Overview Key strengths Key risks Large resource base providing visibility to long-term stable production. Heightened volatility to West Texas Intermediate (WTI) price and Western Canadian Select (WCS) differential fluctuation, particularly at mid and low points of the crude oil price cycle. Good reservoir quality mitigates potential variability in recovery rates. Cash operating costs hampered by high unit transportation costs relative to those of rating peers. Under its published crude oil price and heavy oil differential assumptions, S&P Global Ratings expects MEG Energy Corp. should be able to generate operating cash flow well in excess of what is required to fund all operating and financing obligations during the rating outlook period, and also maintain its profitability in the midrange of the
