MEG Energy
{{Short description|Canadian oil sands production company}}
{{Infobox company
| name = MEG Energy Corp.
| logo =
| logo_size = 240px
| caption =
| type = Public
| traded_as = {{TSX|MEG}}
| predecessor =
| foundation = 1999 by William J McCaffery as McCaffery Energy Group Inc.
| founder =
| location_city = Calgary, Alberta, Canada
| key_people = Darlene Gates{{Cite web|url=https://www.megenergy.com/about-us/corporate-officers/ |title=Corporate Officers }} President and CEO
Ryan Kubik CFO
| industry = Oil and gas industry
| products = Petroleum
Electricity
| revenue = {{increase}}$5,149 million (2024){{cite web|url=https://www.megenergy.com/investors/news-releases/news-release-detail/?id=122752 | title=MEG Energy announces 2024 fourth quarter and full-year results }}
| net_income = C507million (2024{{increase}}>
| assets = C$7,866 million (2019){{decrease}}6%
| equity = $3,853 million (2019){{decrease}}.85%
| num_employees = 451 (2023)
| production = {{convert|102,600|oilbbl/d|lk=in}}{{cite web |url=https://www.megenergy.com/investors/presentations-events/ |title=Presentations & Events }}(2024)
| homepage = {{url|www.megenergy.com}}
}}
File:Meg-energy-2016-site-photography-541.jpg
MEG Energy is a pure play Canadian oil sands producer engaged in exploration in Northern Alberta. All of its oil reserves are more than {{convert|1000|ft}} below the surface, so they depend on steam-assisted gravity drainage and associated technology to produce (heavy bitumen must first be brought to the surface). The company's main thermal project is Christina Lake. 85-megawatt cogeneration plants are used to produce the steam used in SAGD which is required to bring bitumen to the surface. The excess heat and electricity produced at its plants is then sold to Alberta's power grid. Its proven reserves have been independently pegged at {{convert|1.7|Goilbbl}} and probable reserves (also called recoverable resource) {{convert|3.7|Goilbbl}} (by engineering firm GLJ Petroleum Consultants Ltd [http://www.gljpc.com/]); That's significant considering only {{convert|300|Goilbbl}} of the {{convert|1.6|Toilbbl}} of bitumen in Alberta is considered recoverable under current technology. The value of those reserves is over $19.8 billion.{{cite news|url=https://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/meg-energy-launches-massive-ipo/article1604238/|title=MEG Energy launches massive IPO|date=2010-06-14 | location=Toronto|work=The Globe and Mail|first=Andrew|last=Willis}} CNOOC has a minority 16.69% interest in MEG Energy.
Within nine months of going public it reached large cap company status after a small cap IPO. As recently as 2007 it was a junior oil company.{{cite web|url=http://www.plantsuccess.com/speakers.php?conf=1001|title=Plantsuccess 2008 Canada|year=2008|url-status=dead|archive-url=https://web.archive.org/web/20081026194236/http://www.plantsuccess.com/speakers.php?conf=1001|archive-date=2008-10-26}}
History
MEG Energy was founded in 1999 as McCaffrey Energy Group Inc by CEO and President Bill McCaffrey, Director and Corporate Secretary David Wizinsky and former Director Steve Turner. It went public with an IPO of $660 million in August 2010.{{cite web|url=http://www.heavyoilinfo.com/news-1/meg-energy-doubling-size-of-oilsands-project|title=MEG Energy doubling size of oilsands project|date=2010-08-10}} At the time it was considered a $9.7 billion equity cap company.{{cite web|url=http://www.ogfj.com/index/article-display/1674648561/articles/oil-gas-financial-journal/unconventional/oil-sands/oil-sands_company.html|title=Oil sands company MEG plants $500 million senior notes offering|date=2010-03-09}} The Christina Lake project first received approval from the government in 2008, it was one of six oil megaprojects in Canada that year.
