MEG Energy Corp.

Overview Key strengths Key risks Large resource base with good reservoir quality provides visibility to long-term stable production. Single-product focus with limited geographic diversification. Committed transportation to the Canadian West Coast and U.S. Gulf Coast for about 80% of production, providing net positive incremental cash flow for these barrels. Cash operating costs and overall profitability hampered by high unit transportation costs relative to peers. Modest capital spending required to maintain and grow production due to the high fixed cost nature of steam-assisted gravity drainage (SAGD) bitumen production. Exposure to commodity price volatility. The company?s production averaged about 103,000 barrels per day (bbl/d) for the first nine months of 2024 at a 2.39 steam-to-oil ratio (SOR), representing a 4% increase in

...MEG Energy Corp. is a Canadian exploration and production (E&P) company producing bitumen at Christina Lake in the southern end of Canada's Athabasca oil sands fairway. The company's production averaged about 103,000 barrels per day (bbl/d) for the first nine months of 2024 at a 2.39 steam-to-oil ratio (SOR), representing a 4% increase in production and 6% increase in SOR relative to the same period in 2023. SOR is the ratio of unit of steam required to produce unit of oil for in-situ bitumen production. The increase in MEG's SOR this year primarily reflects the planned timing of injecting steam in new well starts. A higher SOR results in higher energy operating costs (the cost of natural gas used for fuel to generate steam and power) for...

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