(Bloomberg) - Husky Energy Inc. said Tuesday it sold a package of oil and gas assets in southwest Saskatchewan to Whitecap Resources Inc. for C$595 million ($463 million). Now the company is working on a number of smaller deals that will raise the proceeds from Western Canadian oil and gas asset sales to about C$1 billion, according to people with knowledge of the matter.
Husky, the Calgary-based producer that’s been trying to reshape its portfolio in the face of persistently low oil prices, has been running three sale processes for midstream assets, exploration and production assets and royalty interests.
In addition to the Whitecap deal, there are about five E&P packages close to being sold that could fetch about C$400 million, said the people, who asked not to be identified because the information is private. While those don’t reflect all of the properties Husky had on the market, the bulk of the oil-rich assets, in particular in Saskatchewan, drew the most interest, said the people.
Husky is nearing deals for those five bundles with Crescent Point Energy Corp., Canadian Natural Resources Ltd. and Manulife Financial Corp.’s NAL Resources Management Ltd., the people said.
A representative for Husky declined to comment. Representatives for Crescent Point, Canadian Natural and NAL Resources didn’t respond to phone and e-mail messages seeking comment.
The latest round of disposals would bring Husky’s total gain from all three sales processes to about C$2.86 billion.
Husky’s recent divestitures include a C$1.7 billion majority stake in some of its Western Canadian pipeline and oil storage business last month to subsidiaries of Hong Kong billionaire Li Ka-Shing, who is the controlling shareholder in Husky. It also reached an agreement to sell some of its royalty interests to Freehold Royalties Ltd. last week for C$165 million.
In addition to the three sales processes, Husky said in January it would suspend its dividend. It’s also reducing spending for the year to help shore up its balance sheet as oil prices trade down 60 percent from their mid-2014 high.
- With assistance from Rebecca Penty. To contact the reporter on this story: Scott Deveau in Toronto at firstname.lastname@example.org To contact the editors responsible for this story: Elizabeth Fournier at email@example.com Elizabeth Wollman
Copyright 2016 Bloomberg News.
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