Skip to main content August 2018 Corporate Presentation Update – Husky Energy Inc. | Shale Experts
Loading...
Pm

August 2018 Corporate Presentation Update – Husky Energy Inc.

Husky Energy Inc. · Aug 14, 2018 · 63 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 1
    Husky Energy Inc. July 2018
  2. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 2
    Value Proposition Resilient and Well Positioned to Capture Upside Production and throughput growth from a large inventory of low cost projects = returns-focused growth Returns- Focused Low and improving earnings and cash Growth…
  3. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 3
    Updated Five-Year Plan (2018-2022) Plan Remains On Track, Using Flat 60 US WTI 18F-22F Funds From Key Metrics 18F 22F CAGR1 5.5 Operations CAGR 18F-22F 6% Funds from operations (FFO)2,3 4B 5B 6% B Free cash flow (FCF)4 1B 1.4B…
  4. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 4
    Resilience to Unpredictable Commodity Prices Setting Husky Apart Resilience through: Net Debt to Trailing FFO1 (Q2 18) 4 times Strong balance sheet Integrated model 3 Growing high netback, fixed-price 2 business in Asia…
  5. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 5
    Tight Integration Largely Eliminates Differentials Setting Husky Apart Resilience through: xx Strong balance sheet Integrated model Growing high netback, fixed-price business in Asia High weighting of low sustaining capital…
  6. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 6
    Growing High Netback Business in Asia Setting Husky Apart Asia Pacific Production Growth Resilience through: 70 mboe/day 60 Strong balance sheet 50 40 Integrated model 30 20 Growing high netback, fixed-price 10 business in…
  7. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 7
    Growing Proportion of Low Sustaining Capital Projects Setting Husky Apart Total Sustaining Capital Resilience through: Downstream 3 B Upstream Strong balance sheet 2 Integrated model 1 Growing high netback, fixed-price…
  8. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 8
    Low Break Evens, And Going Lower Setting Husky Apart Resilience through: Earnings Break-Even Oil Price 44 US WTI/bbl Strong balance sheet 22F Earnings Break Even Integrated model 42 (US WTI per barrel) 37 Growing high netback,…
  9. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 9
    Setting Husky Apart Resilience through: Production Mix and Commodity Price Exposure 100% Strong balance sheet W. Canada Oil and Gas Exposed to Market Pricing 90% Offshore Liquids Receives World Oil Pricing 80% Integrated model…
  10. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 10
    ESG Performance and Reporting Measuring Performance and Improving Disclosures Economic Environment Business resilience Water use and availability Innovation and advanced Air emissions management, technology including carbon…
  11. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 11
    Two Businesses Each Has Built-in Sustainable Competitive Advantages Integrated Corridor Offshore Resource Plays Thermal Asia Pacific Downstream Atlantic Husky Energy Inc. July 2018 11
  12. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 12
    Five-Year Plan Milestones Project Execution in the Integrated Corridor and Offshore Husky Energy Inc. July 2018 12
  13. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 13
    Spending Priorities 1.…
  14. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 14
    Financial Framework Sustainable Model Through the Cycles With Free Cash Flow Upside FFO Sources and Uses at Various Oil Prices (US WTI)1 Maintain balance sheet strength 7.0 B 2022 Portfolio Invest in portfolio to: 80 WTI 6.0…
  15. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 15
    Balance Sheet Low Leverage, Ample Liquidity Illustrative 2x Net Debt to FFO Debt Capacity at US35 WTI Net debt 3.0 billion, including 2.6 billion in cash 6.0 B 4.2 billion in unused credit facilities 4.0 3.9 0.9 Total debt to…
  16. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 16
    Capex Program Drives Improving Cost Structure Lowering Operating Costs and Break-Even Oil Price New investment hurdle rate of 10% IRR at 45 US WTI and/or 2.00 per mcf AECO Investment options in both the Integrated Corridor and…
  17. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 17
    17
  18. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 18
    Integrated Corridor Optimizing the Entire Value Chain Reserves base (YE 17) 2.0 billion boe of proved & probable reserves Production of 233 mboe/day (Q2 18) 123 mbbls/day thermal bitumen 63 mbbls/day non-thermal oil and liquids…
  19. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 19
    Integrated Corridor Growing Higher Quality Production and Increasing Downstream Flexibility Heavy Oil & Bitumen Production (bbls/day) Integrated Corridor Upstream Production Profile 2018F 2022F 400 mboe/day Lloyd Thermal 77,000…
  20. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 20
    Lloyd Advantage Full Value Chain Netbacks Low cost thermal production Lloyd Value Chain (Q2 18) Low cost refining and upgrading Higher value, diverse basket of finished products1,2 Higher finished product yield (98%) Extensive…
