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Husky Energy sells southwest Saskatchewan assets for $595m

Staff writer ▼ | May 11, 2016
Husky Energy has reached an agreement for the sale of select assets in southwest Saskatchewan for $595 million to Whitecap Resources.
Husky Energy
Selling   Another step in the transition in Western Canada
"Today's announcement is another step in the transition of our Western Canada portfolio into a more focused and efficient business," said CEO Asim Ghosh.

"Over the past two months we have made significant progress on three major divestiture initiatives that will materially strengthen our balance sheet and further our transition into a low sustaining capital business."

For the past six years, Husky has been transitioning its Western Canada business from a legacy basin to one with fewer, more material resource plays. Work to progress the planned sale of several other packages in Western Canada continues.

This is Husky's third asset sale agreement this year. Husky agreed to sell a 65 percent ownership interest in select midstream assets in April for $1.7 billion, while retaining 35 percent ownership in a newly formed limited partnership and remaining the operator.

Earlier this month, Husky Energy reached an agreement under which it will realize $163 million in cash proceeds from the sale of royalty assets in Western Canada.

Proceeds from these transactions will be used to further strengthen the balance sheet.