Focused Integration Continues to Deliver for Husky Energy

Focused Integration Continues to Deliver for Husky Energy 
CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- Husky Energy's
(TSX:HSE) focused integration strategy contributed to the delivery of
strong results in 2012 by capturing Brent-like pricing in a market
where deep discounts emerged for Western Canada oil production. 
"We realized significant progress across all of our business segments
in 2012 as we continued to rejuvenate our foundation in Heavy Oil and
Western Canada and advance the Liwan Gas and Sunrise Energy Projects
toward first production," said CEO Asim Ghosh. "Steady, consistent
execution of the Company's balanced growth strategy resulted in
strong returns across the business." 
Net earnings for the year of approximately $2.0 billion were
comparable to 2011, excluding after-tax gains on the sale of non-core
assets and despite the impact from planned maintenance programs in
the Atlantic Region and weak gas prices. Cash flow from operations of
$5.0 billion was in line with 2011 results. 
Annual production of 301,500 barrels of oil equivalent per day
(boe/day) reflected an earlier than anticipated return to production
following the SeaRose Floating Production Storage and Offloading
(FPSO) vessel offstation in the Atlantic Region and early startup of
two heavy oil thermal projects, offset by a deliberate reduction in
natural gas volumes. 
Performance Highlights 

--  Annual production averaged 301,500 boe/day compared to 312,500 in 2011.
    Fourth quarter production was 319,300 boe/day, up from 285,000 boe/day
    in the third quarter following the SeaRose FPSO ramp up. 
--  Net earnings in the fourth quarter were $474 million, or $0.48 per share
    (diluted), compared to $408 million, or $0.42 per share (diluted) in the
    year-ago period. 
--  Cash flow from operations in the fourth quarter was $1.4 billion, or
    $1.44 per share (diluted), compared with $1.2 billion, or $1.24 per
    share (diluted) in 2011. 
--  Net earnings for the year were $2.0 billion, or $2.06 per share
    (diluted), compared to $2.2 billion, or $2.34 per share (diluted) in
--  Cash flow from operations for the year of $5.0 billion in 2012, or $5.13
    per share (diluted), compared with $5.2 billion, or $5.58 per share
    (diluted) in 2011. 


--  Throughput at the Company's refineries and upgrader averaged 327,000
    bbls/day in 2012, compared to 317,000 bbls/day in 2011. Fourth quarter
    throughput averaged 335,000 bbls/day, compared to 324,000 bbls/day in
    the year-ago period. 
--  Pikes Peak South and Paradise Hill heavy oil thermal projects came
    online ahead of schedule and surpassed their design rate volumes. 
--  Sanctioned 10,000 bbls/day Rush Lake heavy oil thermal development. The
    3,500 bbls/day Sandall thermal project continued to progress toward
    startup in 2014. 
--  Continued to set the groundwork for the transformation of Western Canada
    business with a growing focus on oil and liquids-rich resource plays. At
    year end, production from resource plays was approximately 20,000

Growth Pillars 

--  Installed the shallow water jacket for the Liwan Gas Project and
    received final Overall Development Plan approval from the Chinese
    Government, with first gas anticipated in the late 2013/early 2014
--  Completed drilling on 49 steam-assisted gravity drainage (SAGD) wells
    for Phase 1 of the Sunrise Energy Project and achieved greater cost
    certainty with conversion to lump-sum contracts as construction advanced
    towards scheduled first production in 2014. 
--  In the Atlantic Region, excavated the subsea drill centre at the South
    White Rose extension project, with first oil planned for 2014.
    Progressed early stage engineering for the West White Rose extension. 


                                Three Months Ended       Twelve Months Ended
                            Dec. 31  Sept. 30  Dec. 31    Dec. 31   Dec. 31 
                             2012      2012      2011      2012      2011   
1) Daily Production,                                                        
 before royalties                                                           
 Total Equivalent                                                           
  Production (mboe/day)       319       285       319       302       312   
 Crude Oil and NGLs                                                         
  (mbbls/day)                 232       194       219       209       211   
 Natural Gas (mmcf/day)       524       545       598       554       607   
2) Total Upstream Netback                                                   
 ($/boe) (1)                 35.99     30.08     42.65     35.14     40.04  
3) Refinery and Upgrader                                                    
 Throughput (mbbls/day)       335       328       324       327       317   
4) Cash Flow from                                                           
 Operations(2) (Cdn $                                                       
 millions)                   1,414     1,271     1,197     5,010     5,198  
 Per Common Share - Basic    1.44      1.29      1.25      5.13      5.63   
 Per Common Share -                                                         
  Diluted ($/share)          1.44      1.29      1.24      5.13      5.58   
5) Net Earnings (Cdn $                                                      
 millions)                    474       526       408      2,022   2,224 (3)
 Per Common Share - Basic                                                   
  ($/share)                  0.48      0.53      0.42      2.06      2.40   
 Per Common Share -                                                         
  Diluted ($/share)          0.48      0.53      0.42      2.06      2.34   
6) Adjusted Net                                                             
 Earnings(3) (Cdn $                                                         
 millions)                    487       512       481      2,010     2,277  
 Per Common Share - Basic                                                   
  ($/share)                  0.50      0.52      0.50      2.06      2.46   
 Per Common Share -                                                         
  Diluted ($/share)          0.50      0.52      0.50      2.06      2.44   
7) Capital Investment,                                                      
 including acquisitions                                                     
 (Cdn $ millions)            1,473     1,252     1,332     4,701     4,618  
8) Dividend Per Common                                                      
 Share ($/share)             0.30      0.30      0.30      1.20      1.20   
(1) Upstream netback includes results from Upstream Exploration and         
    Production and excludes Upstream Infrastructure and Marketing.          
(2) Cash flow from operations is a non-GAAP measure. Refer to the Q4 MD&A,  
    Section 11 for reconciliation.                                          
(3) The 2011 net earnings included after-tax gains of $193 million on the   
    sale of non-core assets and an asset swap.                              