  21. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 21
    Sunrise to Toledo One-Step Refining, No Upgrading Required Toledo high-TAN project added processing Sunrise Value Chain (Q2 18) capacity for all Sunrise crude Dilbit delivered directly to Toledo No upgrading cost, no volume lost…
  22. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 22
    Midstream Value Chain Crude Storage and Export Pipeline Capacity to U.S. Capturing Location Differentials 75,000 bbls/day capacity on existing Keystone Midstream Value Chain (Q2 18) 3.1 million barrels of storage at Hardisty…
  23. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 23
  24. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 24
    Maximizing Value From Every Barrel Downstream Maintain Downstream integration with Downstream Processing Capacity (2017-2022F) Upstream production 400 mbbls/day 54% 50% 45% 45% 45% Insulation from both location and quality…
  25. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 25
    Matching Heavy Processing to Upstream Production Heavy Oil Blend vs Downstream Processing & Pipeline Capacity Heavy oil blend matched to Downstream 320 mbbls/day heavy processing and pipeline takeaway Heavy Oil Coverage Line 280…
  26. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 26
    Flexibility of Feedstock, Product Mix and Markets Downstream Connectivity Husky Energy Inc. July 2018 26
  27. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 27
    Husky Energy Inc. July 2018
  28. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 28
    Tightly Integrated Growth Engine Heavy Oil and Oil Sands 170,000 bbls/day today, growing 40% to 240,000 bbls/day by 2022 Modular, scalable designs lowering operating costs and sustaining capital requirements Physically integrated…
  29. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 29
    Large Inventory of Low Cost Production Thermal Business Production Thermal Bitumen Production Growth (2018F-2022F) Timing of Project Capacity 225 mbbls/day (boe/day) First Oil Rush Lake 2 10,000 2018 Sunrise Phase 1,…
  30. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 30
    Improving Capital Efficiency & Operating Costs Thermal Business Lloyd Thermal Project Capital Efficiency Improvements Thermal Production Operating Costs 30 /bbl Sunrise target 28,000 -…
  31. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 31
    Deep Inventory of Projects Lloyd Thermal Growth Plan to sanction two new projects every year Future Lloyd Thermal Production 140 mbbls/day Average capital efficiency of 25,000-30,000 per flowing barrel Future Lloyd Thermal…
  32. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 32
    50,000 Barrels Per Day . . . And Growing Sunrise Energy Project 2018 year-end target of 60,000 bbls/day (gross) In The Right Neighbourhood Target production per well pair: 800-900 bbls/day 55 well pairs in Initial Development Area…
  33. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 33
    Unlocking Further Potential At Sunrise Next Steps Sunrise De-bottlenecking initiatives to create future capacity Development Leases Regulatory approvals in place for 200,000 bbls/day (gross) Targeting increased returns with…
  34. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 34
    Husky Energy Inc. July 2018
  35. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 35
    Transformation Complete Positioned for Growth Western Canada Resource Plays Production Growth Profile Competitive stand-alone business mboe/day 140 Flexible short-cycle capital spending profile 100 2014 Annual Production of 134…
  36. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 36
    Wembley-Montney Appraisal Complete, Moving to Development Wembley position within an established fairway 50 net developable sections in liquids-rich gas window Sinclair Multi-layer pad development potential First well…
  37. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 37
    Ansell Spirit River Building Towards Full Field Development 7-27 GP Development moving from Wilrich to full Spirit River Drilling to keep pace with capacity and egress 360 Spirit River potential drilling opportunities1,2 Cardium…
  38. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 38
    Minimal Exposure To AECO Market Optionality Gas Production Integration delivers value Exposed to AECO Pricing 20% Production offsets gas consumption 160 mmcf/day export capacity to U.S. markets Forward sales of gas volumes…
  39. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 39
    Husky Energy Inc. July 2018
  40. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 40
    Self-Funding, Synchronized Build-Harvest Cycles White Rose Field Liwan West White Rose BD Project Husky Energy Inc. July 2018 40
  41. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 41
  42. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 42
    Infill Wells Bridging to West White Rose Active Development Program Atlantic Production Profile 75,000 bbls/day peak production 80 mbbls/day Future Field (52,500 bbls/day net to Husky) in 2025 Extension Opportunities 70 Low…
  43. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 43
