All financial figures are in Canadian dollars ($ or C$) and all references to barrels are per barrel of bitumen sales unless otherwise noted
The table below presents management's preliminary estimates, based on the information and data currently available to management, of expected ranges of certain financial and operating data for the three months and year ended
Range of Expected Estimates | Actual Results | ||||||
Year ended | Three months ended | Three months ended | |||||
2020 | 2020 | 2020 | 2020 | 2020 | |||
Low | High | Low | High | ||||
Production (bbls/d) | 82,250 | 82,500 | 90,500 | 91,750 | 71,516 | 75,687 | 91,557 |
Non-Energy Operating Costs (C$/bbl) | |||||||
General and Administrative Expenses(1) (C$/bbl) | |||||||
Capital Expenditures (C$mm) | |||||||
Cash and Cash Equivalents (C$mm) |
(1) | $ per barrel based on production volumes |
Update to MEG 2021 Commodity Price Risk Management Positions
During the fourth quarter of 2020 and the first few days of 2021, MEG entered into additional financial derivatives and physical delivery contracts to manage commodity price risk. MEG's current commodity price risk management contracts, including those entered into in the fourth quarter of 2020 and the first few days of 2021, are summarized below:
Forecast Period | ||||||||
Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | 2021 | ||||
WTI Hedges | ||||||||
WTI Fixed Price Hedges | ||||||||
Volume (bbls/d) | 37,361 | 13,000 | - | - | 12,590 | |||
Weighted average fixed WTI price (US$/bbl) | - | - | ||||||
Enhanced WTI Fixed Price Hedges with Sold Put Options(1) | ||||||||
Volume (bbls/d) | 29,000 | 29,000 | 29,000 | 29,000 | 29,000 | |||
Weighted average fixed WTI price (US$/bbl) / | ||||||||
Put option strike price (US$/bbl) | ||||||||
WTI:WCS Differential Hedges | ||||||||
Volume(2) (bbls/d) | 10,667 | 20,000 | - | - | 7,667 | |||
Weighted average fixed WTI:WCS differential (US$/bbl) | ( | ( | - | - | ||||
Condensate Hedges | ||||||||
Volume(3) (bbls/d) | 15,495 | 18,211 | 14,028 | 14,028 | 15,440 | |||
Weighted average % of WTI landed in | 96% | 96% | 96% | 95% | 96% | |||
Natural Gas Hedges | ||||||||
Volume(5) (GJ/d) | 57,700 | 42,500 | 42,500 | 42,500 | 46,250 | |||
Weighted average fixed AECO price (C$/GJ) | ||||||||
Power Hedges | ||||||||
Quantity(6) (MW) | 10 | 15 | 15 | 15 | 14 | |||
Weighted average fixed price (C$/MW-h) |
(1) | If in any month of 2021 the month average WTI settlement price is |
(2) | Includes 10,000 bbls/d (Q1) and 15,000 bbls/d (Q2) of physical forward blend sales at fixed WTI:AWB differentials. |
(3) | Includes approximately 4,500 bbls/d of physical forward condensate purchases for the full year 2021 (annual average). |
(4) | The average % of WTI landed in |
(5) | Includes 7,500 GJ/d of physical forward natural gas purchases for full year 2021 (annual average) at a fixed AECO price. |
(6) | Represents physical forward power sales at a fixed power price. |
About MEG
MEG is an energy company focused on sustainable in situ thermal oil production in the southern
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", "may", "will", "project", "should", "believe", "dependent", "ability" "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 the expected ranges of certain financial and operating data for the three months and year ended
For further information, please contact:
Investor Relations
T 587.293.6045
E invest@megenergy.com
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SOURCE
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