2020 Guidance December 2, 2019 - Husky Energy

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2020 Guidance December 2, 2019 - Husky Energy
2020 Guidance
December 2, 2019

                   1
2020 Guidance December 2, 2019 - Husky Energy
2020 Guidance Highlights
 Capital Plan Drives Improved Margins and Free Cash Flow1 Growth
                                                                                        Capital Spending $3.2 – $3.4B
  •    Improved safety and reliability
  •    ~$100M capex reduction from 2019 Investor Day
       plan; reductions focused in Western Canada and                                                     Offshore
       conventional heavy oil business                                                       Integrated     43%
                                                                                              Corridor
              •     $500 million reduction over 2020-2021                                       55%

  •    Year-over-year production growth of ~4%
                                                                                                                      Corporate 2%
  •    Take-away and processing capacity for all
                                                                          Upstream Production                    Downstream Capacity
       North American heavy production (no need for rail)                   295 – 310 mboe/day                         355 mbbls/day
  •    Capex program and dividend fully funded under
       pricing assumption of flat $55 US WTI and
                                                                                        Offshore
       NYMEX 3:2:1 of $18                                                                 21%
                                                                          Integrated                                  Heavy      Light
  •    2020 capital plan leads to significant free cash flow               Corridor                                  Capacity   Capacity
                                                                                                                       55%        45%
       generation in 2021                                                    79%

         •   Bias towards shareholder returns via
             sustainable dividend increases
Husky Energy Inc.                                      1 See Slide Notes & Advisories                                                      2
2020 Guidance December 2, 2019 - Husky Energy
Husky’s Value Proposition
        Improving Safety, Reliability                    Strengthening Resilience,                            Increasing Total
           & ESG Performance                                 Preserving Upside                              Shareholder Returns

        •    Actions underway to be                  •   Integrated Corridor largely                •   Strong free cash flow
             global top-quartile in                      removes differential                           growth
             process safety by end                       exposure                                       •   FCF inflection point in ’21
             of ’22                                      •   Refining and export capacity               •   ~$2B in FCF ’20-’21 at flat
            •       No major incidents in ’19                for 100% of oil production                     $55 US WTI
            •       Achieved 50% reduction in        •   High-netback1 Offshore                     •   Sustainable dividend with
                    Tier 1 Process Safety Events         business                                       pathway to further growth
                    since ’18
                                                                                                        •   Paid ~$11/share since 2008
                                                     •   Lowering earnings
        •    ESG performance and                                                                        •   Current yield of ~5% ($500M/yr)
                                                         break-even2 oil price
             disclosure                                                                             • Project portfolio improving
                                                         •   Current $42 US WTI, target of
            •       Aligning with global reporting
                                                             $38 US WTI in ’23                        margins and cost structure
                    frameworks
            •       Setting clear targets            •   Strong and competitive                         •   Projects must meet hurdle of
                                                         balance sheet                                      >10% IRR at $45 US WTI
                                                         •   1.1x net debt to trailing FFO3

Husky Energy Inc.                                            1, 2, 3 See Slide Notes & Advisories                                             3
2020 Guidance December 2, 2019 - Husky Energy
2019 Milestones Safely Delivered
 Major Projects Remain on Track

