MEG Energy Reports Record Q3 Production Amid Strong Financial Results
Calgary-based MEG Energy Corp. announced a record third-quarter production of 108,166 barrels per day on November 10, 2025, a significant achievement driven by efficient post-maintenance operations and the ramp-up of new facilities. The company demonstrated strong financial performance with Adjusted Funds Flow reaching $368 million and Free Cash Flow at $239 million, underscoring robust capital management. Shareholder returns were also highlighted by a 10 percent quarterly dividend increase.
Operational excellence was further evidenced by an improved steam-oil ratio of 2.27, a result of optimized resource utilization. Looking ahead, MEG's ongoing Facility Expansion Project is slated to add steam capacity by 2026, which CEO Darlene Gates expressed confidence would ensure sustained operational excellence and reinforce the company's stature as a leading oil sands producer.
This strong performance comes amidst a pivotal moment for the Calgary energy firm, as share repurchases were halted following a significant acquisition offer from fellow Calgary-headquartered Cenovus Energy. The offer, which valued MEG at $30 per share, was approved by MEG shareholders on November 6, 2025, for approximately C$8.6 billion including assumed debt, signifying a notable consolidation within Calgary's oil sands sector. This strategic alignment aims to integrate adjacent assets like Christina Lake, seeking operational efficiencies and expanded production, reflecting a broader trend of strategic growth and consolidation shaping the local energy landscape.
MEG's solid operational and financial trajectories, coupled with this significant acquisition, underscore Calgary's continued dynamism in the Canadian energy sector.
