Solid operations deliver production and cash flow
growth
All financial figures in Canadian dollars ($ or C$) unless
otherwise noted
CALGARY, Nov 1, 2018 /CNW/ - MEG Energy Corp. (TSX:MEG)
today reported third quarter 2018 operating and financial results.
Highlights include:
- Record quarterly bitumen production volumes of 98,751 barrels
per day (bpd) and low steam-oil-ratio (SOR) of 2.2. Annual
production is well on-track to achieve 2018 guidance of 87,000 to
90,000 bpd;
- Record low per barrel net operating costs of $4.34, including low non-energy operating costs
of $4.38 per barrel;
- Strong adjusted funds flow from operations of $116 million or $0.39 per share, including $88 million of realized net hedging losses.
Adjusted funds flow from operations excluding realized net hedging
losses totalled $0.68 per share;
- Total cash capital investment of $145
million in the quarter, primarily directed to advance the
Phase 2B Brownfield expansion and
eMVAPEX pilot;
- Cash and cash equivalents of $373
million; MEG's covenant-lite US$1.4
billion facility remains undrawn;
- Subsequent to the quarter, MEG executed a binding agreement to
access 30,000 bpd of unit train rail loading capacity at the
Bruderheim terminal, operated by
Cenovus. The term of this agreement is for three years, with a
one-year extension at MEG's option; and
- On October 17, 2018, MEG
announced that its Board of Directors (the "MEG Board") unanimously
rejected Husky Energy's unsolicited bid to acquire the Company and
recommended MEG shareholders NOT tender their shares.
"The MEG of today is more robust on every measure. We are
entering an exciting period of greater financial strength and
flexibility, as the Company reaches a critical inflection point
transforming from a net consumer of cash to a generator of
significant cash flow, well in excess of future capital investment
requirements. Through our world-class asset base and
industry-leading technology, the Board and Management remain
committed to maximizing value for our shareholders," says
Derek Evans, President and Chief
Executive Officer.
"The record high production and record low net operating costs
per barrel in the third quarter reflects the successful application
of MEG's proprietary eMSAGP technology on existing wells at
Christina Lake Phase 2B. The spending
on this phase of the roll-out was substantially completed during
the quarter, with lower than expected total costs of $320 million or $16,000 per flowing barrel," Evans continued.
"Our innovative approach to maximizing the value of our steam and
achieving among the best-in-class SORs through the application of
eMSAGP and eMVAPEX supports our highly efficient capital
re-investment, industry-leading cost structure, and enhanced
environmental performance. MEG has a pipeline of execution-ready
brownfield projects with the potential to double production in the
next 10 years."
Third quarter bitumen production averaged a record 98,751 bpd, a
19% increase relative to the same period in 2017. This strong
production growth was achieved as new wells were brought on-stream
as part of the Phase 2B eMSAGP
implementation. Trending lower for the eighth consecutive quarter,
net operating costs per barrel were 28% lower than the third
quarter of 2017. The low per barrel net operating costs were
supported by higher production volumes, low natural gas prices and
strong power revenues.
Pricing and Market Access
MEG achieved strong blend sales realizations of $63.67 per barrel in the third quarter of 2018,
33% higher than the third quarter of 2017. The higher blend sales
realization was the result of stronger benchmark crude oil prices,
partially offset by wider WTI:WCS differentials in the period.
MEG's bitumen realization averaged $49.58 per barrel, 24% higher than the third
quarter of 2017.
"MEG's diversified marketing strategy allowed the Company to
deliver 31% of blend sales into the premium U.S. Gulf Coast market
during the third quarter, where the barrels received a pricing
uplift of approximately $15 per
barrel (net of transportation), relative to sales in the
Edmonton market. As a result of
this strategy, lower-priced post-apportionment blend sales have
been limited to 13% of volumes during the third quarter," said
Evans.
During the third quarter MEG doubled rail volumes to 7,800 bpd,
with plans to rail approximately 15,000 bpd in the fourth quarter
and up to 30,000 bpd by the end of the first quarter of 2019.
