Husky Energy plans for higher 2018 capital budget compared with this year
Husky Energy president and CEO Robert Peabody speaks to reporters following the company's annual meeting in Calgary, Alta., Friday, May 5, 2017. Calgary-based Husky Energy Inc. has budgeted between $2.9 billion and $3.1 billion for capital projects in 2018. THE CANADIAN PRESS/Jeff McIntosh
December 04, 2017 - 7:32 AM
CALGARY - Husky Energy Inc. (TSX:HSE) is planning to increase its capital spending in 2018 to between $2.9 billion and $3.1 billion.
That includes up to $1.1 billion on growth projects and up to $2 billion on sustaining and corporate spending.
The 2018 capital budget is below the annual average of $3.3 billion a year anticipated in the company's five-year plan, but above its 2017 spending, estimated at about $2.2 billion to $2.3 billion.
Among other things, spending on Husky's thermal bitumen operations in Western Canada will rise to between $895 million and $930 million from between $560 million and $590 million.
Husky's spending on its Atlantic light crude operations will rise to between $750 million and $775 million, from $475 million to $500 million, and Canadian natural gas capital spending will rise $25 million to between $215 million and $225 million.
The Calgary-based integrated oil and gas company says new project funding is contingent on meeting a forecast minimum 10 per cent rate of return with a benchmark price of West Texas Intermediate crude at US$45 per barrel.
Next year's annual production is estimated to average the equivalent of 320,000 to 335,000 barrels of oil per day — about the same as this year.
News from © The Canadian Press, 2017