April 14, 2005 - CNOOC Ltd, China's 3rd biggest oil and natural gas company purchased a 16.69% interest in MEG Energy for $C150 million (13.6 million common shares).{{cite web|url=http://english.peopledaily.com.cn/200504/14/eng20050414_180996.html|date=2005-04-14|title=People's Daily Online -- CNOOC LTD. Acquires stake of Canada-based MEG Energy Corp }}
In 2021, MEG Energy expanded their facility. In 2022 they formed the Pathways Alliance along with several other companies.{{cite web |title=Key Oil Sands Groups Join Forces Under Pathways Alliance Banner |url=https://www.newsfilecorp.com/release/127820/Key-Oil-Sands-Groups-Join-Forces-Under-Pathways-Alliance-Banner |website=Newsfile |access-date=19 June 2025 |date=June 15, 2022}}
On May 1, 2024, Derek Evans stepped down from his role as CEO and Darlene Gates was appointed as President & Chief Executive Officer.{{Cite web |title=Our History |url=https://www.megenergy.com/about-us/our-history/ |access-date=2025-06-18 |website=MEG Energy |language=en-US}}
Production
In 2012 bitumen production averaged 28,773 bpd, +2,168 bpd versus the previous year. By the second quarter of 2013 average production had reached 32,144 bpd, +1,715 bdp. Also up is the realized oil price per barrel: $53.98 vs $45.59.
According to the company's 2024 Business Update presentation, as of September 30, 2024, MEG's Christina Lake operations produced 102,600 bpd.{{Cite web |title=Presentations & Events |url=https://www.megenergy.com/investors/presentations-events/ |access-date=2025-06-18 |website=MEG Energy |language=en-US}}
Christina Lake
MEG's interest in Christina Lake includes 80 blocks/sections. It is a three phase project that was operating at 12.4% (26,000 bbls/d) of total expected production capacity at the end of 2010. Since 2009 the first two phases were producing, albeit at a low level because construction of phase 2B (design capacity 40% larger than phase 1 and 2A combined) didn't begin until 2011. When combined with phase three, total production will exceed {{convert|200000|oilbbl/d}} with 2020 production estimated at 260,000 bbls/d.{{cite web|url=http://www.canadianbusiness.com/article/60665--oilsands-company-meg-energy-to-spend-1-37-billion-in-2012-with-focus-on-growth|archive-url=https://archive.today/20120722121450/http://www.canadianbusiness.com/article/60665--oilsands-company-meg-energy-to-spend-1-37-billion-in-2012-with-focus-on-growth|url-status=dead|archive-date=2012-07-22|title=Oilsands company MEG Energy to spend $1.37 billion in 2012|date=2011-12-06}} The pipeline system used to carry bitumen out and diluent in is the {{convert|343|km|adj=on}} Access Pipeline which MEG co owns with Devon ARL Corp.{{cite web|url=http://www.megenergy.com/pdfs/christinalake/publicdisclosure.pdf|title=MEG Energy Christina Lake Phase 3|date=September 2007|url-status=dead|archive-url=https://web.archive.org/web/20110302104352/http://www.megenergy.com/pdfs/christinalake/publicdisclosure.pdf|archive-date=2011-03-02}}
The company operates the Christina Lake Aerodrome.{{CFS}}
Cenovus Energy also produces at Christina Lake.
Surmont
The Surmont Project is a proposed multi-phased development with a total design capacity of approximately 120,000 bpd.
Takeover Bid
In October 2018, Husky Energy put it in a hostile takeover{{Cite news|url=https://www.theglobeandmail.com/business/article-meg-chief-says-husky-can-pay-a-lot-more-in-takeover-offer/|title=MEG chief says Husky can 'pay a lot more' in takeover offer}} bid to acquire MEG Energy Corp.
Initial production process
Initially two horizontally parallel wells are created. Oil is directed to the lowest well after injecting steam into the one above it in order to heat the area so that the liquid in the area flows downwards (allows for the separation of oil from sand). The steam used comes from MEG's cogeneration plants.