MEG Energy Corp

Latest Results (02.10.2025):

MEG Energy Corp has announced its second quarter of 2025 financial and operational results, showcasing significant achievements despite challenging conditions. The company successfully completed its largest planned turnaround, advanced its Facility Expansion Project, and increased its quarterly dividend by 10%, reflecting confidence in its strategic direction and commitment to shareholder returns.

Excellent Safety Performance

MEG Energy achieved zero serious incidents, recordable injuries, or reportable spills during its historic turnaround, even as the site population doubled. The total recordable incident rate was reduced to 0.25 year-to-date, with no serious process safety events.

Dividend Increase

The Board of Directors approved a 10% increase in the quarterly cash dividend to $0.11 per share, payable on October 15, 2025, to shareholders of record on September 12, 2025, demonstrating the company's strong commitment to delivering sustainable shareholder returns.

Phase 2B Turnaround Completed on Time and Budget

MEG successfully delivered its largest planned turnaround within the set timeframe and budget, positioning the company for extended four-year turnaround cycles and enhancing operational efficiency.

Facility Expansion Project on Track

The Facility Expansion Project remains on schedule for completion in 2027, with over 150 key tie-ins completed during the turnaround to minimize future production interruptions. The fifth once-through steam generator has been delivered, and all major equipment has been purchased.

Financial Performance

The company generated an adjusted funds flow of $125 million ($0.49 per share) in the second quarter of 2025. Despite lower WTI benchmark prices and reduced blend sales volumes, MEG maintained strong financial stability through strategic cost management and capital allocation.

Production and Operational Highlights

Bitumen production averaged 63,502 barrels per day with a steam-oil ratio of 2.38 during the second quarter, achieving pre-turnaround production rates within two weeks of restart despite a twelve-day delay. July production averaged approximately 109,000 barrels per day, with the newest pad of 16 well pairs on steam ahead of schedule and first oil expected in the third quarter of 2025.

Capital Expenditures on Plan

MEG delivered $200 million in planned capital expenditures, including investments in the turnaround, Facility Expansion Project, and advancing pad development to areas with improved resource quality, ensuring continued growth and operational excellence.

Shareholder Returns

The company returned $35 million to shareholders in the second quarter through the repurchase and cancellation of 0.4 million shares for $9 million and a quarterly cash dividend payment of $26 million ($0.10 per share) on April 15, 2025.

Guidance

MEG Energy's 2025 operating and capital guidance remains unchanged, reflecting confidence in the company's ongoing strategies and market position.