Subsequent to the quarter, MEG executed a binding agreement at
competitive market rates to access 30,000 bpd of unit train rail
loading capacity at the Bruderheim
terminal, operated by Cenovus. The term of this agreement is
for three years, with a one-year extension at MEG's option. As
a mechanism to clear barrels during periods of high pipeline
apportionment and reduce exposure to the post-apportionment market,
the use of rail enables MEG to maximize the price received on its
barrels until additional egress capacity from Western Canada is secured. MEG's strategic
network of North American storage facilities was also used during
the third quarter to mitigate differential and apportionment
exposure as MEG put barrels into storage.
Transportation costs per barrel for the third quarter of 2018
were 29% higher than the third quarter of 2017. The higher
transportation costs reflect the sale of the Company's 50% share in
the Access Pipeline and 100% of Stonefell Terminal, as well as
higher per barrel costs associated with the increased use of
rail.
"Although differentials are expected to remain challenging in
the fourth quarter, we anticipate them to moderate in 2019 as
Canadian rail export volumes increase significantly and PADD II
refineries come back on line after what has been the largest heavy
oil planned turnaround season in the last five years," added Evans.
"In addition, to partially mitigate the financial impact of wider
forecasted differentials, MEG plans to reduce its fourth quarter
production by 4,000 to 6,000 bpd through advancing a portion of our
2019 scheduled maintenance program into November. Further, we can
vary the pace of ramp-up subsequent to the turnaround depending on
market conditions. We do not currently anticipate any impact to our
previously announced 2018 annual guidance."
Capital Investment
Total cash capital investment in the quarter was $145 million. The largest area of spending was on
the Phase 2B Brownfield expansion,
with construction proceeding on-schedule and on-budget. Completion
and ramp-up of the project is anticipated in the second half of
2019, bringing total expected production to 113,000 bpd by the end
of 2019. Spending on the current application of eMSAGP on Phase
2B was substantially completed in the
quarter. Additionally, the Company invested $14 million on the eMVAPEX pilot, including
spending on the propane recycling unit, which is expected to be
fully operational in the fourth quarter of this year.
Adjusted Funds Flow and Operating Loss
Adjusted funds flow from operations were $116 million in the third quarter of 2018,
compared to $83 million in the third
quarter of 2017. The 40% increase reflects stronger benchmark crude
oil prices and higher sales volumes, partially offset by realized
net losses on commodity risk management contracts totaling
approximately $88 million. With
current cash reserves, higher commodity prices and lower
anticipated levels of capital spending in 2019, MEG expects to
hedge a substantially lower percentage of barrels in 2019.
The Company recognized an operating loss of $19 million in the third quarter of 2018,
compared to an operating loss of $43
million for the same period of 2017. The decrease in the
operating loss is primarily the result of higher bitumen
realizations, partially offset by realized losses on commodity risk
management contracts.
