CALGARY – Husky Energy Inc. said Monday its 2013 capital spending will be $100 million higher than this year as it targets a more aggressive production growth rate in the coming years.
The Calgary-based energy company (TSX:HSE), which is majority-owned by Hong Kong billionaire Li Ka-shing, is planning capital expenditures of $4.8 billion next year, up from $4.7 billion this year.
The bulk of that will be spent on the upstream, or production, part of Husky’s business, with $1.2 billion going to its Western Canada operations, $900 million to heavy oil, $500 million to the Sunrise oilsands project, $600 million to offshore Atlantic Canada and $800 million to Southeast Asia.
The remainder of next year’s budget will be for the downstream, or refining and marketing, segment as well as corporate spending.
This year, Husky is on track to meet its goal of growing production by three to five per cent with estimated annual output of 301,000 barrels per day across its business.
Husky is now targeting a new compound annual growth rate of five to eight per cent between 2012 and 2017.
Production next year is expected to be between 310,000 and 330,000 barrels of oil equivalent per day.
“We have consistently executed against our strategy for nine consecutive quarters,” said Husky CEO Asim Ghosh in a release.
“This performance is a result of strong delivery and reliability in all business segments and our focused integration strategy.”
Ghosh said Husky’s major growth projects in Asia, the oilsands and Atlantic Canada are continuing to meet their milestones.
“The rejuvenation of our foundation in heavy oil and western Canada is also well underway with increased production from heavy oil thermal projects and an emerging focus on oil resource plays,” he added.
Husky shares rose seven cents to $27.95 in mid-day trading on the Toronto Stock Exchange.