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

"Slight Positive. Could see the stock outperform today on a relative basis with Q1'25 beating estimates on AFFO and FFO by 3-4%. On results, Q1'25 cash flow printed C$380MM, slightly above TPHe/Street (survey) C$374MM/C$368MM (C$1.47 CFPS vs. TPHe/Street C$1.44/C$1.42), supported by 103.2mbpd production which was also slightly above TPHe/Street 103.0/103.0. Net of C$157MM capex, near TPHe/Street C$152MM/C$153MM, C$223MM FCF pre-WC came in slightly above TPHe/Street-implied C$222MM/C$215MM, supporting C$159MM of buybacks during the quarter which were complemented by C$26MM in dividends (C$185MM in total return of capital to shareholders). No changes to prior FY'25 guidance on production or capex, which calls for 95-105mbopd production and C$635MM capex," 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)

Price: 19.53, Change: -0.13, Percent Change: -0.66