Operational and Financial Highlights
|
|
|
|
|
|
Nine months
ended
September 30
|
2018
|
2017
|
2016
|
($ millions,
except as indicated)
|
2018
|
2017
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Bitumen production -
bbls/d
|
87,781
|
77,588
|
98,751
|
71,325
|
93,207
|
90,228
|
83,008
|
72,448
|
77,245
|
81,780
|
|
|
|
|
|
|
|
|
|
|
|
Bitumen realization -
$/bbl
|
43.92
|
39.17
|
49.58
|
47.20
|
35.31
|
48.30
|
39.89
|
39.66
|
37.93
|
36.17
|
|
|
|
|
|
|
|
|
|
|
|
Net operating costs -
$/bbl(1)
|
5.28
|
7.26
|
4.34
|
5.64
|
5.98
|
5.86
|
6.00
|
7.42
|
8.43
|
8.24
|
|
|
|
|
|
|
|
|
|
|
|
Non-energy operating
costs - $/bbl
|
4.75
|
4.66
|
4.38
|
5.47
|
4.55
|
4.53
|
4.57
|
4.23
|
5.20
|
4.99
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating
netback - $/bbl(2)
|
21.09
|
24.09
|
23.96
|
18.53
|
20.16
|
33.83
|
26.84
|
22.96
|
22.33
|
21.73
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds flow
from operations(3)
|
217
|
182
|
116
|
18
|
83
|
192
|
83
|
55
|
43
|
40
|
Per share,
diluted(3)
|
0.73
|
0.63
|
0.39
|
0.06
|
0.28
|
0.65
|
0.28
|
0.19
|
0.16
|
0.18
|
Operating earnings
(loss)(3)
|
(107)
|
(158)
|
(19)
|
(70)
|
(18)
|
44
|
(43)
|
(36)
|
(79)
|
(72)
|
Per share,
diluted(3)
|
(0.36)
|
(0.55)
|
(0.06)
|
(0.24)
|
(0.06)
|
0.15
|
(0.14)
|
(0.12)
|
(0.29)
|
(0.32)
|
Revenue(4)
|
2,213
|
1,720
|
803
|
689
|
721
|
755
|
576
|
584
|
560
|
566
|
Net earnings
(loss)
|
80
|
190
|
118
|
(179)
|
141
|
(1)
|
84
|
104
|
2
|
(305)
|
Per share,
basic
|
0.27
|
0.66
|
0.40
|
(0.61)
|
0.48
|
0.00
|
0.29
|
0.36
|
0.01
|
(1.34)
|
Per share,
diluted
|
0.27
|
0.66
|
0.39
|
(0.61)
|
0.47
|
0.00
|
0.28
|
0.35
|
0.01
|
(1.34)
|
|
|
|
|
|
|
|
|
|
|
|
Total cash capital
investment
|
475
|
339
|
145
|
183
|
148
|
163
|
103
|
158
|
78
|
63
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
373
|
398
|
373
|
564
|
675
|
464
|
398
|
512
|
549
|
156
|
Long-term
debt
|
3,544
|
4,636
|
3,544
|
3,607
|
3,543
|
4,668
|
4,636
|
4,813
|
4,945
|
5,053
|
(1)
|
Net operating
costs include energy and non-energy operating costs, reduced by
power revenue.
|
(2)
|
Cash operating
netback is calculated by deducting the related diluent expense,
blend purchases, transportation, operating expenses, royalties and
realized commodity risk management gains (losses) from proprietary
blend revenues and power revenues, on a per barrel of bitumen sales
volume basis.
|
(3)
|
Adjusted funds
flow from (used in) operations, operating earnings (loss) and the
related per share amounts do not have standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures used by other companies. The non-GAAP measure of adjusted
funds flow from (used in) operations is reconciled to net cash
provided by (used in) operating activities and the non-GAAP measure
of operating earnings (loss) is reconciled to net earnings (loss)
in accordance with IFRS under the heading "NON-GAAP MEASURES" and
discussed further in the "ADVISORY" section.
|
(4)
|
The total of
petroleum revenue, net of royalties and other revenue as presented
on the consolidated statement of earnings and comprehensive income.
Effective January 1, 2018, petroleum revenues are presented on a
gross basis as they represent separate performance obligations, as
discussed in the "NEW ACCOUNTING STANDARDS" section of the
Corporation's Management Discussion and Analysis (MD&A) dated
October 31, 2018. Prior quarters have been revised as applicable to
reflect the new presentation.
|
Take-Over Offer from Husky
On October 2, 2018, Husky Energy
Inc. ("Husky") made a formal offer to acquire all of the issued and
outstanding common shares of MEG, at the election of each MEG
shareholder, for (i) $11.00 in cash or (ii) 0.485 of a common
share ("Husky Share") of Husky for each MEG common share, subject
to a maximum aggregate cash consideration of $1 billion and a maximum aggregate number of
Husky Shares of approximately 107 million (the "Husky Offer"). The
Husky Offer must remain open until January
16, 2019 unless otherwise extended, accelerated or withdrawn
in accordance with its terms. Based upon the closing price of the
Husky Shares on the TSX on October 31,
2018, the current value of the Husky Offer is approximately
$9.61 per MEG common share as implied
by the exchange ratio.
