MEG Energy Corp.

Good morning, ladies and gentlemen. My name is Jeannie, and I will be your conference operator today. I'd like to welcome everyone to MEG Energy's second quarter 2025 and six-month results conference call. All lines have been placed on mute to prevent any background noise. After the MEG team's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star 1 again. I'd like to remind our listeners that this call contains forward-looking information. Please refer to the advisories in Meg's disclosure documents filed on CDAR Plus and on their website for more on these disclaimers. Full details on Meg's second quarter and six months' results are available in yesterday's press release. At this time, I would like to turn the conference over to Darlene Gates, President and CEO of MegEnergy. Please go ahead.

Thank you, Jeannie. Good morning, everyone, and thank you for joining us to review MegEnergy's second quarter 2025 financial and operating results. I'll begin today's call by highlighting our financial performance and strategic execution before turning it over to our CFO, Ryan Kubik, for a more detailed look at the numbers. Also joining us this morning are additional members of our senior management team, Tom Gere, our senior vice president of oil sands, Eric Olson, our senior vice president of marketing, and Lyle Udubski, our senior vice president of corporate development and legal. I'm incredibly proud to share that the MEG team safely and successfully completed the largest planned turnaround in our company's history. What makes this achievement even more impressive is that it was completed while navigating the added complexity of regional wildfire conditions with an unwavering commitment to safety of our people and the communities we serve. The turnaround was completed on time, on budget, and with exceptional safety performance across all key metrics. In addition, we completed over 150 tie-ins for our facility expansion project helping to minimize future production interruptions and advance our growth plans. This project, which will add 25,000 barrels per day of production capacity by mid-2027, remains firmly on track and on budget. Thanks to the strength of our asset base and the resilience of our business model, MEG generated $148 million in free cash flow in the first half of the year, and returned $220 million to shareholders repurchasing approximately 3% of shares outstanding. At current strip pricing, we're on track to generate over $500 million of free cash flow in 2025. As I mentioned, the wildfires, which impacted communities and operators across the region, caused damage to third-party infrastructure, which delayed our post-turnaround ramp-up by approximately 12 days. Despite this, our team restored production to pre-turnaround levels within two weeks of restart, and July production averaged about 109,000 barrels per day, positioning us for a strong second half. In the second quarter, bitumen production averaged 63,500 barrels per day, with an average steam to oil ratio of 2.38. As expected, the turnaround reduced volumes by approximately 32,000 barrels per day, with wildfires contributing an additional 12,000 barrels per day. Full year 2025 operating and capital guidance will remain unchanged. Our world-class Christina Lake asset, combined with our strategic growth initiatives, positions us to deliver low-risk, capital-efficient growth, reduce per-barrel costs, and generate significant shareholder returns. Before I turn it over to Ryan, I'm pleased to share that Meg's Board of Directors has approved a 10% increase in our quarterly dividend, raising it to $0.11 per share payable on October 15, 2025. This increase reflects our confidence in the strength and resilience of our business model, our commitment to disciplined capital allocation, and our focus on delivering meaningful returns to shareholders. With that, I'll turn it over to Ryan for a more detailed look on our financial results.

Thanks. As Darlene mentioned, MEG's dividend increase is supported by our strong financial performance. And with low corporate breakeven, MEG is positioned to sustain and grow that dividend over the long term through disciplined investment and share buybacks. At current strict pricing, we expect to generate over $375 million in free cash flow in the second half of 2025. providing ample flexibility to support our capital allocation priorities. Adjusted funds flow in the second quarter of this year was $125 million, or 49 cents per share, reflecting the impact of lower bitumen realizations and reduced sales volumes due to the planned turnaround and wildfire-related delays. The WCS heavy oil differential narrowed to U.S. $10.27 per barrel in the quarter, supported by improved pipeline access and strong demand for Canadian heavy crude. That differential, however, was more than offset by the WTI benchmark price, which averaged below U.S. $65 per barrel, influenced by global economic uncertainty and increased OPEC Plus supply. Our operating costs net of power revenue were $10.88 per barrel in the second quarter, including non-energy operating costs of $8.16 per barrel. These per barrel operating costs will be significantly lower in the second half of this year as production rises and we start up new wells and high quality resource. Capital expenditures in Q2 total $200 million. up from $123 million in Q2 2024, driven by our planned turnaround and continued investment in our facility expansion project. While our share buybacks are temporarily paused due to the unsolicited offer process, our capital return strategy remains unchanged, and we plan to resume share repurchases when able. With that, I'm going to turn the call back over to Darlene for closing remarks.