"Our strong third quarter results are a testament to MEG's journey as a top-tier oil sands producer, built on the dedication, expertise, and innovation of our people," said Darlene Gates, President and Chief Executive Officer. "I am deeply proud of what we have accomplished together. I want to thank our employees, partners, and the communities who have supported us throughout our journey. As we look ahead, I am confident that MEG's legacy of operational excellence and value creation will continue to thrive."
Key Highlights:
Record Q3 production: 108,166 bbls/d at a 2.27 steam-oil ratio ("SOR"), driven by strong facility performance post-turnaround and efficient ramp-up of the newest well pad.
Facility Expansion Project ("FEP") on track: Completion planned in 2027, with additional steam capacity in service in 2026. The once through steam generator has been delivered to site and module fabrication commenced during the quarter.
Strong adjusted funds flow ("AFF"): AFF of $368 million ($1.44 per share); Free Cash Flow ("FCF") of $239 million ($0.93 per share).
Disciplined capital investment: $129 million in capital expenditures, focused on FEP and advancing pad development into areas of improved resource quality.
Shareholder capital returns: On July 31, 2025, the Board approved a 10% increase in the quarterly dividend to $0.11 per share, paid on October 15, 2025, demonstrating MEG's commitment to consistent, long-term dividend growth.
Stable guidance: 2025 operating and capital guidance remains unchanged.
____________
1
All financial figures are in Canadian dollars ($ or C$) and all references to barrels are per barrel of bitumen unless otherwise noted. The Corporation's Non-GAAP and Other Financial Measures are detailed in the Advisory section of this news release. They include: cash operating netback, bitumen realization net of transportation and storage expense, operating expenses net of power revenue, energy operating costs net of power revenue, non-energy operating costs, energy operating costs, adjusted funds flow and free cash flow.
The following table summarizes selected operational and financial information of the Corporation for the periods noted. All dollar amounts are stated in Canadian dollars ($ or C$) unless otherwise noted and all per barrel financial results are based on bitumen sales volumes:
Nine months ended Sept 30
2025
2024
($millions, except as indicated)
2025
2024
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Operational results:
Bitumen production - bbls/d
91,649
102,641
108,166
63,502
103,224
100,139
103,298
100,531
104,088
Per share, diluted
0.10
0.10
0.04
0.02
0.04
0.03
0.04
0.03
0.03
Steam-oil ratio
2.30
2.39
2.27
2.38
2.28
2.40
2.36
2.44
2.37
Bitumen sales - bbls/d
89,769
101,324
96,484
70,760
102,126
100,821
105,255
93,140
105,534
Business environment:
WTI - US$/bbl
66.70
77.54
64.93
63.74
71.42
70.27
75.09
80.57
76.96
Differential - WTI:WCS - Edmonton - US$/bbl
(11.11)
(15.49)
(10.39)
(10.27)
(12.67)
(12.56)
(13.55)
(13.61)
(19.31)
AWB - Edmonton - US$/bbl
54.69
60.86
53.58
52.70
57.77
56.82
60.62
65.99
55.96
C$ equivalent of 1 US$, average
1.3986
1.3603
1.3771
1.3840
1.4350
1.3991
1.3636
1.3684
1.3488
Financial results:
Bitumen realization after net transportation
and storage expense(1) - $/bbl
58.79
66.22
60.12
46.72
65.98
62.62
65.61
73.84
60.10
Non-energy operating costs(2) - $/bbl
6.12
5.32
4.94
8.16
5.84
5.61
5.18
5.63
5.18
Energy operating costs net of power
revenue(1) - $/bbl
1.61
0.94
0.33
2.72
2.06
0.90
0.64
0.99
1.19
Operating expenses net of power
revenue(1) - $/bbl
7.73
6.26
5.27
10.88
7.90
6.51
5.82
6.62
6.37
Cash operating netback(1) - $/bbl
40.75
42.65
46.23
25.29
46.30
41.09
41.35
47.14
39.99
Royalties
252
459
76
68
108
132
169
162
128
Adjusted funds flow(3)
873
1,045
368
125
380
340
362
354
329
Per share, diluted
3.40
3.83
1.44
0.49
1.47
1.29
1.34
1.30
1.19
Capital expenditures
486
376
129
200
157
172
141
123
112
Free cash flow(3)
387
669
239
(75)
223
168
221
231
217
Per share, diluted
1.51
2.46
0.93
(0.30)
0.86
0.64
0.82
0.85
0.78
Weighted average common shares outstanding - diluted
256
273
256
255
258
263
269
272
276
Debt repayments - US$
—
258
—
—
—
—
100
53
105
Share repurchases - C$
168
303
—
9
159
151
108
68
127
Dividends paid - C$
78
—
26
26
26
27
—
—
—
Revenues
3,100
4,002
1,181
757
1,162
1,147
1,265
1,373
1,364
Net earnings
437
401
