MEG outlined two potential phases of brownfield growth that could add ~30 mbbl/d for <$750 mm. Beyond the 3.3 mbbl/d of proposed additions to be funded by $30 mm later this year (2016 capex budget of $170 mm unchanged), we suspect these will only proceed if MEG can fund without growing net debt. An outright sale of its 50% stake in Access still seems unlikely to us, but perhaps. MEG considers selling a partial stake. Almost half of 2H16e production now has WTI downside protected at ~US$45/
03 Aug 2016
2Q16 Update – Low Cost Growth Plans Outlined
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
2Q16 Update – Low Cost Growth Plans Outlined
MEG Energy Corp. (MEG:TSE) | 0 0 (-0.9%) | Mkt Cap: 1,559m
- Published:
03 Aug 2016 -
Author:
Michael P. Dunn -
Pages:
9
MEG outlined two potential phases of brownfield growth that could add ~30 mbbl/d for <$750 mm. Beyond the 3.3 mbbl/d of proposed additions to be funded by $30 mm later this year (2016 capex budget of $170 mm unchanged), we suspect these will only proceed if MEG can fund without growing net debt. An outright sale of its 50% stake in Access still seems unlikely to us, but perhaps. MEG considers selling a partial stake. Almost half of 2H16e production now has WTI downside protected at ~US$45/