Husky Energy cuts five-year budget, raises cash flow target
(Adds details on outlook, divestment)
May 28 (Reuters) - Husky Energy Inc on Tuesday nearly doubled its free cash flow target over five years and cut its capital spending at a time when investors have been calling on oil and gas companies to shore up capital for buybacks and dividends.
Total free cash flow before dividends is expected to reach C$8.7 billion between 2019 and 2023, compared with previous estimate of C$4.8 billion between 2018 and 2022.
"Husky's updated five-year plan... achieves a significant increase in free cash flow while increasing production by about 100,000 barrels per day through 2023," said Chief Executive Officer Rob Peabody.
Husky now expects to spend an average of C$3.15 billion ($2.34 billion) annually from 2019 to 2023, compared with its prior estimate of C$3.5 billion between 2018 and 2022.
For 2019, Husky reiterated its plans to spend C$3.3 billion to C$3.5 billion and production forecast of 290,000 to 305,000 barrels of oil equivalent per day.
Husky, set to hold its investor day in Toronto on Tuesday, also said it was continuing to explore a sale of its Canadian retail and commercial fuels business and Prince George Refinery.
($1 = 1.3472 Canadian dollars) (Reporting by Shanti S Nair in Bengaluru; Editing by Shinjini Ganguli)
