Tuesday , July 27 2021

Husky Energy says it can sell 500 retail operations and the Prince George refinery



Husky Energy Inc. says it is trying to get out of consumer fuel retail after 80 years in the business.

The Calgary-based oil producer says it is launching a strategic review that could result in the sale of its Canadian retail and commercial fuel businesses and its small Prince George refinery in the United States.

The company prefers to focus on its integrated upstream and downstream assets corridor in Alberta, Saskatchewan and Midwest in the US as well as offshore businesses in Atlantic Canada and the Asia Pacific region, adding that the decision is not related to its offer expires next week. to buy the lubricity of MEG Energy Corp.

READ MORE: Husky Energy's hostile takeover of MEG Energy should now be successful as proposed

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Husky has more than 500 service stations, travel centers, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. Your myHusky Rewards loyalty program has about 1.6 million members.

The 12,000-barrel refinery in Prince George processes light oil in gasoline, diesel and other products for regions near B.C. It has two refineries and owns one-third in the United States.

CIBC analyst Jon Morrison said on Tuesday the expected value of these assets is about $ 835 million.

"We believe that the retail network naturally has some strategic buyers who should be interested, while the refinery has a smaller list of potential buyers given the scale, size and location of the facility," he said in an e-mail.

READ MORE: Husky Energy cuts capital budget to 2019 by $ 300 million, criticizes Alberta oil reduction plan

Husband spokesman Mel Duvall said Husky began selling fuel to consumers in 1938, shortly after the original owner built a small refinery in Cody, Wyo. The refinery was moved to Lloydminster on the border between Alberta and Saskatchewan in 1946.

CEO Rob Peabody says in a press release that companies are "highly marketable" and will attract strong interests and ratings.

TD Securities Inc. is acting as a financial advisor with Torys LLP as a legal consultant.


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