Corporate Presentation June 2013
Overview • Balanced growth strategy delivering • Consistent execution driving performance and improving returns • Transforming the foundation • Advancing growth pillars 2
On Track to Achieve Our Targets 2012-2017 2010 Actuals 2015 Targets 2012 Actuals Target (1) Production 287 3-5% CAGR 301.5 5-8% CAGR (mboe/d) Reserve ~ 155% > 140% > 140% Replacement 174% 2 year average average Ratio average Return on Capital 6.4% 11-12% (+ 5%) 9.5% 11-12% Employed Return on Capital 8.4% 13-14% (+ 5%) 12.7% 14-15% in Use Cash Flow from $3.1 billion n/a $5.0 billion 6-8% CAGR Operations (1) Based on current strip commodity prices 3
2013 – Capital and Production Guidance 6 Capital Expenditures (billions) Production (mboe/day) 350 $4.8 5 $4.7 Forecast range 301.5 mboe/d 310 – 330 mboe/d 300 Midstream/ Downstream/ 4 Corporate 250 Atlantic Region 3 Oil Sands/Sunrise 200 Natural Gas (mboe/day) Asia Pacific 150 Light / Medium Oil and 2 NGLs (mbbl/day) Heavy Oil 100 Heavy Oil and Bitumen (mbbl/day) Western Canada 1 50 0 0 2012 Actual 2013 Guidance 2012 2013 Guidance Actual 2012 cash outlay: $4.1 billion 2013 Guidance cash outlay: $4.3 billion 4
Focused Integration – Achieving World Market Prices Realized Pricing on Upstream Production Processed (December 31, 2012) 160.00 Brent Pricing 140.00 Benchmark 120.00 Realized Price $/bbl US Refining 100.00 . . 80.00 I&M 60.00 40.00 CDN Upgrading & 20.00 Refining Field Price 0.00 Atlantic Wenchang Heavy Oil Western Canada Medium and Light 34 mbbl/d 9 mbbl/d 113 mbbl/d 54 mbbl/d $50 − $53 Additional revenue/bbl $37 − $41 Increased netback/bbl 5
Foundation
Heavy Oil Advantage • Very large resource position • Industry-leading infrastructure and integration • 70 years of heavy oil recovery experience (30 years for thermal) • New technologies and techniques continue to increase recovery • Production growth over the plan period CHOPS Well Lloydminster Upgrader 7
Thermal Projects Pipeline Thermal Production Development Project (bbl/d) Timeline Bolney/Celtic Area Paradise Hill Pikes Peak 5,000 Producing 1982 Bolney Celtic Bolney/Celtic 13,000 Producing 1996 Sandall Rush Lake Pilot 1,000 Producing 2011 North Saskatchewan Pikes Peak Area River Lloydminster Paradise Hill 5,400 Producing June 2012 Pikes Peak Pikes Peak South Pikes Peak 12,400 Producing June 2012 Dee Valley South Sandall 3,500 2014 Edam Area Rush Lake Ph 1 10,000 2015 East Edam West Edam Rush Lake Dee Valley 3,500 2015/16 Area Existing Development Edam East 8,000 2016/17 New Development Edam West 3,500 2016/17 Four prospects 4-5,000 2017+ each 8
Transforming the Foundation – Heavy Oil Thermal Success Name Plate Capital Current Production Intensity F&D Operating Project Production (bbl/d) ($/flowing ($/bbl) Costs ($/barrel) (bbl/d) barrel)* Pikes Peak 8,000 12,400 ~$24,000 ~ $12 ~$10 South Paradise Hill 3,500 5,400 ~$28,000 ~ $12 ~$10 *as of March 31 st , 2013 Pikes Peak South Paradise Hill 9
Transforming the Foundation – Western Canada Total 2013 Approximate PIIP Production Resource Play Planned Net Acres mmboe* boe/d Activity /section Established Oil Slater River Bakken 18,000 10 wells Viking 60,000 58 wells Oil 5 - 10 Cardium 10,000 7 wells ~7,000 Lower Shaunavon 14,000 3 wells Liquids Rich 102,000 78 wells Horn River Emerging Plays Dry Gas Muskwa Rainbow 400,000 10 wells 20 - 30 De-risking Bivouac Jean Marie NWT Slater River 300,000 2 wells 20 - 90 Rainbow Muskwa 700,000 12 wells Liquids Rich Cypress Sinclair Montney Montney Ansell 160,000 20-25 wells Duvernay 20,000 5 wells 3 - 10 ~14,000 Wapiti/Kakwa Cardium Montney 50,000 1 wells Kakwa Redwater 230,000 26-31 wells Multi zone Viking Kaybob Dry Gas Duvernay Alliance Viking Montney 50,000 No activity Ansell 2 nd White Horn River (Muskwa) 30,000 No activity Multi zone Specks 1 - 25 ~3,000 Dodsland Wild River (Duvernay) 35,000 No activity Viking Bivouac (Jean Marie) 430,000 No activity Butte 545,000 Lower Shaunavon Other 250,000 Oungre Bakken Total 1.8 million 116-121 wells ~24,000 * 6:1 gas to boe conversion The range of PIIP numbers on this slide are meant to be indicative of the range of value that could be calculated for each type of play and is not meant to be interpreted as being an estimate of resource. See “Resource Play 10 Reserves Summary as at December 31, 2012” page 31.
