MEG Energy (OTCPK:MEGEF) guides for FY 2022 production of 94K-97K bbl/day, up from 92.5K-93.5K bbl/day expected this year, with capital spending next year forecast at C$375M, up from C$335M seen this year.
Guidance includes the impact of a scheduled 30-day turnaround during Q2 at the Christina Lake Phase 2B facility, which is expected to knock full-year production by ~6K bbl/day.
MEG says it expects to allocate 25% of free cash flow generated to shareholder returns, with the remaining free cash flow applied to ongoing debt reduction until its net debt balance reaches US$1.2B.
Assuming a US$70/bbl WTI price, MEG expects to reach its net debt target in early 2023, when it intends to implement a stock buyback program.