to-debt flow in two years, and by then could pay a 35% dividend or privatize three years after that point. A high-quality name. Through pipelines and rails, next year they can ship 66% of their oil to the U.S. Gulf Coast. He expects a killer quarter coming up.
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(A Top Pick Jul 20/18, Down 40%) They need to pay down debt. They trade at a 37% free cash flow yield. It's the biggest name in his fund. Their biggest knock is their balance sheet, 4x debt-to-cash flow. They should NOT be buying back stocks, but instead pay down debt. He expects them to arrive at an industry level of 2-2.5x cash-to-debt flow in two years, and by then could pay a 35% dividend or privatize three years after that point. A high-quality name. Through pipelines and rails, next year they can ship 66% of their oil to the U.S. Gulf Coast. He expects a killer quarter coming up.
WAIT
WAIT
May 24, 2019
A fall in WTI prices has not helped. The debt is very high, but have paid down a large amount. He is doing more research to see what is the appropriate debt level they should have. He will wait.
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A fall in WTI prices has not helped. The debt is very high, but have paid down a large amount. He is doing more research to see what is the appropriate debt level they should have. He will wait.
Showing 1 to 15 of 71 entries

MEG Energy Corp(MEG-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 8

Stockchase rating for MEG Energy Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

MEG Energy Corp(MEG-T) Frequently Asked Questions

What is MEG Energy Corp stock symbol?

MEG Energy Corp is a Canadian stock, trading under the symbol MEG-T on the Toronto Stock Exchange (MEG-CT). It is usually referred to as TSX:MEG or MEG-T

Is MEG Energy Corp a buy or a sell?

In the last year, 8 stock analysts published opinions about MEG-T. 8 analysts recommended to BUY the stock. 0 analyst recommended to SELL the stock. The latest stock analyst recommendation is TOP PICK. Read the latest stock experts' ratings for MEG Energy Corp.

Is MEG Energy Corp a good investment or a top pick?

MEG Energy Corp was recommended as a Top Pick by Eric Nuttall on 2020-04-03. Read the latest stock experts ratings for MEG Energy Corp.

Why is MEG Energy Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is MEG Energy Corp worth watching?

8 stock analysts on Stockchase covered MEG Energy Corp In the last year. It is a trending stock that is worth watching.

What is MEG Energy Corp stock price?

On 2020-04-08, MEG Energy Corp (MEG-T) stock closed at a price of $3.03.