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MEG Energy

TSX:MEG
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEG
TSX
CA$425M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

MEG Energy Corp., an energy company, focuses on sustainable in situ thermal oil production in the southern Athabasca region of Alberta, Canada. The last earnings update was 24 days ago. More info.


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  • MEG Energy has significant price volatility in the past 3 months.
MEG Share Price and Events
7 Day Returns
-23.8%
TSX:MEG
15.2%
CA Oil and Gas
11.4%
CA Market
1 Year Returns
-76.1%
TSX:MEG
-41.5%
CA Oil and Gas
-22%
CA Market
MEG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MEG Energy (MEG) -23.8% -79.8% -83.4% -76.1% -81.9% -94.3%
CA Oil and Gas 15.2% -37.6% -42.4% -41.5% -49.8% -53.6%
CA Market 11.4% -22.2% -23.5% -22% -19.8% -13.3%
1 Year Return vs Industry and Market
  • MEG underperformed the Oil and Gas industry which returned -41.5% over the past year.
  • MEG underperformed the Market in Canada which returned -22% over the past year.
Price Volatility
MEG
Industry
5yr Volatility vs Market

MEG Value

 Is MEG Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MEG Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MEG Energy.

TSX:MEG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:MEG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (800.13%))
4.136
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 5.44%)
12.32%

Discounted Cash Flow Calculation for TSX:MEG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MEG Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:MEG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 276.43 Analyst x8 246.10
2021 111.70 Analyst x10 88.54
2022 196.00 Analyst x1 138.32
2023 219.54 Est @ 12.01% 137.94
2024 238.94 Est @ 8.84% 133.66
2025 254.76 Est @ 6.62% 126.88
2026 267.66 Est @ 5.07% 118.68
2027 278.31 Est @ 3.98% 109.87
2028 287.26 Est @ 3.22% 100.96
2029 294.97 Est @ 2.68% 92.30
Present value of next 10 years cash flows CA$1,293.00
TSX:MEG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$294.97 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$2,750.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$2,750.16 ÷ (1 + 12.32%)10
CA$860.57
TSX:MEG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,293.00 + CA$860.57
CA$2,153.57
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,153.57 / 299.60
CA$7.19
TSX:MEG Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$7.19
Current discount Discount to share price of CA$1.22
= -1 x (CA$1.22 - CA$7.19) / CA$7.19
83%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MEG Energy is available for.
Intrinsic value
>50%
Share price is CA$1.22 vs Future cash flow value of CA$7.19
Current Discount Checks
For MEG Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MEG Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MEG Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MEG Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MEG Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:MEG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$-0.21
TSX:MEG Share Price ** TSX (2020-03-27) in CAD CA$1.22
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MEG Energy.

TSX:MEG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MEG Share Price ÷ EPS (both in CAD)

= 1.22 ÷ -0.21

-5.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MEG Energy is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • MEG Energy is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does MEG Energy's expected growth come at a high price?
Raw Data
TSX:MEG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -5.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
96.7%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for MEG Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on MEG Energy's assets?
Raw Data
TSX:MEG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$12.86
TSX:MEG Share Price * TSX (2020-03-27) in CAD CA$1.22
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.38x
Canada Market PB Ratio Median Figure of 2,352 Publicly-Listed Companies 1x
TSX:MEG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MEG Share Price ÷ Book Value per Share (both in CAD)

= 1.22 ÷ 12.86

0.09x

* Primary Listing of MEG Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MEG Energy is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess MEG Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. MEG Energy has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEG Future Performance

 How is MEG Energy expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
96.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MEG Energy expected to grow at an attractive rate?
  • MEG Energy's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • MEG Energy's earnings growth is expected to exceed the Canada market average.
  • MEG Energy's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:MEG Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:MEG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 96.7%
TSX:MEG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -8%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:MEG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:MEG Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,206 277 79 3
2021-12-31 2,968 260 -5 7
2020-12-31 2,513 392 -9 8
2020-03-28
TSX:MEG Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,931 631 -62
2019-09-30 3,458 500 -286
2019-06-30 3,303 329 -192
2019-03-31 2,931 92 -307
2018-12-31 2,733 280 -119
2018-09-30 2,968 387 56
2018-06-30 2,741 392 22
2018-03-31 2,635 390 305
2017-12-31 2,474 318 166
2017-09-30 2,281 199 -115
2017-06-30 2,202 171 -308
2017-03-31 2,131 172 -558

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MEG Energy's earnings are expected to grow significantly at over 20% yearly.
  • MEG Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:MEG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from MEG Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MEG Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 -0.11 0.90 -0.88 3.00
2021-12-31 -0.63 0.42 -1.97 8.00
2020-12-31 -0.51 0.35 -2.20 9.00
2020-03-28
TSX:MEG Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 -0.21
2019-09-30 -0.96
2019-06-30 -0.65
2019-03-31 -1.04
2018-12-31 -0.40
2018-09-30 0.19
2018-06-30 0.08
2018-03-31 1.04
2017-12-31 0.57
2017-09-30 -0.42
2017-06-30 -1.20
2017-03-31 -2.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MEG Energy will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess MEG Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MEG Energy has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEG Past Performance

