MEGEF - TD Securities lifts oil price forecast downgrades MEG and EOG to hold

TD Securities updated the bank's oil price forecast and earning estimates Thursday; the bank now forecasts $85 WTI (USO) in 2022 and $75 WTI in 2023. Along with the commodity price adjustment, TD downgraded MEG (OTCPK:MEGEF) to hold from buy, as the analyst now sees Christina Lake achieving "project payout" in late 2022 leading to higher royalty payments in 2023. TD also downgraded EOG (EOG) to hold, but left remaining US, Canadian and European energy company ratings unchanged. Fundamentals for nearly every energy company globally are improving rapidly; however, in Canada oil-price realizations are better than ever, and earnings estimates are likely to see significant revisions higher in coming weeks.

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TD Securities lifts oil price forecast, downgrades MEG and EOG to hold