Husky Energy will undertake a strategic review and potentially sell its Canadian retail and commercial fuels business as well as its Prince George Refinery.
Husky's decision to review and consider a sale of non-core downstream assets comes as it increasingly focuses on core assets in its Integrated Corridor and on its offshore business in Atlantic Canada and the Asia Pacific region. The potential disposition is being undertaken independent of the outcome of Husky's proposed acquisition of MEG Energy.
"Our retail network and the Prince George Refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years," CEO Rob Peabody said. "However, as we further align our heavy oil and downstream businesses to form one Integrated Corridor, we've taken the decision to review and market these noncore properties.
"We expect the businesses will be highly marketable, attracting strong interest and valuations. Husky delivers value to its customers, and we anticipate that high level of quality and service will continue whether or not the businesses are sold."
Husky's retail and commercial network consists of more than 500 stations, travel centers, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. The myHusky Rewards loyalty program has about 1.6 million members.
The 12,000-bpd Prince George Refinery is located in Prince George, British Columbia, and processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products. It supplies refined products to retail outlets in the central and northern regions of British Columbia.
TD Securities Inc. is acting as financial advisor, with Torys LLP as legal advisor.
Husky has two core businesses. Its Integrated Corridor operates in Western Canada and the U.S., where thermal production is integrated with the downstream business and supported by Western Canada operations. Offshore, the company is focused in the Asia Pacific and Atlantic regions.
The company's business strategy is to focus on returns from investment in a deep portfolio of opportunities that can generate increased funds from operations and free cash flow.
Husky's focus on safety helps protect the public, its employees and contractors, the environment and its assets while providing for efficient and productive operations.
Along with rigorous occupational safety programs, Husky is driving continuous improvement in process safety.
For more information, visit www.huskyenergy.com or call (403) 298-6111.
