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
Tuesday, Jan 146:56 PM
Tuesday, Jan 146:56 PM| 10 Comments
- 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.
Friday, Oct 42013, 2:37 PM
Friday, Oct 42013, 2:37 PM| 2 Comments
- 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.
Wednesday, Sep 252013, 5:43 PM
Wednesday, Sep 252013, 5:43 PM| 4 Comments
- 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.
Monday, Mar 252013, 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) |Monday, Mar 252013, 5:57 PM| 3 Comments
Friday, Jan 252013, 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. |Friday, Jan 252013, 10:59 AM| 13 Comments
Monday, Jan 142013, 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. |Monday, Jan 142013, 6:14 PM| 13 Comments