MEG Energy records bigger Q2 loss on lower oil prices, reduced bitumen output

MEG Energy records bigger Q2 loss on lower oil prices, reduced bitumen output

CALGARY — Oilsands producer MEG Energy Corp. is reporting a higher second-quarter net loss on voluntarily curtailed bitumen production and lower oil prices.

The Calgary-based company says it had a net loss of $80 million or 26 cents per share in the three months ended June 30 on revenue of $307 million, versus a net loss of $64 million or 21 cents per share on revenue of $1.06 billion in the second quarter of 2019.

Analysts had expected a loss of $34 million or nine cents per share, according to financial markets data firm Refinitiv.

MEG, which produces bitumen from steam-activated wells in northeastern Alberta, reported production of 75,700 barrels per day, down from 91,560 in the first quarter and 97,300 bpd in the second quarter of 2019.

Its realized price per barrel was C$10.18, down from C$19.45 in the first quarter and C$62.23 in the year-earlier period.

In response to low oil prices in the second quarter, MEG cut its 2020 capital budget to $150 million from the original guidance of $250 million and rolled back salaries and benefits across the company.

“The second quarter was characterized by extreme negative movements in commodity prices coupled with unprecedented uncertainty regarding near-term crude oil supply and demand balances due to COVID-19,” said CEO Derek Evans in a statement.

This report by The Canadian Press was first published July 27, 2020.

Companies in this story: (TSX:MEG)

The Canadian Press

MEG Energy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Physicians often face aggressive patients

Almost all say they have been abused by patients or their families at some point

Alberta’s active COVID-19 cases continue to trend downwards

85 new cases Tuesday, active cases sit at 1,004

Vigil held in Maskwacis for another death

Samson Cree Nation comes together for comfort, console each other

Charges likely in fatal attack at central Alberta medical clinic: RCMP

A vigil was held Monday night to mourn the victim

Man, 54, charged in connection with fatal attack of Red Deer doctor

Doctor was killed in his walk-in clinic on Monday

Joe Biden selects California Sen. Kamala Harris as running mate

Harris and Biden plan to deliver remarks Wednesday in Wilmington

Donations pour in for family of doctor killed in Red Deer attack

Man has been charged in connection to death of Red Deer doctor

Cuts to environmental monitoring budget In Alberta’s oilsands are viewed as reckless

The 2019-2020 budget saw $58 million dollars being dedicated to environmental monitoring

Over half of Americans oppose Trump tariff on Canadian aluminum: survey

The survey was conducted Aug. 7 to 9 among 1,513 Canadians and 1,003 Americans

Police investigating after insults, expletives yelled at federal minister’s staff

A 90-second video circulating on social media appears to have been shot by the person who was yelling

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

Most Read