Husky Energy Cuts 2020 Capital Spending

Husky Energy Cuts 2020 Capital Spending

Husky Energy (TSX:HSE) is significantly reducing capital expenditures and shutting in negative cash margin production as further measures to strengthen its business given market conditions caused by COVID-19.

“We have taken immediate action to preserve our balance sheet and core business in this commodity price environment,” said CEO Rob Peabody. “Our focus remains on health and safety, and on increasing Husky’s resilience.

“As the market rebalances supply with demand over a very short period in North America, negative cash margins before operating costs are occurring. Reducing production minimizes our negative cash margin exposure.”

Husky has important advantages in the current economic environment, including: a strong balance sheet, an Integrated Corridor that includes a sizeable midstream and downstream segment, and Offshore operations underpinned by long-term gas contracts in the Asia Pacific region.

Husky’s plan includes:

Continuing to advance process and occupational safety performance

Reducing and deferring all discretionary capital spending

Liquidity improvements

Reducing production and refinery throughput to address near-term negative cash margins until supply and demand is rebalanced

Source / More information : Husky Energy

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