        2019 Guidance                                                              Status

        Capital spending*                       $3.3-$3.5 billion                  On Track
        Production                             290-305 mboe/day                    On Track
         Thermals & Oil Sands                  129-135 mbbls/day                   On Track
         Conventional heavy oil                 29-31 mbbls/day                    On Track
         Western Canada segment                 70-72 mboe/day                      Lower
         Asia Pacific                           44-47 mboe/day                     On Track
         Atlantic                               18-20 mbbls/day                     Lower
                                                 Capacity            Timing/                           West White Rose Project:
        2019 Deliverables                        (Husky W.I.)       Completion
                                                                                   Status
                                                                                                       Final Quadrant Completed
        Turnarounds
         Upstream                                                     Q2 ’19     ✓ Completed
         Downstream                                                   Q2 ’19     ✓ Completed
        White Rose infill wells online        +6-8,000 bbls/day       Q2 ’19     ✓ Completed
        White Rose drill centres online                               Q3 ’19     ✓ Completed
        Dee Valley thermal project            10,000 bbls/day         Q3 ’19     ✓ Completed
        Lima crude oil flexibility project    40,000 bbls/day         YE ’19     ✓ Completed
        Liuhua 29-1 initial pipeline laying                           Q3 ’19     ✓ Completed
        Prince George Refinery sale                                   Q4 ’19     ✓ Completed
        Superior Refinery rebuild start       45,000 bbls/day         Q4 ’19     ✓ Completed
        Retail/commercial strategic review                                         In progress
        * Excludes Superior rebuild capital                                                      10,000 bbls/day Dee Valley Thermal Project
Husky Energy Inc.
                                                                                                  Started Up, Reached Nameplate Capacity      4
2020 Guidance December 2, 2019 - Husky Energy
Improving Safety & Reliability
 Target to Become Global Top-Quartile Process Safety Performer By End Of 2022
                                                                 Lost Time Injury Frequency (per 200,000 exposure hours)
  •    Actions delivering:                                       0.15

        •    No major incidents in 2019                          0.12
                                                                                                       – 45%
        •    Improved LTI frequency by 45% YTD                   0.09

        •    Reduction in Tier 1 Process Safety                  0.06
             Events by 50%                                       0.03

                                                                 0.00
                                                                            2017              2018             2019 YTD

                    Reportable Hydrocarbon Spill Volume (m3)     Tier 1 Process Safety Events
                                                                  15
                    600

                    500                                           12

                    400
                                                     – 68%         9
                    300                                                                                   – 50%
                                                                   6
                    200

                    100                                            3

                      0                                            0
Husky Energy Inc.            2017         2018        2019 YTD              2017               2018             2019 YTD   5
2020 Guidance December 2, 2019 - Husky Energy
Safety & Reliability: What Good Looks Like
 Systematic & In Control

  Operational and technical requirements:
  •    Are documented, correct, well understood and practiced
  •    Have clear accountabilities
  •    Have defined competencies that can be documented
  •    Verified over time

                                                                                             Systematic
                    Documented             Accountable       Competent            Verified     and In
                                                                                              Control

                                 Level 3                       Level 4             Level 5

                                                    Leadership & HRO principles
Husky Energy Inc.                                                                                         6
2020 Guidance December 2, 2019 - Husky Energy
ESG Priorities
 Improving Performance and Reporting Transparency
                                       Environment                                                               Governance

                    Air Emissions Management                                                  Compensation Drivers
                               • Reduced overall methane emissions                                           • Safety / Environmental performance
                                 by 45% from ’14-’18 = 400,000 cars over 1 year                              • Return On Capital In Use1
                               • ~50,000 tonnes of CO2 captured YTD                                          • Total shareholder returns
                               • Grade ‘B’ from CDP

                                                                                                                   Social
                    Water Use & Availability
                               • Recycling 88% of water at Sunrise and Tucker               Community & Indigenous Engagement
                               • Lima Refinery water recycle project
                                                                                                         • Economic inclusion: $70 million in contracts
                               • Grade ‘B-’ from CDP Water Security Program                                with Indigenous vendors YTD
                                                                                                         • ~45% increase in Indigenous procurement
                     Land Use & Reclamation                                                                since ’16
                                                                                                         • Husky named as one of Canada’s best
                                   • Pioneered area-based closure approach
                                                                                                           places to work by Indeed Canada for the
                                        • 2,145 assets retired YTD (wells, pipelines,                      third year in a row
                                          facilities)
                                                                                                         • Conducted operating community perception
                                   • 520,890 trees planted post-asset retirement YTD                       surveys to enhance community engagement
                                   • 1,576 acres reclaimed YTD

                                                    Good ESG Performance Improves Business Performance
Husky Energy Inc.                                                       1 See Slide Notes & Advisories                                                    7
2020 Guidance December 2, 2019 - Husky Energy
2020 Plan
  Reduced Capital in 2020-2021; Free Cash Flow Inflection Point in 2021
Funds from Operations1,2                                     Free Cash Flow                                              Paced Production4
Cash Flow from Operating Activities                          (FFO less capital expenditures)                             350 mboe/day

