4Q15 results in line or better than FirstEnergy and consensus expectations, while spending less than guidance in 2015. 2016e budget revised to sustaining capital of $170 mm. If necessary, MEG can halt sustaining capital, resulting in gradual decline of production without damaging reservoir. We suspect that a sale of MEG’s ownership in the Access Pipeline may not meet market expectations. Reducing ranking to Underperform (from Outperform) and target price to $4.00/share (previously $16.00/share), ....
08 Feb 2016
4Q15 Results, Access Pipeline Analysis, Downgrading to Underperform
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4Q15 Results, Access Pipeline Analysis, Downgrading to Underperform
MEG Energy Corp. (MEG:TSE) | 0 0 (-0.9%) | Mkt Cap: 1,559m
- Published:
08 Feb 2016 -
Author:
Michael P. Dunn -
Pages:
7
4Q15 results in line or better than FirstEnergy and consensus expectations, while spending less than guidance in 2015. 2016e budget revised to sustaining capital of $170 mm. If necessary, MEG can halt sustaining capital, resulting in gradual decline of production without damaging reservoir. We suspect that a sale of MEG’s ownership in the Access Pipeline may not meet market expectations. Reducing ranking to Underperform (from Outperform) and target price to $4.00/share (previously $16.00/share), ....