Upon receipt of the Husky Offer, the MEG Board, operating
through a Special Committee, engaged with financial and legal
advisors to diligently review the Husky Offer. The MEG Board, on
the recommendation of the Special Committee, has unanimously
concluded that the Husky Offer significantly undervalues the
Company and is not in the best interests of MEG or its
shareholders. The MEG Board unanimously recommends that MEG
shareholders reject the Husky Offer and not tender their common
shares to the Husky Offer. No action is required to reject the
Husky Offer.
The Directors' Circular, filed on October
17, 2018 by the Board, provides information for MEG
shareholders about the Company's prospects and the MEG Board's
analysis, deliberations and recommendations. The Directors'
Circular is available at www.megenergy.com/RejectHusky and at
www.sedar.com. Additional information can be found in the Investor
Presentation, which is also available at
www.megenergy.com/RejectHusky.
In its Directors' Circular, the Board describes the reasons for
its recommendations. Among other things, the Board notes:
- MEG's stand-alone plan is worth substantially more than the
value proposed to be delivered by Husky in the Husky Offer.
- The timing of the Husky Offer is opportunistic and was timed to
deny MEG Shareholders the opportunity to fully evaluate the plans,
and experience the value creation of MEG's new CEO, Mr. Evans.
- In addition to being financially inadequate, the form of
consideration offered in the Husky Offer is disadvantageous to MEG
Shareholders.
- As the Husky Offer is presently structured, Husky's existing
owners are receiving the lion's share of the benefits of the
combination, many of which Husky has not even acknowledged.
The Special Committee has given its financial advisor, BMO
Capital Markets, a mandate to investigate alternative transactions
to the Husky Offer. A data room containing confidential information
about MEG has been created to help interested parties establish the
true value of the Company. MEG will not be providing additional
information to the market on the status of the strategic
alternatives process until MEG has material developments to
disclose.
ADVISORY
Basis of Presentation
MEG prepares its financial statements in accordance with
International Financial Reporting Standards ("IFRS") and presents
financial results in Canadian dollars ($ or C$), which is the
Company's functional currency.
Non-GAAP Measures
Certain financial measures in this news release including: net
marketing activity, funds flow from (used in) operations, adjusted
funds flow from (used in) operations, operating earnings (loss),
operating cash flow, cash flow and total debt are non-GAAP
measures. These terms are not defined by IFRS and, therefore, may
not be comparable to similar measures provided by other companies.
These non-GAAP financial measures should not be considered in
isolation or as an alternative for measures of performance prepared
in accordance with IFRS.
Funds Flow From (Used in) Operations and Adjusted Funds Flow
From (Used in) Operations
Funds flow from (used in) operations and adjusted funds flow
from (used in) operations are presented to assist management and
investors in analyzing performance and liquidity. Funds flow from
(used in) operations excludes the net change in non-cash operating
working capital while the IFRS measurement "net cash provided by
(used in) operating activities" includes these items. Adjusted
funds flow from (used in) operations excludes the net change in
non-cash operating working capital, realized gain on foreign
exchange derivatives not considered part of ordinary continuing
operating results, payments on onerous contracts and
decommissioning expenditures, while the IFRS measurement "net cash
provided by (used in) operating activities" includes these items.
Funds flow from (used in) operations and adjusted funds flow from
(used in) operations are not intended to represent net cash
provided by (used in) operating activities calculated in accordance
with IFRS. Funds flow from (used in) operations and adjusted funds
flow from (used in) operations are reconciled to net cash provided
by (used in) operating activities in the table below.
In this press release, cash flow refers to funds flow from (used
in) operations as defined above.