Liquids Rich Gas: Ansell • Ansell – Cardium • ~200 net sections • ~3 mmboe Total PIIP/section • Liquids yield: ~60 bbl/mmcf • Up to a total of 800 well locations (based on four wells per section) Cardium • Ansell – Wilrich • ~195 net sections • ~3 mmboe Total PIIP/section Wilrich • Liquids yield: ~10 bbl/mmcf • Up to a total of 800 well locations (based on four wells per section) • Limited production to date 11
Emerging Resource Plays Total PIIP per Acres (net) Locations 2012 Activity 2013 Plan Section ~ 400,000 acres ~ 2,500 Continue to de-risk 14 wells drilled Rainbow- Muskwa ~600+ net 20 - 30 mmboe 4 wells per Refine completion strategies 4 completions sections section Land retention Two vertical completions of ~ 300,000 acres ~ 2,500+ Two vertical wells pilot wells Slater River ~450+ net 20 - 90 mmboe 6 wells per drilled All-weather access road to be sections section 3D seismic program completed from river to N-09 Rainbow - Muskwa 12
Downstream Reliability/Flexibility Downstream Assets Capacity (mbbls/day) • Lima – Increase feedstock and product Lima 160 flexibility Toledo (Husky 50% WI) 65 • Kerosene hydrotreater complete; increased Upgrader 82 flexibility to optimize product mix • Crude Pre-Heat Exchanger project to improve Asphalt Refinery 29 energy efficiency and reliability Prince George Refinery 12 • Toledo – Position refinery for Sunrise feedstock • Reformer 3 project in service • 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 13
Growth Pillars
Liwan Progress • Project progressing according to plan – Approximately 85% complete • Deepwater almost complete • Drilling finished; eight wells completed and one completion remains Topsides float over • Deepwater pipelines are being installed • Shallow water is > 80% complete • Topsides construction 99% complete • Shallow water pipelines are being installed • Onshore gas plant 85% complete Topsides Set 15
Liwan - Gaolan Gas Plant August 2011 February 2013
Liwan - Gaolan Gas Plant February 2013
Liwan Development Milestones Milestone Timeframe Action Completed Delineation Q4 2009 Completed FEED Q4 2010 Completed Deep and Shallow Water Q1 2011 Tendering Completed Development Drilling Q2 2011 Completed Lower Completions Q4 2011 Completed and Installed Fabricate and Install Platform Install Jacket in 2012 Jacket Completed Fabrication and Attachment of the Complete in mid-2013 Topsides to the Platform Jacket Shallow Water In progress; Complete in early 2013 Pipeline installation Over 80% completed Construction in Progress; Onshore Gas Plant Construction Complete by mid-2013 85% Completed In progress; DW Pipeline Installation Mid-2013 Over 65% Completed Initial Gas Production and Sales Late 2013/Early 2014 On Target 18
Madura Developments Field Production Budget Development Prices Status MDA & 60 mmcf/d gas US$120- Two wellhead Expecting Plan of Development (POD) submitted MBH US$150MM platforms and pipeline US $6+/mmbtu Upon POD approval AFEs & facility Multi-field development tendering with an FPU Drilling and completions for 8-9 wells 2014 First gas 2015 BD 40 mmcf/d gas US$300- Well platform and ~ US $5.50/mmbtu POD approved 2008 US$400MM leased FPSO; gas Local liquids FPSO and EPIC contracts H1 2013 /16 sales pipeline to shore pricing 2,400 bbls/d Drilling and completions for 3-4 wells 2013 liquids First Production 2015/16 19
Indonesia: Madura Strait Block Developments and Discoveries • BD Field has an approved POD and is in the tender phase • MDA and MBH fields are being developed in tandem. POD approval pending • Four recent discoveries expected to be delineated in 2013 and PODs filed 20
Sunrise Energy Project • Over 65% complete • 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 design begins 2013 Please see advisory for further detail of Husky’s 50% W.I of these gross 1) 21 reserve numbers
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