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Investor Day – Husky Energy Inc.

Husky Energy Inc. · May 28, 2019 · 126 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. Investor Day – Husky Energy Inc. – slide 1
  2. Investor Day – Husky Energy Inc. – slide 2
  3. Investor Day – Husky Energy Inc. – slide 3
  4. Investor Day – Husky Energy Inc. – slide 4
    Competitively Advantaged Business Model 1, 2, 3) See Slide Notes and Advisories Atlantic ? High-netback production ? Global pricing ? Production growth Asia Pacific ? Attractive, long-term contracts ? Fast-growing market…
  5. Investor Day – Husky Energy Inc. – slide 5
    Integrated Corridor – Manufacturing Process Maximizing Full Value Chain Margin Capture Sales Opportunities Purchase Opportunities
  6. Investor Day – Husky Energy Inc. – slide 6
    Growing Demand For Integrated Corridor Products • Husky is well-positioned as a growth business in a growing market • Demand1 is being led by aviation, petrochemicals, global population and GDP growth in the developing world 1)…
  7. Investor Day – Husky Energy Inc. – slide 7
    Maximizing Full Value Chain Margin Capture Increasing Revenue • Improving uptime and reliability • Upstream production growth • Refining throughput capacity growth with increased heavy oil processing • Expanding end-user markets for…
  8. Investor Day – Husky Energy Inc. – slide 8
    Maximizing Full Value Chain Margin Capture: Example Integrated Operating Margin (55%) $0.95B $0.7B In Both Cases: ~$84 CAD Brent Prices $B Infrastructure & Marketing Infrastructure & Marketing Infrastructure & Marketing 1)…
  9. Investor Day – Husky Energy Inc. – slide 9
    Offshore Business Forecast Demand Global Oil Demand2 0 20 40 60 80 100 120 140 160 2010 2015 2020 2025 2030 2035 2040 China 1, 2) See Slide Notes and Advisories Asia Gas Demand1
  10. Investor Day – Husky Energy Inc. – slide 10
    Fixed-Price Asia Gas Complemented By Oil Price Torque 20 40 60 80 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 \'15 \'16 \'17 \'18 \'19 Atlantic Realized Price Asia Realized Price ($/boe) Brent $Cdn/boe Offshore Oil &…
  11. Investor Day – Husky Energy Inc. – slide 11
    Strong Operating Margin Generator (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2013 2014 2015 2016 2017 2018 Asia Pacific (excl. Madura) Atlantic 0 10 20 30 40 50 60 70 80 90 2013 2014 2015 2016 2017…
  12. Investor Day – Husky Energy Inc. – slide 12
    Improving Performance 0 10 20 30 40 50 60 Husky Sustaining Capex Sustaining + Dividend Cash Flow Break-Even2 WTI Required to Fund Sustaining Capex and Dividend (2019F, US$/boe) Source: BMO Capital Markets research. Peers:…
  13. Investor Day – Husky Energy Inc. – slide 13
    Deep Portfolio • Added 279 mmboe of proved reserves in 2018 • 260% proved reserves replacement ratio1 • Proved reserves of 1.5 mmboe (before royalties) • Probable reserves of 1.1 mmboe (before royalties) 1) See Slide * Husky Working…
  14. Investor Day – Husky Energy Inc. – slide 14
    Business Plan Update – What’s New? Strategic • Implementation of High Reliability Organization principles • Canadian retail and commercial fuels business sale process • Prince George Refinery sale process • Downstream business…
  15. Investor Day – Husky Energy Inc. – slide 15
    Free Cash Flow Of $8.7 Billion Over Next Five Years 0 100 200 300 400 500 \'19F \'20F \'21F \'22F \'23F \'18-\'22 Plan \'19-\'23 Plan Production Quotas mboe/day $B 1, 2, 3, 4, 5) See Slide Notes and Advisories Free Cash…
  16. Investor Day – Husky Energy Inc. – slide 16
    Husky Energy Inc. 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Revenue net of royalties, less purchases of crude oil Costs & Operating Margin Revenue net of royalties, less purchases of crude oil Costs & Operating Margin…
  17. Investor Day – Husky Energy Inc. – slide 17
    Offshore Business Outlook 0 20 40 60 80 100 120 140 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F Asia Pacific Atlantic Production mboe/day 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 (0.5) 0.0 0.5 1.0 1.5 2.0 2.5…
