Vision 20/20 Transforming Our Business OVER THE NEXT 18 MONTHS, MEG IS TAKING STEPS TO BUILD A MORE ROBUST, SUSTAINABLE BUSINESS THAT IS POSITIONED FOR OUR NEXT CHAPTER (1) Relative to 2017 annual average production (2) Based on…
Impact of Technology on Business Model INVESTOR PRESENTATION 2018 6
Unlocking the Value of MEGs Midstream Assets MEG CLOSED THE SALE OF ITS 50% INTEREST IN ACCESS PIPELINE AND 100% INTEREST IN STONEFELL TERMINAL ON MARCH 22, 2018 FOR 1.61 BILLION Details of the transaction: Projected 2018 annualized…
Sources & Uses of Divestiture Proceeds THE TRANSACTION ALLOWS MEG TO SUBSTANTIALLY PAY DOWN DEBT, PURSUE HIGHLY- ECONOMIC GROWTH PROJECTS, ENSURE FUTURE TRANSPORTATION/STORAGE NEEDS ARE MET, WHILE PROTECTING THE COMPANYS COMPETITIVE COST…
Debt Maturity Profile SALE OF THE ACCESS PIPELINE SIGNIFICANTLY IMPROVES MEGS FINANCIAL POSITION INVESTOR PRESENTATION 2018 9
2018 Capital and Operational Guidance CAPITAL INVESTMENT PLAN OPERATIONAL GUIDANCE millions 4.75 to 120 5.25 per barrel eMSAGP growth capital eMVAPEX and future growth capital 100 Non-energy operating costs Phase 2B…
High-Return, Short-Cycle Growth FULLY FUNDED NEAR-TERM OPPORTUNITIES TO GROW CHRISTINA LAKE PRODUCTION TO 113 KBPD IN 2020 Phase 2B eMSAGP Growth eMSAGP is a reservoir enhancement technology involving the injection of a…
Impact of Growth on Leverage GROWTH TO 113,000 BPD BY EARLY 2020 CONTRIBUTES TO HIGHER MARGINS, ALONG WITH PROCEEDS FROM THE SALE OF MIDSTREAM ASSETS, SIGNIFICANTLY IMPROVES THE COMPANYS LEVERAGE POSITION *Forecast assumes: constant…
Reservoir Enhancement with eMSAGP* A MODIFICATION OF SAGD 1 Inject non-condensable gas (NCG) 2 Warmed bitumen 3 Freed-up steam to maintain reservoir pressure, is pushed toward is re-diverted to reducing steam injection by 50%…
Phase 1 and 2 eMSAGP Performance eMSAGP INCREASES RECOVERY AT LOWER SORS Phase 1 has resulted in a 50% SOR Phases 1 and 2 Recovery Average reduction and an estimated 10% increase Overall Performance to Date SOR in recovery relative…
eMVAPEX Conceptual Model A MODIFICATION OF eMSAGP 1 Inject condensable gas (CG) to: 2 Warmed bitumen 3 Freed-up steam Maintain reservoir pressure, mixed with light is re-diverted to reducing steam injection to near zero hydrocarbon…
Potential eMVAPEX Benefits FURTHER REDUCTION OF SOR OVER eMSAGP Lower capital Lower Lower carbon requirements operating emission to grow costs intensity Lower steam Reduced energy costs Significantly lower requirement per barrel…
eMVAPEX Pilot ADVANCING TOWARDS COMMERCIALIZATION INVESTOR PRESENTATION 2018 17
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…
Maximizing Revenue Per Barrel MEG CAPTURES SIGNIFICANT PREMIUM FOR HEAVY OIL SALES AT THE U.S. GULF COAST Heavy oil at the U.S. Gulf Coast realizes global pricing and lower volatility MEG currently has fixed transport for 50,000…
Continued Efficiency Gains Drive Lower Costs HIGHLY-ECONOMIC GROWTH EXPECTED TO FURTHER REDUCE CASH COSTS BY C1 PER BARREL WITH EVERY 10KBPD OF NEW PRODUCTION COMING ON STREAM * Per barrel costs and netbacks are calculated based on…
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 9, 2018 in US * Percentage of hedged volumes are…
Substantial Reserves and Resources REGULATORY APPROVAL IN PLACE OR IN PROCESS FOR NEARLY 500,000 BPD OF POTENTIAL RESOURCE DEVELOPMENT * 2018 production guidance Proved Probable 1,399 1,437 Proved and Probable Evaluated by…
Notes INVESTOR PRESENTATION 2018 23
Investor Relations MAY 2018 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…
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