CREATING SUSTAINABLE VALUE April Investor Presentation
Objectives & Priorities Focus on Debt reduction capital discipline Improve market and balance and free cash flow access sheet strength generation Existing production capacity, Free cash flow earmarked for Maximize the pricing…
Disciplined 2019 Capital Program Base capital budget of 200 million prioritizes financial strength while maintaining flexibility to support production growth beyond 2019 Budget fully-funded from forecast adjusted 2019 Base Capital…
100,000 bbls/d Builds Material Free Cash Flow Free cash flow can be used for debt reduction, highly economic growth and/or shareholder returns significant optionality depending on market conditions C bn Sources & Uses of Funds (not…
Significant Cash Build 100,000 bpd Strong projected free cash flow provides visibility for substantial debt reduction no outstanding capital markets debt maturity until 2023 Cumulative Year-End Cash Balances at 100,000 bbls/d(1) C bn…
Capital Markets Debt Maturity Profile Well-structured balance sheet and ample liquidity with long maturity runway Long-term Debt C2.2B Liquidity US in Millions US2.8B Total Debt As at December 31, 2018 US1.4B undrawn credit…
USGC Heavy Oil Market Outlook MEG is well-positioned to access strong USGC market with firm commitment on Flanagan/Seaway, increasing from 50,000 bbls/d currently to 100,000 bbls/d starting mid-2020 USGC Heavy Crude Imports USGC is…
Increasingly Insulated from Canadian Pricing Maximizing volumes to the USGC, mitigating impact of Mainline apportionment while optimizing production under current production curtailments MEG Marketing Network 2019F AWB Blend Sales by…
Strategic Market Access Contracted egress capacity in place for up to 90%(1) of volumes in 2H20 with growing exposure to premium USGC market 160 145 mbbls/d blend sales(1) 132 mbbls/d blend sales(1) Western 140 Canada 120 30,000…
APPENDIX 10
Hedging Position As of March 7h, 2019 1Q19 2Q19 3Q19 4Q19 2019 2020 WTI Fixed Price Hedges(1) Volume (bbls/d) 21,105 21,105 21,125 21,125 21,115 - Weighted average fixed price (US/bbl) 67.31 67.31 67.29 67.29 67.30 - % of Blend…
Current Pricing by Market Supplemental Disclosure 4Q18 Blend Sales by Market Pipe Rail Rail Pipe Total US/bbl, except as indicated USGC USGC Edmonton Edmonton WTI 58.81 58.81 58.81 58.81 58.81 WTI:WCS differential (1.00) (1.00)…
Top Tier Operator in the Sector MEGs Christina Lake has a leading SOR - highlighting asset quality, advantaged economics and efficiency as an operator SOR(1) Cost Structure /boe(2) Operating Expense G&A(3) 10 6.8 8.9 9.4 6.6…
Technology Driving Material SOR Reduction The application of eMSAGP at Christina Lake and the eMVAPEX pilot underscore MEGs technological advantage eMSAGP Highlights eMVAPEX Highlights Phase 1 eMSAGP has resulted in a 50% SOR reduction…
Inventory of Highly Economic Growth All projects identified to support buildout to 210,000 bbls/d at Christina Lake are execution ready pace of growth dependent on market conditions 210,000+ bbls/d +52,000+ bbls/d 100,000 bbls/d…
Investor Relations Helen Kelly Director, Investor Relations and External Communications T 403.767.6206 E helen.kellymegenergy.com
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