All financial figures are in Canadian dollars ($ or C$) and all
references to barrels are per barrel of bitumen unless otherwise
noted
CALGARY, AB, March 3, 2021 /CNW/ - MEG Energy Corp.
(TSX: MEG) ("MEG" or the "Corporation") reported its full year 2020
operational and financial results.
Highlights include:
- Free cash flow of $129 million
driven by adjusted funds flow of $278
million ($0.91 per share) and
disciplined capital spend of $149
million;
- Bitumen production volumes of 82,441 barrels per day (bbls/d)
at a steam-oil ratio (SOR) of 2.3;
- Repayment of $132 million of
long-term debt concurrent with the refinancing of US$1.2 billion of existing indebtedness;
- General and administrative expense of $49 million which was $19
million, or 28%, lower than 2019;
- Net operating costs of $6.18 per
barrel, supported by record low non-energy operating costs of
$4.38 per barrel and strong power
sales which offset 45% of per barrel energy operating costs
resulting in a net energy operating cost of $1.80 per barrel; and
- Exited 2020 with $114 million of
cash on hand and MEG's $800 million
modified covenant-lite revolver remains undrawn.
"Notwithstanding the incredibly challenging environment our
industry faced in 2020, MEG continued to execute on its strategic
focus of improving overall cost efficiencies, preserving financial
liquidity and enhancing MEG's competitive position," says
Derek Evans, President and Chief
Executive Officer. "In keeping with this strategy, we significantly
reduced G&A, repaid indebtedness, extended the maturity runway
of outstanding long-term debt and began moving the majority of our
barrels to the USGC for the first time. None of this would have
been achieved without the commitment, perseverance, and resilience
of the MEG team which has my thanks and those of the Board for all
their collective and individual efforts during the year."
Financial Liquidity and Debt Repayment
In the last three years, the Corporation has repaid
approximately $2 billion
(US$1.5 billion) of long-term debt
including $132 million (US$100 million) in 2020.
In January 2020, the Corporation
successfully closed a private offering of US$1.2 billion in aggregate principal amount of
7.125% senior unsecured notes due February
2027. The net proceeds of the offering plus cash on hand
were used to fully redeem US$800
million of the 6.375% senior unsecured notes due
January 2023 and partially redeem
US$400 million of the US$1.0 billion 7.0% senior unsecured notes due
March 2024. Post this refinancing,
MEG had a 4-year runway until its next debt maturity represented by
the remaining US$600 million of
March 2024 notes.
Subsequent to year end, in February
2021, the Corporation successfully closed a private offering
of US$600 million in aggregate
principal amount of 5.875% senior unsecured notes due February 2029. The net proceeds of the offering
plus cash on hand were used to fully redeem the remaining
US$600 million of the 7.0% senior
unsecured notes due March 2024. Post
this refinancing, MEG maintains a 4-year runway until its next debt
maturity represented by the remaining US$496
million of 6.50% second lien notes due January 2025.
MEG generated $129 million of free
cash flow in 2020 and exited the year with $114 million of cash on hand. The Corporation's
$800 million modified covenant-lite
revolver, in place until July 2024,
remains undrawn.
Blend Sales Pricing and North American Market Access
MEG realized an average AWB blend sales price of US$28.07 per barrel in 2020 compared to
US$46.19 per barrel in 2019. The
decrease in average AWB blend sales price year over year was
primarily a result of the average WTI price decreasing by
US$17.63 per barrel. MEG sold
40% of its sales volumes to the US Gulf Coast ("USGC") in 2020
compared to 33% in 2019. The increase in sales to the USGC in 2020
is primarily a result of the Corporation's increased contracted
blend transportation capacity on the Flanagan South and Seaway
Pipeline systems ("FSP") effective July 1,
2020 from 50,000 bbls/d to 100,000 bbls/d.
