MEG Receives TSX Approval for Renewal of Normal Course Issuer Bid

CALGARY, March 8, 2023 - 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.