MEG Energy Corp. reported third quarter 2015 operating and financial results. Highlights include:
•Net operating costs of $9.10 per barrel, supported by record-low non-energy operating costs of $5.98 per barrel in the third quarter and with annual guidance reduced to a targeted $6.90 to $7.10 non-energy operating cost per barrel;
•Record-high quarterly production volumes of 82,768 barrels per day (bpd);
•Cash flow from operations of $24 million, or $0.11 per share, and reduced capital spending supporting strong financial liquidity, exiting the quarter with $351 million in cash and an undrawn US$2.5 billion credit facility;
•The 2015 capital program has been revised downwards to approximately $280 million from the previous guidance of $305 million.
"Despite the challenging commodity price environment, we continue to see positive results from the cost reduction strategy that has moved MEG to a net operating cost of less than $10 per barrel," said Bill McCaffrey, President and Chief Executive Officer. "This is a result of our ongoing efforts to further improve our operating efficiencies, as well as our success in steadily increasing production volumes from our existing assets."