MEG Energy : 2023 ESG Report

Our Head Office is in Calgary

We acknowledge the traditional Treaty 7 territory of the Blackfoot Confederacy: Siksika, Kainai, Piikani, as well as the Îyâxe Nakoda and Tsuut'ina nations. We are situated on the land where the Bow River meets the Elbow River, and the traditional Blackfoot name of this place is "Mohkinstsis" which we now call the City of Calgary. We acknowledge that this territory is home to the Métis Nation of Alberta, Region 3 within the historical Northwest Métis homeland.

We acknowledge Treaty 8 territory - the traditional and ancestral territory of the Cree and Dene. We acknowledge that this territory is home to the Métis Settlements and the Métis Nation of Alberta, Regions 1, 4, 5 and 6 within the historical Northwest Métis Homeland. We acknowledge the many First Nations, Métis and Inuit who have lived in and cared for these lands for generations.

The ESG Report ("the report") and associated disclosures represent MEG's ongoing commitment to transparency and the disclosure of Environmental, Social and Governance (ESG) topics and performance metrics relevant to our business and our stakeholders.

The report focuses on ESG topics our stakeholders have identified as important and that have potential impact on MEG's success as identified in our ESG Materiality Assessment (conducted in early 2023). For more details on MEG's approach to managing ESG topics, see relevant pages or sections in this report.

Scope

The report covers the ESG performance of MEG's 100 per cent owned and operated asset, the Christina Lake Regional Project (CLRP), unless explicitly stated otherwise. All other assets are currently not developed. MEG does not hold any operated or non- operated joint venture interests. This report focuses on performance and activities from January 1 to December 31, 2022, and significant events early in 2023.

The accompanying ESG Performance Data (EPD) Report provides historical data, where available and appropriate, to share trends. Data exclusions or additions are noted throughout the report. Financial

data is stated in Canadian dollars and in a manner consistent with our 2022 reports and regulatory filings. Environmental data is reported in metric units.

Framework

Where applicable, indicators used in this report align with internationally recognized standards and frameworks relevant to the energy industry.

This report is aligned to the Sustainability Accounting Standards Board (SASB) and Task Force on Climate- Related Financial Disclosures (TCFD) reporting frameworks and, where applicable, reflects the TCFD pillars: governance, strategy, risk management, and metrics and targets.

The report references the Global Reporting Initiative (GRI) Standards; however, it does not include all requirements to be considered in accordance with GRI Standards. Refer to the EPD Report on our website at www.megenergy.com.

We support the United Nations Sustainable Development Goals (SDG) and believe our actions contribute to the 2030 global development priorities. This report includes references to the SDGs.

For additional detail on our financial performance and information about our business, refer to our financial statements, our Management's Discussion and Analysis and Annual Information Form (AIF) which are also filed on SEDAR+. In most cases, we use standard industry calculation methodologies and definitions. We aim for continuous improvement of these standards, as well as our internal tracking and measurement systems, to improve the accuracy of the performance data. If, as a result, adjustments

to previously reported performance data are required, they are noted in the footnotes of the EPD Report and SASB Index.

Forward-Looking Statements 

Certain statements contained in the report may contain forward-looking statements and forward- looking information within the meaning of applicable securities laws. Refer to the notice regarding Forward-LookingInformation in this report. 

Assurance 

As part of MEG's continued commitment to standardize our reporting methodology, we engage a third party to perform assurance on select performance indicators included in the report. To read the complete assurance statement, see page 21 of our EPD Report.

About Us

We are a leading pure play in situ thermal oil producer​.

MEG is an energy company focused on sustainable in situ thermal oil production in the southern Athabasca oil sands area of Alberta, Canada. MEG transports and sells thermal oil (known as Access Western Blend or AWB) to customers throughout North America and internationally. With proven, proprietary innovative technologies, we are reducing our energy and water use, capital and operating costs and greenhouse gas (GHG) emissions.

MEG is a proud member of the Pathways Alliance, a group of six oil sands producers working together to achieve the ambitious national goal of net zero(1) GHG emissions by 2050.

MEG is proud to be part of a vital industry promoting responsible resource development and fueling our economy.

MEG owns approximately 1,100 square kilometres of leases in two key areas.

Christina Lake  

The Christina Lake Regional Project is currently the focus of MEG's oil development.

Surmont  

The Surmont Project is a potential future multi-phased development.

ALBERTA

Fort McMurray

Region

1Fort McMurray

Grande PrairieCold Lake Region 4

Edmonton Lloydminster

Calgary

MEG is actively developing innovative enhanced oil recovery projects that use steam-assisted gravity drainage ("SAGD") extraction methods to improve the responsible economic recovery of oil and to lower carbon emissions.

1. Scope 1 and 2 GHG emissions
2. Reserve Life Index ("RLI") is calculated by taking the Company Gross Reserves from the GLJ Report and dividing them by the projected 2023 production as estimated in the GLJ Report.
3. At production of appropriately 103,000 bbls/d

Beneath the surface of MEG's Christina Lake leases are an estimated two billion barrels of proved plus probable reserves. This large resource base is the foundation of our current production and future growth plans with greater than a 50-year reserves life index.(2)(3)

MEG Leases

• Surmont ■ Christina Lake

Pathways Alliance Proposed

Foundational Project

1. Oil sands upgrading, mining and in situ area
2. 400+ km CO2 transportation line
3. Oil sands in situ recovery area
4. Joint carbon storage hub

Our Purpose

Our purpose is to supply the world with environmentally and socially responsible energy, while generating long-term value for all our stakeholders.

We are proudly Canadian. Our operations are located in Canada, which ranks #1 for its environmental, social and governance practices among the world's top proved plus probable oil reserve holders.

We are committed to supplying the world with affordable, secure, environmentally and socially responsible energy.

We are a founding Pathways Alliance member and are committed to providing sustainable energy while meeting our net zero(1) GHG emissions targets by 2050.

(1) Scope 1 and 2 GHG emissions

Our Values

We are MEG to the Core  

What does that mean to us? It means we have pride in who we are and where we are going. Safety is foundational in every value, as our people are at the core of our success.

MEG to the Core anchors our five values. Every business decision we make, no matter how big or small, aligns with our values and how we are moving forward.

VALUES

Our Operating Priorities

At MEG, we get it right because we follow our priorities in this order:

1

We care for ourselves and all others.

2

We care for the environment and communities in which we live and operate.

3

We care for our business and long-term performance.