Transportation and storage costs averaged US$6.74 per barrel of AWB blend sales in 2020
compared to US$5.70 per barrel of AWB
blend sales 2019. The increase in transportation and storage costs
is primarily due to the fixed costs associated with increased FSP
contracted capacity coupled with lower year over year sales
volumes. MEG's AWB blend sales by rail were 16,865 bbls/d in 2020,
representing 14% of total blend sales, compared to 19,686 bbls/d,
representing 15% of total blend sales in 2019. MEG is not
anticipating undertaking any AWB blend sales by rail in
2021.
Operational Performance
Bitumen production averaged 82,441 bbls/d in 2020, compared to
93,082 bbls/d in 2019. Contributing to the decrease was the impact
of the Corporation's major planned turnaround at the Phase 1 and 2
facilities which was extended in duration to 75-days and expanded
in scope relative to the Corporation's original budget in order to
minimize staff levels at site during COVID-19 and maximize
utilization of the Corporation's internal resources thereby
lowering overall cash costs. MEG also made the decision to advance
turnaround activities from 2021 to significantly reduce the 2021
turnaround requirements.
The decrease in 2020 bitumen production was also impacted by the
Corporation's decision, in the first half of 2020, to reduce
capital investment by $100 million
and undertake voluntary price-related production curtailments
during the second quarter of 2020 in order to preserve financial
liquidity.
Non-energy operating costs were $133
million, or $4.38 per
barrel, in 2020 compared to $157
million, or $4.61 per barrel,
in 2019. General and administrative expense was $49 million, or $1.62 per barrel, in 2020 compared to
$68 million, or $1.99 per barrel, in 2019. Throughout 2020 MEG
continued efforts to drive efficiency into its cost structure
including reductions in staffing levels as well as temporary salary
rollbacks and vendor concessions which contributed to the decrease
in expenses year over year. The Corporation also took part in
various government led initiatives during 2020, aimed at supporting
businesses facing the negative impacts of COVID-19.
Adjusted Funds Flow and Net Loss
The Corporation's adjusted funds flow was $278 million in 2020 compared to $726 million in 2019. The decrease in adjusted
funds flow was driven primarily by the 31% decrease in the WTI
price year over year partially offset by a realized commodity risk
management gain of $343 million.
The Corporation recognized a net loss of $357 million in 2020 compared to a net loss of
$62 million in 2019. The increase in
the net loss year over year was largely driven by significant
non-cash items including a $366
million exploration expense associated with certain non-core
assets and a decrease in the unrealized foreign exchange gain
driven by the strengthening of the Canadian dollar. These were
partially offset by an unrealized commodity risk management gain as
a result of weaker forward commodity prices compared to an
unrealized commodity risk management loss in the same period of
2019.
Capital Expenditures
Capital expenditures in 2020 totaled $149
million compared to $198
million in 2019. The decrease in capital spending in 2020,
compared to 2019, reflects the Corporation's decision to reduce its
original 2020 capital budget of $250
million by approximately $100
million due to the unprecedented negative macro oil price
environment experienced in 2020. Capital expenditures during 2020
primarily consisted of sustaining and maintenance and turnaround
activities.
Sustainability
In 2020 we continued to advance our Environmental, Social and
Governance ("ESG") activities and strategy with corporate
commitments to supporting the Paris Agreement, the approval of our
long-term ambition of reaching net-zero GHG emissions (scope 1 and
scope 2) by 2050, and our commitment to human rights as reflected
in the UN Universal Declaration of Human Rights.
We remain committed to ESG leadership and look forward to
updating our performance in that regard with the release of our
2020 Sustainability Report mid-2021.
COVID-19 Global Pandemic
The health and safety of its people is the Corporation's first
priority. The Corporation's business activities have been declared
an essential service by the Alberta Government and the Corporation
remains committed to ensuring the health and safety of all its
personnel and business partners, and the safe and reliable
operation of the Christina Lake
facility. At the onset of the global pandemic, a COVID-19 task
force was established by the Corporation comprised of members of
senior management and employees as well as third party expert
consultants to promptly implement measures to protect the health
and safety of the Corporation's work force and the public, as well
as to ensure continuity of operations. The implementation of
mandatory self-quarantine policies, travel restrictions, screening
protocols, enhanced cleaning and sanitation measures, and social
distancing measures, including directing the vast majority of its
office staff and certain non-essential field staff to work from
home at the onset of the pandemic in March
2020, revising shift schedules and increasing appropriate
protective equipment, were proactively established. To date, the
Corporation has not experienced any COVID-19 outbreaks at any of
its locations.
