Tudor, Pickering, Holt on Wednesday reiterated its buy rating on the shares of MEG Energy (MEG.TO) with a C$38.00 price target ahead of the oil-sands producer's first-quarter results.

"While our update to Q1'25 ops assumptions was a modest increase to production (TPHe 103.0mbopd vs. prior 102.5 and Street 104.3), truing up our model on realizations and power sales data increased our cash flow estimate to TPHe C$374MM vs. prior C$341MM and Street C$361MM (TPHe C$1.44 CFPS vs. Street C$1.40); TPHe C$152MM capex in-line with Street C$151MM. More topical than earnings expectations, macro has been front-and-center which for MEG has been in the context of any potential changes to the company's near-term capital program. Management's been open about the flexibility in multi-year growth capex (in terms of shifting the timing of certain spend), though we wouldn't anticipate major changes to capex in the short-term," analyst Jeoffrey Lambujon wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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