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### MEG Energy Corp. Reports Strong Financial and Operational Performance in 2023

#### Introduction
MEG Energy Corp. (TSX:MEG) released its full year 2023 operational and financial results in February 2024. 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.

#### AI legalese decoder‘s Role
The AI legalese decoder can help in analyzing and interpreting the financial and operational data provided by MEG Energy Corp. By utilizing advanced machine learning algorithms, the AI legalese decoder can assist in identifying key trends, analyzing performance metrics, and providing valuable insights into the company’s financial health and strategic direction.

#### Financial and Operational Highlights
MEG Energy’s President and Chief Executive Officer, Derek Evans, expressed pride in the corporation’s safety, operating, and financial achievements in 2023. Annual production increased by 6%, reaching over 100,000 barrels per day for the first time, with a year-end average of approximately 110,000 barrels per day. Financially, MEG performed strongly, generating almost $1 billion of free cash flow for debt repayment and share buybacks. The corporation aims to achieve US$600 million net debt in the third quarter of 2024, enabling 100% of free cash flow to be returned to shareholders.

#### Financial Results
– Annual free cash flow totaled $953 million, used for debt repayment and returning capital to shareholders.
– The Corporation exited 2023 with net debt of US$730 million ($1.0 billion).
– Annual bitumen production increased to 101,425 barrels per day at a 2.27 steam-oil ratio.
– Funds flow from operating activities and adjusted funds flow stood at $1,476 million and $1,402 million, respectively.
– Annual capital expenditures amounted to $449 million.

#### Fourth Quarter Results
– Free cash flow of $254 million was used for debt repayment and share repurchases.
– Average bitumen production in the fourth quarter remained steady at 109,112 barrels per day.
– Adjusted funds flow decreased to $358 million, or $1.27 per share.

#### Annual Operating Results
– Annual bitumen production saw a 6% increase to 101,425 barrels per day at a 2.27 steam-oil ratio.
– Non-energy operating costs rose to $5.01 per barrel of bitumen sales.
– Energy operating costs net of power revenue decreased to $0.95 per barrel.

#### Debt Repayment and Share Repurchases
– The Corporation utilized $953 million of free cash flow for debt repayment, capital return, and working capital needs.
– Debt repayment included US$322 million ($437 million) of outstanding senior unsecured notes.
– Shareholders received $446 million through the repurchase and cancellation of 19.0 million shares.

#### Capital Allocation Strategy
Approximately 50% of free cash flow was allocated to debt repayment in 2023, with the remaining portion utilized for share repurchases.
100% of free cash flow will be returned to shareholders upon reaching the US$600 million net debt target.
The Corporation intends to renew the NCIB for a one-year period and repurchase an additional 10% of MEG’s public float.

#### Sustainability and Pathways Update
MEG Energy Corp. published its third ESG report in September 2023, emphasizing its commitment to sustainability and environmental stewardship.

In conclusion, MEG Energy Corp. demonstrated strong financial performance and operational growth in 2023, positioning the corporation for continued success in the future. With the assistance of the AI legalese decoder, investors can gain valuable insights into MEG’s financial metrics and strategic decisions, enabling informed investment choices.

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