The Corporation continues to monitor the developing COVID-19
situation to determine what, if any, additional measures might need
to be taken to ensure that the health and safety of its people
remain a top priority. In September, MEG safely returned to
near-normal operations, with new safety measures in place,
including the majority of staff returning to regular work
locations. In December 2020, the
Corporation reverted to having staff who are able to work remotely
to do so, to reduce risk of exposure. Flexibility and adaptability
continue to be integral to the risk management strategy.
Outlook
Announced December 7, 2020, MEG's
capital investment plan for 2021 of $260
million includes $245 million
to be directed towards sustaining and maintenance capital and the
remaining $15 million directed
towards non-discretionary field infrastructure, regulatory and
corporate capital costs.
MEG's 2021 annual average bitumen production volumes are
targeted to be in the range of 86,000 - 90,000 bbls/d and the
Corporation's 2021 non-energy operating costs and general and
administrative expense are targeted to be in the range of
$4.60 - $5.00 per barrel and $1.70 - $1.80 per
barrel, respectively.
2021 Commodity Price Risk Management
To support MEG's 2021 capital budget announced December 7, 2020, MEG entered into benchmark WTI
fixed price hedges and enhanced WTI fixed price hedges with sold
put options for approximately 47% (60% 1H, 33% 2H) of forecast
bitumen production at an average price of US$46.66 per barrel. These hedges were put in
place to protect funding of the Corporation's 2021 capital program
with internally generated cash flow down to a US$30 per barrel WCS price and to protect MEG's
balance sheet. The first half weighting of these hedges reflect the
first half weighting of MEG's capital investment profile as well as
the uncertainty regarding pace of 2021 economic recovery at time of
execution.
MEG has hedged approximately 23% of its forecast Edmonton
WTI:WCS differential exposure (41% 1H, 5% 2H) at an average
differential of US$13.42 per barrel.
MEG has also hedged approximately 40% of its expected 2021
condensate requirements at a landed-at-Edmonton price of 96% of WTI, approximately
35% of expected 2021 natural gas requirements at an average price
of C$2.62 per GJ and fixed the sales
price on approximately 25% of expected 2021 power available for
sale at an average price of C$62.80
per MW. The table below reflects MEG's 2021 hedge
positions.
|
|
|
Forecast
Period
|
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
2021
|
WTI
Hedges
|
|
|
|
|
|
WTI Fixed Price
Hedges
|
|
|
|
|
|
Volume (bbls/d)
|
37,361
|
|
13,000
|
|
—
|
|
—
|
|
12,453
|
|
Weighted average fixed WTI price (US$/bbl)
|
$
|
48.28
|
|
$
|
46.31
|
|
$
|
—
|
|
$
|
—
|
|
$
|
47.77
|
|
Enhanced WTI Fixed Price
Hedges with Sold Put Options(1)
|
|
|
|
|
|
Volume (bbls/d)
|
29,000
|
|
29,000
|
|
29,000
|
|
29,000
|
|
29,000
|
|
Weighted average fixed WTI price (US$/bbl) /
|
$ 46.18
/
|
|
$ 46.18
/
|
|
$ 46.18
/
|
|
$ 46.18
/
|
|
$ 46.18
/
|
|
Put option strike price (US$/bbl)
|
$38.79
|
|
$38.79
|
|
$38.79
|
|
$38.79
|
|
$38.79
|
|
WTI:WCS
Differential Hedges
|
|
|
|
|
|
Volume(2)(bbls/d)
|
15,000
|
|
43,000
|
|
4,000
|
|
—
|
|
15,468
|
|
Weighted average fixed
WTI:WCS differential (US$/bbl)
|
$
|
(14.44)
|
|
$
|
(13.27)
|
|
$
|
(11.18)
|
|
$
|
—
|
|
$
|
(13.42)
|
|
|
|
|
|
|
|
Condensate
Hedges
|
|
|
|
|
|
Volume(3)
(bbls/d)
|
15,495
|
|
18,211
|
|
14,028
|
|
14,028
|
|
15,433
