SA News • Dec. 17, 2014
- MEG Energy possesses huge growth potential. Production grew by 80% in the first quarter of 2014, and is expected to grow by another 104% to 2017.
- The company's well-thought out strategy and flawless execution will add considerable value to the company, in addition to the growth potential.
- Intrinsic value range of C$53.21-C$55.65 (US$49.80-US$52.10). The mid-point of the range is 40% above the current market price of C$38.89 (US$36.40).
Dec. 17, 2014, 3:58 PM
- MEG Energy (OTCPK:MEGEF +10.3%) is the latest Canadian oil sands producer to adjust to uncertainty about oil prices, announcing a ~$900M reduction in its 2015 capital spending plan from what it announced less than two weeks ago.
- MEG is now aiming at $305M in capex next year, down ~75% from its previous estimate of $1.2B, which included $600M for mid-term growth initiatives at the Christina Lake oil sands project.
- “While our projects remain economic at current strip pricing, we believe it is prudent to reduce capital spending until we see a sustained improvement in commodity prices," the company says.
Dec. 9, 2014, 5:58 PM
- Energy stocks dominate Raymond James' new list of top picks among Canadian smallcaps, led by Denison Mines (NYSEMKT:DNN), which the firm sees surging ~70% in the next 12 months.
- DNN is viewed as one of the world's premier uranium companies, "a well-run company in a strong position to capitalize on likely significant appreciation in both the underlying commodity price and sector sentiment in 2015."
- The firm also likes Gildan Activewar (NYSE:GIL), which has changed pricing and accelerated its capex program in response to volatile cotton prices in the last year.
- Other favorites include OTCPK:DRGDF, OTCPK:LUNMF, OTCPK:MEGEF, MEOH.
Dec. 8, 2014, 4:55 PM
- Canada's S&P/TSX Composite Index suffered its biggest one-day loss in more than three years, plummeting as much as 462 points before settling for a 350-point beat-down, as resource stocks took a deep dive amid weakening crude oil prices.
- Purpose Investments' Som Seif says the selloff suggests investors are growing even more worried about how the resource heavy-Canadian economy will fare in light of the collapse in oil prices: "We still have lower to go for oil, and so there is the potential for energy stocks to see an even further decline from these levels.”
- Among today's worst performers: Lightstream Resources (OTCPK:LSTMF) -19%, Surge Energy (OTCPK:ZPTAF) -14.2%, MEG Energy (OTCPK:MEGEF) -14.1%, Crew Energy (OTCPK:CWEGF) -12.3%, Pacific Rubiales Energy (OTCPK:PEGFF) -11.2%.
- ETFs: EWC, FCAN, QCAN
Sep. 9, 2014, 9:47 AM
- Canexus (OTCPK:CXUSF) says it will resume construction to tie in the Cold Lake pipeline system to the MEG Energy (OTCPK:MEGEF) pipeline after a court ruled to allow the tie-in to proceed (earlier).
- Canexus says it expects to take about two weeks to complete, commission and start up the pipeline system to allow deliveries to its rail terminal operation.
Sep. 3, 2014, 10:53 AM
- Canexus (OTCPK:CXUSF -10.8%) says the crude-by-rail unit train loading expansion at its North American Terminal Operations is ready for commissioning and start-up, but MEG Energy (OTCPK:MEGEF) has refused to allow it to perform work required to tie-in the Cold Lake pipeline system.
- Canexus says it believes MEG has no legal justification for its refusal and says it is taking legal action to enforce all legal rights and remedies to protect its NATO business.
Jan. 14, 2014, 6:56 PM
- The weak Canadian dollar will provide extra cash flow to the country's energy sector but this is not being recognized by investors, particularly those outside Canada, Canaccord's Martin Roberge says in recommending Canadian Natural Resources (CNQ), MEG Energy (MEGEF) and Suncor (SU) as Canadian names benefiting most by heavy oil differentials.
- "A weaker C$ should also help spreads to narrow but more importantly allow Canadian producers to enjoy huge currency translation gains," Roberge says.
- The shale growth allure of U.S. E&Ps has blinded investors, but with the loonie breaking down below key resistance levels, the strategist sees a catalyst for going long the three Canadian names and shorting ConocoPhillips (COP), Anadarko (APC) and EOG.
Oct. 4, 2013, 2:37 PM
- Western Canada's first crude-by-rail unit train terminal is set to start transporting 50K bbl/day of oil sands crude to the U.S. market next month, the CEO of operating company Canexus says.
- The terminal in Bruderheim, Alberta, which will be expanded to 100K bbl/day by late next year as a second supply pipeline is connected, initially will load only dilbit oil - heavy bitumen crude mixed with light condensate.
- For now, Canada's oil sands area is served only by manifest trains hauling smaller loads - not cost-effective - but ~550K bbl/day of unit-train crude-by-rail projects are due to start up in western Canada by year-end 2014.
- MEG Energy (MEGEF.PK) says the terminal will allow it to ship all of its 30K-35K bbl/day of production by rail to its main market in the U.S. midwest; Cenovus Energy (CVE) also is signed up as a shipper.
Sep. 25, 2013, 5:43 PM
- A U.S. rejection of the Keystone XL pipeline (TRP) could defer 300K bbl/day of oil sands growth during 2015-17, shaving $1.8B from planned capital expenditures and pushing as much as $7.8B in spending on oilfield services beyond 2018, according to an RBC Capital report.
- Newer projects set to come online after 2016-17 could be deferred if Keystone isn't approved, but the overall impact likely would be mitigated by use of rail and competing pipelines, and producers such as Suncor Energy (SU), MEG Energy (MEGEF.PK) and Cenovus (CVE) which already have plowed billions into expansions of existing projects are hardly expected to change course.
- RBC echoes the emerging consensus view that bitumen growth is likely to continue regardless of the ultimate Keystone verdict.
Mar. 25, 2013, 5:57 PMRailroads are the critical link behind the boom in North American oil production from shale fields beyond the reach of existing pipelines, and Raymond James suggests 21 stocks likely to benefit from the trend: CNI, CP, KSU, NSC, CSX, UNP, BTE, CNQ, ARII, TRN, GMT, PBF, DK, TSO, TLLP, GEL, NRGY, GLP, CSCTF.PK, MEGEF.PK, STPJF.PK. (earlier) | 3 Comments
Jan. 25, 2013, 10:59 AMIf the Keystone pipeline is approved, analysts are more interested in Canadian oil producers and refiners along the Gulf of Mexico that can process the heavy stuff flowing south than in TransCanada (TRP) and rival pipeline operator Enbridge (ENB), whose gains are priced in. RBC likes SU, CNQ, BTE and MEGEF.PK, while Edward Jones prefers CVE, IMO, XOM, PSX and VLO along with SU. | 13 Comments
Jan. 14, 2013, 6:14 PMCanada’s independent oil producers may face months of depressed earnings and weak share prices as they jockey for space on over-full oil pipelines, analysts say. "The shortfall in takeaway capacity is absolutely going to weigh on realized prices for the Canadian producers over the near term on... especially heavy oil, which is at a pretty substantial discount to WTI right now," Macquarie says. | 13 Comments
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MEGEF vs. ETF Alternatives
MEG Energy Corp. (MEG) is a Canadian oil sands company focused on sustainable in situ development and production in the southern Athabasca oil sands region of Alberta. MEG has acquired a large, high quality resource base one that we believe holds some of the best in situ resources in Alberta.... More
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