                                                             2.0 $B                                                                                     ~10%
5.0 $B
                                                                          Cumulative                                     300               ~4%
4.0                                ~13%                               Free Cash Flow
                                                                                ’20F-’21F
                                                                                            ~$2B
                     ~7%                                                                    at $55 US WTI
                                                             1.5                                                         250
3.0

                                                                                                                         200
2.0                                                                                                                                '19F          '20F           '21F
            '19F           '20F               '21F           1.0

Reduced Capital Expenditures3                                                                                            Downstream Throughput
                                                             0.5                                                         400 mboe/day
3.5 $B                     ~$100M reduction
                            vs. I-Day
                                                                                                                         350                            ~5.5%
3.0                                       ~$400M reduction                                                                                ~5%
                                           vs. I-Day
                                                             0.0                                                         300
                                                                         '19F                  '20F               '21F
2.5
                                                                                                                         250

2.0
                                                                                                                         200
             '19F           '20F              '21F
                                                                                                                                '19F             '20F            '21F

 Husky Energy Inc.                                                      1, 2, 3, 4 See Slide Notes & Advisories                                                         8
2020 Guidance December 2, 2019 - Husky Energy
Lower Spending, Production Growth Driving FCF

    Free Cash Flow Improvement Bridge (’20-’21)   Upstream Operating Costs ($Cdn/bbl)

        $B                                        16

                                                  14

                                                  12

                                                  10
                                                        2019F             2020F            2021F

                                                  Earnings Break-Even Price (US/bbl WTI)
                                                   45

                                                   40

                                                   35

                                                   30
                                                        2019F             2020F            2021F

Husky Energy Inc.                                                                                  9
2020 Guidance December 2, 2019 - Husky Energy
2020 Capital Spending
 Capital Plan Leading to Improved Margins and Free Cash Flow Growth

  •    Less spending in Western Canada                              Capital Spending $3.2 – $3.4B
       resource plays and conventional heavy
       oil projects compared to 2019 Investor         Integrated Corridor                      Offshore1
       Day plan                               Thermal     ($1.75 – $1.90B)                   ($1.35 – $1.45B )
                                                     54%
  •    Capital expenditures in the U.S.
       Downstream exclude Superior rebuild                            Lloyd Thermals
                                                                                                        Asia
                                                                         & Tucker                      Pacific
       capital                                                             54%                          24%
         •   Superior rebuild costs anticipated to                                     13%
             be in the range of $450-$525 million                                                                Atlantic
                                                                 5%
                                                           5%          Downstream                                 76%
             Cdn; expected to be substantially                            28%
             covered by insurance                          Sunrise
                                                                              Conventional heavy oil
                                                                               & Western Canada

Husky Energy Inc.                                     1 See Slide Notes & Advisories                                        10
Balance Sheet Strength & 2020 Funding Plan
 Capex Program & Dividend Fully Funded at $55 US WTI + $18 NYMEX 3:2:1

•    Strong and competitive balance sheet                                                     •   More than $500 million in flexibility1
                                                                                                    • Not including potential retail sale proceeds
           •    Q3 ’19 net debt to 12 months trailing funds
                from operations of 1.1 times                                                  •   Bias towards shareholders returns via
                                                                                                                            $60 WTI
                                                                                                  sustainable dividend increases

        Net Debt to 12 Months Trailing FFO (Q3 ’19)                                               2020 Sources and Uses of Cash
        3.0 times                                                                                  5.0 $B

                                                                                                              Debt
                                                                                                   4.0                   FFO at    Flexibility
                                                                                                             Capacity
                                                                                                                        $55 WTI2
        2.0                                                                                                               WTI       Planned
                                                                                                   3.0                              Growth
                                                                                                                                    Capital3

                                                                                                   2.0                              Dividend
                                                                                                              FFO
        1.0

                                                                                                                                   Sustaining
                                                                                                   1.0                              Capital4

