REALIZING THE POTENTIAL INVESTOR PRESENTATION MARCH 2014
Realizing the Potential 2014 and beyond Targeted 2014 annual production volumes of 60,000 65,000 barrels per day (bpd), more than 85% above 2013 guidance, driven by the ramp-up of Christina Lake Phase 2B, building to near-term targets…
High Quality 100%-Owned Oil Sands Assets 2.9 billion barrels 2P and 3.7 billion barrels contingent resources* identified to-date Christina Lake Phase 1, 2 and 2B currently in production 2014 production guidance 60,000 to 65,000 bpd…
Geology Confirms High Quality Reservoirs Core hole drilling identifies similar characteristics at Christina Lake and Surmont Average Pay Bitumen Porosity Permeability Thickness Saturation (%) (millidarcies) (metres) (%) Christina…
RISER Initiative and Benefits The RISER initiative focuses investment on projects which are expected to generate the highest returns and lead to near-term production and cash flow gains Overview Employ proprietary technology to reduce…
eMSAGP Pilot Performance Christina Lake Pad A Phase 1 pilot achieved an average SOR of 1.1 in 4Q13 Steam injected during 4Q13 averaged about 55% less than when eMSAGP was A3 implemented in January 2012, with Phase 1 A2 virtually…
RISER Brownfield Expansion Impact on Phase 1, 2 & 2B Anticipate production reaching 2x initial design capacity, resulting in approximately 45% CAGR* over next three years *CAGR - compounded annual growth rate **Graph is for…
Strong Cash Operating Netbacks Low-cost structure delivers high netbacks despite volatile differentials Business Environment 2012 2013 WTI US 94.21 97.96 FX C/US 1.00 1.06 Differential WTI/Blend % 31% 33% Diluent price % of WTI 111%…
Marketing Strategy MEGs Hub & Spoke strategy focuses on diversifying market access, bypassing pipeline congestion to get to world-priced markets Hub Rail Access Pipeline 50%-owned Direct pipe-to-rail connection Dual dilbit/condensate…
Marketing Development Three-pronged approach via pipe, rail and barge to mitigate mid-continent congestion Hub & Spoke Strategy To access the highest-value markets INVESTOR PRESENTATION 2014 12
2014 Capital Budget and Operational Guidance 2014 capital investment will fund growth beyond near-term 80,000 bpd target Capital Investment Summary millions Intraphase Growth RISER 2B 340 Portfolio Growth Christina Lake Phase 3A 275…
Financing Philosophy Conservative principles provide flexibility through various market conditions Pre-funding of major capital programs All debt is covenant-lite in structure Internal funding capability increases significantly over…
Financial Snapshot Liquidity As of December 31, 2013 Cash and cash equivalents 1.18 Undrawn line of credit 2.00 3.18 Outstanding Debt Senior secured term loan due 2020 1.28 6.5% Senior unsecured notes due 2021 0.75 6.375% Senior…
Debt Maturity Schedule No debt maturity until 2020 1,197* US in millions 1,000 Term loan* 800 750 Senior unsecured notes 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 * Projected amortized term loan balance at…
APPENDICES
Light and Heavy Trade Flow 2014/2015 Light oils compete with Canadian heavy for transportation throughout North America. Pipeline expansions are poised to alleviate much of the current congestion over time. Light oils have…
Pipeline Expansions to Access Existing Refining Capacity for Heavy Oil Canadian heavy oil is expanding rapidly, as is U.S. light non- conventional oil production. There is capacity on the U.S. Gulf Coast to handle all increases…
Enhanced Modified Steam and Gas Push (eMSAGP)* A combination of proven technologies to reduce SOR Non-condensable gas (NCG) and infill wells are proven technologies, typically carried out as a wind-down process after 6 - 8 years of SAGD…
Christina Lake Delineation Wells 78 delineation wells to be drilled during the winter of 2014 6 Miles MEG Oil Sands Leases Christina Lake 80 sections 884 vertical wells drilled to Dec. 31st 2013 751 wells cored to Dec. 31st 2013…
Surmont Delineation Wells 12 delineation wells to be drilled during the winter of 2014 5 miles MEG Oil Sands South Surmont Leases 25 sections 130 vertical wells drilled to Dec. 31st 2013 81 wells cored to Dec. 31st 2013…
Comparing Crudes Wells to Wheels SAGD with cogeneration produces one of the lowest greenhouse gas intensity barrels in the industry Conventional* In Situ Unconventional* 114 106 105 104 102 102 102 Unit Measurement (g/MJ) 98…
Notes: INVESTOR PRESENTATION 2014 24
Notes: INVESTOR PRESENTATION 2014 25
Notes: INVESTOR PRESENTATION 2014 2
Notes: INVESTOR PRESENTATION 2014 2
Investor Relations Contacts John Rogers VP, Investor Relations and External Communications 403-770-5335 john.rogersmegenergy.com www.megenergy.com/invest
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