Our Business Model Resilience

We are a Canadian energy company focused on the development of ethical and environmentally responsible energy in the southern Athabasca region of Alberta, Canada. We transport and sell our in situ thermal oil production to refineries throughout North America and internationally.

Our purpose is to supply the world with environmentally and socially responsible energy, while generating long term value for all our stakeholders.

Business model resiliency is a foundational commitment at MEG. It means generating attractive returns and integrating ESG matters into our business strategies to ensure value creation today and tomorrow. Business model resiliency is underpinned by our large, 100% owned, high-quality, low decline, low geologic risk, and long reserve life (62 years) resource base, which is the foundation of our current production and future growth plans.

This asset, combined with best in class operating capabilities, drives low full-cycle breakeven and a strong competitive position globally. Our marketing strategy provides long-term access to high value markets around the world. The geographic density of our assets permits us to economically develop the resource while minimizing environmental impacts. The longevity of an in situ project allows for strong partnerships with nearby local and Indigenous communities for decades to come.

We are Sustainable.

The integration of ESG matters, along with traditional financial considerations, is critical to our business success and will help us navigate through a time of profound change. Sustainability is not a trade-off; it makes us more innovative, more flexible and more resilient. We recognize the energy transition is underway and are committed to doing our part by continuing to be a leader in economically reducing GHG intensity and decarbonizing through CCS and other technologies.

We support the Paris Agreement by setting a target of reaching net zero GHG emissions (scope 1 and scope 2) by 2050. We have also set a mid-term target of a 30% reduction in bitumen GHG intensity (scope 1 and scope 2) from 2013 levels by 2030 to measure our journey to net zero and ensure it stays on track.

In June 2021, MEG, along with four oil sands operators that collectively represent 90% of Canada’s oil sands production, formed the Oil Sands Pathways to Net Zero Alliance to work collectively with the federal and Alberta governments to achieve net zero GHG emissions from oil sands operations by 2050. This collective action to create strategies and economically invest in infrastructures and technologies demonstrates the Canadian oil sands’ commitment to reduce GHG emissions to net zero and drive solutions for environmentally responsible energy production.

We are Innovative.

Innovation has been critical in our development strategy and success since our inception and will continue to be key to our progress. With our proven, proprietary, innovative technologies, we are dramatically reducing our energy and water use requirements, costs and GHG emissions. We continue to be innovative by driving changes to improve capital efficiencies and reduce all cost structures, actively assessing carbon capture and storage opportunities, implementing digital technologies such as automation and artificial intelligence, and piloting emerging hydrocarbon viscosity reduction technologies. MEG’s innovative technologies that drive down steam to oil ratios (SOR) and decrease GHG emissions intensity are highlighted on the Our Progress - Past, Present and Future roadmap. This continuous commitment to and deployment of innovative technologies will continue well into the future as we evaluate opportunities and implement solutions on our path to net zero.

We are Responsible.

Sound corporate governance is one of our foundational commitments and key to building stakeholder trust. We are committed to delivering value to all our stakeholders, including shareholders, employees, customers, suppliers, and Indigenous Partners, by prioritizing transparency, accountability, ethical conduct, and respect in rhe workplace. We maintain strong risk management, adhere to strict regulatory requirements, and hold ourselves accountable through open and transparent stakeholder engagement and reporting, continuously assessing the impacts and benefits of our business, and linking performance to compensation. It is critical for us to create and maintain relationships with local communities and Indigenous people, founded on respect and trust throughout the lifecycle of our projects in order for Indigenous peoples and MEG to find mutual benefit. We believe that through these actions, we can meaningfully advance reconciliation.