Mr. Rob Peabody reports

HUSKY ENERGY REAFFIRMS COMMITMENT TO FULL AND FAIR OFFER FOR MEG ENERGY

Husky Energy Inc. today reaffirms its commitment to the full and fair offer to acquire MEG Energy as outlined on Oct. 2, 2018, and comments on MEG's recent statements and third quarter results.

"MEG's results reinforce our view that it has a quality asset base and a dedicated operating team, but it remains constrained by a highly levered balance sheet and lack of integration," said chief executive officer Rob Peabody. "MEG continues to deliver negative free cash flow, and its assertions it can reverse this trend in the future rely on continued high oil prices and narrow heavy oil differentials."

MEG shareholders should be aware MEG's stand-alone plan comes with a high level of risk.

"History shows production growth has not delivered value for MEG shareholders, and MEG's new plan to double production by 2028 is more of the same," Mr. Peabody added. "Simply put, MEG cannot grow its way out of its problems. We are offering immediate value, while MEG once again asks its investors for patience.

"Our offer represents an opportunity to participate in a stronger and more resilient combined company, while receiving a premium and retaining material upside."

Husky remains confident its offer is, and will remain, the best option to maximize value for MEG shareholders.

Husky encourages MEG shareholders to consider the following as they evaluate MEG's future prospects.

Husky's offer is a premium valuation (1)

• 7.5 times EV/consensus 2019E EBITDA (earnings before interest, taxes, depreciation and amortization) multiple, compared with MEG's peer group multiple of 4.6 times;
• 66-per-cent premium to MEG's closing price over the last three years;
• 71-per-cent premium to MEG's closing price over the last two years;
• A value which exceeds MEG's closing price on 96 per cent of the trading days over the last three years.

(1) Based on an implied acquisition price of $11 per MEG share as at the date of the offer.

Meg's share price would be substantially lower absent Husky's offer

MEG's share price has increased significantly as a direct result of Husky's Offer, while shares of MEG's peers and heavy oil prices have fallen substantially over the same period. Absent the offer, MEG shares would trade at a price well below current levels.

Husky's offer delivers immediate value with comparable upside and much less risk

Husky's integrated operations and committed export pipeline capacity result in greater value capture and reduced exposure to Canadian heavy oil prices. MEG shareholders will also gain exposure to Husky's high-netback offshore business and fixed-price contracts, providing more stability in funds from operations. The majority of Husky's production achieves global pricing.

MEG shareholders will also participate in Husky's dividend yield, which is currently 2.8 per cent, with potential for future increases as free cash flow grows.

Regulatory approvals

The regulatory approval process continues to advance. The Canadian Commissioner of Competition has issued a "no action" letter confirming that at this time he does not intend to challenge the transaction pursuant to the Competition Act. In addition, the U.S. Federal Trade Commission has granted Husky early termination of the required waiting period under the U.S. Hart-Scott-Rodino Act. All other required regulatory approvals are expected to be received by the end of the year.

Act now to maximize value

Husky remains committed to realizing this unique opportunity and stands ready to engage with MEG to quickly complete this transaction and deliver value to all shareholders, sooner.

The offer will be open for acceptance until 5 p.m. Eastern Time (3 p.m. Mountain Time) on Wednesday, Jan. 16, 2019.

For assistance in depositing MEG shares to the offer, MEG shareholders should contact the information agent D.F. King Canada by telephone at 1-800-761-6707 (North American toll-free number) or 1-212-771-1133 (outside North America) or by e-mail at inquiries@dfking.com.

Information relating to Husky's offer and instructions on how to tender are also available on Husky's website.

We seek Safe Harbor.