Meg Energy Corp.OTCPK - Current
Thu, Jul. 28, 4:49 PM
- Two Canadian energy companies today outlined preliminary plans to add new oil sands production at their Alberta operations, although analysts caution against concluding that oil sands growth would rebound rapidly, saying most companies would remain cautious.
- Cenovus Energy (NYSE:CVE) said, as it released Q2 earnings, that it was performing engineering and rebidding work on a 50K bbl/day expansion of its Christina Lake thermal project, which was put on hold last year, and would decide whether to proceed by December.
- MEG Energy (OTCPK:MEGEF) said in its Q2 earnings release that it could invest up to C$30M in its own project to raise production by 30K-40K bbl/day through this year's cost savings without raising its projected C$170M in 2016 capex.
- "This is a very company-specific thing," says Desjardins analyst Justin Bouchard. For CVE, Christina Lake is "probably the best project out there, and they have got C$3.8B in cash."
Thu, Jul. 28, 6:27 AM
Tue, Jul. 12, 2:11 PM
- Wolf Infrastructure, the midstream oil and gas company backed by Canada's largest pension plan, is near a deal to buy Devon Energy’s (DVN +6.5%) 50% stake in the Access Pipeline in western Canada, Bloomberg reports.
- The deal values DVN’s stake in the pipeline at as much as C$1.5B ($1.2B) and could be announced as early as his week, according to the report; MEG Energy (OTCPK:MEGEF), DVN’s partner in the pipeline, also is said to be trying to find a buyer for its 50% stake.
- A deal would mark the third purchase in a month for Canada pension-backed companies in western Canada, as oil and gas companies look to shore up their balance sheets amid the current commodities price rout.
Thu, May 26, 5:28 PM
- The amount of pollution created by vapor from Canada’s oil sands ranks on par with most major cities in North America, according to a new study by the country’s environmental regulator.
- While the connection between the oil sands’ carbon emissions and climate change is well documented, the study is the first to track the vapor produced in the process and the extent of the resulting pollution.
- Vapor from the bitumen of the oil sands is released into the air when it is dug up in open pit mines and later as the oil is separated out, and once in the atmosphere and exposed to sunlight, the vapors mix with other chemicals to become particles known as secondary organic aerosols; according to the study, the oil sands were rivaled by only the largest metro areas such as Los Angeles in creating the particles; vehicle exhaust and electrical generation are the main sources of the particles in cities.
- Relevant tickers: SU, CVE, IMO, XOM, RDS.A, RDS.B, CNQ, ENB, TRP, PDS, CEO, OTCPK:HUSKF, OTCPK:MEGEF, OTCPK:ATHOF
Wed, May 25, 11:16 AM
- Alberta's government introduced legislation yesterday to implement an economy-wide carbon tax starting next year, part of a broader environmental policy package expected to phase out coal-fired plants in the province and cap emissions from oil sands production.
- The new tax targets all fossil fuel consumption, including gasoline sales and natural gas for home heating; the government says it will levy a tax of C$20/metric ton from next January, which will be increased to C$30 from Jan. 1, 2018.
- Two major oil sands producers, Cenovus Energy (CVE +2.8%) and Suncor Energy (SU +1.9%), have welcomed the move to position the oil-rich province as a leader in environmental stewardship.
- Other relevant tickers: IMO, XOM, RDS.A, RDS.B, CNQ, ENB, TRP, PDS, CEO, OTCPK:HUSKF, OTCPK:MEGEF, OTCPK:ATHOF
Tue, May 10, 7:25 PM
- Canadian oil sands companies near Fort McMurray are beginning to restart their operations, as the out of control wildfire continues to rage but has now moved far enough away from the oil sands' sites to allow the companies to return.
- Royal Dutch Shell (RDS.A, RDS.B) is the first company to resume its operation in the area, restarting production at its Albian mine, and Enbridge (NYSE:ENB) has begun inspecting its facilities and prepares to restart operations shuttered during the blaze.
- Suncor (NYSE:SU) says it has restarted power generation at its Syncrude oil sands mine in Aurora, and CEO Steve Williams says he expects oil sands companies would resume production “in the coming days and maybe a week or so, but you’re not talking longer periods.”