        0.0                                                                                        0.0
                    A     Husky      B                  C                 D
                                         Peer Group: Cenovus, CNRL, Imperial, Suncor
                                                                                                            Sources                 Uses
Husky Energy Inc.                                                    1,2,3,4 See Slide Notes & Advisories                                            11
2020 Production & Throughput
 Low Cost Producer of Refined Products; High-Netback Offshore Production

  •    Growing higher margin thermal and                                                      Downstream
                                                                                               Capacity
       Asia Pacific production
                                                      400 boe/day                                            Product
                                                                                                Superior
  •    Lower contribution from less economic                                                    (Offline)     Sales
                                                      350            Upstream
       Western Canada conventional heavy oil                                                                 Pet Chems
                                                                    Production                                & Other
       and resource plays                             300             Atlantic                 Light Oil
                                                                                                             Synthetic
  •    2020 plan assumes curtailments of                                           Offshore        &
                                                                       Asia
                                                      250                                      Distillates    Asphalt
       5,000 bbls/day in first half of year
                                                                      Western
                                                      200             Canada                                  ULSD /
  •    Lima Refinery crude oil flexibility project                                                              Jet
       can process up to 40,000 bbls/day of heavy     150                                                      Fuel
                                                                      Thermal,
  •    Lloydminster Upgrader diesel upgrading                        Oil Sands &               Blended
                                                      100           Conventional
       program on track to add ~4,000 bbls/day                          Heavy                  Heavy Oil
                                                                                                             Gasoline
       of diesel capacity in 2020                      50

  •    High weighting of in-demand diesel, asphalt,    -
       jet fuel and petrochemical feedstocks

Husky Energy Inc.                                                                                                        12
2020 Project Delivery Well Advanced & On Track
 Upcoming Milestones

                                                                Capacity            Timing/
        2020                                                   (Husky W.I.)        Completion
                                                                                                Current Status

        Lloyd Upgrader diesel capacity increase         6,000 –> 9,800 bbls/day       Q2         50% complete
        Spruce Lake Central thermal project                 10,000 bbls/day         Mid-Year     88% complete
        Spruce Lake North thermal project                   10,000 bbls/day          ~YE         48% complete
        Liuhua 29-1 project construction                    45 mmcf/day gas           Q4         70% complete
                                                         1,800 bbls/day liquids

                                                                Capacity            Timing/
        2021+                                                  (Husky W.I.)        Completion
                                                                                                Current Status

        Superior Refinery rebuild                           45,000 bbls/day          YE ’21      In progress
        Spruce Lake East thermal project                    10,000 bbls/day         ~YE ’21      11% complete
        MDA-MBH & MDK fields                                10,000 boe/day            ’21        In progress
        West White Rose Project                             52,500 bbls/day1        ~YE ’22      55% complete
        Edam Central thermal project                        10,000 bbls/day           ’22        3% complete
        Dee Valley 2 thermal project                        10,000 bbls/day           ’23        In planning

Husky Energy Inc.                                 1 See Slide Notes & Advisories                                 13
Technology & Innovation
 Improving Safety, Reliability, Cost Efficiency & Reducing Our Environmental Footprint

          AI, Analytics & Machine Learning          Reducing Our Footprint, Finding Efficiencies            Innovative Partnerships
   • AI pilot program for steam optimization at     • CO2 capture pilot projects at Pikes Peak     • Natural Resources Consortium (IBM Watson)
     Sandall showing positive results with steam-     South captured ~5,000 tonnes of CO2          • Microsoft Azure Cloud services: cloud hyper-
     oil ratios1 reduced to 2.5; further              from Q4 ’15 to Q2 ’18; expanded project        scaling technology to manage infrastructure
     improvements targeted                            to be commissioned in Q4 ’19                   and application requirements in real-time
   • Field trials underway using AI to accelerate   • Husky Diluent Reduction pilot program        • Cognitive automation: used to rapidly automate
     reservoir opportunity screening                  reduced diluent volumes at Sunrise by          and fulfill service requests
   • Advanced analytics for preventative              ~50%, above the targeted goal of 45%;
                                                      now under evaluation for Downstream          • Multiple technology partners for subsurface
     maintenance at the Lima Refinery
                                                      applications                                   workflow optimization and automation
   • Accelerated well planning and execution
                                                    • Drones for pipeline and wellsite             • Canadian Oil Sands Innovation Alliance (COSIA)
     using AI to reduce time, cost and risk
                                                      inspections beyond visual line-of-sight      • Clean Resource Innovation Network (CRIN)
   • Robotics process automation of data              (co-chair of Consortium for Digital
     analysis and repetitive administrative tasks                                                  • Sprint Robotics Consortium (robotics for
                                                      Innovation and Transformation)
                                                                                                     inspection and maintenance)
Husky Energy Inc.                                            1 See Slide Notes & Advisories                                                           14
Husky’s Value Proposition
        Improving Safety, Reliability            Strengthening Resilience,            Increasing Total
           & ESG Performance                         Preserving Upside              Shareholder Returns