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
($000)
|
2018
|
2017
|
2018
|
2017
|
Net cash provided by
(used in) operating activities
|
$
|
3,409
|
$
|
7,979
|
$
|
186,678
|
$
|
117,397
|
Net change in non-cash
operating working capital items
|
107,549
|
51,133
|
47,577
|
28,922
|
Funds flow from (used
in) operations
|
110,958
|
59,112
|
234,255
|
146,319
|
Adjustments:
|
|
|
|
|
Realized gain on
foreign exchange derivatives(1)
|
—
|
—
|
(35,362)
|
—
|
Contract cancellation
expense(2)
|
—
|
18,765
|
—
|
18,765
|
Payments on onerous
contracts
|
4,332
|
5,089
|
14,576
|
14,691
|
Decommissioning
expenditures
|
452
|
386
|
3,823
|
1,847
|
Adjusted funds flow
from (used in) operations
|
$
|
115,742
|
$
|
83,352
|
$
|
217,292
|
$
|
181,622
|
(1)
|
A gain related to
the settlement of forward currency contracts to manage the foreign
exchange risk on those Canadian dollar denominated proceeds related
to the sale of assets designated for U.S. dollar denominated
long-term debt repayment.
|
(2)
|
During the third
quarter of 2017, the Corporation recognized a contract cancellation
expense of $18.8 million relating to the termination of a long-term
marketing transportation contract that had not yet
commenced.
|
Operating Earnings (Loss)
Operating earnings (loss) is a non-GAAP measure which the
Company uses as a performance measure to provide comparability of
financial performance between periods by excluding non-operating
items. Operating earnings (loss) is defined as net earnings (loss)
as reported, excluding unrealized foreign exchange gains and
losses, unrealized gains and losses on derivative financial
instruments, unrealized gains and losses on commodity risk
management, realized gains and losses on foreign exchange
derivatives not considered part of ordinary continuing operating
results, gain on asset dispositions, contract cancellation expense,
onerous contracts expense, insurance proceeds and the respective
deferred tax impact on these adjustments. Operating earnings (loss)
is reconciled to "Net earnings (loss)", the nearest IFRS measure in
the table below.
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
($000)
|
2018
|
2017
|
2018
|
2017
|
Net earnings
(loss)
|
$
|
118,160
|
$
|
83,885
|
$
|
80,163
|
$
|
189,755
|
Adjustments:
|
|
|
|
|
Unrealized loss
(gain) on foreign exchange(1)
|
(58,253)
|
(180,448)
|
145,422
|
(345,116)
|
Unrealized loss
(gain) on derivative financial liabilities(2)
|
(192)
|
(3,490)
|
2,674
|
(7,346)
|
Unrealized loss
(gain) on commodity risk management(3)
|
(107,949)
|
57,470
|
11,371
|
(19,353)
|
Realized foreign
exchange loss (gain) on
|
|
|
|
|
foreign exchange
derivatives(4)
|
—
|
—
|
(35,362)
|
—
|
Gain on asset
dispositions(5)
|
—
|
—
|
(318,398)
|
—
|
Contract cancellation
expense(6)
|
—
|
18,765
|
—
|
18,765
|
Onerous contracts
expense
|
897
|
(27)
|
1,686
|
5,681
|
Insurance
proceeds
|
—
|
(183)
|
—
|
(183)
|
Deferred tax expense
(recovery) relating to
|
|
|
|
|
these
adjustments
|
28,326
|
(18,543)
|
5,244
|
218
|
Operating earnings
(loss)
|
$
|
(19,011)
|
$
|
(42,571)
|
$
|
(107,200)
|
$
|
(157,579)
|
(1)
|
Unrealized net
foreign exchange gains and losses result from the translation of
U.S. dollar denominated long-term debt and cash and cash
equivalents using period-end exchange rates.
|
(2)
|
Unrealized gains
and losses on derivative financial liabilities result from the
interest rate floor on the Corporation's long-term debt and
interest rate swaps entered into to effectively fix a portion of
its variable rate long-term debt.
|
(3)
|
Unrealized gains
or losses on commodity risk management contracts represent the
change in the mark-to-market position of the unsettled commodity
risk management contracts during the period.
