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Investor Day – Husky Energy Inc.

Husky Energy Inc. · May 10, 2017 · 125 slides

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Slides

  1. Investor Day – Husky Energy Inc. – slide 1
    Husky Energy Inc. May 2017
  2. Investor Day – Husky Energy Inc. – slide 2
    Agenda Strategy How It Comes Together Rob Peabody, CEO Financial Framework Jon McKenzie, CFO Break Portfolio Integrated Corridor Rob Symonds, COO Thermal Andrew Dahlin, SVP, Heavy Oil Downstream Jeffrey Rinker, VP…
  3. Investor Day – Husky Energy Inc. – slide 3
    Rob Peabody President & Chief Executive Officer
  4. Investor Day – Husky Energy Inc. – slide 4
    Five-Year Plan Highlights 17-21F Key Metrics 17 21F CAGR Production (mboe/day) 320 335 4.8% 390 400 Funds from operations (FFO)1 3.3B 9% 4.8B2 Returns- Free cash flow (FCF)1 750M 12% 1.2B2 Focused Upstream operating cost/bbl…
  5. Investor Day – Husky Energy Inc. – slide 5
    Two Businesses Integrated Corridor Offshore Resource Plays Thermal Asia Pacific Atlantic Downstream Husky Energy Inc. May 2017 5
  6. Investor Day – Husky Energy Inc. – slide 6
    Integrated Corridor Five-Year Forecast (17- 21) Production CAGR of 5.0% Funds from operations CAGR of 11% Free cash flow CAGR of 9% Resource Plays Unique, Physically-Integrated Assets Thermal Mitigates location and product…
  7. Investor Day – Husky Energy Inc. – slide 7
    Integrated Corridor Past 12 Months Thermal Growth Ramped up three latest Lloyd thermal bitumen projects to 30,000 bbls/day (17% above nameplate) Resource Advanced construction of Rush Lake 2 Plays (10,000 bbls/day thermal…
  8. Investor Day – Husky Energy Inc. – slide 8
    Offshore Asia Pacific Next Five Years FFO of 5 billion and FCF of 4.2 billion 50% production growth to 60,000 boe/day in 21 Atlantic Asia 52.5 mbbls/day (net) West White Rose project Pacific Value Drivers Extensive…
  9. Investor Day – Husky Energy Inc. – slide 9
    Offshore Past 12 Months Asia Pacific Completion of 22 line at Liwan Gas Project, triggering next 20-year phase of gas sales contract Commissioning of BD Project in Indonesia Progressed four additional Madura Strait fields Asia…
  10. Investor Day – Husky Energy Inc. – slide 10
    Two Businesses . . . Integrated Corridor Upstream Production Growth 300 mboe/d 250 200 '17F '18F '19F '20F '21F Offshore Production Growth 100 mboe/d 80 60 '17F '18F '19F '20F '21F Husky Energy Inc. May 2017…
  11. Investor Day – Husky Energy Inc. – slide 11
    Combined Production Growth Combined Integrated Corridor and Offshore Production Growth 400 mboe/d 300 200 100 0 '17F '18F '19F '20F '21F Integrated Corridor Production Offshore Production Husky Energy Inc. May…
  12. Investor Day – Husky Energy Inc. – slide 12
    Two Businesses . . . Integrated Corridor Free Cash Flow Growth 5.0 B 2.5 0.0 -2.5 -5.0 '17F '18F '19F '20F '21F 1 1 Integrated Corridor FFO Corridor Capital Spending Cumulative Free Cash Flow Offshore Free Cash Flow…
  13. Investor Day – Husky Energy Inc. – slide 13
    Combined Fund From Ops and Free Cash Flow Combined Integrated Corridor and Offshore Free Cash Flow Growth 6 B 5 4 3 2 1 0 -1 -2 -3 -4 '17F '18F '19F '20F '21F Corridor Offshore Integrated Offshore FFO…
  14. Investor Day – Husky Energy Inc. – slide 14
    How it Comes Together Returns- Focused Growth Improving Cost Structure Asia and Margin Pacific Capture Re-Investment and Dividend Growing Funds Flow and Free Cash Husky Energy Inc. May 2017 14
