MEG Energy Spends Carefully as Sky-High Oil Prices Reverse Fortunes

June 2, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--As drivers around the world face heavy costs at the gasoline station, MEG Energy Corporation (Calgary, Alberta) is reaping the benefits of rising commodity prices. The company reported record quarterly bitumen production of 101,128 barrels per day (BBL/d) for the first quarter of 2022, which, together with strong benchmark pricing and low differentials, led to a quarterly record in the company's free cash flow. Industrial Info is tracking more than US$14 billion worth of active projects from MEG.

MEG expects its full-year 2022 capital expenditures (capex) to total C$375 million (US$296.38 million). The company's C$88 million (US$69.55 million) in first-quarter capex was directed largely toward sustaining and maintaining activities at its Christina Lake facility.

MEG, which was thought by many analysts to be teetering on the edge of bankruptcy amid the demand destruction brought on by COVID-19, could see even stronger results in the current quarter.