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To: Goose94 who wrote (44971)6/11/2018 7:59:59 PM
From: Goose94Read Replies (2) | Respond to of 202843
 
MEG Energy (MEG-T) top pick from Eric Nuttall on BNN.ca Market Call Monday June 11th @ 1200ET

MEG Energy offers the highest torque in cash flow to an improving oil price. While debt isn’t modest, the company is entering into a strong free cash flow period in which debt repayment will occur at a meaningful rate. Given fully funded production growth this year, we see debt-to-cash flow falling to a very manageable level of 2.2 times in 2019. With oil at $80, MEG would trade at around 17 per cent free cash flow yield and have the ability to theoretically pay a 15 per cent dividend per year for the next 50 years from free cash flow using existing reserves. At $80/bbl, we have the company trading at 4.1 times enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) versu