  18. Investor Day – Husky Energy Inc. – slide 18
    Strong Free Cash Flow Growth 0 1 2 3 4 5 6 7 2019F 2020F 2021F 2022F 2023F Sustaining Capital Free Cash Flow $0.8B FCF Dividend1 Growth Capital $1.0B FCF $1.8B FCF $2.1B FCF $3.0B FCF Cumulative Free Cash Flow…
  19. Investor Day – Husky Energy Inc. – slide 19
    Delivering Our Plan • Safe and reliable operations • Production and throughput growth from a large inventory of higher margin projects = returns-focused growth • Improving earnings and cash break-evens • Strong growth in funds from…
  20. Investor Day – Husky Energy Inc. – slide 20
  21. Investor Day – Husky Energy Inc. – slide 21
    Delivering Our Plan • Safe and reliable operations • Production and throughput growth from a large inventory of higher margin projects = returns-focused growth • Improving earnings and cash break-evens • Strong growth in funds from…
  22. Investor Day – Husky Energy Inc. – slide 22
    Building A High Reliability Organization (HRO) Safety & Operations Integrity HRO Principles & Safety Culture • Knowledge and learning • Standards and procedure compliance • Questioning attitude • Team backup • Integrity
  23. Investor Day – Husky Energy Inc. – slide 23
    Actions Since Joining Husky Safety & Operations Integrity • Discussions with Board and senior management • Familiarization with team and internal stakeholders • Review of Husky’s previous incidents • Review of safety organization…
  24. Investor Day – Husky Energy Inc. – slide 24
    What I’ve Learned Safety & Operations Integrity • Board and senior management: • Truly understand process safety and are fully dedicated to getting this right – becoming a worldwide top-quartile safety performer • Believe that…
  25. Investor Day – Husky Energy Inc. – slide 25
    Priorities For The Next Three Months Safety & Operations Integrity • Visit the remaining assets to deepen my understanding of Husky’s existing safety culture and to prioritize opportunities for improvement in operational excellence…
  26. Investor Day – Husky Energy Inc. – slide 26
    Plan For The Next 12-18 Months Driving Towards World-Class Performance • Shift towards leading rather than lagging process safety indicators • Make the HRO principles the backbone of our operations, including a strong culture of…
  27. Investor Day – Husky Energy Inc. – slide 27
  28. Investor Day – Husky Energy Inc. – slide 28
    Responsible Energy Production ESG Ratings by Major Oil-Producing Country Source: BMO Capital Markets, Yale Environmental Performance Index (EPI); Social Progress Imperative; World Bank Worldwide Governance Indicators Notes: Equal…
  29. Investor Day – Husky Energy Inc. – slide 29
    Priority Topics Water Use & Availability Air Emissions Management, including GHGs Land Use & Reclamation Community & Indigenous People’s Engagement Business Ethics and Transparency Talent Management & Culture of Inclusion…
  30. Investor Day – Husky Energy Inc. – slide 30
    Air & Water Emissions • Lowering energy intensity at Sunrise and Tucker • Gas re-injection in the Atlantic region • Supplying cleaner-burning natural gas from Liwan to growing markets in Asia Water Use • Recycling 88% of water at…
  31. Investor Day – Husky Energy Inc. – slide 31
    Asset Retirement Leadership: Area-Based Closure 0 200 400 600 800 1000 1200 2014 2015 2016 2017 2018 Well Abandonments • Timely and effective retirement of active sites that have no future production potential • Husky…
  32. Investor Day – Husky Energy Inc. – slide 32
    Social & Governance • Executive compensation more tightly aligned with safety performance • Enterprise Risk Management System • Evaluate suppliers against safety and environmental goals • Confidential Ethics Help Line • Diverse and…
  33. Investor Day – Husky Energy Inc. – slide 33
  34. Investor Day – Husky Energy Inc. – slide 34
  35. Investor Day – Husky Energy Inc. – slide 35
    Lower Capex, Higher FCF: Bias Toward Dividend Growth • More free cash flow to allocate • Bias towards increasing shareholder returns • No need to pay down debt • Pricing assumption unchanged at flat $60 US WTI • Chicago crack $18…
