Substantial Reserves and Resources Regulatory approval in place or in process for nearly 500,000 bpd of potential resource development * 2017 production guidance Proved Probable 1,468 1,517 Proved and Probable Evaluated by GLJ…
Positioned to Grow Shareholder Value Deliver highly Strengthen economic growth the balance sheet 2B eMSAGP and Refinancing provides Brownfield growth provides 5-year window to pursue clear path to 113 kbpd; deleveraging…
Operational Update MEG continues to effectively execute on its operating strategies and has taken required steps to manage its business through the commodity price downturn eMSAGP deployed across 30% of Continuing production base,…
Impact of Technology on Business Model INVESTOR PRESENTATION 2017 8
High-Return, Short-Cycle Growth Near-term opportunities to grow Christina Lake production to 113 kbpd eMSAGP Growth (fully-funded) eMSAGP is a reservoir enhancement technology involving the injection of a non-condensable gas and the…
Profitable Production Growth eMSAGP and brownfield expansions capable of delivering 10% CAGR at Christina Lake at US55 WTI The fully-funded 20,000 bpd eMSAGP growth initiative at Christina Lake Phase 2B commences during 2017, ramping up…
Impact of Highly Economic Production Growth Incremental production expected to add minimal operating costs, generates very strong netbacks and is highly accretive to cash flow Illustrative impact of production growth on netbacks…
Impact of Production Growth on Leverage Implementation of 2B eMSAGP and Brownfield expansion contribute to higher margins and cash flow to organically de-lever the company Based on US55 WTI* D/EBITDA could reach 3-4x at 113 kbpd…
eMSAGP* Conceptual Model * enhanced Modified Steam and Gas Push, Canadian Patent 2,776,704 A Modification of SAGD ** Steam and Gas Push (SAGP) is an invention by Dr. Roger Butler Inject non-condensable gas (NCG) Warmed bitumen…
Phase 1 and 2 eMSAGP Performance eMSAGP increases recovery at lower SORs Phase 1 observed a SOR reduction of 50% Phases 1 and 2 Recovery Average during the period which eMSAGP has been Overall Performance to Date SOR applied with an…
Net GHG Intensity Performance eMSAGP and cogeneration have enabled MEG to lower its GHG intensity 25% below in situ industry average * Phase start-up: higher steam requirements with low initial production Sources: MEGs net GHG data…
Continued Efficiency Gains Drive Lower Costs Ongoing efficiency gains drive lower operating costs and reduce MEGs breakeven costs in a low oil price environment * Per barrel costs and netbacks are calculated based on sales volume **…
2017 Capital and Operational Guidance Capital Investment Plan Operational Guidance* 5.75 C millions 2B eMSAGP growth to 80% of total estimated cost 320 6.75 per barrel Non-energy operating costs eMVAPEX, 590 80,000 to…
Debt Maturity and Ratings Debt refinancing retains covenant-lite Credit Ratings as of May 1st, 2017 structure, extends weighted-average life of debt maturity from 4 to 6 years S&P BB- stable with minimal increase in interest cost Fitch…
Active Hedging Program MEGs objective is to set a floor price, at or above cash costs, while leaving room to take advantage of improving oil prices Crude oil hedges in place as of May 1st, 2017 Percentage of hedged volumes are based…
Notes INVESTOR PRESENTATION 2017 20
Investor Relations Helen Kelly Director, Investor Relations 403.767.6206 helen.kellymegenergy.com John Rogers VP, Investor Relations and External Communications 403.770.5335 john.rogersmegenergy.com www.megenergy.com/investors
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