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MEG Energy Corp. (MEG.TO)

Toronto - Toronto Real Time Price. Currency in CAD

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16.06

-0.89

(-5.25%)

At close: 04:00PM EDT

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D
Dividends in lieu of buybacks would have stabilized this and other small and mid cap stocks.
A
MEG Energy (MEG TSX)

MEG has begun to return free cash flow back to shareholders with 25 per cent of free cash flow going towards an active share buyback, reaching the next threshold to increase to 50 per cent of free cash flow in the fourth-quarter of this year. With the company trading at a 32 per cent free cash flow yield and a commitment to return all of it back to shareholders once the company reaches their final debt target in the third-quarter of 2023 we believe MEG can drive a re-rating in its trading multiple from 2.8x to 6.0x (12 per cent free cash flow yield target) = $41 target price = 137 per cent potential upside.
D
Sold 1/2 my holdings.
D
MEG and CVE are still the top 2 picks in this sector as they’re the only ones committed returning 100% FCF next year, others are only at max 75%, MEG has 30 years of proven reserves and never needs to spend money Exploring again making it the most attractive imo. GLTA
Bullish
L
Sold 1284 shares in PM…..looks like a good move!! $$$
d
Management did not execute this quarter. I understand why; stuff happens. Unfortunately, it happened with WTI at its highest level in recent history. With investors having many options in this space that pay dividends, this stock will likely stay about here until cash starts flowing to shareholders...which BTW does not mean share buybacks but cash dividends to shareholders.
Neutral
M
tough business holding this thing these days
s
I don’t think people know the potential of This company yet. This is a 150% upside from here folks. When they hit debt targets. They will give back cash to us!!! Let’s goooo
C
Profit of $225 million, missed EPS estimates by .13 (.72 vs. estimate of .85). Great cash flow, but if the turnaround hadn't been botched with issues we would already be at the 1.2B debt target and accelerating buybacks. Basically that mess delayed things by a quarter. In a market this impatient we are likely looking at a bad or muted reaction tomorrow.
s
MEG is the most undervalued oil stock out there. we should be much higher then $17. but patience will be rewarded and we will push higher to over $20 soon. the fundamentals are there and they are committed to return value to shareholders up to 100% FCF.

GLTA
D
Having read the transcript of the latest conference call , one statement by Derek Evans left me scratching my head.
To paraphrase the CEO speaking about share buybacks, he states ;

MEG will stick to its plan and not try to time the market.

Why the heck wouldn’t you time the market??? Have a junior finance employee monitor the daily if not hourly stock price in this volatile environment and buy low? I’m obviously missing something, how difficult is it to buy big when you have the cash and the stock price is below management’s perceived value ?

I guess they have better things to do rather than prudently spend my Free Cash Flow.
J
Promise promise promise...."Next year, we will have strong dividend". We need some concrete reward now ! Read that as NOW. Look at Cardinal to know what to do.
D
EPS forecast revised down significantly to $0.85 for this quarter, if they beat this going to expect a huge bounce back to $18 to catch up for the lag they’ve had behind other O&G this past week
Bullish
M
Now that's what you call share buyback action over the last few days.
s
Megs numbers will be spectacular folks!!! Unhedged and making cash hand over fist. This is one stock u have to own. They will be hitting targets faster then you think and don’t want to be on sidelines when that happens.

Let’s goooo
Bullish
D
Everyone scared of demand weakening meanwhile crude inventories continue to keep falling
s
MEG is so undervalued and when they crush earnings people will see the potential of this stock.

this will be green today.

lets gooo
D
It’s crazy MEG is one of the few that is committing 100% of FCF to shareholders next year which will equate to a 30+% dividend, this will outperform those that only commit 50-75% of FCF
Bullish
j
150$ a barrel soon see article
A
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