MEG Energy announces third quarter 2024 financial and operating results
CALGARY, AB, Nov. 5, 2024 /CNW/ - MEG Energy Corp. (TSX:MEG) ("MEG" or the "Corporation") reported its third quarter 2024 operational and financial results.1
"Following another strong financial and operational quarter, we have delivered on our long-standing commitment to reduce net debt. Moving forward, 100% of free cash flow will be returned to shareholders through expanded share buybacks and a quarterly base dividend," said Ms. Darlene Gates, President & CEO. "We continue to focus on capital returns to shareholders and disciplined capital investment. Our focus on delivering safe, reliable, and predictable performance continues to create value for MEG and our shareholders."
Third quarter highlights:
Generated funds flow from operating activities ("FFO") of $362 million ($1.34 per share), while investing capital expenditures of $141 million, resulting in free cash flow of $221 million ($0.82 per share);
Successfully completed the Corporation's debt reduction and balance sheet strengthening strategy, positioning the Corporation to deliver enhanced return of capital to shareholders;
Reduced net debt to US$478 million (approximately $646 million) as at September 30, 2024;
Outstanding debt is comprised solely of 5.875% senior unsecured notes due 2029;
Repurchased and cancelled 4.1 million shares for $108 million in the third quarter. Year-to-date repurchases total 11.1 million shares for $303 million;
Paid the inaugural quarterly base dividend of $0.10 per share on October 15, 2024;
Commenced return of 100% of free cash flow to shareholders in October 2024 through expanded share buybacks and a quarterly base dividend;
Delivered average bitumen production of 103,298 bbls/d (2.36 steam-oil ratio) despite significant wildfires on the Christina Lake Regional Project lease;
Initiated steaming of second new well pad in late September with production scheduled to begin in December;
Maintained top-tier operating performance with non-energy operating costs of $5.18 per barrel and energy operating costs net of power revenue of $0.64 per barrel;
On November 5, 2024, the Corporation's Board of Directors declared a quarterly base dividend of $0.10 per share for payment on January 15, 2025, to shareholders of record on December 16, 2024; and
The Corporation's 2024 operating and capital guidance remains unchanged.
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1
All financial figures are in Canadian dollars ($ or C$) and all references to barrels are per barrel of bitumen unless otherwise noted. The Corporation's Non-GAAP and Other Financial Measures are detailed in the Advisory section of this news release. They include: cash operating netback, bitumen realization net of transportation and storage expense, operating expenses net of power revenue, energy operating costs net of power revenue, non-energy operating costs, energy operating costs, adjusted funds flow, free cash flow and net debt.
Nine months ended Sept 30
2024
2023
2022
($millions, except as indicated)
2024
2023
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Operational results:
Bitumen production - bbls/d
102,641
98,835
103,298
100,531
104,088
109,112
103,726
85,974
106,840
110,805
Steam-oil ratio
2.39
2.26
2.36
2.44
2.37
2.28
2.28
2.25
2.25
2.22
Bitumen sales - bbls/d
101,324
97,194
105,255
93,140
105,534
112,634
101,625
83,531
106,480
113,582
Benchmark pricing:
WTI - US$/bbl
77.54
77.39
75.09
80.57
76.96
78.32
82.26
73.78
76.13
82.65
Differential - WTI:WCS - Edmonton
US$/bbl
(15.49)
(17.65)
(13.55)
(13.61)
(19.31)
(21.89)
(12.91)
(15.16)
(24.88)
(25.89)
AWB - Edmonton - US$/bbl
60.86
57.60
60.62
65.99
55.96
54.53
67.88
56.41
48.50
53.51
Financial results:
Bitumen realization after net
transportation & storage expense(1)
$/bbl
66.22
62.04
65.61
73.84
60.10
63.52
84.75
57.64
43.40
54.75
Non-energy operating costs(2) - $/bbl
5.32
5.16
5.18
5.63
5.18
4.64
5.15
5.66
4.77
4.34
Energy operating costs net of power
revenue(1) - $/bbl
0.94
0.75
0.64
0.99
1.19
1.46
(0.04)
0.97
1.36
1.49
Operating expenses net of power
revenue(1) - $/bbl
6.26
5.91
5.82
6.62
6.37
6.10
5.11
6.63
6.13
5.83
Cash operating netback(1) - $/bbl
42.65
45.19
41.35
47.14
39.99
38.65
58.64
42.38
34.32
43.89
General & administrative expense -
$/bbl of bitumen production volumes
1.99
1.84
1.80
1.98
2.18
1.89
1.73
1.85
1.94
1.62
Royalties
459
270
169
162
128
186
181
58
31
54
Funds flow from operating activities
1,045
1,118
362
354
329
358
492
278
348
383
Per share, diluted
3.83
3.85
1.34
1.30
1.19
1.27
1.71
0.96
1.19
1.28
Adjusted funds flow(3)
1,045
1,044
362
354
329
358
492
278
274
401
Per share, diluted(3)
3.83
3.60
1.34
1.30
1.19
1.27
1.71
0.96
0.94
1.34
Capital expenditures
376
345
141
123
112
104
83
149
113
106
Free cash flow(3)
669
699
221
231
217
254
409
129
161
295
Debt repayments - US$
258
194
100
53
105
128
68
40
86
150
Share repurchases - C$
303
227
108
68
127
219
58
66
103
196
Revenues
4,002
4,209
1,265
1,373
1,364
1,444