        •    Actions underway to be          •   Integrated Corridor largely   •   Strong free cash flow
             global top-quartile in              removes differential              growth
             process safety by end               exposure
             of ’22                                                            •   Sustainable dividend with
                                             •   High-netback Offshore             pathway to further growth
        •    ESG performance and                 business
             disclosure                                                        • Project portfolio improving
                                             •   Lowering earnings               margins and cost structure
                                                 break-even oil price

                                             •   Strong and competitive
                                                 balance sheet

                                      Free Cash Flow of >$2 billion in ’20-’21
Husky Energy Inc.                                                                                              15
Q&A

      16
Appendix

           17
Capital & Production Guidance

      Capital Guidance ($ millions)1                                             Production and Throughput Guidance

      Total Capital Investment                             3,200 - 3,400         Total Upstream Production2 (mboe/day)     295 - 310
      Integrated Corridor                                  1,750 - 1,900
       Thermal and Oil Sands                               1,050 - 1,100         Total Crude Oil and Liquids (mbbls/day)   215 - 230
       Conventional Heavy & Western Canada segment           225 - 250            Thermal & Oil Sands                      138 - 146
       Downstream (excludes Superior rebuild capital)        475 - 550            Conventional Heavy                        30 - 33
      Offshore                                             1,350 - 1,450          Western Canada segment                    18 - 20
       Atlantic                                            1,075 - 1,150          Atlantic Light Oil                        17 - 19
       Asia Pacific                                          275 - 300            Asia Pacific NGLs                          9 - 11

      Corporate Capital                                       50 - 75            Total Natural Gas (mmcf/day)              480 - 500
                                                                                  Western Canada segment                   270 - 280
      Other Expenditures ($ millions) not included above                          Asia Pacific                             210 - 220
      Superior Refinery (excludes insurance proceeds)       450 - 525
      Capitalized Interest                                    ~200               Total Downstream Throughput (mbbls/day)   320 - 340

Husky Energy Inc.                                                1,2 See Slide Notes and Advisories                                    18
Planning Assumptions
                    Pricing Assumptions (2020-2021)
                                                                                                      Cash Flow Sensitivity3 ($MM)
                    Brent crude oil ($US/bbl)                    $60
                    WTI at Cushing ($US/bbl)                     $55                                                               Chicago 3:2:1 Crack Spread
                    Heavy crude differential ($US/bbl)          ($20)                                                              ($1.00/bbl US)
                    NYMEX 3:2:1 crack ($US/bbl)                  $18
                    AECO natural gas ($CAD/mcf)                 $1.60                                                              WTI Crude Oil
                    $US / $CAD exchange rate                    $0.75                                                              ($1.00/bbl US)

                    Operating Costs1                                                                                               Exchange Rate
                                                                                                                                   ($0.01 $US per $Cdn)

                    Total Upstream Operating Costs ($/boe)      14 - 15
                     Thermal & Oil Sands                     11.75 - 12.50                                                         AECO (NIT) Natural Gas Price
                                                                                                                                   ($0.20/mmbtu US)
                     Conventional Heavy                         30 - 33
                     Western Canada segment                   11 - 11.50
                     Atlantic                                   33 - 35                                                            Heavy / Light Differential
                     Asia Pacific                             6.10 - 6.50                                                          ($1.00/bbl US)

