Corporate Presentation November, 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 2013 2012-2017 Target (1) Actuals Q3 YTD • Targets first set out to the market in 2010 and Production (mboe/d) ~301.5 313 5-8% CAGR increased in 2012 • Projects in development ~ 155% Reserve > 140% 2 year On track give line of sight to Replacement Ratio average average achieving these targets Return on Capital • Targets reflect our 9.5% 9.5% 11-12% Employed balanced growth value proposition Return on Capital in 12.7% 14.0% 14-15% Use Cash Flow from $5 billion $4.1 billion 6-8% CAGR Operations (1) Based on commodity strip prices as of Dec 31, 2012 3
Focused Integration – Achieving World Market Prices Realized Pricing on Upstream Production Processed (June 30, 2013) 160.00 140.00 Brent Pricing 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 122 mbbl/d 53 mbbl/d 47 mbbl/d 8 mbbl/d $55 − $59 Additional revenue /bbl $42 − $47 Increased netback /bbl 4
Foundation
Heavy Oil Advantage • Very large resource position • Industry-leading infrastructure and integration • 70 years of heavy oil recovery experience (30 years for thermal) • New technologies and techniques continue to increase recovery • Production growth over the plan period CHOPS Well Lloydminster Upgrader 6
Thermal Projects Pipeline Thermal Production Development Project (bbl/d) Timeline Bolney/Celtic Area Paradise Hill Pikes Peak 5,000 Producing 1982 Bolney Celtic Bolney/Celtic 13,000 Producing 1996 Sandall Rush Lake Pilot 1,000 Producing 2011 North Saskatchewan Pikes Peak Area River Lloydminster Paradise Hill 4,300 Producing June 2012 Pikes Peak Pikes Peak South Pikes Peak 11,300 Producing June 2012 Dee Valley South Sandall 3,500 2014 Edam Area Rush Lake Ph 1 10,000 2015 East Edam West Edam Rush Lake Dee Valley 3,500 2015/16 Area Existing Development Edam East 8,000 2016/17 New Development Edam West 3,500 2016/17 Four prospects 4-5,000 2017+ each 7
Transforming the Foundation – Heavy Oil Thermal Success Name Plate Current Production F&D Operating Costs Project Production (bbl/d) (bbl/d)* ($/bbl) ($/barrel) Pikes Peak South 8,000 11,000 ~ $12 ~$10 Paradise Hill 3,500 5,000 ~ $12 ~$10 *September 2013 average Paradise Hill Pikes Peak South 8
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 9 Reserves Summary as at December 31, 2012” page 28.
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 10
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 11
Downstream Reliability/Flexibility Downstream Assets Capacity (mbbls/day) • Lima – Increase feedstock and product flexibility Lima 160 • Feedstock flexibility project to take up to Toledo (Husky’s 50% WI) 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 Progress • Project progressing according to plan – Over 95% complete • Deepwater almost complete • Drilling finished and completed • Main pipeline installed • Connecting lines and controls Topsides float over • Shallow water in commissioning • Topsides installed on jacket and final piping work in progress • Shallow water pipelines have been completed • Onshore gas plant complete Topsides set 14
Liwan - Gaolan Gas Plant August 2011 February 2013
Liwan - Gaolan Gas Plant July 2013
Liwan Economics Liwan 3-1 / 34-2 Production • Exploration costs of ~$700 million priority recovery from first gas – largely recovered in 2014 • Operating costs ~ 10% of gross revenues • Royalties and taxes ~20% of gross revenues 1 • Five-year fixed price $11-$13 per mcf, floating at Guangdong City Gate price thereafter 17 17
Indonesia: Madura Strait Block Developments and Discoveries • BD Field has an approved plan of development (POD) and is in the tender phase • MDA and MBH fields are being developed in tandem. POD approved • Four recent discoveries expected to be delineated in 2013 18
Sunrise Energy Project • Approximately 80% 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) 19 reserve numbers
Sunrise Milestones Milestone Expected Action Timeframe Drilling – spud first Completed 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 Planning underway; Commence 2 nd Half 2013 operational employees commissioning two-thirds staffed Initial production 2014 On track Sunrise July, 2013 20
Atlantic Region – Big fields keep getting bigger • White Rose produced its originally sanctioned 200 millionth high netback barrel in January 2013 Northern Drill Centre • Near-field developments progressing Gas Injection North West White Rose Near-field • Prospect South White Rose Extension - 20 million barrels of 3P reserves 1 (on production 2014) West White • West White Rose Extension - 80 million barrels of H-70 Rose Extension Project Discovery 3P reserves 1 (on production 2016/17) SeaRose FPSO Central Drill Centre Southern • Near-field exploration success: Drill Centre • Hydrocarbons discovered at Northwest White Rose, North Amethyst Drill Centre H-70 well results continue to be evaluated South White Rose Extension Drill • West Amethyst prospect in drilling queue Centre West Amethyst Near- field Prospect 1) Please see advisory for further detail 21
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