CALGARY, AB--(Marketwired - July 18, 2016) - Husky Energy (TSX: HSE) has closed a transaction that results in the creation of a new limited partnership, Husky Midstream
Limited Partnership, which will assume ownership of select midstream assets in the Lloydminster region of Alberta and
Saskatchewan.
The Company has received $1.7 billion in cash proceeds from the transaction, which will be applied to strengthening the
balance sheet. The transaction received regulatory approval earlier this month.
The partnership will facilitate the expansion of Husky's heavy oil thermal business, as financing has been secured for
investment in new infrastructure to expand takeaway capacity for at least eight new Lloyd thermal projects. It also allows the
partnership to expand its third-party transportation business.
Husky will remain operator of the assets, which include approximately 1,900 kilometres of pipeline, 4.1 million barrels of oil
storage capacity and other ancillary assets, while retaining a 35 percent interest in the partnership. Cheung Kong Infrastructure
Holdings Limited has a 16.25 percent ownership interest in the partnership and Power Assets Holdings Limited (PAH) has a 48.75
percent interest.
Husky Midstream Limited Partnership will be based in Calgary, Alberta.
Husky Energy is one of Canada's largest integrated energy companies. It is headquartered in Calgary, Alberta, Canada and
its shares are publicly traded on the Toronto Stock Exchange under the symbols HSE, HSE.PR.A, HSE.PR.B, HSE.PR.C, HSE.PR.E and
HSE.PR.G. More information is available at www.huskyenergy.com
FORWARD-LOOKING STATEMENTS
Certain statements in this news release are forward-looking statements and information (collectively "forward-looking
statements"), within the meaning of the applicable Canadian securities legislation, Section 21E of the United States Securities
Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. The forward-looking
statements contained in this news release are forward-looking and not historical facts.
Some of the forward-looking statements may be identified by statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of
words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "is targeting", "estimated",
"intend", "plan", "projection", "could", "aim", "vision", "goals", "objective", "target", "schedules" and "outlook"). In
particular, forward-looking statements in this news release include, but are not limited to, references to: planned use of select
midstream asset disposition proceeds; and anticipated benefits to the Company resulting from the disposition of select midstream
assets.
Although the Company believes that the expectations reflected by the forward-looking statements presented in this news release
are reasonable, the Company's forward-looking statements have been based on assumptions and factors concerning future events that
may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about
itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from
various sources including third-party consultants, suppliers, regulators and other sources.
Because actual results or outcomes could differ materially from those expressed in any forward-looking statements, investors
should not place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve
numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the
predicted outcomes will not occur. Some of these risks, uncertainties and other factors are similar to those faced by other oil
and gas companies and some are unique to Husky.
The Company's Annual Information Form for the year ended December 31, 2015 and other documents filed with securities
regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe risks, material assumptions and other factors that could influence actual results and are
incorporated herein by reference.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by
applicable securities laws, the Company undertakes no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the
impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any forward-looking statement. The impact of any one factor on a
particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the
Company's course of action would depend upon its assessment of the future considering all information then available.
Note to U.S. Readers
All currency is expressed in Canadian dollars unless otherwise indicated.