MEG Energy uses $1.25 billion asset sale proceeds to pay down debt

By Devika Patel

Knoxville, Tenn., May 10 – MEG Energy Corp. saw its debt fall to $3.54 billion last quarter after using $1.25 billion of the proceeds from an asset sale to pay down debt.

“The sale of the Access Pipeline and Stonefell to Wolf was closed in the quarter and $1.25 billion was allocated to pay down our debt,” vice president of investor relations John Rogers said on the company’s first quarter ended March 31 earnings conference call on Thursday.

“Long-term debt decreased to $3.54 billion, about 25% lower than it was at the start of the year, which was in the range of $4.678 billion,” he said.

On March 22, the company sold its 50% interest in Access Pipeline and 100% interest in Stonefell Terminal to Wolf Midstream Inc. for $1.61 billion.

MEG is a Calgary, Alta.-based oil sands company.

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