|
|
Weighted average % of WTI
landed in Edmonton (%)(4)
|
96%
|
|
97%
|
|
96%
|
|
96%
|
|
96%
|
|
|
|
|
|
|
|
Natural Gas
Hedges
|
|
|
|
|
|
Volume(5)
(GJ/d)
|
57,500
|
|
42,500
|
|
42,500
|
|
42,500
|
|
46,199
|
|
Weighted average fixed AECO
price (C$/GJ)
|
$
|
2.64
|
|
$
|
2.61
|
|
$
|
2.61
|
|
$
|
2.61
|
|
$
|
2.62
|
|
|
|
|
|
|
|
Power
Hedges
|
|
|
|
|
|
Quantity(6)(MWh)
|
20
|
|
35
|
|
35
|
|
35
|
|
31
|
|
Weighted average fixed price
(C$/MW)
|
$
|
63.06
|
|
$
|
62.75
|
|
$
|
62.75
|
|
$
|
62.75
|
|
$
|
62.80
|
|
(1)
|
If in any month of
2021 the month average WTI settlement price is US$38.79 per barrel
(the sold put option) or better, MEG will receive US$46.18 per
barrel (the fixed price swap) on each barrel hedged in that month.
If in any month of 2021 the month average WTI settlement price is
less than US$38.79 per barrel, MEG will receive the month average
WTI settlement price in that month plus US$7.39 per barrel (the
swap spread) on each barrel hedged in that month.
|
(2)
|
Includes 9,833
bbls/d (Q1) and 15,000 bbls/d (Q2) of physical forward blend sales
at fixed WTI:AWB differentials.
|
(3)
|
Includes
approximately 4,500 bbls/d of physical forward condensate purchases
for the full year 2021 (annual average).
|
(4)
|
The average % of
WTI landed in Edmonton includes estimated net transportation costs
to Edmonton.
|
(5)
|
Includes 7,466
GJ/d of physical forward natural gas purchases for the full year
2021 (annual average) at a fixed AECO price.
|
(6)
|
Represents
physical forward power sales at a fixed power price.
|
Conference Call
A conference call will be held to review MEG's full-year 2020
operating and financial results at 6:30 a.m.
Mountain Time (8:30 a.m. Eastern
Time) on Thursday, March
4th, 2021. To participate, please dial the North
American toll-free number 1-888-390-0546, or the international call
number 1-416-764-8688.
A recording of the call will be available by 12 noon Mountain Time (2 p.m.
Eastern Time) on the same day at
www.megenergy.com/investors/presentations-and-events.
Operational and Financial Highlights
|
|
|
Three months ended
December 31
|
|
Year ended
December 31
|
($millions, except
as indicated)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Bitumen production -
bbls/d
|
91,030
|
|
94,566
|
|
82,441
|
|
93,082
|
|
|
|
|
|
|
|
|
Steam-oil
ratio
|
2.31
|
|
2.27
|
|
2.32
|
|
2.22
|
|
|
|
|
|
|
|
|
Bitumen sales -
bbls/d
|
95,731
|
|
94,347
|
|
82,722
|
|
93,587
|
|
|
|
|
|
|
|
|
Bitumen realization -
$/bbl
|
38.64
|
|
46.86
|
|
27.23
|
|
53.21
|
|
|
|
|
|
|
|
|
Net operating costs -
$/bbl(1)
|
6.98
|
|
5.87
|
|
6.18
|
|
5.24
|
|
|
|
|
|
|
|
|
Non-energy operating
costs - $/bbl
|
4.70
|
|
4.49
|
|
4.38
|
|
4.61
|
|
|
|
|
|
|
|
|
Cash operating
netback - $/bbl(2)
|
18.66
|
|
28.33
|
|
19.22
|
|
32.15
|
|
|
|
|
|
|
|
|
Adjusted funds
flow(3)
|
84
|
|
157
|
|
278
|
|
726
|
Per share,
diluted
|
0.27
|
|
0.51
|
|
0.91
|
|
2.41
|
|
|
|
|
|
|
|
|
Revenue
|
786
|
|
992
|
|
2,292
|
|
3,931
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
16
|
|
26
|
|
(357)
|
|
(62)
|
Per share,
diluted
|
0.05
|
|
0.09
|
|
(1.18)
|
|
(0.21)
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
40
|
|
72
|
|
149
|
|
198
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
114
|
|
206
|
|
114
|
|
206
|
Long-term debt -
C$
|
2,912
|
|
3,123
|
|
2,912
|
|
3,123
|
Long-term debt -
US$
|
2,283
|
|
2,409
|
|
2,283
|
|
2,409
|
(1)
|
Net operating
costs include energy and non-energy operating costs, reduced by
power revenue.
