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, July 25, 2024 /CNW/ - MEG Energy Corp. (TSX:MEG) ("MEG" or the "Corporation") reported its second quarter 2024 operational and financial results. The Board of Directors also declared a quarterly cash dividend of $0.10 per share payable on October 15, 2024 to shareholders of record at the close of business on September 17, 2024. All dividends paid by MEG are designated as eligible dividends for Canadian federal income tax purposes. "We are proud to declare MEG's inaugural dividend," said Darlene Gates, President and CEO of MEG Energy. "This achievement not only reflects our robust financial health but also highlights MEG's maturation as a senior Canadian oil producer. Our US$600 million net debt target will be achieved in the third quarter of 2024 and capital returns to shareholders will rise to 100% of free cash flow through continued share buybacks and a quarterly base dividend." "We continued to see strong production volumes in the first half of the year and expect volume growth through the remainder of the year as new wells come online. The start-up of the Trans Mountain Expansion ("TMX") Pipeline during the quarter is an industry milestone which we expect will reduce long-standing transportation bottlenecks, leading to narrower and less volatile Canadian light:heavy oil differentials and improved netbacks and profitability." Second quarter 2024 highlights include: On July 25, 2024 the Corporation's Board of Directors declared an inaugural quarterly cash dividend of $0.10 per share, payable on October 15, 2024 to shareholders of record on September 17, 2024; The TMX Pipeline had a successful start-up in May 2024 and MEG began shipping AWB to Canada's West Coast under its 20,000 barrels per day ("bbls/d") contracted capacity arrangement which has led to narrower light:heavy oil differentials, improved netbacks and lower anticipated future differential volatility; Funds flow from operating activities ("FFO") and adjusted funds flow ("AFF") of $354 million, or $1.30 per share. Year-to-date FFO and AFF totaled $683 million, or $2.49 per share; Free cash flow ("FCF") of $231 million, after funding $123 million of capital expenditures. Year-to-date FCF totaled $448 million after $235 million of capital expenditures; Debt repayment of US$53 million (approximately $73 million) during the second quarter of 2024 and $158 million (approximately $215 million) year-to-date; Net debt declined to US$634 million (approximately $868 million) as at June 30, 2024; Shareholder capital returns totaling $68 million through the repurchase and cancellation of 2.2 million shares at a weighted-average price of $30.39 per share. Year-to-date share repurchases totaled 7.0 million shares, at a weighted-average price of $28.05 per share, returning $195 million to shareholders; Average bitumen production of 100,531 bbls/d at a 2.44 steam-oil ratio ("SOR"). Year-to-date bitumen production averaged 102,309 bbls/d; Bitumen realization after net transportation and storage expense of $73.84 per barrel and $66.55 per barrel year-to-date; Operating expenses net of power revenue of $6.62 per barrel. Power revenue offset 54% of energy operating costs, resulting in energy operating costs net of power revenue of $0.99 per barrel and non-energy operating costs of $5.63 per barrel. Year-to-date operating expenses net of power revenue were $6.49 per barrel, including energy operating costs net of power revenue of $1.10 per barrel and non-energy operating costs of $5.39 per barrel; The Corporation's 2024 operating and capital guidance remains unchanged; and On July 2, 2024, MEG announced the appointment of Michael McAllister to its Board of Directors, effective July 1, 2024. Six months ended June 30 2024 2023 2022 ($millions, except as indicated) 2024 2023 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Operational results: Bitumen production - bbls/d 102,309 96,349 100,531 104,088 109,112 103,726 85,974 106,840 110,805 101,983 Steam-oil ratio 2.40 2.25 2.44 2.37 2.28 2.28 2.25 2.25 2.22 2.39 Bitumen sales - bbls/d 99,337 94,942 93,140 105,534 112,634 101,625 83,531 106,480 113,582 95,759 Benchmark pricing: WTI - US$/bbl 78.77 74.95 80.57 76.96 78.32 82.26 73.78 76.13 82.65 91.55 Differential - WTI:WCS - Edmonton      US$/bbl (16.46) (20.02) (13.61) (19.31) (21.89) (12.91) (15.16) (24.88) (25.89) (19.86) AWB - Edmonton - US$/bbl 60.98 52.45 65.99 55.96 54.53 67.88 56.41 48.50 53.51 68.75 Financial results: Bitumen realization after net      transportation & storage expense(1)          $/bbl 66.55 49.69 73.84 60.10 63.52 84.75 57.64 43.40 54.75 74.75 Non-energy operating costs(2) - $/bbl 5.39 5.17 5.63 5.18 4.64 5.15 5.66 4.77 4.34 4.49 Energy operating costs net of power      revenue(1) - $/bbl 1.10 1.18 0.99 1.19 1.46 (0.04) 0.97 1.36 1.49 0.96 Operating expenses net of power      revenue(1) - $/bbl 6.49 6.35 6.62 6.37 6.10 5.11 6.63 6.13 5.83 5.45 Cash operating netback(1) - $/bbl 43.34 37.89 47.14 39.99 38.65 58.64 42.38 34.32 43.89 62.63 General & administrative expense -      $/bbl of bitumen production volumes 2.08 1.90 1.98 2.18 1.89 1.73 1.85 1.94 1.62 1.72 Royalties 290 89 162 128 186 181 58 31 54 66 Funds flow from operating activities 683 626 354 329 358 492 278 348 383 501      Per share, diluted 2.49 2.15 1.30 1.19 1.27 1.71 0.96 1.19 1.28 1.63 Adjusted funds flow(3) 683 552 354 329 358 492 278 274 401 496 Per share, diluted(3) 2.49 1.90 1.30 1.19 1.27 1.71 0.96 0.94 1.34 1.61 Capital expenditures 235 262 123 112 104 83 149 113 106 78 Free cash flow(3) 448 290 231 217 254 409 129 161 295 418 Debt repayments - US$ 158 126 53 105 128 68 40 86 150 262 Share repurchases - C$ 195 169 68 127 219 58 66 103 196 92 Revenues 2,737 2,771 1,373 1,364 1,444 1,438 1,291 1,480 1,445 1,571 Net earnings (loss) 234 217 136 98 103 249 136 81 159 156 Per share, diluted 0.86 0.74 0.50 0.36 0.37 0.86 0.47 0.28 0.53 0.51