Q2 production jumped 12% Q/Q as MEG bought production credits, leading to AFFOPS beating consensus by 7%. No change to 2019 guidance. Our 2020e capex estimates fall by $88 mm as the CEO suggested it might be in the ~$300 mm vicinity. ~$41 mm/yr in cost savings is being unlocked via debt repayment, credit facility restructuring, and asset divestitures. $8.00 TP unchanged (implies 6.0x ‘20e FCF* at strip, 44% upside). BUY.