- Alberta Premier Notley says there was no damage to oil sands facilities north of Fort McMurray, although the fire caused minor damage to Nexen’s (NYSE:CEO) oil sands facility south of the city and to ENB’s above-ground facilities along its pipelines in the area.
- The decline to production reportedly reached at least 839K bbl/day, or close to one-third of Canada’s overall daily production, before Shell's restart.
- While ~2,400 homes and buildings were destroyed by fire, officials say ~90% of buildings in Fort McMurray, including schools and a hospital, remain intact; two people died in accidents related to evacuating the fires.
- Other relevant tickers: XOM, IMO, COP, OTCPK:HUSKF, OTCPK:ATHOF, CNQ, CVE, OTCPK:MEGEF, OTCPK:IPPLF, OTC:KEYUF, TRP, PSX, STO
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Mon, May 9, 3:19 PM
- Crude oil prices erased all of Friday's gains and more, as June futures ended the pit session 2.7% lower to $43.55/barrel even as the massive wildfires in the heart of Canada's oil sands continue to spread, albeit more slowly.
- But positioning in the oil market is very stretched, and analysts say speculators already hold the largest number of wagers for a rise in WTI futures since last summer and near-record high bullish bets on Brent, so the scope for further gains was limited without more clarity on the extent of damage to oil facilities or supply outages.
- The sacking of Ali al-Naimi as head of Saudi Arabia’s oil ministry also may be a reason why oil prices failed to maintain early gains, as successor Khalid al-Falih, the former head of Aramco, is expected to follow the strategy of protecting the country’s market share.
- Yesterday, Cnooc’s Nexen (NYSE:CEO) operations to the south of Fort McMurray reportedly suffered minor damage, while Suncor (NYSE:SU) says its facilities have not been damaged and is beginning to implement a plan for a return to operations.
- Other relevant tickers: RDS.A, RDS.B, XOM, IMO, COP, OTCPK:HUSKF, OTCPK:ATHOF, CNQ, CVE, OTCPK:MEGEF, ENB, OTCPK:IPPLF, OTC:KEYUF, TRP, PSX, STO
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
- Now read Fort McMurray situation getting better - oil markets daily
Sat, May 7, 12:32 AM
- The devastating wildfires in and around Alberta's Fort McMurray may double in size to 2K sq. km over the weekend and burn for weeks, officials say.
- Bank of Montreal has cut its Q2 Canadian GDP growth estimate to zero from 1.5%, citing “severe disruptions to oil production” due to the fires, and said the estimate was just a placeholder dependent on more information on the scope of the disaster.
- Royal Bank of Canada estimates that as much as 1M bbls/day of production has been shut, or ~40% of oil sands output, as companies including Suncor (NYSE:SU), Shell (RDS.A, RDS.B), Exxon (NYSE:XOM) subsidiary Imperial Oil (NYSEMKT:IMO), ConocoPhillips (NYSE:COP), Husky Energy (OTCPK:HUSKF) and Athabasca Oil (OTCPK:ATHOF) cut production.
- The fire is said to be “at the gates” of Nexen’s (NYSE:CEO) Long Lake project, but a few companies including Canadian Natural Resources (NYSE:CNQ), Cenovus (NYSE:CVE) and MEG Energy (OTCPK:MEGEF) say their production has been unaffected so far.
- Among pipeline companies, no assets have incurred significant damage, but Enbridge (NYSE:ENB) shut all pipelines in and out of Cheecham Terminal, Inter Pipeline (OTCPK:IPPLF) shut parts of its system in the province, and Keyera's (OTC:KEYUF) South Cheecham rail and truck terminal is shut down; TransCanada (NYSE:TRP) says it does not expect the fires to affect deliveries of natural gas.
- SU, Phillips 66 (NYSE:PSX) and Statoil (NYSE:STO) have declared force majeure on supplies from the region.
Thu, Apr. 28, 5:52 AM
- Meg Energy (OTCPK:MEGEF): Q1 EPS of C$0.58.
- Revenue of C$290M (-37.9% Y/Y).
Thu, Apr. 21, 6:17 PM
- Alberta's provincial government releases technical formulas for its new oil and gas royalty framework, a move welcomed by the energy industry as providing clarity to potential investors and enabling producers to move forward with drilling and investment plans.
