Husky Energy cuts 2020 budget by $1-billionNot looking good for my friends in Lloydminster
112020-03-12 17:52 ET - News Release
Mr. Rob Peabody reports
HUSKY ENERGY CUTS 2020 SPENDING BY $1 BILLION
Husky Energy Inc. is taking a series of actions to fortify its business in response to challenging global market conditions.
These initiatives reflect the Company's commitment to capital discipline, which includes maintaining the strength of its balance sheet while protecting value in an extended low commodity price environment. Husky's drive to improve process and occupational safety is unaffected and remains a top priority.
"Husky has three important advantages: a strong balance sheet, an Integrated Corridor which includes a sizeable downstream and midstream segment, and Offshore operations that include long-term gas contracts in the Asia Pacific region not linked to the price of oil," said CEO Rob Peabody.
Given current market conditions Husky will commence the safe and orderly reduction, or shut-in, of production where it is cash negative on a variable cost basis at current prices.
Strong Balance Sheet and Liquidity
Total liquidity is $4.9 billion, comprised of $1.4 billion in cash and $3.5 billion in unused credit facilities. In line with its committed credit facilities, Husky is required to maintain debt to capital of no more than 65%, and is well below this threshold with a ratio of 27% with no long-term debt maturities until 2022.
2020 Capital Program Reduced by $900 Million; Further Cost Reductions of $100 Million