Canada's Husky Energy Announces Planned Capex for 2017

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Researched by Industrial Info Resources (Sugar Land, Texas)--Husky Energy Incorporated's (TSX:HSE) (Calgary, Alberta) capital expenditure program for 2017 will be in the range of C$2.6 billion ($2.0 billion) billion to C$2.7 billion ($2.1 billion), the oil and gas producer said Tuesday. For this year, capital expenditures are anticipated to be C$2 billion ($1.5 billion), about C$100 million ($76 million) below the guided range.

Industrial Info is tracking nearly $12 billion in active Husky Energy projects.

The capital expenditures for 2017 include C$1.5 billion ($1.1 billion) to C$1.6 billion ($1.2 billion) for upstream activities, and C$725 million ($552 million) to C$765 million ($583 million) for downstream activities, including planned turnarounds.

Chief Executive Officer Rob Peabody said in a press statement that overall sustaining and maintenance capital requirements have decreased about 25% over the last two years and are forecast to be in the range of C$2.2 billion ($1.7 billion) to C$2.3 billion ($1.8 billion) for 2017.

Peabody said Husky will add about 45,000 barrels of oil (BBL/d) of higher return production in 2017, much of which will replace declines elsewhere. Overall production is expected to be in the range of 320,000-335,000 barrels of oil equivalent per day (BOE/d). Production for 2016 is expected to be within guidance at 318,000-320,000 BOE/d.

The company's governing board has sanctioned several new projects, including the 10,000-BBL/day Rush Lake 2 Lloyd bitumen thermal project, located near Paynton, Saskatchewan, with first oil scheduled for the first half of 2019, Peabody said during a conference call with investment analysts.

Downstream at its Lima Refinery in Ohio, Husky's crude oil flexibility project has increased heavy crude feedstock processing capacity to about 10,000 BBL/day, with the goal of increasing heavy crude capacity to 40,000 BBL/day in 2018, Peabody said. Overall, Husky Energy's heavy crude processing capacity will be about 210,000 BBL/d by the end of 2018.

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