  15. Investor Day – Husky Energy Inc. – slide 15
    Cycle Short to Medium- Spending Capital Period Over Plan Husky Energy Inc. May 2017 2/3 Of Planned 16B Capital Spend 20 40 60 80 0 Atlantic Infill Well (2) Atlantic Infill Well (2) Atlantic Infill Well (2)…
  16. Investor Day – Husky Energy Inc. – slide 16
    Improving Cost Structure Break-Evens Sustaining Capital vs. Production 50 US WTI 3.0 B mboe/d 400 45 Sustaining Capital 17-21F 1.9B 40 1.5 300 Annual Average Upstream 35 Sustaining Cost/Boe 11 17-21F Annual Average…
  17. Investor Day – Husky Energy Inc. – slide 17
    Expanding Funds From Ops and Free Cash Flow 5 B 4 3 FFO CAGR 17-21F 9% 2 1 Funds From Operations 0 '17F '18F '19F '20F '21F Husky Energy Inc. May 2017 17
  18. Investor Day – Husky Energy Inc. – slide 18
    Expanding Funds From Ops and Free Cash Flow 5 B 4 Free Cash Flow 3 FFO CAGR 17-21F 9% 2 FCF 1 Capital Spending CAGR 17-21F 12% 0 '17F '18F '19F '20F '21F Husky Energy Inc. May 2017 18
  19. Investor Day – Husky Energy Inc. – slide 19
    Re-Investment and Dividend Excess FCF to Fund Strategic Growth Opportunities, Returns to Shareholders 5 B 4 Free Cash Flow Capital 3 Spending Program 3.3B 17-21F Annual Average 2 1 Capital Spending 0 '17F '18F…
  20. Investor Day – Husky Energy Inc. – slide 20
    Five-Year Plan Milestones Project Execution Focus Major Projects Production 2017 2018 2019 2020 2021 2022 INTEGRATED CORRIDOR Thermal Tucker Lake (to 30,000 bbls/d, YE 2018) 7,000 bbls/d Ramp Up Period Rush Lake 2 10,000 bbls/d Dee…
  21. Investor Day – Husky Energy Inc. – slide 21
    Husky Value Proposition 17-21F Key Metrics 17F 21F CAGR Returns-focused growth Production (mboe/day) 320 335 4.8% 390 400 Funds from operations (FFO) 3.3B 9% 4.8B Large inventory of low cost projects Free cash flow (FCF) 750M 12%…
  22. Investor Day – Husky Energy Inc. – slide 22
    Jon McKenzie Chief Financial Officer
  23. Investor Day – Husky Energy Inc. – slide 23
    Financial Priorities Invest in portfolio to generate returns and improve break-evens Generate free cash flow Maintain balance sheet strength Return cash to shareholders Husky Energy Inc. May 2017 3
  24. Investor Day – Husky Energy Inc. – slide 24
    Sustaining Capital Sustaining Capital 3 B mboe/d 400 Corridor Sustaining Capital 1.5B 2 300 17-21F Annual Average 1 200 Offshore Sustaining Capital 0.4B 17-21F Annual Average 0 100 '16 '17F '18F '19F '20F '21F…
  25. Investor Day – Husky Energy Inc. – slide 25
    Financial Framework Returns- Focused Growth Improving Cost Structure and Margin Capture Re-Investment and Dividend Growing Funds Flow and Free Cash Husky Energy Inc. May 2017 25
  26. Investor Day – Husky Energy Inc. – slide 26
    Cycle Medium Short to Spending Capital Period Over Plan Husky Energy Inc. May 2017 2/3 Of Planned 16B Capital Spend 20 40 60 80 0 Atlantic Infill Well (2) Atlantic Infill Well (2) Atlantic Infill Well (2)…
  27. Investor Day – Husky Energy Inc. – slide 27
    Cycle Medium Short to Spending Capital Period Over Plan Husky Energy Inc. May 2017 2/3 Of Planned 16B Capital Spend 20 40 60 80 0 Atlantic Infill Well (2) Atlantic Infill Well (2) Atlantic Infill Well (2)…
  28. Investor Day – Husky Energy Inc. – slide 28
    Capital Investment Lowers Cost Structure Costs Down Netbacks And Margins Up 23% Upstream Upstream 15 /boe Operating 17% Operating Netbacks1 Costs 17 -21F 17 -21F 30 /boe 20 13 10 '17F '18F '19F '20F '21F 2017…
  29. Investor Day – Husky Energy Inc. – slide 29
