CALGARY, AB,
March 7, 2022
/CNW/ - MEG Energy Corp. (TSX: MEG) "MEG" or the
"Corporation") announces today that the Toronto Stock Exchange (the
"TSX") has approved the Corporation commencing a normal course
issuer bid (the "Bid").
Pursuant to the Bid, MEG will purchase for cancellation,
from time to time, as it considers advisable, up to a maximum of
27,242,211 common shares of the Corporation. The Bid will become
effective on March 10, 2022 and will
terminate on March 9, 2023 or such
earlier time as the Bid is completed or terminated at the option of
MEG.
MEG's intention to launch a share buyback program is
consistent with the Corporation's capital allocation strategy which
includes enhancing shareholder returns through share buybacks and
continued debt reduction. Further to MEG's press release dated
March 3, 2022, purchases under the
Bid are not expected to begin until the Corporation reaches its net
debt target of US$1.7 billion. MEG
believes there are times when the market price of its common shares
may not fully reflect the underlying value of its business and
future prospects. Depending on the trading price of its common
shares and other relevant factors, the Corporation believes
purchasing common shares represents an attractive investment
opportunity and is in the best interest of MEG and its
shareholders.
The maximum number of common shares to be purchased
pursuant to the Bid represents 10% of the public float, as of
February 24, 2022. Purchases pursuant
to the Bid will be made on the open market through the facilities
of the TSX and/or alternative trading systems. The number of common
shares that can be purchased pursuant to the Bid is subject to a
daily maximum of 493,981 common shares (which is equal to 25% of
the average daily trading volume of 1,975,927 from September 1, 2021 to February 28, 2022) with the exception that one
block purchase in excess of the daily maximum is permitted per
calendar week. The price that MEG will pay for any common shares
under the Bid will be the prevailing market price on the TSX at the
time of such purchase. Common shares acquired under the Bid will be
cancelled.
MEG has entered into an automatic share purchase plan
("ASPP") with BMO Nesbitt Burns Inc. ("BMO") in order to facilitate
repurchases of its common shares. Under the Corporation's ASPP, BMO
may repurchase shares under the normal course issuer bid during the
Corporation's self-imposed blackout periods. Purchases will be made
by BMO based upon the parameters prescribed by the TSX and
applicable securities laws and the terms of the plan and the
parties' written agreement. Outside of these blackout periods,
common shares may be purchased under the NCIB in accordance with
management's discretion.
A copy of the Form 12 Notice of Intention to Make a Normal
Course Issuer Bid filed by the Corporation with the TSX can be
obtained from the Corporation upon request without
charge.
As of the close of business on February 24, 2022, the Corporation had
307,022,900 common shares issued and outstanding and a public float
of 272,422,117 common shares.
This news release does not constitute an offer to sell,
or a solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such an offer, solicitation, or sale would be
unlawful.
About MEG
MEG is an energy company focused on sustainable in situ
thermal oil production in the southern Athabasca oil region of Alberta, Canada. MEG is actively developing
innovative enhanced oil recovery projects that utilize
steam-assisted gravity drainage extraction methods to improve the
responsible economic recovery of oil as well as lower carbon
emissions. MEG transports and sells thermal oil (AWB) to customers
throughout North America and
internationally. MEG's common shares are listed on the Toronto
Stock Exchange under the symbol "MEG" (TSX: MEG).
Learn more at www.megenergy.com
ADVISORY
Basis of Presentation
MEG prepares its financial statements in accordance with
International Financial Reporting Standards ("IFRS") and presents
financial results in Canadian dollars ($ or C$), which is the
Corporation's functional currency.
Non-GAAP and Other Financial Measures
Certain financial measures in this news release are
non-GAAP financial measures or ratios, supplementary financial
measures and capital management measures. These measures are not
defined by IFRS and, therefore, may not be comparable to similar
measures provided by other companies. These non-GAAP and other
financial measures should not be considered in isolation or as an
alternative for measures of performance prepared in accordance with
IFRS.
Net Debt
Net debt is a capital management measure and is defined in
the Corporation's annual financial statements. Net debt is an
important measure used by management to analyze leverage and
liquidity. Net debt is calculated as long-term debt plus current
portion of long-term debt less cash and cash
equivalents.
The following table reconciles the Corporation's current
and long-term debt to net debt:
|
|
|
As at December
31
|
2021
|
2020
|
Long-term
debt
|
$
|
2,477
|
$
|
2,912
|
Current portion of
long-term debt
|
285
|
—
|
Cash and cash
equivalents
|
(361)
|
(114)
|
Net debt -
C$
|
$
|
2,401
|
$
|
2,798
|
Net debt -
US$
|
$
|
1,897
|
$
|
2,194
|
Forward-Looking Information
Certain statements contained in this news release may
constitute forward-looking statements within the meaning of
applicable Canadian securities laws. These statements relate to
future events or MEG's future performance. All statements other
than statements of historical fact may be forward-looking
statements. The use of any of the words "anticipate", "continue",
"estimate", "expect" or "expected", "may", "will", "will have",
"project", "should", "believe", "dependent", "ability", "leaving",
"plan", "intend", "target", "potential" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are often, but not always, identified by such words.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. In particular, and without limiting the foregoing, this
news release contains forward-looking statements with respect to
MEG's intentions with respect to the Bid, the timing for beginning
purchases of common shares under the Bid, the effects of
repurchases of common shares thereunder, including any enhancement
to shareholder value. Such forward-looking information is based on
certain assumptions and analysis made by MEG in light of its
experience and perception of current conditions and expected future
developments as well as other factors it believes are appropriate
in the circumstances. However, whether actual results, performance
or achievements will conform to MEG's expectations and predictions
is subject to a number of known and unknown risks and uncertainties
which could cause actual results to differ materially from MEG's
expectations. Further information regarding the assumptions and
risks inherent in the making of forward-looking statements can be
found in MEG's most recently filed Annual Information Form ("AIF"),
along with MEG's other public disclosure documents. Copies of the
AIF and MEG's other public disclosure documents are available
through the Company's website at www.megenergy.com/investors and
through the SEDAR website at www.sedar.com. The forward-looking
information included in this news release is expressly qualified in
its entirety by the foregoing cautionary statements. Unless
otherwise stated, the forward-looking information included in this
news release is made as of the date of this news release and MEG
assumes no obligation to update or revise any forward-looking
information to reflect new events or circumstances, except as
required by law.
For further information, please contact:
Investor
Relations
T403.767.0515
E invest@megenergy.com
Media Relations
T 403.775.1131
E media@megenergy.com
SOURCE MEG Energy Corp.