|
(4)
|
A gain related to
the settlement of forward currency contracts to manage the foreign
exchange risk on those Canadian dollar denominated proceeds related
to the sale of assets designated for U.S. dollar denominated
long-term debt repayment.
|
(5)
|
A gain related to
the sale of the Corporation's 50% interest in the Access
Pipeline.
|
(6)
|
During the third
quarter of 2017, the Corporation recognized a contract cancellation
expense of $18.8 million relating to the termination of a long-term
marketing transportation contract that had not yet
commenced.
|
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements within the meaning of applicable
Canadian securities laws. These statements relate to future events
or MEG's future performance. All statements other than statements
of historical fact may be forward-looking statements. The use of
any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "should", "believe", "plan", "intend" and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are often, but not always,
identified by such words. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements.
In particular, this news release contains forward-looking
statements with respect to: expectations regarding the value of
MEG's stand alone plan; expectations that MEG's business plan will
generate substantial or significant cash flow over the next several
years; expectations that MEG is at an inflection point with its
business plan; expectations respecting MEG's prospects for growth,
profitability and creation of shareholder value; expectations with
respect to the benefits to the Husky shareholders of Husky if the
Husky Offer is successful; the expected disadvantages to the MEG
Shareholders if the Husky Offer is successful; the intrinsic value
of MEG's business; expectations respecting MEG's future capital
efficiencies and operations; expectations of future production;
anticipated future commodity prices and pricing differentials;
future rail export volumes and plans; anticipated timing of the
completion of the Phase 2B brownfield
expansion and eMVAPEX pilot project; future capital spending plans;
hedging policy and plans; and anticipated sources of funding for
operations and capital investments.
Forward-looking information contained in this news release is
based on management's expectations and assumptions regarding, among
other things: future crude oil, bitumen blend, natural gas,
electricity, condensate and other diluent prices, foreign exchange
rates and interest rates; the recoverability of MEG's reserves and
contingent resources; MEG's ability to market production of bitumen
blend successfully to customers; future growth, results of
operations and production levels; future capital and other
expenditures; plans for and results of drilling activity; the
regulatory framework governing royalties, land use, taxes and
environmental matters in which MEG conducts and will conduct its
business; 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 access to markets and transportation infrastructure; the
availability of capacity on the electricity transmission grid; the
uncertainty of reserve and resource estimates; the uncertainty of
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 news release is
expressly qualified in its entirety by the foregoing cautionary
statements. Unless otherwise stated, the forward-looking
information included in this news release is made as of the date of
this news release and MEG assumes no obligation to update or revise
any forward-looking information to reflect new events or
circumstances, except as required by law.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
MEG's prospective results of operations including, without
limitation, cash flow and various components thereof, all of which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth above. Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
FOFI. MEG's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these FOFI, or
if any of them do so, what benefits MEG will derive therefrom. MEG
has included the FOFI in order to provide readers with a more
complete perspective on MEG's future operations and such
information may not be appropriate for other purposes. MEG
disclaims any intention or obligation to update or revise any FOFI
statements, whether as a result of new information, future events
or otherwise, except as required by law.
A full version of MEG's Third Quarter Report to Shareholders,
including unaudited financial statements, is available at
www.megenergy.com/investors and at www.sedar.com.
A conference call will be held to review the operating and
financial results at 8 a.m. Mountain Time (10 a.m. Eastern Time) on Thursday, November
1, 2018. The North American toll-free conference call number is
1-888-390-0546. The international conference call number is
587-880-2171.
A recording of the call will be available by 12 noon
Mountain Time (2 p.m. Eastern
Time) on November 1, 2018 on the Company's website
at www.megenergy.com/investors/presentations-and-events.
About MEG
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".
For further information, please contact:
Investors
Helen
Kelly
Director, Investor Relations and External Communications
403-767-6206
helen.kelly@megenergy.com
Media
Megan Hjulfors
Senior Advisor, Investor Relations and External Communications
403-767-6211
megan.hjulfors@megenergy.com
SOURCE MEG Energy Corp.