Independent Proxy Advisory Firm Glass Lewis Joins ISS in Recommending MEG Shareholders Vote FOR the Value-Enhancing Transaction with Cenovus

Executive Summary

• Glass Lewis, a leading independent proxy advisory firm, recommends MEG Energy shareholders vote FOR the proposed acquisition by Cenovus Energy.
• The Cenovus Transaction values MEG at $28.26 per share (≈ $8.2 billion enterprise value) and offers cash ($27.25 per share) and/or Cenovus shares (1.325 per share).
• Approval requires ≥ 66% shareholder support, court sanction, and regulatory clearances; the proxy deadline is October 7, 2025.

Key Details

• Recommendation: Glass Lewis endorses the transaction, citing higher offer than Strathcona’s bid, operational synergies, and reduced integration risk.
• Transaction Overview:
• Arrangement Agreement signed August 22, 2025.
• Cash option: $27.25 per MEG share.
• Share option: 1.325 Cenovus common shares per MEG share (≈ 0.33125 Cenovus shares on a fully‑pro‑rated basis).
• Fully pro‑rated consideration ≈ $20.44 cash + 0.33125 Cenovus share per MEG share.
• Valuation: $28.26 per MEG share (fully prorated) → enterprise value ~ $8.2 billion (including debt).
• Conditions to Closing:
• ≥ 66% shareholder approval at special meeting (Oct 9, 2025).
• Court of King's Bench of Alberta approval.
• Competition Act and HSR regulatory approvals (obtained Sep 25 & Sep 16, 2025).
• Shareholder Voting Logistics:
• Proxy deadline: Oct 7, 2025 09:00 a.m. Calgary time.
• Meeting date/time: Oct 9, 2025 09:00 a.m. (in‑person or webcast).
• Voting instructions and control numbers provided via brokers; assistance available through Sodali & Co.
• Advisors:
• MEG’s Special Committee – RBC Capital Markets (financial) & Norton Rose Fulbright Canada LLP (legal).
• Company – BMO Capital Markets (financial) & Burnet, Duckworth & Palmer LLP (legal).
• Forward‑Looking Statements: Include expectations of 150,000 bpd production at Christina Lake by 2028, operational synergies, and upside participation for shareholders.

Notable Quotes

“MEG's board can be credited with conducting a process that ultimately resulted in a higher offer than the initial unsolicited bid,” – Glass Lewis report.
“The Cenovus Transaction offers clear industrial logic, synergies, and diversification benefits that provide a stronger long‑term platform for MEG's assets.” – Glass Lewis report.