                                                                                          (200)        (100)      0        100       200
                    Downstream Operating Costs ($/bbl)
                    Lloydminster Upgrader2                      9 - 10
                    Lima Refinery                               7-8                                        Decrease in Benchmark
                                                                                                           Increase in Benchmark

Husky Energy Inc.                                              1,2,3 See Slide Notes and Advisories                                                             19
Turnaround Schedule
                                                                                  Quarterly Production
                    Turnaround Schedule                      Estimated Duration
                                                                                   Impact (boe/day)
                    Q1
                    BD Gas Project                                2 weeks               ~ 1,400
                    Q2
                     8 Thermal projects                          1-2 weeks              ~ 5,000
                     Sunrise                                  4 weeks (partial)         ~ 7,000
                     Western Canada gas (Ansell and Kakwa)        3 weeks               ~ 1,000
                     Liwan Gas Project                            2 weeks               ~ 2,000
                     BD Gas Project (Indonesia)                   1 week                 ~ 500
                     Terra Nova FPSO offstation                  6-7 months             ~ 5,000
                     Husky Lloydminster Upgrader                  6 weeks          ~ 40,000 bbls/day
                    Q3
                     2 Thermal projects                          1-2 weeks              ~ 1,000
                     SeaRose FPSO                                 3 weeks               ~ 4,500
                     Terra Nova FPSO offstation                  6-7 months             ~ 5,000
                    Q4
                     Tucker                                       4 weeks               ~ 8,000
                     BD Gas Project                               1 week                 ~ 500

Husky Energy Inc.                                                                                        20
Slide Notes
& Advisories

               21
Slide Notes
                                                                                                   Slide 10
Slide 2
                                                                                                   1. Capital expenditures in Asia Pacific excludes amounts related to the Husky-CNOOC
1. Free cash flow (FCF), as referred to throughout this presentation, is a non-GAAP                   Madura Ltd. joint venture which is accounted for under the equity method for interim
   measure. Please see Advisories for further detail.                                                 financial statement purposes.
Slide 3                                                                                            Slide 11
1. Netback, as referred to throughout this presentation, is a non-GAAP measure. Please             1. Flexibility, as used in this reference, refers to a target net debt level using 2x FFO at $40
   see Advisories for further detail.                                                                 US WTI, less the third quarter 2019 net debt.
2. Earnings break-even, as referred to throughout this presentation, is a non-GAAP                 2. FFO forecast at $55 WTI for 2020 is calculated using the Benchmark Prices found in the
   measure. Please see Advisories for further detail.                                                 Appendix.
3. Net debt to trailing funds from operations, as referred to throughout this presentation, is a   3. Planned growth capital is a non-GAAP measure. Please see Advisories for further detail.
   non-GAAP measure. Please see Advisories for further detail.
                                                                                                   4. Sustaining capital is a non-GAAP measure. Please see Advisories for further detail.
Slide 7
                                                                                                   Slide 13
1. Return on Capital In Use is a non-GAAP measure. Please see Advisories for further
   detail.                                                                                         1. Expected net peak production rate.
Slide 8                                                                                            Slide 14
1. Forward-looking financial results for 2020-2021 in this presentation are calculated using       1. Steam-oil ratio (SOR) represents the unit of steam required to generate a unit of produced
   the Pricing Assumptions found in the Appendix, unless otherwise indicated.                         oil. Please see Advisories for further detail.
2. Funds from operations (FFO), as referred to throughout this presentation, is a non-GAAP         Slide 18
   measure. Please see Advisories for further detail.                                              1. Capital guidance includes exploration capital in each business unit, excludes asset
3. Capital spending, as referred to throughout this presentation, does not include capitalized        retirement obligations and capitalized interest.
   interest or capital expenditures related to the Husky-CNOOC Madura Ltd. joint venture,          2. Upstream production range assumes six months of 5,000 bbls/day of government-
   which is accounted for under the equity method for financial statement purposes, or                mandated curtailments.
   capital expenditures for the rebuild of the Superior Refinery, unless otherwise indicated.      Slide 19
4. Production, as referred to throughout this presentation, includes production related to the     1. Operating costs include energy and non-energy costs. Total Downstream operating costs
   Husky-CNOOC Madura Ltd. joint venture, which is accounted for under the equity                     ($/bbl) exclude the Superior Refinery.
   method for financial statement purposes unless otherwise indicated.
                                                                                                   2. Includes planned six-week turnaround; Expected ~$1 per barrel impact
                                                                                                   3. Cash flow sensitivity calculated independently by adjusting one pricing variable at a time,
                                                                                                      based off the noted benchmark prices.
Husky Energy Inc.                                                                                                                                                                                     22
Advisories
Forward-Looking Statements and Information