    Exploration Short, Mid and Long Cycle Projects White Rose A-24 Near-term: Near-Field Exploration Success Northwest White Rose A-24 discovery in 2018 White SeaRose FPSO Rose A-78 Encountered 85+ metre net pay thickness Mizzen…
  44. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 44
    Husky Energy Inc. July 2018
  45. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 45
    High Netback Production and FFO Stability Asia Pacific Business Delivering 60 per boe Operating Netbacks Asia Pacific Realized Gas Price High Operating Netback1 18 Cdn/mcf Cdn/bbl Cdn/bbl 100 100 15 80 80 12 Liwan Start Up BD…
  46. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 46
    Production Growth Profile Capital Efficient Developments Potential for Five-Year Asia Pacific Production Exploration Success China (Liwan 3-1, Liuhua 34-2 & 29-1) 70 mboe/day Q2 2018 production of 180 mmcf/day (3-1 & 34-2) 60…
  47. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 47
    Mid-Term Appraisal / Exploration Projects Ongoing Exploration Throughout the Region Blocks 15/33 & 16/25 China New discovery on 15/33 Hong Kong Shallow water Close proximity to FPSO Beibu Gulf Exploration and appraisal wells…
  48. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 48
    Updated Five-Year Plan (2018-2022) On Track, Using Flat 60 US WTI Prices 18F-22F Key Metrics 18F 22F CAGR Production and throughput growth from Funds from operations (FFO) 4B 5B 6% a large inventory of low cost projects =…
  49. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 49
    Husky Energy Inc. July 2018
  50. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 50
    2018 Guidance Summary Last Updated April 26, 2018 Upstream Capital Expenditures1 Production Oil and Liquids ( millions) (mbbls/day) Corporate Costs ( millions) Upstream Operating Costs (/bbl) 5 Lloyd & Tucker thermal bitumen 835 -…
  51. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 51
    Price Planning Assumptions 2017 vs. 2018 Five-Year Plan / Stress Case Benchmark Prices 2017 Base Case 2018 2019 2020 2021 WTI (US bbl) 55.00 60.00 60.00 60.00 Chicago 3:2:1 (/bbl US) 16.00 16.00 16.00 16.00 Heavy crude differential…
  52. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 52
    Price Planning Assumptions Other Cases Benchmark Prices 70 Flat Case 2018 2019 2020 2021 2022 WTI (US bbl) 70.00 70.00 70.00 70.00 70.00 Chicago 3:2:1 (/bbl US) 16.00 16.00 16.00 16.00 16.00 Heavy Crude Differential (/bbl US)…
  53. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 53
    Lloyd Advantage Full Value Chain Netback Low cost thermal production Low cost refining and upgrading Higher value, more diverse basket of finished products Higher finished product yield (98%) Extensive local market demand Lloyd…
  54. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 54
    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…
  55. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 55
    Physically Connected Assets Across N. America 400,000 barrels per day Upgrading and Refining Capacity Lloyd Complex U.S. Refining & Marketing Pipelines & Storage 110,000 bbls/day processing capacity 280,000 bbls/day processing…
  56. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 56
    Configured to Benefit From IMO 2020 Rule Flexibility to Adjust to Market Conditions Market Impact Husky Ability to Respond Decrease in global demand for bunker fuel Refining assets produce a high percentage of Increase in global…
  57. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 57
    Innovation and Technology Unlocking Further Potential Diluent Reduction Pilot Geological Modelling Geohazard Detection Sea-State and Ice Drift Prediction Production Optimization Subsurface Remote Analysis Machine Learning…
  58. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 58
  59. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 59
    Advisories with respect to the Company's Downstream operating segment: forecast throughput capacity (total and broken down into heavy oil processing and light oil processing) for 2018 and 2022; forecast light oil processing capacity,…
  60. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 60
    Advisories Net debt is a non-GAAP measure that equals total debt less cash and cash equivalents. Total debt is calculated as long-term debt, long-term debt due within one year and short-term debt. Net debt is considered to be a useful…
  61. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 61
    Advisories Sustaining capital is the additional development capital that is required by the business to maintain production and operations at existing levels. Development capital includes the cost to drill, complete, equip and tie-in…
  62. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 62
    Advisories The Company uses the term barrels of oil equivalent (or boe) and thousand cubic feet of gas equivalent (or mcfe), which are consistent with other oil and gas companies disclosures. Boe amounts have been calculated by using…
  63. August 2018 Corporate Presentation Update – Husky Energy Inc. – slide 63
    Advisories Note to U.S. Readers The Company reports its reserves information in accordance with Canadian practices and specifically in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities,…

From the store

Browse maps, data & reports in the Shale Experts store