  How has MEG Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MEG Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MEG Energy does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare MEG Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare MEG Energy's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
MEG Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MEG Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MEG Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,931.00 -62.00 327.00
2019-09-30 3,457.70 -286.20 309.54 5.51
2019-06-30 3,303.21 -192.42 318.18 7.27
2019-03-31 2,930.74 -307.30 334.79 6.75
2018-12-31 2,733.00 -119.00 340.00
2018-09-30 2,967.82 56.22 346.56 2.40
2018-06-30 2,740.80 22.11 346.09 6.12
2018-03-31 2,635.31 304.96 329.74 5.86
2017-12-31 2,474.50 165.98 331.51 5.81
2017-09-30 2,281.05 -115.00 351.31 4.54
2017-06-30 2,201.61 -307.52 369.87 4.51
2017-03-31 2,131.33 -557.97 384.51 5.06
2016-12-31 1,861.89 -428.73 399.94 5.50
2016-09-30 1,745.02 -421.24 401.88 6.83
2016-06-30 1,707.97 -740.11 422.29 7.80
2016-03-31 1,749.26 -530.54 443.91 7.70
2015-12-31 1,925.92 -1,169.67 475.35 7.50
2015-09-30 2,096.20 -1,022.47 489.97 7.23
2015-06-30 2,342.85 -695.94 489.70 6.92
2015-03-31 2,617.40 -510.40 516.26 6.18
2014-12-31 2,829.96 -105.54 511.21 6.00
2014-09-30 2,565.51 -103.64 466.21 5.45
2014-06-30 2,260.92 112.71 422.59 5.39
2014-03-31 1,756.09 -198.55 359.83 5.30
2013-12-31 1,334.50 -166.41 299.21 5.59
2013-09-30 1,281.74 -36.96 291.89 4.91
2013-06-30 1,093.60 -104.87 280.70 4.14
2013-03-31 1,028.90 -72.09 254.88 5.15

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if MEG Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • MEG Energy used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if MEG Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess MEG Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MEG Energy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEG Health

 How is MEG Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MEG Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MEG Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MEG Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of MEG Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MEG Energy Company Filings, last reported 2 months ago.

TSX:MEG Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,853.00 3,123.00 224.00
2019-09-30 3,828.00 3,257.00 154.00
2019-06-30 3,795.39 3,598.60 399.21
2019-03-31 3,850.50 3,676.05 154.08
2018-12-31 3,885.00 3,757.00 328.00
2018-09-30 4,068.05 3,559.55 372.55
2018-06-30 3,945.78 3,623.00 563.97
2018-03-31 4,112.53 3,558.70 675.12
2017-12-31 3,964.11 4,689.76 477.19
2017-09-30 3,981.75 4,661.90 397.60
2017-06-30 3,898.05 4,839.40 512.42
2017-03-31 3,792.82 4,973.09 548.98
2016-12-31 3,286.78 5,074.41 169.80
2016-09-30 3,577.56 4,937.62 103.14
2016-06-30 3,679.37 4,910.32 152.71
2016-03-31 3,812.57 4,897.67 124.56
2015-12-31 3,677.87 5,224.58 423.70
2015-09-30 3,956.69 5,073.50 350.74
2015-06-30 4,358.08 4,719.10 438.24
2015-03-31 4,279.87 4,808.63 485.22
2014-12-31 4,768.24 4,395.01 661.44
2014-09-30 4,894.44 4,241.60 780.57
2014-06-30 4,970.14 4,045.02 845.21
2014-03-31 4,705.97 4,191.56 895.94
2013-12-31 4,788.43 4,035.56 1,186.98
2013-09-30 4,919.41 2,890.66 649.42
2013-06-30 4,771.62 2,954.51 1,211.61
2013-03-31 4,817.25 2,869.14 1,812.17
  • MEG Energy's level of debt (81.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (92.4% vs 81.1% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making MEG Energy has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making MEG Energy has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -47.4% per year.
X
Financial health checks
We assess MEG Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MEG Energy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEG Dividends

 What is MEG Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from MEG Energy dividends. Estimated to be 0% next year.
If you bought CA$2,000 of MEG Energy shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate MEG Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate MEG Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:MEG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:MEG Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 2.00
2021-12-31 0.00 4.00
2020-12-31 0.00 4.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as MEG Energy has not reported any payouts.
  • Unable to verify if MEG Energy's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of MEG Energy's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as MEG Energy has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of MEG Energy's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess MEG Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MEG Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MEG Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEG Management

