Vision 20/20 Transforming Our Business OVER THE NEXT 18 MONTHS, MEG IS TAKING STEPS TO BUILD A MORE ROBUST, SUSTAINABLE BUSINESS THAT WILL DELIVER KEY OUTCOMES BY 2020 Optimize balance sheet 2-3x Net Debt/EBITDA* Further cash cost…
Strengthened Balance Sheet STRONGER BALANCE SHEET ENABLES ADVANCEMENT OF KEY GROWTH PROJECTS, PROVIDES GREATER STRATEGIC OPTIONALITY AND SUPPORTS ORGANIC DE-LEVERING THROUGH TO 2020 Actions Taken Vision 20/20 Refinanced 113kbpd Fully…
2020+ Free Cash Flow Optionality MEG IS WELL-POSITIONED TO DELIVER LONG-TERM SHAREHOLDER VALUE THROUGH COMBINATION OF GROWTH AND FREE CASH FLOW Vision 20/20 and Beyond Free cash flow may be directed to any one or combination of…
Impact of Technology on Business Model INVESTOR PRESENTATION 2018 8
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…
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 reduction and an estimated 10% increase Phases 1 and 2 Recovery Average 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 15
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 SUPERIOR NETBACK AT THE U.S. GULF COAST Prices shown in USD discount vs WTI. Indicative pricing as of May 10, 2018 2H18 Indicative WCS Hardisty -20 to -22 WCS USGC net of F/S pipeline…
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…
Appendix INVESTOR PRESENTATION JUNE 2018
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 Debt Maturities INVESTOR PRESENTATION 2018 22
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 25
Investor Relations JUNE 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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