Husky Energy Cuts 2020 Capital Spending to $1.7 Billion

2020 capital expenditures cut ~50% from December 2019 guidance

Liquidity increased by $500 million to $5.2 billion

Integrated Corridor upstream production reduced by over 80,000 bbls/day / U.S. refinery throughput reduced

Protection of workers and communities remains top priority

CALGARY, Alberta, April 20, 2020 (GLOBE NEWSWIRE) -- Husky Energy (TSX:HSE) is significantly reducing capital expenditures and shutting in negative cash margin production as further measures to strengthen its business given market conditions caused by COVID-19.

“We have taken immediate action to preserve our balance sheet and core business in this commodity price environment,” said CEO Rob Peabody. “Our focus remains on health and safety, and on increasing Husky’s resilience.

“As the market rebalances supply with demand over a very short period in North America, negative cash margins before operating costs are occurring.  Reducing production minimizes our negative cash margin exposure.”

Husky has important advantages in the current economic environment, including: a strong balance sheet, an Integrated Corridor that includes a sizeable midstream and downstream segment, and Offshore operations underpinned by long-term gas contracts in the Asia Pacific region.

Husky’s plan includes:

• Continuing to advance process and occupational safety performance
• Reducing and deferring all discretionary capital spending
• Liquidity improvements
• Reducing production and refinery throughput to address near-term negative cash margins until supply and demand is rebalanced

             
Additional $700 Million in Capital Reductions

Husky previously announced 2020 spending reductions of $1 billion, including $900 million in capital expenditures and $100 million in cost-saving measures.

2020 capital guidance is further revised as follows:

	New	March 12 ’20 Revision	Dec. ’19 Guidance
Capital Investment1 ($ millions)
Upstream	1,100 – 1,200	1,750 – 1,900	2,625 – 2,800
Downstream	475 – 550	475 – 550	475 – 550
Total	1,600 – 1,800	2,300 – 2,500	3,200 – 3,400
1Includes exploration capital and other capital expenditures but excludes asset retirement obligations, capitalized interest and Superior Refinery rebuild capital.