CALGARY,
AB, March 8, 2023 /CNW/ - MEG Energy
Corp. (TSX: MEG) ("MEG" or the "Corporation") announces today that
the Toronto Stock Exchange (the "TSX") has approved the renewal of
the Corporation's normal course issuer bid (the "Bid").
Pursuant to the Bid, MEG will purchase for cancellation, from
time to time, as it considers advisable, up to a maximum of
28,596,214 common shares of the Corporation. The Bid will become
effective on March 10, 2023 and will
terminate on March 9, 2024 or such
earlier time as the Bid is completed or terminated at the option of
MEG.
MEG's intention to continue its share buyback program is
consistent with the Corporation's capital allocation strategy which
includes enhancing shareholder returns through share buybacks and
continued debt reduction. MEG believes there are times when the
market price of its common shares may not fully reflect the
underlying value of its business and future prospects. Depending on
the trading price of its common shares and other relevant factors,
the Corporation believes purchasing common shares represents an
attractive investment opportunity and is in the best interest of
MEG and its shareholders.
The maximum number of common shares to be purchased pursuant to
the Bid represents 10% of the public float, as of February 28, 2023. Purchases pursuant to the Bid
will be made on the open market through the facilities of the TSX
and/or alternative trading systems. The number of common shares
that can be purchased pursuant to the Bid is subject to a daily
maximum of 588,844 common shares (which is equal to 25% of the
average daily trading volume of 2,355,377 from September 1, 2022 to February 28, 2023, less any common shares
purchased during that period under the Prior Bid (as defined
below)) with the exception that one block purchase in excess of the
daily maximum is permitted per calendar week. The price that MEG
will pay for any common shares under the Bid will be the prevailing
market price on the TSX at the time of such purchase. Common shares
acquired under the Bid will be cancelled.
As of March 6, 2023, MEG had
purchased an aggregate of 24,860,200 common shares at a weighted
average price of $18.83 per common
share under a normal course issuer bid that runs between
March 10, 2022 and March 9, 2023 (the "Prior Bid").
MEG has entered into an automatic share purchase plan ("ASPP")
with BMO Nesbitt Burns Inc. ("BMO") in order to facilitate
repurchases of its common shares. Under the Corporation's ASPP, BMO
may repurchase shares under the normal course issuer bid during the
Corporation's self-imposed blackout periods. Purchases will be made
by BMO based upon the parameters prescribed by the TSX and
applicable securities laws, the terms of the plan and the parties'
written agreement. Outside of these blackout periods, common shares
may be purchased under the Bid in accordance with management's
discretion.
A copy of the Form 12 Notice of Intention to Make a Normal
Course Issuer Bid filed by the Corporation with the TSX can be
obtained from the Corporation upon request without charge.
As of the close of business on February
28, 2023, the Corporation had 287,716,789 common shares
issued and outstanding and a public float of 285,962,143 common
shares.
This news release does not constitute an offer to sell, or a
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such an offer, solicitation, or sale would be
unlawful.
About MEG
MEG is an energy company focused on sustainable in situ
thermal oil production in the southern Athabasca oil region of Alberta, Canada. MEG is actively developing
innovative enhanced oil recovery projects that utilize
steam-assisted gravity drainage extraction methods to improve the
responsible economic recovery of oil as well as lower carbon
emissions. MEG transports and sells thermal oil (AWB) to customers
throughout North America and
internationally. MEG's common shares are listed on the Toronto
Stock Exchange under the symbol "MEG" (TSX: MEG).
Learn more at www.megenergy.com.
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements within the meaning of applicable
Canadian securities laws. These statements relate to future events
or MEG's future performance. All statements other than statements
of historical fact may be forward-looking statements. The use of
any of the words "anticipate", "continue", "estimate", "expect" or
"expected", "may", "will", "will have", "project", "should",
"believe", "dependent", "ability", "leaving", "plan", "intend",
"target", "potential" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are
often, but not always, identified by such words. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. In
particular, and without limiting the foregoing, this news release
contains forward-looking statements with respect to MEG's
intentions with respect to the Bid and the effects of repurchases
of common shares thereunder, including any enhancement to
shareholder value. Such forward-looking information is based on
certain assumptions and analysis made by MEG in light of its
experience and perception of current conditions and expected future
developments as well as other factors it believes are appropriate
in the circumstances. However, whether actual results, performance
or achievements will conform to MEG's expectations and predictions
is subject to a number of known and unknown risks and uncertainties
which could cause actual results to differ materially from MEG's
expectations. Further information regarding the assumptions and
risks inherent in the making of forward-looking statements can be
found in MEG's most recently filed Annual Information Form ("AIF"),
along with MEG's other public disclosure documents. Copies of the
AIF and MEG's other public disclosure documents are available
through the Company's website at
www.megenergy.com/investors and through the SEDAR website at
www.sedar.com. The forward-looking information included in this
news release is expressly qualified in its entirety by the
foregoing cautionary statements. Unless otherwise stated, the
forward-looking information included in this news release is made
as of the date of this news release and MEG assumes no obligation
to update or revise any forward-looking information to reflect new
events or circumstances, except as required by law.
SOURCE MEG Energy Corp.