    Capital Investment Lowers Cost Structure Costs Down Netbacks And Margins Up Average Cash Average Upstream Break-Even 17-21F 32 Sustaining Cost 17-21F 11 50 US WTI (US WTI) 3.0 B Per Boe mboe/d 400 45 40 35 30 1.5…
  30. Investor Day – Husky Energy Inc. – slide 30
    Building Our Financial Plan Price Planning Assumptions Benchmark Prices 2017 2018 2019 2020 2021 WTI (bbl US) 50.00 55.00 60.00 60.00 60.00 Chicago 3:2:1 (/bbl US) 16.00 16.00 16.00 16.00 16.00 Heavy crude differential (/bbl US)…
  31. Investor Day – Husky Energy Inc. – slide 31
    Building Our Financial Plan Growing Funds From Operations Covers All Spending Priorities Net Debt 1. Maintain balance sheet strength 8 B 6 2. Cover sustaining capital requirements 4 2 3. Invest in portfolio and pay a…
  32. Investor Day – Husky Energy Inc. – slide 32
    Building Our Financial Plan Growing Funds From Operations Covers All Spending Priorities FFO and Cash Capital Spending 1. Maintain balance sheet strength 6 B 5 2. Cover sustaining capital requirements Free Cash Flow (After…
  33. Investor Day – Husky Energy Inc. – slide 33
    Capital Plan Fully Funded At 50 US WTI Flat Demonstrating Improving Asset Mix 30% FFO Generation at Flat 50 US WTI 17-21F 5 B 4 3 2 1 0 '17F '18F '19F '20F '21F Integrated Corridor FFO Offshore FFO Cash…
  34. Investor Day – Husky Energy Inc. – slide 34
    Today vs. 2021: What We Could Do at 35 US WTI As Assets Improve, Earnings Profile and Debt Capacity Rise Todays Portfolio 2021 Portfolio 35 US WTI 35 US WTI 12 US Chicago 3-2-1 Crack 12 US Chicago 3-2-1…
  35. Investor Day – Husky Energy Inc. – slide 35
    Financial Framework Summary 17-21 Funds from operations CAGR of 9% 17-21 Free cash flow CAGR of 12% Returns- Invest in portfolio to generate returns and improve Focused break-evens Growth Upstream op costs reduced by 17%…
  36. Investor Day – Husky Energy Inc. – slide 36
    Husky Energy Inc. May 2017
  37. Investor Day – Husky Energy Inc. – slide 37
    Strong Focus on Safety and ESG Safety Performance ESG Performance and Ratings Results Disclosure Critical & Serious Incidents 6.0 per 200K hours worked 4.0 2.0 0.0 '10 '11 '12 '13 '14 '15 '16 Total Recordable Incident Rate…
  38. Investor Day – Husky Energy Inc. – slide 38
    Rob Symonds Chief Operating Officer
  39. Investor Day – Husky Energy Inc. – slide 39
    Midstream Momentum A Growing Business Husky Midstream Limited Partnership 35% working interest and operatorship 1,900 kilometres of pipeline Four gathering systems, one mainline 4.1 million barrels storage capacity Secured…
  40. Investor Day – Husky Energy Inc. – slide 40
    Unique, Physically-Integrated Assets Five-Year Forecast (17- 21) Production CAGR of 5.0% Funds from operations CAGR of 11% Resource Free cash flow CAGR of 9% Plays Upstream Production (Q1 17) 259 mboe/day (121 mbbls/day thermal…
  41. Investor Day – Husky Energy Inc. – slide 41
    Opportunities Along the Corridor Integrated Thermal Corridor Projects Integrated Corridor Upstream Production Profile Net Peak Thermal Business Production Project Capital After-Tax IRR 1 300 mboe/d To First Production (MM)…
  42. Investor Day – Husky Energy Inc. – slide 42
    Cash Profile and Value Drivers Integrated Corridor Free Cash Flow Growth Next Five Years 5 B 16.5 billion FFO 4 12 billion capital spending 3 0.5 billion/year average in Downstream 2 1.0 billion/year average in Upstream 0.9…
  43. Investor Day – Husky Energy Inc. – slide 43
