- Capital spending $300 million less than previously forecast
- Record thermal production in Q4 2018; Full rates achieved at Sunrise, Tucker and Rush Lake 2
Husky Energy plans to spend approx. $3.4 billion on its capital expenditure program in 2019 as it continues to invest in a deep portfolio of higher-margin, longer-life projects. This is about $300 million less than forecast at the Company’s Investor Day in May 2018, and includes capital spending reductions resulting from Alberta’s mandated oil production cuts.
The Company retains further flexibility to reduce capital spending depending on market conditions.
'Husky continues to attain global pricing for the vast majority of our production. Our low-cost integrated model in North America and high-margin offshore business shield us from the commodity discounts realized by many of our peers,' said CEO Rob Peabody. 'We built this robust business model to capture value through commodity cycles, whether it comes from refining margins in the Downstream or from improved prices in the Upstream.
'Husky’s portfolio is designed to manage risk effectively and we are disappointed with government intervention given the market’s natural ability to remove uneconomic barrels. We are focused on curtailing production in the most efficient and cost-effective way possible.'
Including estimated Alberta Government curtailment requirements for the full year, and reduced capital expenditures, Husky’s average annual 2019 production is expected to be approx. 300,000 barrels of oil equivalent per day (boe/day). This does not include any production associated with Husky’s proposed acquisition of MEG Energy.
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Source: Husky Energy