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MEG Energy (MEG) investor relations material

MEG Energy Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary1 Aug, 2025

Executive summary

  • Completed the largest planned turnaround in company history on time and on budget, with strong safety performance despite regional wildfires.

  • Advanced the Facility Expansion Project, completing over 150 tie-ins and achieving key milestones for a 25,000 bpd increase by mid-2027.

  • Production restored to pre-turnaround levels within two weeks; July 2025 averaged approximately 109,000 bpd.

  • Board approved a 10% dividend increase to $0.11 per share, payable October 15, 2025, reflecting confidence in strategy.

  • Returned $35 million to shareholders in Q2 2025 and $220 million in H1 2025 through buybacks and dividends.

Financial highlights

  • Q2 2025 adjusted funds flow was $125 million ($0.49/share), down from $354 million ($1.30/share) in Q2 2024, mainly due to lower WTI prices and reduced sales volumes.

  • Q2 2025 net earnings were $67 million, compared to $136 million in Q2 2024; YTD net earnings were $278 million, up from $234 million in 2024.

  • Revenues for Q2 2025 were $757 million, down from $1,373 million in Q2 2024.

  • Q2 capital expenditures totaled $200 million, up from $123 million in Q2 2024, driven by turnaround and expansion investments.

  • Free cash flow for Q2 2025 was negative $75 million, but H1 2025 free cash flow was $148 million; on track for over $500 million in 2025.

Outlook and guidance

  • Full year 2025 operating and capital guidance remains unchanged, with capital expenditures of $635 million and annual average bitumen production of 95,000–105,000 bbls/d.

  • Facility Expansion Project is 15% complete and on track for 2027 in-service.

  • Expecting over $375 million in free cash flow in H2 2025 at current strip pricing.

  • Non-energy operating costs guidance: $5.30–$5.80/bbl for 2025.

  • Commitment to return 100% of free cash flow to shareholders, subject to board approval.

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Frequently asked questions

MEG Energy Corp. is an energy company, which focuses on sustainable in situ thermal oil production. The Company has interests in the Athabasca oil sands region located in northeastern Alberta, Canada. It principally holds fee titles over producing properties at Foster Creek, Christina Lake and Narrows Lake projects. Its portfolio of assets consist of interests in the producing and non-producing assets that were acquired by Cheung Kong (Holdings) Limited (CKHL). MEG Energy Corp is based in Calgary, Canada.

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