Husky reports a drop in production, blamed on a busy maintenance season and Alberta's curtailment program

Husky reports a drop in production, blamed on a busy maintenance season and Alberta's curtailment program

Husky Energy reported a drop in production for the second quarter, blamed on a heavy maintenance turnaround schedule and Alberta's curtailment quotas.

Upstream output dropped to 268,400 boe/day, down 9% from the same time last year. Refinery throughput declined to 340,000 bbl/day, down 4% y/y due to maintenance at its Lloydminster and Toledo refineries.

The company's Dee Valley expansion of its Lloyd thermal properties has begun steaming, which should bring additional production online sometime in the third quarter. Dee Valley is one of five 10,000 bbl/day expansion phases currently under development in the province of Saskatchewan.

Thermal bitumen production from Lloyd, Tucker and Sunrise averaged about 120,000 bbl/day (net to Husky), down from 123,200 bbl/day for the same quarter last year, due to curtailment quotas and maintenance at six of its Lloyd thermal properties.

Second quarter production at Sunrise averaged 45,400 bbl/day while Tucker averaged 24,000 bbl/day. Both Sunrise and Tucker remain well below their respective nameplate capacities of 60,000 and 30,000 bbl/day.

Husky is sticking to its 2019 guidance of $3.3 to $3.5 billion in capital spending, at an average annualized production rate of about 300,000 boe/day. The company is still pondering the potential sale of its Prince George Refinery and retail gas stations.

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