The following is a summary of the MEG Energy Corp. (MEGEF) Q1 2024 Earnings Call Transcript:
Financial Performance:
MEG Energy reported an average production of 104,000 barrels per day in Q1 2024, with realization cost of $6.37 per barrel.
There was a 38% increase in bitumen realization at $60 per barrel compared to Q1 2023.
The company invested $112 million in capital during this quarter mainly towards drilling activity.
Adjusted funds flow for the quarter was $329 million from which $217 million of free cash flow was generated after capital expenditures allowing the company to repay $105 million in senior notes and repurchase $127 million or 4.7 million MEG shares.
The company aims to reduce its net debt to $600 million by Q3 2024.
Business Progress:
MEG Energy launched its 2024 redevelopment and infill program successfully. Anticipates average production to be around 100,000 barrels per day in Q2 2024 due to maintenance, however, aims to reach 2024 production guidance of 102,000 to 108,000 barrels per day.
Engineering and design work on growth plans are progressing as per the timeline with a final investment decision expected in the second half of 2024.
Company renewed their normal course issuer bid for another year, and is progressing the proposed foundational carbon capture and storage project under the Pathways Alliance.
Industry veteran Bob Rooney will be standing for election to MEG's Board of Directors.
More details: MEG ENERGY CORP IR
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