Husky Cuts Spending Plans for Next 2 Years Amid Oil Constraints

(Bloomberg) -- Husky Energy Inc. cut its planned capital spending for 2020 and 2021 by a total of C$500 million ($376 million) as Alberta continues to limit oil production.

The revised plan, based on an assumed price for U.S. crude of $55 a barrel, means the company will now generate C$500 million of free cash flow before dividends in 2020 and C$1.5 billion in 2021, Husky said Monday.

Key Takeaways

• Husky's budget signals that other major energy producers in Alberta may also be tightening their purse strings next year as a shortage of pipeline capacity persists.
• The revised outlook also reflects a subdued outlook for the global oil market next year. The company's previous price assumption for 2020 was $60 per barrel.

Market Reaction

• The shares were little changed at C$9.65 as of 7:11 a.m. in pre-market trading in Toronto.

Get More

• Click here for more on Husky's 2020 spending plans.

To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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