    The Lloyd Advantage Low cost thermal production Low cost refining and upgrading Higher value, more diverse basket of finished products1,2 Higher finished product yield (98%) Extensive local market demand Lloyd Value Chain…
  44. Investor Day – Husky Energy Inc. – slide 44
    Sunrise to Toledo One-Step Refining, No Upgrading Required Toledo high-TAN project added processing capacity for all Sunrise crude Dilbit delivered directly to Toledo no upgrading cost, no volume lost High finished product yield…
  45. Investor Day – Husky Energy Inc. – slide 45
    Strengthening the Corridor Heavy Oil & Bitumen Production (boe/day) Q1 '17 2021F Lloyd thermal 80,400 125,000 Tucker 22,300 30,000 Sunrise 17,900 37,000 Resource Plays Non-thermal (heavy oil) 52,600 29,000 Total 173,200 221,000…
  46. Investor Day – Husky Energy Inc. – slide 46
    Driving Down Costs and Improving Margins Upstream Corridor Operating Costs 17 - 21F 19% Average Upstream Corridor Sustaining Capital 17 - 21F 10 Per Boe Downstream Margins 17 - 21F 12% 16 /bbl 3.0 mboe/d 325 18 B /bbl…
  47. Investor Day – Husky Energy Inc. – slide 47
    Integrated Corridor Five-Year Forecast (17- 21) Integrated Corridor Free Cash Flow Growth Production CAGR of 5.0% 5 B FFO CAGR of 11% 4 FCF CAGR of 9% Upstream Production (Q1 17) 3 259 mboe/day (121 mbbls/day thermal bitumen)…
  48. Investor Day – Husky Energy Inc. – slide 48
    Andrew Dahlin SVP, Heavy Oil
  49. Investor Day – Husky Energy Inc. – slide 49
    Thermal Growth Current thermal bitumen production of 121,000 bbls/day 50% thermal bitumen production growth over plan Increasing margins driving free cash flow Modular, scalable designs Low sustaining capital requirements Long…
  50. Investor Day – Husky Energy Inc. – slide 50
    Thermal Growth Sustained Low Cost Production Integrated Corridor Thermal Projects Net Peak Thermal Bitumen Production Growth Profile Thermal Business Project Capex 1 After-Tax IRR Production (mboe/d) First Production (MM) 200…
  51. Investor Day – Husky Energy Inc. – slide 51
    Lloydminster Block Unmatched Land and Infrastructure Position Husky Land 2.2 million net acres Thermal Plant Active Development Combination of fee-simple and Lloyd Complex Crown lands enhance economics Detailed understanding of…
  52. Investor Day – Husky Energy Inc. – slide 52
    Typical Lloyd Thermal Economics1 10,000 bbls/day Nameplate Project Project Characteristics Peak production over nameplate 25-35% 200 mm mm 1,000 Build costs (Million)2 350 Operating cost (/bbl)3 7-8 100 500 Royalty rate 7% Crude…
  53. Investor Day – Husky Energy Inc. – slide 53
    Tucker Growth Next Five Years 400 mm mm 1,200 Reaching capacity of 30,000 bbls/day in 18 Op…
  54. Investor Day – Husky Energy Inc. – slide 54
    Sunrise Steady Ramp-up Monthly Production Gross thermal bitumen production currently 45 mbbls/d at 40,000 bbls/day Production from original 55 well pairs Fort Mac averaging 725 /bbls/day, expected to Wildfires achieve 800-900…
  55. Investor Day – Husky Energy Inc. – slide 55
    Structural Cost Savings Capital Efficiency Improvements Driving Profitability Lloyd Thermal Cost Improvements Thermal Operating Costs 30 /bbl 28,000 - 30,000 - 12-15 26,600 25,000 20 9-11 8-9 10 0 On Stream Pre-2014 On…
  56. Investor Day – Husky Energy Inc. – slide 56
    Improving Capital Efficiency Reducing Pad Footprint and Costs Total costs reduced 40% Total Lowered well pad costs Pad Size 49% Reduced overall environmental footprint: 49% smaller surface area 30% reduced drilling time…
