Husky Energy Cuts 2020 Capital Spending to $1.7 Billion

Husky Energy Cuts 2020 Capital Spending to $1

2020 capital expenditures cut ~50% from December 2019 guidance
Liquidity increased by $500 million to $5.2 billionIntegrated Corridor upstream production reduced by over 80,000 bbls/day / U.S. refinery throughput reducedProtection of workers and communities remains top priorityCALGARY, 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 performanceReducing and deferring all discretionary capital spendingLiquidity improvementsReducing 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:

Production and Throughput ReductionsHusky continues to safely shut-in production across its Integrated Corridor business, where appropriate. To date, Integrated Corridor production has been reduced by more than 80,000 barrels per day (bbls/day), most of which is heavy oil, with the ability to reduce even further while preserving the option to quickly ramp back up should pricing conditions allow.Integrated Corridor production is being aligned with upgrading and refining requirements as throughput is adjusted and optimized in line with changing market conditions. As a result, updated 2020 production and throughput guidance will not be provided at this time. Current U.S. refinery throughput has been reduced by around 95,000 bbls/day, or approximately 40% below maximum capacity.INCREASED LIQUIDITY
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