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Husky Energy: keeping investment-grade rating 'critical' to company
By Jennifer Lanning Drey
Savannah, Ga., June 13 - Husky Energy Inc. has a "critical commitment" to maintaining its investment-grade credit rating, John Myer, the company's vice president, Oil Sands, said during a Monday presentation at the CAAP Oil & Gas Investments Symposium in Calgary, Alberta.
"Our financial strategy is really around having a plan which will support and fund our growth and ensure liquidity and financial flexibility," he said.
That strategy includes maintaining availability under its term committed credit facilities and continuous and cost-effective access to the capital markets, according to the slides accompanying Myer's presentation.
Husky targets debt to cash flow of 1.5 times to 2.5 times, the slides also said. The current ratio is 1.2 times.
Husky's business strategy is built on the foundation of its Western Canada and Heavy Oil businesses, Myer said during the presentation.
"Husky has a significant resource base and a substantial prospect inventory. Our focus is to develop this resource base and drive it into production in a fiscally responsible manner," he said.
The Western Canada business is a strong foundation for the company, and Husky would accelerate projects there that would deliver near-term production and cash flow, Myer said. The company will continue to pursue high-value resource plays in the Western Canada business.
"We're going to direct the capital to the top-tier assets and really demand top-tier metrics," he said.
At the same time, Husky's Heavy Oil business has generated significant value over the years, and the company believes the business will be sustained for many years to come, he noted.
Husky's overall strategy also includes maintaining a near-term focus for its capital around liquids-rich plays, while de-risking and maintaining its position in gas resource plays, Myer said.
Husky Energy is an integrated energy company based in Calgary, Alta.
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