C O R P O R AT E P R E S E N TAT I O N December 2023 TSX MEG
WHY MEG ENERGY 110,000 bbls/d of production capacity, and steam oil ratio (SOR) 15% below peer average High Quality 50-year 2P reserves life index with low decline and sustaining capital Asset Base & Excellent capital efficiencies on…
MEG ENERGY CORPORATE PROFILE Market Data1 Asset Map TSX Listing ALBERTA Surmont MEG.TO Market Net Fort McMurray (not developed) Capitalization Debt MAP AREA C6.7bn C1.0bn Grande Prairie Christina Lake Edmonton Fully…
2024 INVESTMENT THEMES Transition to moderate Focused on Return of capital WCS improvement capacity growth operational excellence inflection point & reduced volatility Highly economic 3rd Operating strategy drives 100% FCF to TMX…
2024 BUDGET GUIDANCE Production increases and capex transitions to moderate capacity growth 2024 Budget Guidance 105,000 bbls/d production mid-point at a 2.3 SOR 2024 Guidance 4% increase over 2023 forecast All 2024 quarters exceed…
TRANSITION TO MODERATE CAPACITY GROWTH Commence three highly economic growth projects in 2024 Current Estimated 2024-2026 Growth Capex Profile 300mm 3rd processing train (2024-2026) 3rd Processing Train Skim Tank Steam Optionality /…
CONTINUED FOCUS ON OPERATIONAL EXCELLENCE Safe and reliable operating strategy delivers increased production, top tier SOR, and reduced GHG intensity Enhanced Optimizing Short-cycle, Steam redeployment completion designs inter-well…
RETURN OF CAPITAL INFLECTION POINT US600mm net debt target and return of capital increase in-sight Annual Net Debt Reduction (USmm) US600mm net debt reached Q3 2024 at Reduction Balance US75/bbl WTI 3,600 1.0x EBITDA at US50/bbl…
SHARE BUYBACKS ACCELERATE PRODUCTION GROWTH PER SHARE Organic Production Growth (bbls/d) Accelerated Share Buybacks Production per Share (PPS) Growth1,2 2024 Adjusted 120,000 Funds Flow at 2024 PPS: % 4 12% w th: 4-5% US75/bbl WTI o…
WCS IMPROVEMENT & REDUCED VOLATILITY TMX start-up narrows WCS differential beyond Q1 2024 US/bbl 30 ME G Forecast WTI:WCS Differential TMX in service in late Q1 removes pipeline constraints Differentials forecast to Historical WTI:WCS…
120,000 BBLS/D OF TIDEWATER ACCESS (80% OF PRODUCTION) Global market access enhances bitumen realizations 1.1 mmbbl WCSB Storage 2024 Forecast Market Exposure1 Strategic operating Before TMX (Q1) After TMX (Q2-Q4) flexibility and…
PATHWAYS ALLIANCE PROGRESS Formal consultation and engagement work with Indigenous groups along the proposed CO2 transportation corridor and storage network began in fall 2023 and was preceded by months of discussions about the project…
MEGS COMMITMENT TO ESG MEGs purpose is to supply the world with environmentally and socially responsible energy while generating long term value for all our stakeholders Business Model Resilience Governance Focused on incorporating Our…
MATERIAL UNRECOGNIZED VALUE FROM TAX POOLS Tax shelter until mid-2027 at US75.00/bbl WTI and US16.25/bbl WCS Edmonton Discount Composition of Tax Pools (Cbn) Non-Capital Losses SR&ED CDE Other Pools 1.2 Pools Utilized Illustrative…
STRONG LIQUIDITY Low-cost debt maturity profile 3 years to nearest debt maturity Debt Maturity Profile Over Time 7.125%, 2027 unsecured notes December 8, 2023 103.5% call premium drops to 101.7% in Total Debt (USmm) 864 Unsecured 2027…
Q3 2023 RESULTS Strong commodity prices and ramp-up in production resulted in C409mm of FCF Q3 2023 Performance Q3 2023 Highlights Operating Performance Strong WTI (US82/bbl), narrow differentials…
ROYALTY CALCULATION METHODOLOGY Royalty Mechanics Example Financials Royalty is the greater of 1%-9% of Gross Revenue1,2 or (Cmm) 25%-40% of Net Revenue1,2 Blend Sales 4,500 Diluent Expense (1,800) Gross Revenue can be estimated…
THE PATHWAYS ALLIANCE The Pathways Alliance consists of Canadas six largest oil sands producers, who operate facilities accounting for 95% of operated oil sands production The Pathways Alliance goal, working collectively with the…
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 Forward-Looking Information Certain statements contained in this presentation may constitute forward-looking statements within the meaning of applicable Canadian securities laws. These statements relate to future…
DISCLOSURE ADVISORIES Non-GAAP Measures and Other Financial Measures Certain financial measures in this presentation are non-GAAP financial measures or ratios, supplementary financial measures and capital management measures. These…
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