Deadline Alert: MEG Reminds Shareholders to Vote FOR the Improved Cenovus Transaction Ahead of the Revised Proxy Deadline of Monday, October 20, 2025, at 9:00 a.m. (Calgary Time)

On October 14, 2025, MEG Energy Corp. was the subject of three significant news releases related to its pending acquisition by Cenovus Energy Inc.: 1. Cenovus Acquires 8.5% Stake: Cenovus announced it has acquired 21.7 million common shares of MEG, representing an 8.5% stake. These shares were purchased on the open market since October 8, and Cenovus intends to vote them in favour of its proposed acquisition of MEG. 2. Strathcona Bid Effectively Ends: Waterous Energy Fund, the backer of a competing bid from Strathcona Resources Ltd., announced the cancellation of C$661 million in subscription receipts. These receipts were intended to fund Strathcona's take-over bid for MEG, and their cancellation signifies the termination of the competing offer. 3. Shareholder Vote Reminder: MEG issued a reminder to its shareholders to vote FOR the improved transaction with Cenovus ahead of the revised proxy deadline of October 20, 2025.

The combination of these news items is materially positive for MEG Energy and its shareholders. The developments provide a clear and near-certain path to the closing of the improved Cenovus transaction.

Historical Context and Progression: * Initial Deal & Competing Bid: An initial acquisition agreement with Cenovus was announced on August 21, 2025. This was followed by a competing offer from Strathcona Resources. * Proxy Advisor Support: In late September and early October, major proxy advisory firms ISS and Glass Lewis recommended MEG shareholders vote FOR the Cenovus transaction, citing its superior value, strategic logic, and lower risk profile compared to the Strathcona offer. * Improved Cenovus Offer (Oct 8): In response to the bidding pressure and shareholder feedback, Cenovus and MEG announced an amended agreement with a significantly improved offer. The value increased to approximately C$29.80 per share (from ~$28.26), and the consideration mix was changed to 50% cash and 50% Cenovus shares, giving MEG shareholders greater participation in the upside of the combined company. This was the pivotal moment in the bidding process. * Final Confirmation (Oct 14): The most recent news effectively ends the M&A saga. The cancellation of Strathcona's financing removes the only competing bid from the table. Simultaneously, Cenovus's move to acquire a significant 8.5% stake is a strong-arm tactic to secure the shareholder vote and demonstrates its unwavering commitment to closing the deal.

Impact Assessment: The key impact is the massive reduction in deal risk. With the competing bidder gone and the acquirer holding a significant voting block, the probability of the transaction closing at the improved terms is now extremely high. The stock, which closed at $29.80 on October 10, is now trading as an M&A arbitrage security, reflecting the deal's value. The upside from the current price is minimal, as the market has already priced in the high likelihood of the deal's success. The news solidifies the win for MEG's board and shareholders, who benefited from a competitive process that extracted a superior offer.

MEG Energy Corp. is a Canadian oil company focused on the sustainable development and production of oil sands in the Athabasca region of Alberta, Canada. Its flagship asset is the Christina Lake Project, a multi-phase, in-situ steam-assisted gravity drainage (SAGD) operation. The quality of this asset is underscored by Cenovus's plan to invest an incremental C$400 million to expand its production capacity to 150,000 barrels per day by 2028 upon acquiring it.