Certain statements in this presentation 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 presentation 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 presentation include, but are not limited to,
references to:

•    with respect to the business, operations and results of the Company generally: the Company’s general strategic plans and growth strategies and the results thereof; 2020 capital
     expenditures broken down into Integrated Corridor, Offshore and Corporate; 2020 production guidance broken down into Integrated Corridor and Offshore and into crude oil and liquids
     and natural gas; 2020 capital expenditures and dividend being fully funded from funds from operations; bias toward shareholder returns and dividend growth; safety and operations
     integrity priorities and forecasts, including target to be global top-quartile in process safety by the end of 2022; target earnings break-even price for 2023; target net debt to trailing FFO;
     forecast FCF for 2020 to 2021 and the allocation thereof; 2019 guidance for capital spending, production, net debt and operating costs; forecast FFO, cash flow from operating activities,
     free cash flow, capital expenditures, operating costs; production and downstream capacity for 2019 to 2021; forecast earnings break-even prices for 2019 to 2021; 2020 sources and uses
     of cash; and cash flow sensitivity;

•    with respect to the Company's Downstream operating segment: 2020 estimated downstream capacity, broken down into heavy capacity and light capacity; anticipated costs and timing to
     rebuild the Superior Refinery; the expected timing of, and capacity increase resulting from, the diesel upgrading program at the Lloyd Upgrader; 2020 refined products sales; and
     anticipated timing and duration of turnarounds and the expected impacts on production resulting therefrom;

•    with respect to the Company's heavy oil and thermal developments in the Integrated Corridor: estimated production capacity and expected timing of start-up at the Spruce Lake Central,
     Spruce Lake North, Spruce Lake East, Edam Central and Dee Valley 2 thermal bitumen projects; and timing of planned turnarounds and production impacts therefrom;

•    with respect to the Company's Offshore business in the Atlantic region, expected timing of first oil at the West White Rose Project and estimated production thereat; and

•    with respect to the Company's Offshore business in the Asia Pacific region, expected timing of start-up at Liuhua 29-1 and the MDA-MBH & MDK fields and estimated production capacity
     thereat.

Husky Energy Inc.                                                                                                                                                                                            23
Advisories
Certain of the information in this presentation is “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure
regarding the Company’s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that this financial outlook may not be appropriate for
other purposes.

Although the Company believes that the expectations reflected by the forward-looking statements presented in this presentation 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 the Company.

The Company’s Annual Information Form for the year ended December 31, 2018 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.

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
management’s assessment of the future considering all information available to it at the relevant time. 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.

Non-GAAP Measures

This presentation contains certain terms which do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by
other issuers. None of these measures is used to enhance the Company's reported financial performance or position. With the exception of funds from operations and free cash flow, there
are no comparable measures to these non-GAAP measures in accordance with IFRS. The following non-GAAP measures are considered to be useful as complementary measures in
assessing Husky's financial performance, efficiency and liquidity:

Husky Energy Inc.                                                                                                                                                                                      24
Advisories
•    “Free cash flow” or “FCF” is a non-GAAP measure which should not be considered an alternative to, or more meaningful than, cash flow – operating activities as determined in accordance
     with IFRS, as an indicator of financial performance. FCF is presented to assist management and investors in analyzing operating performance by the business in the stated period. FCF
     equals funds from operations less capital expenditures.

•    “Netback” is a common non-GAAP measure used in the oil and gas industry. This measure assists management and investors to evaluate the specific operating performance by product at
     the oil and gas lease level. Netback is calculated as realized price less royalties, operating costs and transportation costs on a per unit basis.

