New CEO brings extensive experience in the
Canadian Oil and Gas industry with a proven track record of
successful resource development and disciplined capital
allocation
CALGARY, Aug. 8, 2018 /CNW/ - MEG Energy Corp. (TSX:MEG)
("MEG" or the "Company") today announced that its Board of
Directors has unanimously appointed Derek
Evans to the position of President and CEO, effective
immediately.
Mr. Evans has over 35 years' experience in the Canadian oil and
gas business, including nine years as the CEO of Pengrowth Energy
and six years as the CEO of Focus Energy Trust.
"The Board conducted an exhaustive search with the assistance of
an executive recruitment firm, and everyone involved determined
that Derek best exemplified the qualities we were seeking among a
number of highly qualified candidates," said Jeffrey McCaig, Chairman of MEG. "Derek's
initial focus will be the successful completion of Vision 20/20. In
connection to achieving this goal, he will be focused on further
strengthening the balance sheet, improving efficiencies and
delivering value to our shareholders, as we refine the Company's
long-term strategy."
Mr. Evans succeeds Interim CEO Harvey
Doerr, who will return to his role as an independent
director of MEG.
"I want to thank Harvey for stepping into the interim role and
for his contributions in this short period of time," said Mr.
McCaig. "We look forward to Harvey's continued dedication and
insights as a Board member."
Mr. Evans is a veteran in the Canadian energy industry, having
led Pengrowth Energy through a difficult turnaround by focusing on
capital allocation and its core assets; and Focus Energy Trust,
which successfully generated substantial returns for shareholders.
Prior to his Chief Executive roles at Pengrowth and Focus, Mr.
Evans held a variety of key operational and strategic roles at
Storm Energy and Renaissance Energy.
"I am excited to take on the leadership of MEG at this pivotal
moment in the Company's history. MEG has a world-class resource
base and a team that is known for its technological innovation and
best-in-class execution," said Derek
Evans. "After extensive study and interaction with the
Board, I am convinced that the implementation of MEG's Vision 20/20
strategic plan, which will take production to 113,000 barrels per
day, sets the Company on a path to significant free cash flow
generation while continuing its focus on capital discipline and
driving lower overall costs."
About Derek Evans
Mr. Evans served as President, CEO and Director of Pengrowth
Energy Corporation, an intermediate energy company focused on the
sustainable development and production of oil and natural gas in
Western Canada, from May 2009 until March
2018. During his tenure, Mr. Evans streamlined the Company's
asset base from 35 properties to two growth assets, with over
$9 billion of development
opportunities. Among other things, Mr. Evans delivered the
$850 million Lindbergh oil sands
project on time and on budget, with significant innovation that
pushed water recycle to 97.5%.
Prior to joining Pengrowth, from 2002 to 2008, Mr. Evans was the
President, CEO and Director of Focus Energy Trust, a dividend
paying trust focused on sustainable cash flows to investors. While
serving as CEO, Mr. Evans increased the market valuation
approximately five times, while distributing more than $400 million to unitholders.
Mr. Evans serves on the board of Franco-Nevada Corporation, a
leading gold royalty and streaming company, and previously was the
Chairman of Endurance Energy Ltd., a Calgary-based exploration and production
company. Mr. Evans holds a degree in Mining Engineering from
Queen's University.
About MEG Energy Corp.
MEG Energy Corp. is focused on sustainable in situ oil sands
development and production in the southern Athabasca oil sands region of Alberta, Canada. MEG is actively developing
enhanced oil recovery projects that utilize SAGD extraction
methods. MEG's common shares are listed on the Toronto Stock
Exchange under the symbol "MEG".
Forward-Looking Information
This press release may contain forward-looking information
including but not limited to: expectations of future production and
resulting revenues, expenses and cash flow; commodity price and
differential expectations; and, the anticipated benefits of the
strategic direction of MEG. Such forward-looking information
is based on management's expectations and assumptions regarding
future growth, results of operations, production, future capital
and other expenditures, plans for and results of drilling activity,
and business prospects and opportunities.
By its nature, such forward-looking information involves
significant known and unknown risks and uncertainties, which could
cause actual results to differ materially from those anticipated.
These risks include, but are not limited to: risks associated with
the oil and gas industry, for example, the securing of adequate
supplies and access to markets and transportation infrastructure
and the commitments and risks therein; availability of capacity on
the electricity transmission grid; uncertainty of reserve and
resource estimates; uncertainty associated with estimates and
projections relating to production, costs and revenues; health,
safety and environmental risks; risks of legislative and regulatory
changes to, amongst other things, tax, land use, royalty and
environmental laws; assumptions regarding and the volatility of
commodity prices, interest rates and foreign exchange rates, and,
risks and uncertainties related to commodity price, interest rate
and foreign exchange rate swap contracts and/or derivative
financial instruments that MEG may enter into from time to time to
manage its risk related to such prices and rates; risks and
uncertainties associated with securing and maintaining the
necessary regulatory approvals and financing to proceed with MEG's
future phases and the expansion and/or operation of MEG's projects;
risks and uncertainties related to the timing of completion,
commissioning, and start-up, of MEG's future phases, expansions and
projects; the operational risks and delays in the development,
exploration, production, and the capacities and performance
associated with MEG's projects; and uncertainties arising in
connection with any future disposition of assets.
Although MEG believes that the assumptions used in such
forward-looking information are reasonable, there can be no
assurance that such assumptions will be correct. Accordingly,
readers are cautioned that the actual results achieved may vary
from the forward-looking information provided herein and that the
variations may be material. Readers are also cautioned that the
foregoing list of assumptions, risks and factors is not
exhaustive.
Further information regarding the assumptions and risks inherent
in the making of forward-looking statements can be found in MEG's
most recently filed Annual Information Form ("AIF"), along with
MEG's other public disclosure documents. Copies of the AIF and
MEG's other public disclosure documents are available through the
company's website at www.megenergy.com/investors and through the
SEDAR website at www.sedar.com.
The forward-looking information included in this document is
expressly qualified in its entirety by the foregoing cautionary
statements. Unless otherwise stated, the forward-looking
information included in this document is made as of the date of
this document and MEG assumes no obligation to update or revise any
forward-looking information to reflect new events or circumstances,
except as required by law.
For further information, please contact:
Investors
Helen
Kelly
Director, Investor Relations
403-767-6206
helen.kelly@megenergy.com
Media
Megan Hjulfors
Senior Advisor, Investor Relations
403-767-6211
megan.hjulfors@megenergy.com
SOURCE MEG Energy Corp.