Corporate Presentation April 2014
Overview • Balanced growth strategy delivering • Consistent execution driving performance and improving returns • Transforming the foundation • Advancing growth pillars 2
2014 – Capital Expenditures and Production Guidance Capital Expenditures (billions) Production (mboe/day) 6 400 Forecast range 330 – 355 mboe/d *$5.0 $4.8 350 5 Midstream/ Downstream/ Natural Gas Asia Corporate 300 (mboe/day) Atlantic Region 4 250 Oil Sands/Sunrise Natural Gas Canada 3 (mboe/day) 200 Asia Pacific 150 Light / Medium Oil 2 and NGLs (mbbl/day) Heavy Oil 100 1 Heavy Oil and Western Canada 50 Bitumen (mbbl/day) 0 0 2013 2014 Guidance 2013 2014 Actual Guidance *2013 cash outlay: $4.5 billion 3
On Track to Achieve Our Targets 2012-2017 2012 Actual 2013 Actual Target 5-8% CAGR (3) Production (mboe/d) 301.5 312 175% Reserve Replacement 172% 3 year > 140% 2 year Ratio (1) average average average Return on Capital 8.7% (2) 9.5% 11-12% Employed (3) Return on Capital in 12.6% (2) 12.7% 14-15% Use (3) Cash Flow from $5.0 billion 6-8% CAGR (3) $5.2 billion Operations (3) (1) Excludes economic revisions (2) Adjusted for after-tax impairments on property, plant and equipment of $204 million (3) Non-GAAP measures Please see advisory for further detail 4
Focused Integration – Achieving World Market Prices Realized Pricing on Upstream Production Processed (December 31, 2013) 160.00 Brent Pricing 140.00 Realized Price $/bbl Benchmark 120.00 100.00 US Refining I&M 80.00 CDN Upgrading & Refining 60.00 Field Price 40.00 20.00 0.00 Heavy Oil Western Canada Atlantic Wenchang Medium & Light 7 mbbl/d 122 mbbl/d 53 mbbl/d 44 mbbl/d $37 − $49 Additional revenue /bbl $27 − $35 Increased operating netback/bbl 5
Foundation
Heavy Oil – Transforming the Foundation Through Thermal Projects • 70 years and over 900 million barrels recovered • New technologies continue to increase recovery • Production growth over the plan period driven by thermal projects • Focused integration protects and enhances returns Sandall Paradise Hills Pikes Peak South 7
Heavy Oil Thermal Projects – Production Growth • Current projects produced over Development Thermal Project Production (bbl/d) Timeline 35,000 bbls/d during Q4 2013 1 Existing Projects ~35,000 Producing • Projects in place to accelerate Sandall 3,500 Producing 55,000 bbls/d target to 2016 from Rush Lake Ph 1 10,000 2015 2017 Edam East 10,000 2016 • Further upside identified in the Vawn 10,000 2016 portfolio Other prospects Ranging from 3,500 2017+ to 10,000 bbls/d each 1) Excludes production from Tucker 8
Heavy Oil Thermal Project Economics Metric Target • New projects have Construction ~2 years competitive SORs Maximum work force ~ 200 during construction • Lower operating costs and higher price Start up to peak Less than 6 months realizations production SOR target 2.0 for first 2 years, • Strong netbacks and high recycle ratios 3.0 average over project life • Strong returns 1 Sustaining capital ~$5-$7 per bbl Recoveries target Greater than 50% Operating cost per bbl ~$10 for first 2 years 1) Non-GAAP measure. Please see advisory for further detail. 9
Western Canada - Transforming the Foundation Through Resource Plays Resource Play Maturity Curve Appraisal and Dry gas Identify & Capture/ Commercial Commercial Liquids-Rich Gas Geologic De-risking Development De-risking High Oil Bakken Cardium Duvernay Viking Ansell L. Shaunavon Rainbow Muskwa Play Muskwa Maturity Liquids-Rich Window Ansell 2 nd White Slater River Specks Canol Montney Horn River Low 10
Liquids Rich Gas: Ansell • Ansell – Cardium • ~200 net sections • Current wells yielding liquids of ~60bbl/mmcf • Up to a total of 800 well locations (based on four wells per Cardium section) • Ansell – Wilrich • ~195 net sections Wilrich • Current wells yielding liquids of ~10bbl/mmcf • Up to a total of 800 well locations (based on four wells per section) 11
Downstream Reliability/Flexibility Capacity Downstream Assets (mbbls/day) • Lima – Increase feedstock and product flexibility Lima 160 • Feedstock flexibility project to take up to Toledo (Husky’s 50% W.I.) 65 40,000 bbls/d of heavy crudes Upgrader 82 • Toledo – Position refinery for Sunrise feedstock Asphalt Refinery 29 • Reformer 3 project in service Prince George Refinery 12 • Gas-oil Hydrotreater Recycle Gas Compressor project underway to increase capacity • Upgrader – Maintain high reliability • Reliability investments and operational excellence have resulted in a high effective capacity utilization (97%) Lima Refinery 12
