Large in-situ oil sands resource base, which provides above-average organic reserves and production growth prospects Low cash operating cost profile Potential for operating cost savings through its vertically integrated cogeneration facility and Access pipeline Limited geographic diversification, which we view as neutral to MEG Energy Corp.'s competitive position Single product focus, which heightens vulnerability to volatility in crude oil price differentials Ongoing negative free cash flow generation due to the company's inability to internally fund near-to-medium term growth related capital spending Deteriorating cash flow protection metrics because of falling cash flow generation and increasing debt levels Relatively underlevered balance sheet due to its on-going use of both equity and debt to fund organic growth initiatives Strong liquidity, which cash balances
