{"id":1151343,"date":"2019-11-22T15:32:09","date_gmt":"2019-11-22T21:32:09","guid":{"rendered":"https:\/\/resourceworld.com\/?p=56960"},"modified":"2019-11-22T15:32:09","modified_gmt":"2019-11-22T21:32:09","slug":"meg-earmarks-250-million-for-capital-investment","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1151343","title":{"rendered":"MEG earmarks $250 million for capital investment"},"content":{"rendered":"

MEG Energy Corp.<\/strong> [MEG-TSX] has announced a $250 million capital investment plan for 2020, and said it remains focused on its ongoing debt reduction strategy.<\/p>\n

The Calgary company said it is guiding the market to anticipate production of between 94,000 and 97,000 barrels per day in 2020, an amount that takes into account a planned major turnaround with anticipated 2,500 barrels per day impact on production for the year.<\/p>\n

\u201cManagement remains committed to applying all free cash flow above its 2020 capital investment plan to further debt reduction,\u201d MEG said in a press release. Highlights of the company\u2019s capital reinvestment plan include year-to-date debt repayment of approximately $500 million.<\/p>\n

On Friday, MEG shares advanced 0.88% or $0.05 to $5.68 on volume of just over one million. The shares are currently trading in a 52-week range of $4.06 and $8.89.<\/p>\n

MEG Energy is a Canadian oil company focused on sustainable in-situ<\/em> thermal oil development and production in the southern Athabasca region of Alberta. The company is actively developing enhanced oil recovery projects that utilize steam-assisted gravity drainage (SAGD) extraction methods to improve the economic recovery of oil and achieve lower carbon emissions.<\/p>\n

The Christina Lake Project, located 150 km south of Fort McMurray, is currently the focus of MEG\u2019s oil development. Comprised of approximately 200 km2<\/sup> of leases, this SAGD operation currently has regulatory approvals in place to produce approximately 210,000 barrels per day.<\/p>\n

In the third quarter of 2019, the company reported bitumen production volumes of 93,278 barrels per day. That marked a 6% decrease over the same period in 2018 due to the impact of the Alberta Government\u2019s mandated production curtailment program which came into effect on January 1, 2019<\/p>\n

Highlights from the third quarter included adjusted funds flow of $192 million ($0.63 per share) and $152 million of free cash flow in the quarter.<\/p>\n

MEG realized a third quarter 2019 average Access Western Blend (AWB) blend sales price of US$45.63 per barrel, compared to US$51.72 in the second quarter of 2019. The change in average AWB blend sales price quarter over quarter is primarily due to a US$3.37 per barrel reduction in the benchmark WTI index combined with WTI:AWB differentials widening to US$14.52 per barrel from US$12.32 per barrel, and at the U.S. Gulf Coast widening to a discount of US$2.50 from a premium of US$1.64 per barrel.<\/p>\n

Meanwhile, the company realized net earnings of $24 million or $0.08 per share in the third quarter, down from $118 million or $0.39 during the same period last year. It attributed the decrease to an unrealized foreign exchange loss and lower unrealized gain on commodity risk management partially offset by a higher cash operating netback.<\/p>\n","protected":false},"excerpt":{"rendered":"

MEG Energy Corp. [MEG-TSX] has announced a $250 million capital investment plan for 2020, and…<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[915,625,839,622],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151343"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1151343"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151343\/revisions"}],"predecessor-version":[{"id":1151344,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1151343\/revisions\/1151344"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1151343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1151343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1151343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}