Growth Pillars
Liwan – Delivery of the First Growth Pillar • US$6.5bn total project cost (49% W.I.) • 7 years from discovery to first gas • Deep water, shallow water and gas plant Topsides float over First Anticipated Gross Gas Field Production Production 250 mmcf/d increasing Liwan 3-1 March 2014 to 300 mmcf/d 10-14k/d boe liquids Targeting Liuhua 34-2 40 mmcf/d Fall 2014 Targeting Liuhua 29-1 100-200 mmcf/d 2016/17 Topsides set 14
Liwan Economics Liwan 3-1 / 34-2 Production • Exploration costs of ~$800 million. Anticipate recovery in ~18 months from first gas • Operating costs ~ 10% of gross revenues • Royalties and taxes ~20% of gross revenues • Five-year fixed price $11-$13 per mcf, floating at Guangdong City Gate price thereafter 15 15
Sunrise Energy Project • Start up of Phase 1 expected in second half of 2014 • Large resource base 3.7 billion barrels of 3P reserves (1) • • Sunrise Phase 1 and 2 approvals in place for 200,000 bbl/day (gross) • Excellent reservoir quality and oil saturation • Cost pressure requires constant attention • Sunrise Phase 2 • Design Basis Memorandum underway • Front-end engineering has begun 1) Please see advisory for further detail of Husky’s 50% W.I. of these gross reserve numbers 16
Sunrise Milestones Milestone Expected Action Timeframe Completed Drilling – spud first Q1 2011 horizontal well Completed Commence major Mid-2011 construction Sunrise May, 2011 Completed ahead of 2 nd Half 2012 Drilling complete schedule Completed Conversion of all major End of 2012 contracts 2 nd Half 2013 Commissioning Underway 2 nd Half 2014 Start up On track Sunrise July, 2013 17
Atlantic Region – Big Fields Get Bigger • Near-field developments progressing • South White Rose Extension - 20 million barrels of net 3P reserves 1 (on production 2014) Northern Drill Centre Gas Injection North West White • West White Rose Extension - 79 million barrels of Rose Near-field Prospect net 3P reserves 1 (on production 2017) West White H-70 Rose Extension • Near-field exploration success: Project Discovery SeaRose FPSO • Hydrocarbons discovered at Northwest White Rose, Central Drill Centre H-70 well results continue to be evaluated Southern Drill Centre • West Amethyst prospect in drilling queue North Amethyst Drill Centre South White Rose Extension Drill Centre 1) Please see advisory for further detail 18
Exploration Success • Flemish Pass discoveries mark a significant new development opportunity Mizzen • Considerable upside with very Harpoon attractive targets still to be drilled Bay du Nord in both the Flemish Pass and the region Best Estimate Field Contingent API Resource 1 Aster 34 o Bay du Nord 400 million (gross) White Rose 22 o Mizzen 130 million (gross) Terra Nova Harpoon In delineation In delineation 1) Husky W.I. 35%. Please see advisory for further detail 19
Summary • Balanced growth strategy delivering • Consistent execution driving performance and improving returns • Transforming the foundation • Advancing growth pillars 20
Supplementary Material
Resource Play Reserves Summary at December 31, 2013 Probable Resource Play Proved Reserves Possible Reserves Reserves Oungre Bakken 3,571 mbbl 1,098 mbbl - Redwater Viking 3,124 mbbl 1,262 mbbl - Alliance Viking 3,378 mbbl 744 mbbl - Elrose Viking 1,839 mbbl 415 mbbl - Wapiti Cardium 2,894 mbbl 809 mbbl - Butte/Bench Lwr Shaunavon 828 mbbl 155 mbbl - Ansell Cardium , multi-zone 595 bcf gas 101 bcf gas 99 bcf gas (including Wilrich) 13,500 mbbl NGLs 1,831 mbbl NGLs 1,798 mbbl NGLs Kaybob South Duvernay 12 bcf gas 42 bcf gas - 2,879 mbbl NGLs 8,740 mbbl NGLs Rainbow Muskwa 134 mbbl 114 mbbl - Slater River Canol - - - Kakwa Montney 2 bcf 3 bcf - 196 mbbl 315 mbbl Horn River (Muskwa) - - - Wild River (Duvernay) - - - Bivouac (Jean Marie) 30 bcf 2 bcf - Not all resource plays have sufficient drilling results or production information to estimate reserves or resources as of December 31, 2013 22
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