REALIZING THE POTENTIAL INVESTOR INVESTOR PRESENTATION PRESENTATION FEBRUARY 2015 JULY 2014
Realizing the Potential Low cost structure, low sustaining capital and significant financial liquidity set strong foundation in the current price environment Targeted 2015 annual production volumes of 78,000 to 82,000 bpd, 19% above…
High Quality Resource Base 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 65,000 to 70,000 bpd Regulatory…
RISER Initiative Reduce the steam-oil-ratio of our existing operations using our proprietary eMSAGP technology Redeploy freed-up steam to new, pre-drilled SAGD wells to further increase production Debottleneck central…
Benefits of the RISER Initiative Focused investment on projects which are expected to generate the highest returns and lead to near-term production and cash flow gains Anticipated Benefits Lower capital cost Lower operating costs…
Phase 1 eMSAGP Performance Steam injection reduced Christina Lake Pad A by 55% since the implementation of eMSAGP A3N* A3 Phase 1 A2N Infill A2 SAGD wells wells A1N A3N* A1 A7N* A2N Infill wells NCG/steam co-injection…
Cash Operating Netbacks Low-cost structure and hub-and-spoke marketing strategy delivers strong netbacks Business Environment 2014 WTI US/bbl 93.00 AECO C/mcf 4.50 FX C/US 1.10 Differential WTI/Blend % 26% Diluent price % of WTI…
Marketing Strategy MEGs Hub & Spoke strategy focuses on diversifying market access, bypassing pipeline congestion to get to world-priced markets Pipeline HUB U.S. Midwest accessible via existing pipelines U.S. Gulf Coast access via…
Canadian & U.S. Crude Oil Pipelines and Proposals Source: Canadian Association of Petroleum Producers INVESTOR PRESENTATION 2015 11
Solid Financial Position Significant liquidity offers flexibility through various market conditions Cash balance of 656 million at YE 2014 Relatively low-level of sustaining and maintenance capital 8/bbl in 2015 5 year, US2.5 billion…
Liquidity and Debt In C billions, assume US1 = C1.1601 Liquidity As of December 31, 2014 Cash and cash equivalents 0.66 Undrawn revolving credit facility 2.90 3.56 Outstanding Debt Senior secured term loan due 2020 1.46 6.5%…
Debt Maturity Schedule No debt maturity until 2020 US in millions 1,197* 1,000 Term loan* Senior unsecured notes 800 750 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 * Projected amortized term loan balance at…
APPENDICES
Thermal Project Break-Even WTI Oil Prices Analysis by TD Securities Source: TD Securities, Oil Sands WTI Break-even Report January 2015 Estimates based on TD 2015 forecast. Ignores G&A, interest, taxes and reclamation. Assumes 30%…
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…
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…
Christina Lake Delineation Wells 80 delineation wells drilled during the winter of 2014 6 Miles MEG Oil Sands Leases Christina Lake 80 sections 964 vertical wells drilled to June 30th 2014 831 wells cored to June 30th 2014 Phase…
Surmont Delineation Wells 8 delineation wells drilled during the winter of 2014 5 miles MEG Oil Sands South Surmont Leases 25 sections 138 vertical wells drilled to June 30th 2014 89 wells cored to June 30th 2014 Wabiskaw /…
Refining Markets Accessible by Rail INVESTOR PRESENTATION 2015 21
Rail Loading Terminals in Western Canada Nearly 1 million bpd of rail offloading capacity, further expandable to 1.4 million bpd Rail Capacity from Western Canada INVESTOR PRESENTATION 2015 Source: Canadian Association of Petroleum…
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 2015
Investor Relations Contacts 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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