Substantial Reserves and Resources Regulatory approval in place or in process for nearly 500,000 bpd of potential resource development * 2016 production guidance Proved Probabl Proved and 1,474 e Probable 1,514 Reserves…
Christina Lake Performance Combined oil treating capacity in Phases 1/2/2B exceeds 110,000 bpd, 80% over initial design Production profile includes the impact of annual planned maintenance/turnarounds INVESTOR PRESENTATION 2016 5
Potential Deleveraging Strategy Goal to strengthen balance sheet in advance of renegotiation of debt maturing in 2020 INVESTOR PRESENTATION 2016 6
High-Return, Short-Cycled Growth Projects The pace of development will be driven by commodity prices and continued reduction of MEGs cost base INVESTOR PRESENTATION 2016 7
Phase 1 eMSAGP Performance Resource recovery on track to exceed 70%, 10% higher than SAGD Phase 1 single well-pattern performance* A1 A2 A3 A1N A2N * eMSAGP production data reflects average well performance across A1 to A3…
Phase 1 and 2 eMSAGP SOR Comparison eMSAGP deployed across 30% of MEGs production base with very consistent results, could be applied to Phase 2B over the next two years INVESTOR PRESENTATION 2016 9
Net GHG Intensity Performance eMSAGP and cogeneration have enabled MEG to lower its GHG intensity 30% below in situ industry average * Phase start-up: higher steam requirements with low initial production ** Net GHG intensity…
Cash Operating Netbacks Record high production and ongoing efficiency gains drive net operating costs of 7.43 per barrel in 2Q16 C per barrel unless specified INVESTOR PRESENTATION 2016 11
Cost Management MEG targets a reduction in cash costs of up to 4-5 per barrel as production grows to 110-120 kbpd due to fixed cost nature of operations At current strip prices, MEG anticipates its US2.5 billion revolver will be…
2016 Capital and Operational Guidance Revised Capital Investment Plan Operational Guidance millions %subjectto 6.00 to rounding Sustaining and maintenance 65% 7.00 per barrel Non-energy operating costs Marketing, corporate 170…
Sustaining Capital Low decline rates and low sustaining capital enables MEG to maintain and grow production in a low oil price environment C/bbl Sources: BMO Capital Markets estimates of 2016 sustaining capital, MEGs expected…
Liquidity and Debt As of 30th June 2016, assumes US1 = C1.3009 Liquidity Outstanding Debt C in billions US2.5 billion C in billions 6.375% Undrawn revolving credit facility Senior unsecured Maturing 4Q19 notes due 2023 3.25 1.04…
Debt Maturity All debt is covenant-lite: free of any financial maintenance covenants INVESTOR PRESENTATION 2016 16
Crude Oil Hedges Crude oil hedges in place as of 30th June 2016 * Percentage of hedged volumes are based on the mid-point of 2016 annual production guidance of 80,000 - 83,000 bpd and assumes a ratio of 0.31 barrel of diluent per…
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