- Analysts say the technical formulas are a net positive for producers by basing well cost allowances on the 2012-15 period when costs were higher, but oil prices - and whether they recover or continue to languish near $40/bbl - would have a much greater impact on investment decisions in Alberta than the royalty structure.
- Alberta's new NDP government unveiled its new royalty framework in January which left rates largely unchanged on oil sands projects and existing wells.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
- Now read Which Canadian mid-cap pipelines pay out safe dividends?
Wed, Apr. 13, 12:57 PM
- The era of megaprojects in Canada’s oil sands likely is over as crude is seen staying lower for longer, according to executives from Suncor Energy (SU +0.2%), Cenovus Energy (CVE -1.1%) and Meg Energy (OTCPK:MEGEF).
- “We’re more likely into smaller, more modular-type projects.” says SU CFO Alister Cowen, adding that the C$13B (US$10B) Fort Hills project being pursued by SU and Teck Resources (TCK -0.1%), probably will be the last oil sands mine built for many years.
- Producers in Canada’s oil sands, among the most expensive reserves in the world to develop, are depending on technology and process improvements to bring down costs; CVE CFO Ivor Ruste and Meg CFO Eric Toews say their companies are looking at solvents to reduce the amount of steam used to get bitumen from their wells, and Cowen says SU is experimenting with radio waves to potentially replace steam entirely.
- Now read Suncor says still looking for deals after purchasing Canadian Oil Sands
Thu, Apr. 7, 5:46 PM
- Spending in Canada’s oil and natural gas sector has fallen by a record C$50B (US$38B) over the past two years, a 62% drop that marks the biggest two-year decline since 1947 when data was first collected, according to the Canadian Association of Petroleum Producers.
- The group predicts total capital investment in the oil and natural gas sector will fall to C$31B in 2016, down from C$48B in 2015 and a record C$81B in 2014.
- CAPP also forecasts that the total number of wells drilled in Canada’s western provinces, home to the world's third largest oil reserves, will fall to 3,500 in 2016 from 10,400 drilled in 2014 and that capital spending there will drop to $17B this year, about half of 2014 levels.
- Relevant tickers: SU, CVE, IMO, XOM, RDS.A, RDS.B, CNQ, ENB, TRP, PDS, OTCPK:HUSKF, OTCQX:COSWF, OTCPK:MEGEF
- Now read Canada's biggest oil producers sitting on near-record cash pile
Thu, Feb. 4, 5:26 AM
- Meg Energy (OTCPK:MEGEF): Q4 EPS of -$0.62
- Revenue of $445M (-27.6% Y/Y)
Mon, Feb. 1, 3:15 PM
- Alberta's government says it will provide up to C$500M (US$357M) in subsidies to support new petrochemical plants, part of a plan to help diversify the province’s economy by creating higher value products from its resources.
- The subsidies are designed to attract two or three new petrochemical projects, each of which would be eligible for up to C$200M in credits for purchasing ethane or propane; the credits would be provided only once a facility is built and starts operating to reduce the financial risk to the province.
- The program follows Alberta’s review of oil and gas royalty charges, which was unveiled Friday and said there was an opportunity to encourage more petrochemical processing in the province.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
Fri, Jan. 29, 2:15 PM
- Alberta's new government unveils its new oil and gas royalty framework that left rates unchanged on existing oil wells and oil sands projects, easing fears that it could lead to higher costs and job losses at a time when Canada's energy heartland is already staggering from collapsing oil prices.
- The highly anticipated royalty review keeps the current commodity price-based system, but will levy rates once the cost of a well has been recouped based on industry averages for drilling costs in Alberta, will apply only to new wells from 2017 onward; existing royalty rates will remain in place for 10 years on wells drilled before 2017.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, PDS, OTCPK:MEGEF
Dec. 16, 2015, 5:17 PM
- The cost to produce crude oil from Alberta’s oil sands dropped this year after 15 years of continuous inflation, according to a new report from IHS Energy, as capital and operating costs in the region have fallen in response to collapsing global oil prices.
- But the findings do not mean the oil sands are now a more competitive choice for energy companies’ investment dollars compared with shale or offshore oil formations, as costs across the global energy industry also have dropped.
- The report also says 70% of oil sands production growth over the next five years will come from the expansion of existing projects, and 80% of that growth will be from steam-based, rather than mining, projects.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, OTCPK:MEGEF