  36. Investor Day – Husky Energy Inc. – slide 36
    Mid-Cycle Financial Framework 0.0 1.0 2.0 3.0 4.0 5.0 6.0 FFO / CFOA Uses FFO / CFOA Uses Free Cash Flow Planned Growth Capital Sustaining Capital $60 WTI Dividend Planned Growth Capital Dividend Sustaining…
  37. Investor Day – Husky Energy Inc. – slide 37
    Funding Priorities 1. Balance sheet strength 2. Sustaining capital 3. Dividend 4. Growth capital 5. Allocate discretionary free cash flow • Bias towards shareholder returns 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2019F 2020F 2021F…
  38. Investor Day – Husky Energy Inc. – slide 38
    Maintain Balance Sheet Strength No need to allocate capital to debt reduction < 2x Net Debt to FFO at $40 US WTI 1, 2) See Slide Notes and Advisories Plan Execution -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Net Debt…
  39. Investor Day – Husky Energy Inc. – slide 39
    Fund Sustaining Capital 0 50 100 150 200 250 300 350 400 450 2019F 2020F 2021F 2022F 2023F mboe/day Throughput Production Keep Upstream Production Flat / Run Operations Safely & Reliably Upstream Sustaining Capital $1.3B…
  40. Investor Day – Husky Energy Inc. – slide 40
    Maintain Strong Dividend 2019 2020 2021 2022 2023 164% 191% 367% 423% 602% Free Cash Flow 0.0 1.0 2.0 3.0 4.0 2019F 2020F 2021F 2022F 2023F Current Dividend Free Cash Flow Coverage (FCF divided by Current Dividend) Room to…
  41. Investor Day – Husky Energy Inc. – slide 41
    Growth Capital 2.0 3.0 4.0 2019F 2020F 2021F 2022F 2023F 2018 LRP 2019 LRP Total Capital Expenditures Average Annual Capex Reduced by $350M to $3.15B $B 42 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Growth Capital Current…
  42. Investor Day – Husky Energy Inc. – slide 42
    Growth Capital Drives Down Costs; Improves Break-Even 10 12 14 16 2019F 2021F 2023F Alberta Quotas & SeaRose Start-up 25 30 35 40 2019F 2021F 2023F Upstream Operating Costs ($Cdn/bbl) Cash Flow Break-Even Price (US/bbl…
  43. Investor Day – Husky Energy Inc. – slide 43
    Allocation Of Discretionary Free Cash Flow • Already strong, no need to de-lever • Aim to stay below 2x net debt to FFO at $40 US WTI Maintain Balance Sheet Strength Cumulative Free Cash Flow ’19F-’23F $8.7B • Limited…
  44. Investor Day – Husky Energy Inc. – slide 44
    Bias Towards Accelerating Shareholder Returns 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2019F 2020F 2021F 2022F 2023F Current Dividend Free Cash Flow Cumulative Free Cash Flow ’19F-’23F $8.7B Free Cash Flow 0.0 1.0 2.0 3.0…
  45. Investor Day – Husky Energy Inc. – slide 45
    Rigorous Criteria For Any Additional Growth Capex • Satisfied with current growth profile • Will not accelerate in order to preserve capital efficiency Organic Growth • M&A criteria: 1. Fit within Husky’s strategy 2. Maintain…
  46. Investor Day – Husky Energy Inc. – slide 46
    2019-2023 Plan Update 0 100 200 300 400 500 \'19F \'20F \'21F \'22F \'23F \'18-\'22 Plan \'19-\'23 Plan Production Quotas mboe/day $B 1) See Slide Notes and Advisories Free Cash Flow $B 0 50 100 150 200 250 \'19F…
  47. Investor Day – Husky Energy Inc. – slide 47
  48. Investor Day – Husky Energy Inc. – slide 48
    Safety & Operational Reliability 0 1 2 3 4 5 6 2019F 2020F 2021F 2022F 2023F Capital 0 100 200 300 400 500 2019F 2020F 2021F 2022F 2023F Light Capacity Heavy Capacity mboe/day 55% 55% 55% 46% 55% 51% 0 100 200 300…
  49. Investor Day – Husky Energy Inc. – slide 49
    Becoming A High Reliability Organization • Building on High Reliability Group safety assessment • Improving safety and reliability across business segments • Single Downstream manufacturing organization • Focus on standards and…
  50. Investor Day – Husky Energy Inc. – slide 50
    Project And Operations Update – What’s New? Offshore • Implementation of HRO principles • Ramp-up of SeaRose FPSO • West White Rose Project paced to focus on capital efficiency • Startup still planned for 2022 • Madura fields…
  51. Investor Day – Husky Energy Inc. – slide 51
