New CEO brings extensive experience in the Canadian Oil and Gas industry with a proven track record of successful resource development and disciplined capital allocation
CALGARY, Aug. 8, 2018 /CNW/ - MEG Energy Corp. (TSX:MEG) ("MEG" or the "Company") today announced that its Board of Directors has unanimously appointed Derek Evans to the position of President and CEO, effective immediately.
Mr. Evans has over 35 years' experience in the Canadian oil and gas business, including nine years as the CEO of Pengrowth Energy and six years as the CEO of Focus Energy Trust.
"The Board conducted an exhaustive search with the assistance of an executive recruitment firm, and everyone involved determined that Derek best exemplified the qualities we were seeking among a number of highly qualified candidates," said Jeffrey McCaig, Chairman of MEG. "Derek's initial focus will be the successful completion of Vision 20/20. In connection to achieving this goal, he will be focused on further strengthening the balance sheet, improving efficiencies and delivering value to our shareholders, as we refine the Company's long-term strategy."
Mr. Evans succeeds Interim CEO Harvey Doerr, who will return to his role as an independent director of MEG.
"I want to thank Harvey for stepping into the interim role and for his contributions in this short period of time," said Mr. McCaig. "We look forward to Harvey's continued dedication and insights as a Board member."
Mr. Evans is a veteran in the Canadian energy industry, having led Pengrowth Energy through a difficult turnaround by focusing on capital allocation and its core assets; and Focus Energy Trust, which successfully generated substantial returns for shareholders. Prior to his Chief Executive roles at Pengrowth and Focus, Mr. Evans held a variety of key operational and strategic roles at Storm Energy and Renaissance Energy.
"I am excited to take on the leadership of MEG at this pivotal moment in the Company's history. MEG has a world-class resource base and a team that is known for its technological innovation and best-in-class execution," said Derek Evans. "After extensive study and interaction with the Board, I am convinced that the implementation of MEG's Vision 20/20 strategic plan, which will take production to 113,000 barrels per day, sets the Company on a path to significant free cash flow generation while continuing its focus on capital discipline and driving lower overall costs."
About Derek Evans
Mr. Evans served as President, CEO and Director of Pengrowth Energy Corporation, an intermediate energy company focused on the sustainable development and production of oil and natural gas in Western Canada, from May 2009 until March 2018. During his tenure, Mr. Evans streamlined the Company's asset base from 35 properties to two growth assets, with over $9 billion of development opportunities. Among other things, Mr. Evans delivered the $850 million Lindbergh oil sands project on time and on budget, with significant innovation that pushed water recycle to 97.5%.
Prior to joining Pengrowth, from 2002 to 2008, Mr. Evans was the President, CEO and Director of Focus Energy Trust, a dividend paying trust focused on sustainable cash flows to investors. While serving as CEO, Mr. Evans increased the market valuation approximately five times, while distributing more than $400 million to unitholders.
Mr. Evans serves on the board of Franco-Nevada Corporation, a leading gold royalty and streaming company, and previously was the Chairman of Endurance Energy Ltd., a Calgary-based exploration and production company. Mr. Evans holds a degree in Mining Engineering from Queen's University.
About MEG Energy Corp.
MEG Energy Corp. is focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada. MEG is actively developing enhanced oil recovery projects that utilize SAGD extraction methods. MEG's common shares are listed on the Toronto Stock Exchange under the symbol "MEG".
This press release may contain forward-looking information including but not limited to: expectations of future production and resulting revenues, expenses and cash flow; commodity price and differential expectations; and, the anticipated benefits of the strategic direction of MEG. Such forward-looking information is based on management's expectations and assumptions regarding future growth, results of operations, production, future capital and other expenditures, plans for and results of drilling activity, and business prospects and opportunities.
By its nature, such forward-looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks associated with the oil and gas industry, for example, the securing of adequate supplies and access to markets and transportation infrastructure and the commitments and risks therein; availability of capacity on the electricity transmission grid; uncertainty of reserve and resource estimates; uncertainty associated with estimates and projections relating to production, costs and revenues; health, safety and environmental risks; risks of legislative and regulatory changes to, amongst other things, tax, land use, royalty and environmental laws; assumptions regarding and the volatility of commodity prices, interest rates and foreign exchange rates, and, risks and uncertainties related to commodity price, interest rate and foreign exchange rate swap contracts and/or derivative financial instruments that MEG may enter into from time to time to manage its risk related to such prices and rates; risks and uncertainties associated with securing and maintaining the necessary regulatory approvals and financing to proceed with MEG's future phases and the expansion and/or operation of MEG's projects; risks and uncertainties related to the timing of completion, commissioning, and start-up, of MEG's future phases, expansions and projects; the operational risks and delays in the development, exploration, production, and the capacities and performance associated with MEG's projects; and uncertainties arising in connection with any future disposition of assets.
Although MEG believes that the assumptions used in such forward-looking information are reasonable, there can be no assurance that such assumptions will be correct. Accordingly, readers are cautioned that the actual results achieved may vary from the forward-looking information provided herein and that the variations may be material. Readers are also cautioned that the foregoing list of assumptions, risks and factors is not exhaustive.
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 document is expressly qualified in its entirety by the foregoing cautionary statements. Unless otherwise stated, the forward-looking information included in this document is made as of the date of this document and MEG assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.
For further information, please contact:
Director, Investor Relations
Senior Advisor, Investor Relations
SOURCE MEG Energy Corp.