Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

Not bad!

[Bapak]

Calgary, Alberta – Husky Energy Inc. reported net earnings of $394 million or $0.93 per share (diluted) in the second quarter of 2005, a 72 percent increase over net earnings of $229 million or $0.54 per share (diluted) in the second quarter of 2004. Included in net earnings for the second quarter of 2005 are net charges of $54 million related to stock-based compensation and $14 million related to U.S. dollar denominated debt translation. Cash flow from operations was $828 million or $1.95 per share (diluted) in the second quarter of 2005, a 43 percent increase compared with $581 million or $1.37 per share (diluted) in the second quarter of 2004. Sales and operating revenues, net of royalties, were $2.5 billion in the second quarter of 2005, a 13 percent increase compared with $2.2 billion in the second quarter of 2004. “We are pleased with Husky’s second quarter record solid cash flow from operations,” said Mr. John C.S. Lau, President & Chief Executive Officer, Husky Energy Inc. “In this strong commodity price environment, Husky’s financial and operational strength continues to benefit from our integration, quality asset base and strong financial discipline.” Production in the second quarter of 2005 was 308,900 barrels of oil equivalent per day, compared with 326,400 barrels of oil equivalent per day in the second quarter of 2004. Total crude oil and natural gas liquids production was 194,000 barrels per day, compared with 212,200 barrels per day in the second quarter of 2004. Natural gas production was 689.3 million cubic feet per day, compared with 685.4 million cubic feet per day in the second quarter of 2004. B.