 What is the CEO of MEG Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Derek Evans
COMPENSATION CA$1,072,031
AGE 62
TENURE AS CEO 1.6 years
CEO Bio

Mr. Derek W. Evans, B.Sc, has been the President and Chief Executive Officer at MEG Energy Corp. since August 10, 2018. Mr. Evans has been a Director of Franco-Nevada Corporation since August 8, 2008. Mr. Evans was Advisor of Pengrowth Energy Corporation (an oil and natural gas company) from March 14, 2018 to June 30, 2018. He was the President and Chief Executive Officer of Pengrowth Energy Corporation until March 14, 2018 and served as its Director since 2009 until March 14, 2018. From May to September 2009, Mr. Evans was President and Chief Operating Officer of Pengrowth Energy Trust from May 2009 to September 2009. Mr. Evans served as President and Chief Executive Officer of Focus Energy Trust from May 2002 until March 2008. Mr. Evans has over 30 years of experience in a variety of operational and senior management positions in the oil and gas business in Western Canada. He has been a Director of MEG Energy Corp. since August 10, 2018. Mr. Evans holds a Bachelor of Science degree in Mining Engineering from Queen’s University and is a registered Professional Engineer in Alberta. Mr. Evans is also a member of the Institute of Corporate Directors.

CEO Compensation
  • Insufficient data for Derek to compare compensation growth.
  • Derek's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the MEG Energy management team in years:

2
Average Tenure
  • The average tenure for the MEG Energy management team is less than 2 years, this suggests a new team.
Management Team

Derek Evans

TITLE
President
COMPENSATION
CA$1M
AGE
62
TENURE
1.6 yrs

Eric Toews

TITLE
Chief Financial Officer
COMPENSATION
CA$3M
TENURE
6.5 yrs

Chi-Tak Yee

TITLE
Chief Operating Officer
COMPENSATION
CA$3M
TENURE
2.3 yrs

Helen Kelly

TITLE
Director of Investor Relations

Lyle Yuzdepski

TITLE
Senior VP of Legal
TENURE
0.2 yrs

Tara McCool

TITLE
Vice President of People & Corporate Identity and Corporate Communications
Board of Directors Tenure

Average tenure and age of the MEG Energy board of directors in years:

3.8
Average Tenure
66
Average Age
  • The tenure for the MEG Energy board of directors is about average.
Board of Directors

Jeff McCaig

TITLE
Independent Chairman
COMPENSATION
CA$366K
AGE
67
TENURE
3.8 yrs

Derek Evans

TITLE
President
COMPENSATION
CA$1M
AGE
62
TENURE
1.6 yrs

Jim McFarland

TITLE
Independent Director
COMPENSATION
CA$248K
AGE
72
TENURE
9.8 yrs

Bob Hodgins

TITLE
Independent Director
COMPENSATION
CA$339K
AGE
68
TENURE
9.5 yrs

Diana McQueen

TITLE
Independent Director
COMPENSATION
CA$319K
AGE
57
TENURE
4.4 yrs

Harvey Doerr

TITLE
Independent Director
COMPENSATION
CA$1M
AGE
60
TENURE
9.8 yrs

Bill Klesse

TITLE
Independent Director
COMPENSATION
CA$204K
AGE
73
TENURE
3.8 yrs

Grant Billing

TITLE
Independent Director
AGE
67
TENURE
0.8 yrs

Ian Bruce

TITLE
Independent Director
AGE
65
TENURE
0.8 yrs

Judy Fairburn

TITLE
Independent Director
AGE
54
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by MEG Energy individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
19. Mar 20 Buy Erik Alson Individual 17. Mar 20 17. Mar 20 1,000 CA$1.65 CA$1,650
17. Mar 20 Buy William Klesse Individual 16. Mar 20 16. Mar 20 25,000 CA$2.11 CA$52,737
10. Mar 20 Buy Grant Billing Individual 09. Mar 20 09. Mar 20 50,000 CA$3.00 CA$150,000
09. Mar 20 Buy Judy Fairburn Individual 09. Mar 20 09. Mar 20 15,900 CA$3.07 CA$48,813
05. Dec 19 Sell Jeremy Gizen Individual 03. Dec 19 03. Dec 19 -7,009 CA$5.44 CA$-38,060
19. Aug 19 Buy William Klesse Individual 16. Aug 19 16. Aug 19 25,000 CA$4.67 CA$116,648
11. Jun 19 Buy William Klesse Individual 10. Jun 19 10. Jun 19 25,000 CA$4.27 CA$106,666
X
Management checks
We assess MEG Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MEG Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEG News

Simply Wall St News

Is MEG Energy Corp's (TSE:MEG) Balance Sheet Strong Enough To Weather A Storm?