  57. Investor Day – Husky Energy Inc. – slide 57
    Thermal Business Free Cash Flow Next Five Years Thermal Business Free Cash Flow Growth 3.0 B Annual FFO increases from 1.2 billion in 17 to 2.1 billion in 21 5.5 billion in capital spending over five years 2.0 Average 0.4 billion…
  58. Investor Day – Husky Energy Inc. – slide 58
    Heavy Oil/Thermal Technology Increases production and oil recovery Lowers cost Reduces environmental footprint Husky Energy Inc. May 2017 58
  59. Investor Day – Husky Energy Inc. – slide 59
    Thermal Technology Application Implemented, Piloting and Developing Husky Diluent Reduction (HDR) Synthetic crude oil is heated and mixed with bitumen and reacted, resulting in a pipeline-ready stable crude blend Potential to…
  60. Investor Day – Husky Energy Inc. – slide 60
    Thermal Growth Deep Portfolio with Near and Long-Term Growth Thermal Business Free Cash Flow Growth Current thermal bitumen production 3.0 B of 121,000 bbls/day 50% thermal bitumen production growth over plan 1.5 Increasing…
  61. Investor Day – Husky Energy Inc. – slide 61
    Jeff Rinker VP, Downstream Value Chain
  62. Investor Day – Husky Energy Inc. – slide 62
    Downstream Maximizing Value From Every Barrel of Production Physically integrated assets provide optionality Mitigation of light-heavy differential risk Total throughput capacity of 350,000 bbls/day, of which 160,000 bbls/day is…
  63. Investor Day – Husky Energy Inc. – slide 63
    Downstream Assets Lloyd Complex U.S. Refining & Marketing Pipelines & Storage 110,000 bbls/day processing capacity 230,000 bbls/day processing capacity Five million barrels tank storage Physically connected to Lloyd and Product…
  64. Investor Day – Husky Energy Inc. – slide 64
    Investments In Heavy Oil Capacity Growth in Processing Capacity Keeping Pace With Heavy Oil Production Growth Remaining Full Cycle Project Project Capital Net Capacity After-Tax IRR1 First Throughput (MM) Plan Pricing Bitumen and…
  65. Investor Day – Husky Energy Inc. – slide 65
    Brownfield Projects Deliver Solid Economics Crude Oil Flexibility Project (Lima) Asphalt Capacity Expansion Increases heavy processing capacity Construction within the Lloyd Complex to 40,000 bbls/day by 19 Expected capital cost of…
  66. Investor Day – Husky Energy Inc. – slide 66
    Margin Economics Improving Feedstock Options Increased Margins Heavier Feedstock Mix Margin Capture Heavy oil feedstock volume increase 35 percent 2 US per barrel lower feedstock costs 400 mbbls/d 350 300 42% 250 55%…
  67. Investor Day – Husky Energy Inc. – slide 67
    Increasing Margins and Free Cash Flow Focus on Feedstock Flexibility and Active Asset Management Next Five Years Downstream Free Cash Flow Growth 3 B 7 billion in FFO 4 billion in capital spending 2 3 billion in free cash flow…
  68. Investor Day – Husky Energy Inc. – slide 68
    Downstream Connectivity Reservoir to Refined Products Husky Energy Inc. May 2017 68
  69. Investor Day – Husky Energy Inc. – slide 69
    Margin Capture Outside the Fenceline Feedstock optionality Potential Incremental Crude selection Margin From Other +0.50-1.00 Downstream Initiatives Per Barrel Customized feedstock quality Product optionality Logistics…
  70. Investor Day – Husky Energy Inc. – slide 70
    Generating Value Bitumen & Heavy Oil Growth Heavy Oil Processing Physically integrated assets provide optionality 300 mbbls/d 250 Mitigation of light-heavy differential risk 200 Total throughput capacity of 350,000 bbls/day, 150…
