Husky Sells $1.7 Billion in Assets

Husky Energy is selling 65% of its ownership interest in some midstream assets in the Lloydminster region of Alberta and Saskatchewan for $1.7 billion in cash.

Husky says that after the sale to Cheung Kong Infrastructure Holdings and Power Assets Holdings it will retain a 35% interest in the assets and remain the operator.

The assets include about 1,900 kilometres of pipeline in the Lloydminster region, 4.1 million barrels of oil storage capacity at Hardisty and Lloydminster, and other ancillary assets.

Husky, one of Canada’s largest integrated oil companies, said a new limited partnership is to be formed with Power Assets holding a 48.75% interest, Husky with its 35% and Cheung Kong Infrastructure with a 16.25% interest.

The announcement came as the company reported its net loss soared to $458 million or 47 cents per diluted share in the first quarter compared with a loss of $69 million or nine cents per share in same prior-year period.

Factors cited by the company included a $50-million after tax related to its hedging program and an income tax expense of $75 million related to prior years.

Husky says its new partners are aligned with expanding its heavy oil business.