Investors are always looking for growth in small-cap stocks like MEG Energy Corp (TSE:MEG), with a market cap of CA$2.49b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Why Are Insiders Bearish About MEG Energy Corp's (TSE:MEG) Stock?

MEG Energy Corp., an oil sands company, focuses on sustainable in situ development and production in the southern Athabasca oil sands region of Alberta. … MEG Energy's insiders have divested from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal

Simply Wall St -

What Investors Should Know About MEG Energy Corp's (TSE:MEG) Financial Strength

Mid-caps stocks, like MEG Energy Corp (TSE:MEG) with a market capitalization of CA$3.32b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. … Don’t forget that this is a general and concentrated examination of MEG Energy’s financial health, so you should conduct further analysis.

Simply Wall St -

What You Must Know About MEG Energy Corp's (TSE:MEG) ROE

and looking to gauge the potential return on investment in MEG Energy Corp (TSE:MEG). … With an ROE of 7.41%, MEG Energy Corp (TSE:MEG) returned in-line to its own industry which delivered 6.50% over the past year. … This can be measured by looking at the company’s financial leverage.

Simply Wall St -

MEG Energy Corp (TSE:MEG): Time For A Financial Health Check

See our latest analysis for MEG Energy How does MEG’s operating cash flow stack up against its debt? … Moreover, MEG has generated CA$317.94M in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 6.78%, signalling that MEG’s current level of operating cash is not high enough to cover debt. … Next Steps: MEG’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Breaking Down MEG Energy Corp's (TSE:MEG) Ownership Structure

Today, I will be analyzing MEG Energy Corp’s (TSX:MEG) recent ownership structure, an important but not-so-popular subject among individual investors. … Insider Ownership Another important group of shareholders are company insiders. … This is a positive sign for potential investors as these firms play an important role in aligning company policy with shareholder returns.Next Steps: I suggest investors seek some degree of margin of safety due to high institutional ownership in MEG, in particular due to the strong presence of active hedge fund investors.

Simply Wall St -

Interested In The Energy Industry? Take A Look At MEG Energy Corp (TSE:MEG)

In this article, I’ll take you through the energy sector growth expectations, and also determine whether MEG Energy is a laggard or leader relative to its energy sector peers. … As an industry laggard, MEG Energy may be a cheaper stock relative to its peers. … Although the market is expecting lower growth for the company relative to its peers, MEG Energy is also trading at a discount, meaning that there could be some value from a potential mispricing.

Simply Wall St -

At $6.51, Is It Time To Buy MEG Energy Corp (TSE:MEG)?

TSX:MEG Future Profit Apr 20th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you are no longer interested in MEG Energy, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Will MEG Energy Corp's (TSE:MEG) Earnings Grow Over The Next Few Years?

The most recent earnings announcement MEG Energy Corp's (TSX:MEG) released in December 2017 indicated that the company finally turned profitable after negative earnings on average over the last couple of years. … Below is my commentary, albeit very simple and high-level, on how market analysts perceive MEG Energy's earnings growth outlook over the next couple of years and whether the future looks brighter. … TSX:MEG Future Profit Apr 10th 18 Even though it is useful to be aware of the growth rate each year relative to today’s value, it may be more valuable to gauge the rate at which the earnings are moving on average every year.

Simply Wall St -

Are MEG Energy Corp's (TSE:MEG) Interest Costs Too High?

Additionally, MEG has generated cash from operations of CA$317.94M in the last twelve months, leading to an operating cash to total debt ratio of 6.78%, indicating that MEG’s debt is not appropriately covered by operating cash. … At the current liabilities level of CA$525.46M liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.6x. … In MEG's, case, the ratio of 0.43x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: MEG’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

MEG Company Info

Description

MEG Energy Corp., an energy company, focuses on sustainable in situ thermal oil production in the southern Athabasca region of Alberta, Canada. The company owns a 100% interest in approximately 750 square miles of mineral leases. It is developing oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the recovery of oil, as well as lower carbon emissions. The company transports and sells Access Western Blend to refiners throughout North America and internationally. It primarily engages in sustainable in situ thermal oil production at its Christina Lake Project. The company was incorporated in 1999 and is headquartered in Calgary, Canada.

Details
Name: MEG Energy Corp.
MEG
Exchange: TSX
Founded: 1999
CA$425,432,000
299,600,000
Website: http://www.megenergy.com
Address: MEG Energy Corp.
600 – 3 Avenue SW,
25th Floor,
Calgary,
Alberta, T2P 0G5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MEG Common Shares The Toronto Stock Exchange CA CAD 29. Jul 2010
OTCPK MEGE.F Common Shares Pink Sheets LLC US USD 29. Jul 2010
DB ME7 Common Shares Deutsche Boerse AG DE EUR 29. Jul 2010
Number of employees
Current staff
Staff numbers
450
MEG Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 02:28
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/04
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.