Tudor, Pickering, Holt on Friday maintained its buy rating on the shares of MEG Energy (MEG.TO) with a C$30.00 price target after the oil-sands producer reported second-quarter results and raised its dividend by 10%.

"Neutral. We see the slight miss on CF and FCF as offset by July production showing a surprisingly positive ramp into Q3'25 coming out of wildfire impacts taking production offline. On results, Q2'25 cash flow printed C$125MM, below TPHe/Street (survey) C$133MM/C$131MM (C$0.49 CFPS vs. TPHe/Street C$0.52/C$0.51), with the delta vs our model attributable to royalties. On ops, wildfire-impacted production printed at 63.5mbopd which ~middled TPHe/Street 63.0/63.8. Net of C$200MM capex, near TPHe/Street C$194MM/C$199MM, -C$75MM FCF pre-WC came in below TPHe/Street-implied -C$60MM/-C$68MM, partly underpinning the fall in the buyback cadence to C$9MM (cancelling 400k shrs.) during the quarter though we'd also note the NCIB remains on pause in light of the SCR CN (Not Covered) offering. Dividends comprised C$26MM in abs. payout, however, with yesterday's release noting a 10% increase to C$0.11/shr (~1.6% annualized yield)," 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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