BOSTON, July 24, 2018 /CNW/ -- Highfields Capital
Management ("Highfields"), a value-oriented investment firm that
manages private funds which own more than 9.9% of MEG Energy Corp.
(TSX: MEG) ("MEG Energy" or the "Company") shares, today announced
that Daniel S. Farb has resigned
from the Board of Directors of MEG Energy, effective immediately.
Mr. Farb, a Managing Director of Highfields, was appointed to MEG
Energy's Board on December 1,
2017.
"I served on the MEG Energy Board for only eight months, yet I
am pleased with many of the positive changes that were implemented
during my tenure, including the sale of the Access Pipeline, the
retirement of over C$1 billion of
debt, and changes at senior levels of management," Mr. Farb
said. "However, despite this progress, there is still more to do.
Unfortunately, it is my conclusion that the Board is intent on
reverting back to a legacy of failing to put the best interests of
the Company and shareholders first."
"I have regrettably concluded that I am unable to perform my
role effectively and have resigned from the Board," added Mr.
Farb.
Highfields noted that MEG Energy is distinguished by outstanding
assets, technology and employees. However, the Company trails its
peers in many critical respects. The Company's capital allocation
and hedging record have been abysmal, and its reported SG&A
costs per barrel are nearly twice the average of its peers. As a
result of these factors and a series of other self-inflicted
wounds, MEG Energy has been one of the worst performers in the TSX
Energy Index since its IPO in 2010, and its performance during the
most recent three- and five-year periods has been similarly
poor.
Highfields believes immediate and decisive action is required by
the Board to reorient MEG Energy to put the Company's interests
first and to recognize the Company's enormous financial and
strategic value on behalf of all shareholders. As MEG Energy's
second largest shareholder, Highfields will continually evaluate
all options available to it.
About Highfields Capital
Highfields Capital Management is a value-oriented investment
management firm which manages private investment funds for
endowments, charitable and philanthropic foundations, pension funds
and other institutional and private investors. The Highfields funds
invest worldwide in public and private companies across a wide
variety of industries and security types. The firm was founded in
1998 by Jonathon Jacobson and is
based in Boston, MA.
Media Contact:
Todd Fogarty
Kekst
212-521-4854
todd.fogarty@kekst.com
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SOURCE Highfields Capital Management