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.
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.
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.
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.
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.
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 8
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 8
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
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.
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.
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.
8 stock analysts on Stockchase covered MEG Energy Corp In the last year. It is a trending stock that is worth watching.
On 2020-04-08, MEG Energy Corp (MEG-T) stock closed at a price of $3.03.