•    “Earnings break-even” reflects the estimated WTI oil price per barrel priced in US dollars required in order to generate a net income of Cdn$0 in the 12-month period ending December 31 of
     the indicated year. This assumption is based on holding several variables constant throughout the applicable 12-month period, including foreign exchange rate, light-heavy oil differentials,
     realized refining margins, forecast utilization of downstream facilities, estimated production levels and other factors consistent with normal oil and gas company operations. Earnings
     breakeven is used to assess the impact of changes in WTI oil prices on the net earnings of the Company and could impact future investment decisions. Earnings break-even does not have
     any standardized meaning and therefore should not be used to make comparisons to similar measures presented by other issuers.

•    “Net debt to trailing FFO” is a non-GAAP measure that equals net debt divided by the 12-month trailing FFO. Net debt is a non-GAAP measure that equals total debt less cash and cash
     equivalents. Total debt is calculated as long-term debt, long-term debt due within one year and short-term debt. Net debt to trailing FFO is considered to be a useful measure in assisting
     management and investors to evaluate the Company’s financial strength.

•    “Funds from operations” or “FFO” is a non-GAAP measure which should not be considered an alternative to, or more meaningful than, “cash flow – operating activities” as determined in
     accordance with IFRS, as an indicator of financial performance. FFO is presented to assist management and investors in analyzing operating performance of the Company in the stated
     period. FFO equals cash flow – operating activities excluding change in non-cash working capital.

•    “Return on capital in use” or ROCIU is a non-GAAP measure used by Husky to gauge the capital productivity of assets currently in production. ROCIU is used to assist in analyzing
     shareholder value and return on capital. ROCIU equals net earnings plus after tax interest expense divided by the two-year average capital employed, less any capital invested in assets that
     are not in use. Husky’s determination of ROCIU does not have any standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by
     other issuers.

•    “Growth capital” is a non-GAAP measure that represents expenditures which incrementally increase cash flow or earnings potential of assets, expand the capacity of current operations or
     significantly extend the life of existing assets. This measure is used by the investment community to assess the extent of discretionary capital spending. For clarity, growth capital is equal to
     total capital less sustaining capital.

Husky Energy Inc.                                                                                                                                                                                     25
Advisories
“Sustaining capital” is a non-GAAP measure that represents the capital that is required by the business to maintain production and operations at existing levels. This includes the cost to drill,
complete, equip and tie-in wells to existing infrastructure and maintenance for Downstream assets. Sustaining capital does not have any standardized meaning and therefore should not be
used to make comparisons to similar measures presented by other issuers.

All currency is expressed in Canadian dollars unless otherwise indicated.

Disclosure of Oil and Gas Information

Unless otherwise indicated: (i) projected production volumes provided are gross, which represents the total or the Company’s working interest share, as applicable, before deduction of
royalties; and (ii) all Husky working interest production volumes provided are before deduction of royalties.

The Company uses the term “barrels of oil equivalent” (or “boe”), which is consistent with other oil and gas companies’ disclosures, and is calculated on an energy equivalence basis
applicable at the burner tip whereby one barrel of crude oil is equivalent to six thousand cubic feet of natural gas. The term boe is used to express the sum of the total company products in
one unit that can be used for comparisons. Readers are cautioned that the term boe may be misleading, particularly if used in isolation. This measure is used for consistency with other oil
and gas companies and does not represent value equivalency at the wellhead.

The Company uses the term “steam-oil ratio”, which measures the average volume of steam required to produce a barrel of oil. This measure does not have any standardized meaning and
should not be used to make comparisons to similar measures presented by other issuers.

Husky Energy Inc.                                                                                                                                                                                    26
Investor Relations Contacts

        Dan Cuthbertson            Director, Investor Relations
                                   dan.cuthbertson@huskyenergy.com

                                   Senior Manager, Investor Relations
                    Leo Villegas
                                   leonidas.villegas@huskyenergy.com

                                   Investor Relations Specialist
          Jenna Pickering
                                   jenna.pickering@huskyenergy.com

    Contact us:              www.huskyenergy.com            investor.relations@huskyenergy.com   1-855-527-5005
Husky Energy Inc.                                                                                                 27
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