MEG Energy Corp. (TSX:MEG) reported strong fourth quarter and full-year 2017 operating and financial results.
Highlights are as follows:
- Record fourth quarter production volumes of 90,228 barrels per day (bpd) contributing to annual production of 80,774 bpd, within guidance for the year. Exit production volumes of 93,674 bpd, which are significantly above the company’s exit guidance, reflect the continued ramp-up of MEG’s eMSAGP growth initiative at Christina Lake Phase 2B;
- Fourth quarter non-energy operating costs of $4.53 per barrel contributing to record-low annual non-energy operating costs of $4.62 per barrel, which are well below the low end of the company’s guidance;
- Record-low annual net operating costs of $6.84 per barrel;
- Total cash capital investment for 2017 of $503 million, 15% lower than MEG’s original budget of $590 million and lower than the company’s $510 million revised capital guidance; and
- Year-end cash and cash equivalents of $464 million, which along with expected funds flow will enable MEG to fully fund its 2018 capital program of $510 million.
Bill McCaffrey, president and CEO, commented:
The transformation of MEG’s business over the last two years has been remarkable. Our eMSAGP technology is enabling us to increase our production and decrease our costs, all at a very attractive capital efficiency. Through the application of eMSAGP on our Phase 2B assets, we expect to increase our production by 25% to 100,000 bpd while continuing to drive our non-energy operating costs down.