  71. Investor Day – Husky Energy Inc. – slide 71
    Gerald Alexander SVP, Western Canada Production
  72. Investor Day – Husky Energy Inc. – slide 72
    Returning to Growth Rejuvenated Asset Base Production Growth Profile Short-term investment cycle provides flexibility 600 mmcfe/d Land positions in right neighbourhood 550 500 Running room with 450+ potential drilling…
  73. Investor Day – Husky Energy Inc. – slide 73
    Reshaped Portfolio More Focused and Capital Efficient Business Western Canada Transformation 15 Current Change Annual Sustaining Capital Requirements Net wellbore count 18,200 8,000 55% 1.2 B mmcfe/d 1,200 ARO provision - billions…
  74. Investor Day – Husky Energy Inc. – slide 74
    Low Cost Production Growth 3.00 /mcfe Improving Operating 35% Production Growth Profile 600 mmcfe/d Costs 2.00 550 500 1.00 450 0.00 400 Resource Growth '17F '18F '19F '20F '21F 350 Current Resource Improving 300…
  75. Investor Day – Husky Energy Inc. – slide 75
    Rainbow Lake NGL Low Sustaining Capital Legacy play to provide 15+ years of stable FCF Over FFO and FCF Next 10 570M Recoverable Reserves 128 Years mmboe1 Minimal capital required Operating costs to be reduced to Production…
  76. Investor Day – Husky Energy Inc. – slide 76
    Short-Cycle Investment Opportunities Targeting High Impact Wells Across The Portfolio Type Well Land Holdings Capital Type Well Project EUR (per well) After-Tax IRR1 (Bcf) Ansell Wilrich 5M 6 25% (160 net sections of land)…
  77. Investor Day – Husky Energy Inc. – slide 77
    Wilrich Play Wilrich Acreage Land holdings: 190+ sections Current production: 20,000 boe/day Spirit River multi-formation stack Focus zone: Wilrich Wilrich production (50% of base) 16 net wells to be drilled in 17 450+ potential…
  78. Investor Day – Husky Energy Inc. – slide 78
    Ansell Drilling Efficiencies Continued Cost Improvement and Well Deliverability Well Costs 50% Drilling Days 60% Ansell Wilrich-Type Well Production Profile 8,000 mcf/d 12 millions days 60 7,000 8 40 6,000 4 20 5,000 0…
  79. Investor Day – Husky Energy Inc. – slide 79
    Montney Liquids-Rich and Oil Resource Play Significant Alberta Position Next to Proven Success Two focus areas, 150+ net sections Montney Acreage Wembley area: 100 net sections Liquids-rich gas window Adjacent to top-tier…
  80. Investor Day – Husky Energy Inc. – slide 80
    Reshaped Portfolio Production Growth Profile Short-term investment cycle provides flexibility 600 mmcfe/d Land positions in right neighbourhood 550 500 Running room with 450+ potential drilling opportunities (Wilrich) 450 400…
  81. Investor Day – Husky Energy Inc. – slide 81
  82. Investor Day – Husky Energy Inc. – slide 82
    Robert Hinkel Chief Operating Officer, Asia Pacific
  83. Investor Day – Husky Energy Inc. – slide 83
    Asia Pacific Established Operator in Region High operating netback production Asia-Pac FCF 17 - 21F 4.2B Free Cash Flow Growth 64.43 per boe operating netback (Q1 17) 1.5 B B 4.5 Fixed-price contracts provides FFO stability…
  84. Investor Day – Husky Energy Inc. – slide 84
    Low Volatility Growth Remaining After-Tax Project Capital Net Peak IRR1 Five-Year Production Profile Project Production First Production Plan Pricing (US) Assumptions 450 mmcfe/d Production Growth MDA-MBH, 160M 60 mmcf/day 16%…
  85. Investor Day – Husky Energy Inc. – slide 85
    Liwan Gas Project High Operating Netbacks Independent of Oil Price2 120 US bbl Brent Cdn/boe 120 Liwan 3-1 and Liuhua 34-2 100 100 Take-or-pay contract 150-165 mmcf/day (net) 80 80 60 60 13.31 per mcf gas realized in Q1 17 40 40…
