MEG Energy cuts capital spending plan again, reports $284M Q1 loss

MEG Energy cuts capital spending plan again, reports $284M Q1 loss
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CALGARY — MEG Energy Corp. cut its capital spending guidance for a second time due to the COVID-19 pandemic as it reported a first-quarter loss of $284 million.

The company now expects its capital spending to total $150 million, down from an estimate of $200 million in March and $250 million in its original guidance released late last year.

The company is also reducing non-energy operating cost and general and administrative expenses by $20 million and $10 million respectively.

The reduced spending plan came as MEG reported a first-quarter loss of 95 cents per share compared with a loss of $48 million or 16 cents per share in the same quarter last year.

Revenue totalled $665 million, down from $919 million in the first quarter of 2019.

MEG says it expects production in the first half of 2020 to average approximately 76,000 barrels per day.

This report by The Canadian Press was first published May 5, 2020.

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The Canadian Press

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