AUGUST 2021 C O R P O R AT E P R E S E N TAT I O N
M E G I S T H E L E A D I N G P U R E P L AY THERMAL OIL PRODUCER Leading Operator Leader in GHG Committed to Focused on Exposure to strong with low-decline, intensity reduction reducing debt and maximizing free benchmark oil high…
INVESTMENT HIGHLIGHTS Balance sheet strength 4 years to first capital markets debt maturity remains a priority US100 mm debt reduction to date in 2021 Sustainability integrated 2021 includes advancement of key ESG initiatives…
ABOUT MEG MEG is an energy company focused on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. MEG transports and sells thermal oil (known as Access Western Blend or AWB) to customers…
ESG PRIORITIES MEG is committed to the long-term sustainable development of our resource and investment in the communities where we operate ESG objectives are a key component of corporate strategy and employee and executive…
C A N A D A S E S G R A N K I N G Canadian oil companies earn a stronger ESG score than all other oil-rich countries, due to stringent environmental regulation, strong governance norms and commitment to safety and community TOP OIL…
GHG PERFORMANCE LEADER IN LOWERING GHG INTENSITY ESTIMATED UPSTREAM CARBON INTENSITY (2019) Primrose/WL California Thermal kgCO2e/bbl Indonesia Duri ATH Hangingstone Suncor Base Plant 160 Technological innovation, such as…
I N S I T U R E L AT I V E T O T I G H T O I L Comprehensive environmental management compares favourably to North American production Water Methane Land MEGs Non-Saline1 Water Use MEGs methane emissions intensity is Cumulative…
2021 OUTLOOK AND GUIDANCE Internally funded capital plan that supports 2021 production and contributes to sustainability in 2022+ Annual production guidance of 91,000 93,000 2 0 2 1 C A P I TA L B U D G E T 3 3 5 M M bbls/d driven by…
F R E E C A S H F L O W G E N E R AT I O N A N N U A L C A S H F L O W G E N E R AT I O N VA L U E O F I N C R E M E N TA L P R O D U C T I O N Illustrative Analysis at 92,000 bbls/d Illustrative Cash Flow per bbl (C bn) 1.25 85% of…
A S S E T S T O A C C E S S H I G H VA L U E M A R K E T S MEGs contracted infrastructure improves bitumen realizations and manages risk; expect 900,000 bbls/d incremental egress capacity from Western Canada by the end of 2022* 1.4…
S T R O N G D E M A N D F O R C A N A D I A N H E AV Y O I L Constructive light / heavy differential outlook with material improvement in Western Canadian egress and continued strong demand for heavy oil globally MARGINAL EGRESS…
COMMITTED TO BALANCE SHEET STRENGTH US100 mm redemption to be completed in C A P I TA L M A R K E T S M AT U R I T Y S T R U C T U R E August1 Capital Markets Debt Maturities US in Millions Financial flexibility is a MEG hallmark:…
APPENDIX 14
COMMODITY HEDGING OVERVIEW 2021 hedges focused on sustaining capital program 2022 strategy will be focused on similar objectives As of July 22, 2021 3Q 2021 4Q 2021 2022 2023 WTI Hedges Enhanced WTI Fixed Price Hedges with Sold Put…
BLEND SALES BY MARKET Strong demand pull to US Gulf Coast drives narrow differential and improved transportation adjusted pricing relative to Edmonton Edmonton U.S. Gulf Coast Q2 2021 RESULTS (US/bbl) (US/bbl) TOTAL TOTAL (US/bbl)…
T O P T I E R O P E R AT O R I N T H E S E C T O R MEGs Christina Lake project has leading steam oil ratio (SOR) and operating costs, highlighting asset quality, advantaged economics and efficiency as an operator Av e r a g e 2 0 2 1…
M AT E R I A L U N R E C O G N I Z E D VA L U E F R O M TA X P O O L S 5.9 billion of tax pools immediately deductible COMPOSITION OF TAX POOLS (C BILLION) AMOUNT OF ILLUSTRATIVE VALUE OF POOLS UTILIZED TAX POOLS AT 8.0% Non-Capital…
CASH FLOW SENSITIVITY Unhedged blend volumes result in significant torque to change in oil prices I L L U S T R AT I V E U N H E D G E D F U N D S F L O W S E N S I T I V I T I E S 1 Sensitivity Variable Impact to Funds Flow Range…
DISCLAIMER This presentation is not, and under no circumstances is to be construed to be a prospectus, offering memorandum, advertisement or public offering of any securities of MEG Energy Corp. (MEG). Neither the United States Securities…
DISCLOSURE ADVISORIES Non-GAAP Measures This presentation refers to the non-GAAP measure of free cash flow, as well as adjusted funds flow which is defined in Note 17 of the Q2 2021 Financial Statements. These terms may not be comparable…
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