REALIZING THE POTENTIAL INVESTOR PRESENTATION August 2015
Realizing the Potential Positioned to grow in a lower oil price environment, largely from internal sources of cash Recalibrated 2015 capital spending profile to 305 million to align more closely with cash flow, still enabling 12%…
Production and Cash Flow Growth 2015 Target: 78,000 to 82,000 bpd 5
Substantial Reserves and Resources 3.0 billion barrels 2P and 3.8 billion barrels contingent resources* identified to-date * Best-estimate contingent resources Based on GLJ Reserve Report dated effective as of December 31, 2014 and…
RISER Initiative Reduce the steam-oil-ratio of our existing operations using our proprietary eMSAGP technology Redeploy freed-up steam to new, pre-drilled SAGD wells to further increase production Debottleneck central…
Growth Focus on Existing Assets Continued application of RISER initiative supports future growth Increase production at lower costs Accelerate production in lower price environments Increase total resource recovery rates Reduced…
Phase 1 eMSAGP Performance Steam injection reduced by 55% Christina Lake Pad A since the implementation of eMSAGP A3N* A3 Phase 1 A2N Infill A2 SAGD wells A1N wells A3N* A1 A7N* A2N Infill wells NCG/steam co-injection…
Cash Operating Netbacks Strong operating performance and low cost structure enable MEG to navigate through a low and volatile price environment Business Environment 1Q15 2Q15 WTI US/bbl 48.63 57.94 AECO C/mcf 2.74 2.64 FX C/US 1.24…
Sustaining Capital Low decline rates and low sustaining capital enables MEG to maintain and grow production in a low oil price environment *Cold heavy oil production with sand Source: RBC Capital Markets Internal Database 11
Marketing Strategy MEGs Hub & Spoke strategy focuses on diversifying market access to get to world-priced markets Pipeline HUB U.S. Midwest accessible via existing pipelines U.S. Gulf Coast access via Flanagan South / Access Pipeline…
Canadian & U.S. Crude Oil Pipelines and Proposals INVESTOR PRESENTATION 2015 Source: Canadian Association of Petroleum Producers 13
Rail and Barge to Market Adding flexibility to the marketing strategy INVESTOR PRESENTATION 2015 14
World Pricing for Alberta Heavy Oil MEG and the industry have improved realized bitumen prices by gaining access to world heavy oil pricing in the Gulf Coast January 2014 Sept/Oct 2014 Marketlink Flanagan-Seaway December 2013 (XL…
Financial Position Significant liquidity offers flexibility through various market conditions Cash balance of 438 million at June 30th, 2015 Relatively low-level of sustaining and maintenance capital 5 year, US2.5 billion undrawn…
Liquidity and Debt In C billions, assume US1 = C1.2474 Subject to rounding Liquidity As of June 30, 2015 Cash and cash equivalents 0.44 Undrawn revolving credit facility 3.12 3.56 Outstanding Debt Senior secured term loan due 2020…
Debt Maturity No debt maturity until 2020 INVESTOR PRESENTATION 2015 18
APPENDICES
Thermal Project Breakeven WTI Oil Prices Analysis by TD Securities Source: TD Securities, Oil Sands WTI Break-even Report January 2015 Estimates based on TD 2015 forecast. Ignores G&A, interest, taxes and reclamation. Assumes 30%…
Enhance Modified Steam & Gas Push A combination of proven technologies to reduce SOR Non-condensable gas (NCG) and infill wells are proven technologies, typically carried out as a wind-down process after 6 - 8 years of SAGD operations…
High Quality Reservoirs Core hole drilling identifies similar characteristics at Christina Lake and Surmont Average Pay Bitumen Porosity Permeability Thickness Saturation (%) (millidarcies) (metres) (%) Christina Lake 26 72 34 3,000…
Christina Lake Property 6 Miles MEG Oil Sands Leases Christina Lake 80 sections 964 vertical wells drilled to June 30th 2014 831 wells cored to June 30th 2014 Phase 2 Phase 1 Wabiskaw / McMurray cores Phase 2B 2014 delineation…
Surmont Property 5 miles MEG South Surmont Oil Sands 25 sections Leases 138 vertical wells drilled to June 30th 2014 89 wells cored to June 30th 2014 Wabiskaw / McMurray cores 2014 delineation wells INVESTOR PRESENTATION…
Comparing Crudes Wells to Wheels SAGD with cogeneration produces one of the lowest greenhouse gas intensity barrels in the industry *Source: Jacobs Consultancy, Life Cycle Assessment of North America and Imported Crudes July…
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