    Integrated Corridor Strategy • Includes upgrading and refining, ample storage and committed pipeline capacity to our U.S. refineries. • Eliminates exposure to heavy-light and location differentials • Physical integration provides…
  52. Investor Day – Husky Energy Inc. – slide 52
    Manufacturing Process Maximizes Margins Increasing Revenue Reducing Costs Improving Optionality 53
  53. Investor Day – Husky Energy Inc. – slide 53
    Updated Production And Throughput Forecasts 0 50 100 150 200 250 300 350 \'19F \'20F \'21F \'22F \'23F Lloyd Thermals Oil Sands WC Resource Conventional Heavy Production mboe/day 0 50 100 150 200 250 300 350 \'19F…
  54. Investor Day – Husky Energy Inc. – slide 54
    Maximizing Full Value Chain Margin Capture Lloyd Thermals & Oil Sands • Long-life assets with a large resource • Modular, scalable designs • Low and improving operating costs and sustaining capital costs Western Canada •…
  55. Investor Day – Husky Energy Inc. – slide 55
    Synchronized Build-Benefit Cycles 0 20 40 60 80 100 120 140 \'13 \'14 \'15 \'16 \'17 \'18 \'19F \'20F \'21F \'22F \'23F \'24F \'25F \'26F Offshore Production Atlantic Asia Pacific
  56. Investor Day – Husky Energy Inc. – slide 56
    Leveraging Existing Infrastructure Drives Efficiencies BD Project Asia Pacific Atlantic • West White Rose tieback to SeaRose FPSO • 29-1 tieback to Liwan platform • Madura Strait fields offshore Indonesia linked by existing East…
  57. Investor Day – Husky Energy Inc. – slide 57
    Fixed-Price Asia Gas Complemented By Oil Price Torque Asia Pacific • High netback long-term contracts • Established partnerships • Leveraging existing infrastructure • Exploration opportunities Atlantic • High netbacks with global…
  58. Investor Day – Husky Energy Inc. – slide 58
    Innovation Gateway Driving New Technology Adoption Husky Diluent Reduction Program CO2 Carbon Capture Remote Fibre Optic Leak Detection Well Monitoring Well Optimizations Use iceberg photo Iceberg Management 59 Improving Safety,…
  59. Investor Day – Husky Energy Inc. – slide 59
    Husky Diluent Reduction Program (HDR) HDR at Sunrise • Diluent reduction module pilot Energy Project program at Sunrise • Partial upgrading solution • Creates pipeline-ready, stable crude • Lowers costs • Reduces GHG emissions •…
  60. Investor Day – Husky Energy Inc. – slide 60
    Leveraging Artificial Intelligence For Remote Wells Well On/Off Visibility Connected Well (iIoT) Data Gathering Machine Learning Artificial Intelligence Where we are today . . . . . . and where we are going Performance Diagnostics…
  61. Investor Day – Husky Energy Inc. – slide 61
    Reducing Our Carbon Footprint • Historically trialed different CO2 capture technologies at Pikes Peak South • New novel technology pilot successfully captured 0.5 tonnes/day in 2018 and is now being evaluated for commercial…
  62. Investor Day – Husky Energy Inc. – slide 62
    Reducing Risk & Costs In The Atlantic Wave Height Prediction Peer Collaboration • Petroleum Research Newfoundland & Labrador (PRNL) • Joint industry partnerships Improving Safety • Iceberg drift prediction • Wave height…
  63. Investor Day – Husky Energy Inc. – slide 63
    Major Project Execution: Integrated Corridor & Offshore Five-Year Plan Milestones
  64. Investor Day – Husky Energy Inc. – slide 64
  65. Investor Day – Husky Energy Inc. – slide 65
  66. Investor Day – Husky Energy Inc. – slide 66
    Four Strategic Cornerstones • Safe and reliable operations • Balancing production, processing and logistics • Physical integration with optionality • Substantial positive cash flow
  67. Investor Day – Husky Energy Inc. – slide 67
    300,000 bbls/day processing capacity • Product marketing centered in Ohio • More than six million barrels of tank storage • 75,000+ bbls/day long distance crude pipeline Asphalt Refinery • Capacity: 30 mbbls/day • Supplies ~4% of…
  68. Investor Day – Husky Energy Inc. – slide 68
    Lloydminster Upgrader • Heavy crude capacity 80,000 bbls/day (2018 throughput of 74,200 bbls/day including the turnaround) • Operating cost of $7.21/bbl (2018) • Expansion in mid-2020 to 81,500 bbls/day • Diesel production…
