Following the disastrous WCS prices and the withdrawal of the takeover offer from Husky Energy (OTCPK:HUSKF), MEG Energy (OTCPK:MEGEF) is set to a new start.
The company is reducing its exposure to Canadian oil prices thanks to hedges and transportation agreements to the U.S. refineries. Also, considering the infrastructure challenges in Canada, the company will focus on reducing its net debt instead of growing its production.
At current U.S. and Canadian oil prices, the market undervalues the company. But the high level of debt is still a concern over the long