  86. Investor Day – Husky Energy Inc. – slide 86
    Madura Strait Growth Profile Series of Stable, Fixed-Price Production Indonesia Production Profile Potential projects at Madura to offset 120 mmcfe/d future declines BD Project 100 80 60 MDA-MBH, MDK 40 20 0 '17F…
  87. Investor Day – Husky Energy Inc. – slide 87
    BD Project Project currently being commissioned 7 US/mmbtu fixed-price gas contract in place 40 mmcf/day gas, 2,400 bbls/day liquids (net) Direct subsea gas pipeline to shore FPSO for liquids processing Husky-CNOOC Madura (HCML)…
  88. Investor Day – Husky Energy Inc. – slide 88
    Mid-Term Appraisal / Exploration Projects Taiwan Block 15/33 Shallow water block Mainland China Hong Kong Close proximity to FPSO Exploration well and appraisal well (17-18) Block 16/25 Shallow water block Liwan Gas Close…
  89. Investor Day – Husky Energy Inc. – slide 89
    Generating Value Free Cash Flow Growth 1.50 B B 4.50 4.2 billion in FCF over five-year plan High operating netback production 1.00 3.00 Fixed price contracts provides FFO stability 0.50 1.50 64.43 per boe operating netback (Q1…
  90. Investor Day – Husky Energy Inc. – slide 90
    Malcolm Malcolm MacLean Maclean SVP, Atlantic Region
  91. Investor Day – Husky Energy Inc. – slide 91
    Proven Track Record Long history of successful operations in region High operating netback production 44 per barrel operating netback (Q1 17) Production receives Brent+…
  92. Investor Day – Husky Energy Inc. – slide 92
    Next Stage of Growth Short, Mid and Long Cycle Projects Project Net Peak After-Tax IRR1 Project Capital Plan Pricing To First Production Production Assumptions Atlantic Production Profile 80 mbbls/d SWRX and 70M 4,500 bbls/day…
  93. Investor Day – Husky Energy Inc. – slide 93
    West White Rose First Oil in 22 West White Rose Cash Flow Profile Improvement of capital efficiency by 30% 2 B Immediately earnings accretive Utilizes existing infrastructure 1 Economics Peak gross production 75,000 bbls/day…
  94. Investor Day – Husky Energy Inc. – slide 94
    Exploration Near-term: Near-Field Exploration Northwest White Rose discovery Mizzen Encountered 100+ metre light oil column Harpoon Potential tie-back to WWR WHP Bay du Nord Baccalieu Newly acquired exploration acreage Bay de…
  95. Investor Day – Husky Energy Inc. – slide 95
  96. Investor Day – Husky Energy Inc. – slide 96
    Offshore Business Summary Asia Pacific and Atlantic Offshore Free Cash Flow Growth 3 B 74,600 boe/day combined production (Q1 17) 2 Average operating costs of 10.57/boe (Q1 17) Average operating netbacks of 53.79/boe (Q1 17) 1…
  97. Investor Day – Husky Energy Inc. – slide 97
    Husky Energy Inc. May 2017
  98. Investor Day – Husky Energy Inc. – slide 98
    Husky Value Proposition 17-21F Key Metrics 17F 21F CAGR Returns-focused growth Production (mboe/d) 320 335 4.8% 390 400 Funds from operations (FFO) 3.3B 9% 4.8B Large inventory of low cost projects Free cash flow (FCF) 750M 12%…
  99. Investor Day – Husky Energy Inc. – slide 99
    Husky Energy Inc. May 2017
  100. Investor Day – Husky Energy Inc. – slide 100
    Advisories operating performance by business in the stated period. Funds from operations equals cash flow operating activities plus items not affecting cash, which include settlement of asset retirement obligations, deferred revenue,…

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