MEG Energy (MEG) Investor Update summary

Strategic Overview and Growth Outlook

• Multi-year plan targets a 20% CAGR in production per share and 22% CAGR in free cash flow per share through 2030, with over 65% of current market cap expected to be returned to shareholders.

• Focus on sustainable shareholder returns through low-risk, low-cost oil sands operations and disciplined organic growth, supported by a resilient balance sheet and a 50-year reserve life at Christina Lake.

• Four-pillar strategy: high-quality resource, operational excellence, global market access, and capital returns.

• Capital allocation prioritizes sustaining operations, a growing base dividend, disciplined capacity investment, and 100% free cash flow return via share buybacks and dividends.

• Achieved net debt target, initiated first dividend, and shifted to full free cash flow return to shareholders.

Asset Quality and Operational Excellence

• Christina Lake asset offers 1.9 billion barrels of 2P reserves with a ~50-year reserve life, and recent well pads deliver 50% higher productivity and 20% lower steam-oil ratios than legacy pads.

• Facility expansion project will add 25,000 bbls/d capacity by 2027, with capital efficiency under $25,000 per flowing barrel and a 50% IRR at $70 WTI.

• Operational improvements include advanced well design, digital solutions, and cost-saving technologies, targeting 10% cost reductions and industry-leading operating costs.

• Turnaround intervals extended to four years, generating significant value and minimizing downtime.

• Maintenance and turnaround optimization expected to capture ~$175 million NPV over 10 years.

Market Access and Financial Resilience

• 80% of production accesses global markets via secured pipeline capacity, including TMX, mitigating regional price constraints and supporting margin stability.

• Storage assets in Canada and the Gulf Coast enable flexible export management and support production growth.

• Each $1/bbl improvement in differentials increases adjusted funds flow by $46 million.

• Debt reduced by $1.6 billion since 2022, with no maturities until 2029 and a fully undrawn $600 million credit facility.

• Over 80% of blend sales have tidewater access, improving market reach and price realization.