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. CALGARY, AB, May 6, 2024 /CNW/ - MEG Energy Corp. (TSX:MEG) ("MEG" or the "Corporation") reported its first quarter 2024 operational and financial results. "MEG's strong safety, operating, and financial performance in the first quarter of 2024 demonstrate the team's focus on operations excellence," said Darlene Gates, Chief Executive Officer. "Bitumen production averaged approximately 104,000 barrels per day during the quarter, and $217 million of free cash flow supported the repurchase of 4.7 million shares and $142 million of debt redemption. We expect that additional Canadian pipeline capacity from the imminent start up of TMX will narrow heavy oil differentials, reduce differential volatility and improve netbacks on all of MEG's production." First quarter 2024 highlights include: Funds flow from operating activities ("FFO") and adjusted funds flow ("AFF") of $329 million, or $1.19 per share; Free cash flow ("FCF") of $217 million, after funding $112 million of capital expenditures; Redemption of US$105 million (approximately $142 million) of senior notes; Shareholder capital returns totaling $127 million through the repurchase and cancellation of 4.7 million shares at a weighted average price of $26.94 per share; Net debt of US$687 million (approximately $930 million) as at March 31, 2024; Average bitumen production of 104,088 barrels per day ("bbls/d") at a 2.37 steam-oil ratio ("SOR"); Bitumen realization after transportation and storage expense of $60.10 per barrel, with the WTI:WCS differential averaging US$19.31 per barrel; Operating expenses net of power revenue of $6.37 per barrel. Power revenue offset 68% of energy operating costs, resulting in energy operating costs net of power revenue of $1.19 per barrel and non-energy operating costs of $5.18 per barrel; and The Corporation's 2024 operating and capital guidance remains unchanged. 2024 2023 2022 ($millions, except as indicated) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Operational results: Bitumen production - bbls/d 104,088 109,112 103,726 85,974 106,840 110,805 101,983 67,256 Steam-oil ratio 2.37 2.28 2.28 2.25 2.25 2.22 2.39 2.46 Bitumen sales - bbls/d 105,534 112,634 101,625 83,531 106,480 113,582 95,759 73,091 Benchmark pricing: WTI - US$/bbl 76.96 78.32 82.26 73.78 76.13 82.65 91.55 108.41 Differential - WTI:AWB - Edmonton - US$/bbl (21.00) (23.79) (14.38) (17.37) (27.63) (29.14) (22.80) (14.25) AWB - Edmonton - US$/bbl 55.96 54.53 67.88 56.41 48.50 53.51 68.75 94.16 Differential - WTI:AWB - USGC - US$/bbl (8.16) (7.43) (4.94) (7.62) (14.87) (16.35) (10.15) (6.15) AWB - USGC - US$/bbl 68.80 70.89 77.32 66.16 61.26 66.30 81.40 102.26 Financial results: Bitumen realization after net transportation and     storage expense(1) - $/bbl 60.10 63.52 84.75 57.64 43.40 54.75 74.75 103.29 Non-energy operating costs(2) - $/bbl 5.18 4.64 5.15 5.66 4.77 4.34 4.49 5.65 Energy operating costs net of power revenue(1) - $/bbl   1.19 1.46 (0.04) 0.97 1.36 1.49 0.96 7.32 Operating expenses net of power revenue(1) - $/bbl 6.37 6.10 5.11 6.63 6.13 5.83 5.45 12.97 Cash operating netback(1) - $/bbl 39.99 38.65 58.64 42.38 34.32 43.89 62.63 81.75 General & administrative expense -      $/bbl of bitumen production volumes 2.18 1.89 1.73 1.85 1.94 1.62 1.72 2.37 Funds flow from operating activities 329 358 492 278 348 383 501 412      Per share, diluted 1.19 1.27 1.71 0.96 1.19 1.28 1.63 1.31 Adjusted funds flow(3) 329 358 492 278 274 401 496 478 Per share, diluted(3) 1.19 1.27 1.71 0.96 0.94 1.34 1.61 1.52 Capital expenditures 112 104 83 149 113 106 78 104 Free cash flow(3) 217 254 409 129 161 295 418 374 Debt repayments - US$ 105 128 68 40 86 150 262 379 Share repurchases - C$ 127 219 58 66 103 196 92 94 Revenues 1,364 1,444 1,438 1,291 1,480 1,445 1,571 1,571 Net earnings (loss) 98 103 249 136 81 159 156 225