MEG Energy swings back to black & reports another record quarter
Calgary-based MEG Energy reported another record quarter today, boosted by strong operational performance at their Christina Lake property. The company reported a record $262 million cash flow from operations, tripled from the previous year, and record quarterly production of 69,000 barrels per day. Production increased 115% from Q2-2013 and 18% from Q1-2014.
Phase 2B of their Christina Lake facility has reached design capacity after 7 months of oil production. Net operating costs were $14.49/barrel for the quarter, up from $8.83/barrel for the same quarter last year. The increase in operating costs were attributed to higher natural gas prices and lower electricity sales from their COGEN facility.
The company also increase guidance for 2014 production from 65,000 to 70,000 barrels per day. This is the first quarter of profitability for MEG Energy in the past 3 quarters. China National Offshore Oil Corporation (CNOOC) is a minority shareholder of the company owning a 16.69% stake in the corporation.