This report does not constitute a rating action. S&P Global Ratings recently lowered its West Texas Intermediate (WTI) crude oil price assumption on expected increasing OPEC supply, tariff volatility, and slowing demand. Accordingly, our forecast for MEG?s S&P Global Ratings-adjusted EBITDA has weakened to about C$970 million for 2025-2026 and funds from operations (FFO) to C$900 million since our last review--25%-30% reductions. Furthermore, with the company meeting its US$600 million net debt target in 2024, we no longer expect additional debt repayment. Instead, MEG will direct 100% of free cash flow to shareholders via a quarterly base dividend and share repurchases. Therefore, we no longer net cash in our adjusted credit metrics. Nevertheless, MEG?s projected leverage remains supported by its
