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PRESS RELEASE MEG Energy announces full year 2020 free cash flow of $ 129 million , debt repayment of $ 132 million and 28 % year - over - year reduction in G & A expense All financial figures are in Canadian dollars ( $ or C $ ) and all references to barrels are per barrel of bitumen unless otherwise noted - CALGARY , ALBERTA ( March 3 , 2021 ) – MEG Energy Corp. ( TSX : MEG , " MEG " or the " Corporation " ) reported its full year 2020 operational and financial results . Highlights include : • Free cash flow of $ 129 million driven by adjusted funds flow of $ 278 million ( $ 0.91 per share ) and disciplined capital spend of $ 149 million ; • Bitumen production volumes of 82,441 barrels per day ( bbls / d ) at a steam - oil ratio ( SOR ) of 2.3 ; • • Repayment of $ 132 million of long - term debt concurrent with the refinancing of US $ 1.2 billion of existing indebtedness ; General and administrative expense of $ 49 million which was $ 19 million , or 28 % , lower than 2019 ; Net operating costs of $ 6.18 per barrel , supported by record low non - energy operating costs of $ 4.38 per barrel and strong power sales which offset 45 % of per barrel energy operating costs resulting in a net energy operating cost of $ 1.80 per barrel ; and • Exited 2020 with $ 114 million of cash on hand and MEG's $ 800 million modified covenant - lite revolver remains undrawn . " Notwithstanding the incredibly challenging environment our industry faced in 2020 , MEG continued to execute on its strategic focus of improving overall cost efficiencies , preserving financial liquidity and enhancing MEG's competitive position , " says Derek Evans , President and Chief Executive Officer . " In keeping with this strategy , we significantly reduced G & A , repaid indebtedness , extended the maturity runway of outstanding long - term debt and began moving the majority of our barrels to the USGC for the first time . None of this would have been achieved without the commitment , perseverance , and resilience of the MEG team which has my thanks and those of the Board for all their collective and individual efforts during the year . " Financial Liquidity and Debt Repayment In the last three years , the Corporation has repaid approximately $ 2 billion ( US $ 1.5 billion ) of long - term debt including $ 132 million ( US $ 100 million ) in 2020 . In January 2020 , the Corporation successfully closed a private offering of US $ 1.2 billion in aggregate principal amount of 7.125 % senior unsecured notes due February 2027. The net proceeds of the offering plus cash on hand were used to fully redeem US $ 800 million of the 6.375 % senior unsecured notes due January 2023 and partially redeem US $ 400 million of the US $ 1.0 billion 7.0 % senior unsecured notes due March 2024. Post this refinancing , MEG had a 4 - year runway until its next debt maturity represented by the remaining US $ 600 million of March 2024 notes . MEG ENERGY 21st Floor , 600 - 3rd Avenue S.W. , Calgary , AB T2P OG5 T 403.770.0446 F 403.264.1711 megenergy.com