MEG Energy Corp

Latest Results (20.02.2026):

MEG Energy Corp third quarter 2025 results (Q3 2025) delivered a record quarterly production of 108,166 bbls/d and continued strong cash generation: adjusted funds flow (AFF) of $368 million ($1.44/share) and free cash flow (FCF) of $239 million ($0.93/share). Net earnings were $159 million for Q3 2025. The Facility Expansion Project (FEP) remains on track for completion in 2027, the Board increased the quarterly dividend by 10% to $0.11/share, and 2025 guidance was left unchanged. Share repurchases were paused during the strategic transaction process with Cenovus.

Production

Record Q3 2025 bitumen production averaged 108,166 bbls/d (SOR 2.27), up from 103,298 bbls/d in Q3 2024, driven by strong post-turnaround facility performance and efficient ramp-up of a new well pad.

Adjusted Funds Flow & Free Cash Flow

Q3 2025 AFF was $368 million ($1.44/diluted share) versus $362 million in Q3 2024; Q3 FCF rose to $239 million ($0.93/share) from $221 million, reflecting stronger cash operating netback and lower quarterly capex.

Net Earnings

Q3 2025 net earnings were $159 million (compared to $167 million in Q3 2024), primarily reduced by an unrealized foreign exchange loss and transaction-related costs tied to the Strathcona/Cenovus situation, partially offset by lower depletion and depreciation.

Capital Spending & FEP

Q3 capex was $129 million (YTD $486 million) focused on FEP and pad development. FEP remains on schedule: additional steam capacity in service in 2026, full processing capacity and project completion targeted in 2027; OTSG delivered and module fabrication started.

Dividends & Share Repurchases

The Board approved a 10% increase in the quarterly dividend to $0.11/share (paid Oct 15, 2025). NCIB repurchases were suspended in May 2025 during the takeover activity; earlier in H1 2025 MEG repurchased 7.1 million shares for $168 million.

Operating Costs & Efficiency

Q3 non-energy operating costs were $44 million ($4.94/bbl) versus $49 million ($5.18/bbl) in Q3 2024. Year-to-date non-energy costs rose on a per-barrel basis to $6.12/bbl due to the turnaround and wildfire impacts. SOR improved to 2.27 in Q3 from 2.36 year-over-year.

Bitumen Realization & Pricing

Q3 bitumen realization after net transportation and storage was $60.12/bbl (down from $65.61/bbl in Q3 2024), driven mainly by a lower WTI benchmark and higher transport/storage effects; diluent expense fell to $4.77/bbl in Q3 2025, improving net realization.

Guidance

2025 guidance remains unchanged: total capex $635 million (includes multi‑year FEP), 2025 average bitumen production 95,000–105,000 bbls/d, and non-energy operating costs $5.30–$5.80/bbl.

Cenovus Arrangement

MEG’s shareholders approved the arrangement with Cenovus on November 6, 2025; the amended offer reached $30.00 per MEG share (and was valued at ~$30.37/share based on Cenovus close on Nov 7, 2025). Closing remains subject to court approval (hearing scheduled Nov 12, 2025).