|
(2)
|
Cash operating
netback is a non-GAAP measure and does not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similar measures used by other companies.
|
(3)
|
Refer to Note 26
of the 2020 audited annual consolidated financial statements for
further details.
|
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$), which is the
Corporation's functional currency.
Non-GAAP Measures
Certain financial measures in this news release including free
cash flow and cash operating netback are non-GAAP measures. These
terms are not defined by IFRS and, therefore, may not be comparable
to similar measures provided by other companies. These non-GAAP
financial measures should not be considered in isolation or as an
alternative for measures of performance prepared in accordance with
IFRS.
Free Cash Flow
Free cash flow is presented to assist management and investors
in analyzing performance by the Corporation as a measure of
financial liquidity and the capacity of the business to repay debt.
Free cash flow is calculated as adjusted funds flow less capital
expenditures.
|
|
|
|
Three months
ended
December 31
|
Year ended
December 31
|
($millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net cash provided by
(used in) operating activities
|
$
|
115
|
|
$
|
225
|
|
$
|
302
|
|
$
|
631
|
Net change in non-cash
operating working capital items
|
(34)
|
|
(52)
|
|
(63)
|
|
110
|
Funds flow from
operations
|
81
|
|
173
|
|
239
|
|
741
|
Adjustments:
|
|
|
|
|
Contract
cancellation(1)
|
—
|
|
(20)
|
|
33
|
|
(20)
|
Net change in other
liabilities(2)
|
3
|
|
3
|
|
3
|
|
3
|
Decommissioning
expenditures
|
—
|
|
1
|
|
3
|
|
2
|
Adjusted funds
flow
|
$
|
84
|
|
$
|
157
|
|
$
|
278
|
|
$
|
726
|
Capital
expenditures
|
(40)
|
|
(72)
|
|
(149)
|
|
(198)
|
Free cash
flow
|
$
|
44
|
|
$
|
85
|
|
$
|
129
|
|
$
|
528
|
(1)
|
During 2020 these
costs were incurred to mitigate rail sales contract exposure. The
economic decision to divert sales volumes from rail contracts at
Edmonton to the USGC more than recovered the cost of contract
cancellations. During the fourth quarter of 2019, the Corporation
agreed to relieve the Alberta Petroleum Marketing Commission of all
obligations pursuant to a crude oil purchase and sale agreement in
exchange for a payment of $20 million. Contract cancellation costs
or recoveries are excluded from adjusted funds flow as they are not
considered part of ordinary continuing operating
results.
|
(2)
|
Includes the
change in liability associated with the termination of a long-term
transportation contract that was previously
expensed.
|
Cash Operating Netback
Cash operating netback is a non-GAAP measure widely used in the
oil and gas industry as a supplemental measure of a company's
efficiency and its ability to fund future capital expenditures. The
Corporation's cash operating netback is calculated by deducting the
related cost of diluent, blend purchases, transportation and
storage, third-party curtailment credits, operating expenses,
royalties and realized commodity risk management gains or losses
from blend sales and power revenue. The per barrel calculation of
cash operating netback is based on bitumen sales volume.