  69. Investor Day – Husky Energy Inc. – slide 69
    Lima Crude Oil Flexibility Project • 2018 major turnaround scope completed; peak capacity increased to 175,000 bbls/day • Project to be completed at end of 2019 • 80% complete • 20% commissioned • Ahead of schedule and on budget •…
  70. Investor Day – Husky Energy Inc. – slide 70
    Superior Refinery Rebuild • Same design and capacity • Modernizations and safety enhancements • Main areas of rebuilding: • Crude unit • Fluid Catalytic Cracking Unit (FCCU) • Asphalt tanks • Latest and most advanced emissions…
  71. Investor Day – Husky Energy Inc. – slide 71
    Heavy Oil Blend vs. Downstream Processing & Pipeline Capacity Downstream Heavy Blend Processing & Pipeline Capacity Heavy Oil Blend mbbls/day 72 Heavy Oil Coverage Line • Heavy oil bitumen blend matched to Downstream heavy…
  72. Investor Day – Husky Energy Inc. – slide 72
    Physically Integrated Corridor Production Oil sands Heavy oil Light oil Natural gas Market Hubs Edmonton Hardisty Patoka Cushing Logistics Crude pipelines Gas pipelines Product pipelines Railcars Barge Trucks Storage…
  73. Investor Day – Husky Energy Inc. – slide 73
    Downstream Operating Model Manufacturing Safe, reliable, efficient operations Marketing Manages customer-facing businesses Trading, Supply & Logistics Captures market opportunities, manages all logistics operations and…
  74. Investor Day – Husky Energy Inc. – slide 74
    Downstream Optimization Week 2: Inputs Week 3: Outputs Week 4: Publish Week 1: Retro-Analysis Short-Term Optimization 75 Responsible For Integrated Plan Prices • Constraints • Other key assumptions • Preliminary plan review •…
  75. Investor Day – Husky Energy Inc. – slide 75
    Producers Trading Hub Product Terminals Refinery Maximizing Value Short-Term Opportunity Capture
  76. Investor Day – Husky Energy Inc. – slide 76
    Short-Term Opportunity Capture Crude trading sells low gasoline yield crude oil and purchases high yield crude Crude scheduling priorities shipments of high gasoline yield crude Manufacturing adjusts operations for maximum…
  77. Investor Day – Husky Energy Inc. – slide 77
    1) Composite calculated using a Husky asset sales volume weighted average of Chicago 3-2-1, HLU differential and Edmonton 2-1-1 prices. 2) Husky Downstream excludes Canadian product sales volume and margin, and includes allocation of…
  78. Investor Day – Husky Energy Inc. – slide 78
    Husky Downstream We are transforming Downstream through a new operating model • Renewed focus on safe, reliable operations • A leaner, integrated Downstream focused on the Integrated Corridor • Increasing our speed of action to…
  79. Investor Day – Husky Energy Inc. – slide 79
    Maximizing Full Value Chain Margin Capture Western Canada • Competitive, integrated business • Pivoting to liquids • Gas production fuels thermal growth and Canadian Downstream facilities Downstream • Increasing speed of action to…
  80. Investor Day – Husky Energy Inc. – slide 80
  81. Investor Day – Husky Energy Inc. – slide 81
    Supplying Low Cost, Reliable Feedstock Thermal Production 132,000 bbls/day 82 Sales Opportunities
  82. Investor Day – Husky Energy Inc. – slide 82
    Supplying Low Cost, Reliable Feedstock What’s New • Implementing HRO principles • Pacing of Lloyd thermal projects • Focus on Sunrise & Tucker margin capture vs. growth • Investing in technologies to improve efficiency Top…
  83. Investor Day – Husky Energy Inc. – slide 83
    In-Flight & Future Projects Capacity Startup Thermal Bitumen (bbls/day) Dee Valley 10,000 2019 Spruce Lake Central 10,000 2020 Spruce Lake North 10,000 2020 Spruce Lake East 10,000 2021 Edam Central 10,000 2022 Dee Valley 2 10,000…
  84. Investor Day – Husky Energy Inc. – slide 84
    10 thermal projects producing 82,500 bbls/day • Modular, scalable designs with standardized engineering & construction • Rush Lake 2 continues to perform above nameplate • Project break-evens of $30/bbl WTI • Not impacted by Alberta…
  85. Investor Day – Husky Energy Inc. – slide 85
    60,000+ bbls/day in Dec. 2018 (30,000 bbls/day Husky WI) • Potential to increase steam capacity by 123% • Cost reduction target of $10/bbl in ~2021 • Currently impacted by Alberta production quotas Target production per well pair:…
  86. Investor Day – Husky Energy Inc. – slide 86
    Surpassed 30,000 bbls/day (October 2018) • Exceeded design capacity after overcoming tough reservoir • Operating costs of $12.64/boe; operating netback of $33.50/boe in Q1/19 • Focus on cost reduction with $10 per boe goal in ~2021…
  87. Investor Day – Husky Energy Inc. – slide 87
    88 $28,000 – $30,000 $27,000 – $30,000 $25,000 – $30,000 Pre-2014 2014-2015 2016-2018 0 5 10 15 20 25 30 \'14 \'15 \'16 \'17 \'18 Sunrise Tucker Lloyd Thermal Average Capital Efficiencies ’14-’18 ?20% Continuous…
  88. Investor Day – Husky Energy Inc. – slide 88
    2.0 2.5 3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2019F 2020F 2021F 2022F 2023F Growth Capital Operating Margin Sustaining Capital Cumulative Op. Margin Less Capital Heavy Oil & Oil Sands Operating Margin Less Capital $B 0 50…
  89. Investor Day – Husky Energy Inc. – slide 89
    Applying Technology To Heavy Oil & Oil Sands HDR at Sunrise CO2 Capture Need Photo Near Term/Commercialization Stage Up and Coming Need Photo Debottlenecking Artificial Intelligence Improved Pad Designs
  90. Investor Day – Husky Energy Inc. – slide 90
    Maximizing Full Value Chain Margin Capture Western Canada • Competitive, integrated business • Pivoting to liquids • Gas production fuels thermal growth and Canadian Downstream facilities Downstream • Increasing speed of action to…
  91. Investor Day – Husky Energy Inc. – slide 91
  92. Investor Day – Husky Energy Inc. – slide 92
    Competitive, Integrated Business Liquids Revenue ’19-’23F ?12% mboe/day $mm Highlights • Implementing HRO principles; top-tier safety results in 2018 • Large resource base with optionality for liquids or gas growth •…
  93. Investor Day – Husky Energy Inc. – slide 93
    Ansell: Increasing Value Through Focused Execution 0.0 2.0 4.0 6.0 8.0 10.0 12.0 F&D Costs1 $/boe 2015 2016 2017 2018 Peer 1 (2018) Peer 2 (2018) Peer 3 (2018) 2014 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000…
  94. Investor Day – Husky Energy Inc. – slide 94
    Technology Delivering Results Ansell Wilrich Well Cost Ansell mmcf/day Wilrich Type Well1 • Continuous multi-well pad development • Drilling analytics and new technology • Subsurface well design placement • Higher proppant and fluid…
  95. Investor Day – Husky Energy Inc. – slide 95
    Western Canada Core Growth Areas Deep Portfolio Of Resource Play Projects Provide Optionality Wembley/Sinclair Condensate (Montney) 120 net sections Grande Prairie Kakwa Liquids-rich gas (Spirit River) 35 net sections Ansell…
  96. Investor Day – Husky Energy Inc. – slide 96
    Wembley – Sinclair Liquids-rich Montney: • Materiality: Three stacked horizons; 120 sections • Liquids yield: Up to 150 bbl/mmcf total NGL (deep cut) • Egress: 2019 secured, long-term plan in progress • Production: Six wells planned…
  97. Investor Day – Husky Energy Inc. – slide 97
    Marketing Strategy Yields Strong Realized Pricing Husky Export Capacity 160 mmcf/day Husky Internal Consumption Q1 ’19 290 mmcf/day Husky North America Gas Production Q1 ’19 300 mmcf/day AECO (NIT) Lloyd Complex &…
  98. Investor Day – Husky Energy Inc. – slide 98
    Maximizing Full Value Chain Margin Capture Western Canada • Competitive, integrated business • Pivoting to liquids • Gas production fuels thermal growth and Canadian Downstream facilities Downstream • Increasing speed of action to…
  99. Investor Day – Husky Energy Inc. – slide 99
  100. Investor Day – Husky Energy Inc. – slide 100
    Offshore Business Atlantic • High netbacks with global oil pricing • Direct access to tidewater • Leveraging existing infrastructure • Defined growth into next decade • Exploration opportunities Asia Pacific • High netback…

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