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",
"target", "potential" 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, and without limiting the
foregoing, this press release contains forward looking statements
with respect to: the Corporation's expectations regarding 2021 AWB
blend sales; the impact of the major turnaround at the Christina Lake facility, including the impact
on 2021 turnaround requirements; the Corporation's ongoing
financial liquidity; the Corporation's ESG commitments; the
Corporation's actions taken to respond to safety and financial
challenges associated with the COVID-19 pandemic; the Corporation's
commitment to ensuring the health and safety of its personnel and
safe and reliable operations of the Christina Lake facility; all statements
relating to the Corporation's full year 2021 guidance, including
full year 2021 production, non-energy operating costs, general and
administrative expenses and capital expenditures; the Corporation's
expectations regarding its 2021 capital budget, including the
expected level of internally generated cash flow in 2021 and the
Corporation's mitigation strategies to protect its 2021 capital
program and balance sheet against downward commodity price
volatility; and all statements relating to the Corporation's 2021
hedge book.
Forward-looking information contained in this press 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, differentials,
the level of apportionment on the Enbridge mainline system, foreign
exchange rates and interest rates; the recoverability of MEG's
reserves and contingent resources; MEG's ability to produce and
market production of bitumen blend successfully to customers;
future growth, results of operations and production levels; future
capital and other expenditures; revenues, expenses and cash flow;
operating costs; reliability; continued liquidity and runway to
sustain operations through a prolonged market downturn; MEG's
ability to reduce or increase production to desired levels,
including without negative impacts to its assets; anticipated
reductions in operating costs as a result of optimization and
scalability of certain operations; anticipated sources of funding
for operations and capital investments; plans for and results of
drilling activity; the regulatory framework governing royalties,
land use, taxes and environmental matters, including the timing and
level of government production curtailment and federal and
provincial climate change policies, in which MEG conducts and will
conduct its business; the impact of MEG's response to the COVID-19
global pandemic; 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 and uncertainties include, but are not limited to,
risks and uncertainties related to: the oil and gas industry, for
example, the securing of adequate access to markets and
transportation infrastructure (including pipelines and rail) and
the commitments therein; 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, including public health crises, such as the
COVID-19 pandemic, and any related actions taken by governments and
businesses; legislative and regulatory changes to, amongst other
things, tax, land use, royalty and environmental laws and
production curtailment; the cost of compliance with current and
future environmental laws, including climate change laws; risks
relating to increased activism and public opposition to fossil
fuels and oil sands; assumptions regarding and the volatility of
commodity prices, interest rates and foreign exchange rates;
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; timing of completion, commissioning, and
start-up, of MEG's turnarounds; the operational risks and delays in
the development, exploration, production, and the capacities and
performance associated with MEG's projects; MEG's ability to reduce
or increase production to desired levels, including without
negative impacts to its assets; MEG's ability to finance sustaining
capital expenditures; MEG's ability to maintain sufficient
liquidity to sustain operations through a prolonged market
downturn; changes in credit ratings applicable to MEG or any of its
securities; MEG's response to the COVID-19 global pandemic; the
severity and duration of the COVID-19 pandemic; the potential for a
temporary suspension of operations impacted by an outbreak of
COVID-19; and changes in general economic, market and business
conditions.
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, the Corporation's hedging program, capital
expenditures, production, operating costs and general and
administrative costs, 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.
MEG's 2020 Annual Management's Discussion and Analysis ("MD&A")
and 2020 Annual Consolidated Financial Statements are available at
www.megenergy.com/investors and at www.sedar.com.
About MEG
MEG is an energy company focused on sustainable in situ thermal
oil production in the southern Athabasca oil region of Alberta, Canada. MEG is actively developing
innovative enhanced oil recovery projects that utilize
steam-assisted gravity drainage ("SAGD") extraction methods to
improve the responsible economic recovery of oil as well as lower
carbon emissions. MEG transports and sells its thermal oil (AWB) to
customers throughout North America
and internationally.
Learn more at: www.megenergy.com
For further information, please contact:
Investor Relations
T 587.293.6045
E invest@megenergy.com
Media Relations
T 403.775.1131
E media@megenergy.com
SOURCE MEG Energy Corp.