Average annual production of 301,500 boe/day was within the guidance
range of 290,000 to 315,000 boe/day. Fourth quarter productio
averaged 319,300 boe/day compared to 318,900 boe/day in the fourth
quarter of 2011, despite the planned impacts from the SeaRose FPSO
offstation and a deliberate reduction in natural gas production.  
In the Atlantic Region, commercial hydrocarbons were not encountered
at the Searcher prospect and the well has been expensed. The
non-operated Terra Nova facility has yet to return to planned
production rates following the 2012 turnaround. Husky's share of
production from Terra Nova is currently about 2,000 bbls/day. 
"Increasing product and location differentials have had a significant
impact on Western Canada pricing," says CFO Alister Cowan. "However
our integrated Downstream operations continue to give us the
flexibility to capture world prices for our heavy, bitumen and light
oil production." 
Average realized crude oil pricing in the fourth quarter was $72.17
per barrel, compared to $89.79 per barrel in the same period last
year. U.S. refining market crack spreads averaged $28.00 per barrel,
with the realized refining margin averaging U.S. $16.24 per barrel
compared to U.S. $14.80 per barrel in the same period in 2011.  
Over the year, U.S. realized refining margins were U.S. $17.51 per
barrel, compared to U.S. $17.60 per barrel in 2011. 

--  Heavy Oil 

Heavy Oil is a cornerstone of the Company's foundation in Western
Canada and proved to be an important growth area in 2012. Overall
production increased 12 percent year over year, with better than
anticipated performance from long-life thermal developments.  
The Pikes Peak South and Paradise Hill thermal projects achieved
first oil ahead of schedule in the second quarter and surpassed their
total 11,500 bbls/day design rates within two months, achieving
volumes of approximately 17,000 bbls/day over the fourth quarter. 
A 10,000 bbls/day thermal project at Rush Lake was sanctioned in the
fourth quarter, with first oil expected in 2015. Based on the 1,000
bbls/day performance from the initial single well-pair pilot, a
second well pair is being advanced to production in the second
quarter of 2013.  
Construction is approximately 40 percent complete at the 3,500
bbls/day Sandall thermal development. Initial drilling is underway
and the project is on track for first production in 2014. 
A number of prospective heavy oil reservoirs have been identified for
potential development as the Company continues to increase its
thermal heavy oil production. 
Horizontal well activity advanced with 144 wells drilled in 2012
compared to 130 horizontal wells drilled in 2011. 

--  Western Canada 

The transformation of the Western Canada business progressed in 2012
with a clear focus on resource plays. Overall, more than 95 percent
of the wells drilled in Western Canada in 2012 targeted oil. Drilling
and well completions were optimized to increase productivity and
reduce costs. 
Oil Resource Plays 
The Company was active on five oil resource plays in the Bakken,
Viking, Cardium, Rainbow Muskwa as well as the Slater River Canol
prospect in the Northwest Territories, with a total of 93 horizontal
wells and two vertical wells drilled across the portfolio in 2012. 
Preparations are underway for the 2013 work program at Slater River,
which includes an all-season access road and further evaluation of
two vertical wells drilled in 2012. Regulatory approvals were
recently granted for this work program. 
Gas Resource Plays 
The Company advanced its liquids-rich resource portfolio in the
multi-zone Ansell and Kaybob areas of west central Alberta over the
course of the year.  
Eighteen horizontal and vertical wells were drilled during 2012 at
Ansell, including three partner-operated wells, while four Duvernay
wells were drilled and three completed at Kaybob. Drilling continues
on a four-well pad of Duvernay horizontal wells and a second Montney
horizontal well was completed in the fourth quarter. 

--  Asia Pacific Region 

The Liwan Gas Project in the South China Sea is nearing completion,
with first gas scheduled for late 2013/early 2014. 
Significant milestones were achieved during the year. All development
wells have been drilled and flow-tested and final well completion
work is in progress. The jacket for the shallow water central
platform, the largest ever built and installed in Asia, was completed
and installed on the sea bed. 
The topsides portion of the Liwan platform is on track for floatover
and installation onto the central jacket in the second quarter of
2013, marking one of the last major infrastructure requirements for
operational readiness. More than 80 percent of the overall project
work has been completed as planned, including construction of the
onshore gas plant.  
Offshore Indonesia, steady progress was made as the Company and its
partner advanced development of the shallow water MDA, MBH and BD
fields in the Madura Strait. The first two fields will be developed
in tandem with a wellhead platform. The BD field has an approved
development plan with a gas sales agreement in place, and production
is expected to begin in the 2015/2016 timeframe. 
The exploration drilling program on the Madura Strait Block for 2012
resulted in four new gas discoveries which are now under evaluation
for potential commercial development. 

--   Oil Sands 

Construction activity continued at the Sunrise Energy Project in
northern Alberta as it moves towards planned first production in
2014. Field facilities for the 60,000 bbls/day (30,000 bbls/day net)
first phase of the project are approximately three quarters complete,
while the Central Processing Facility (CPF) is nearing the midway
point of construction.  
Substantial cost certainty was achieved in the fourth quarter with
the conversion of the CPF construction contract to lump sum. More
than 85 percent of Phase 1 project costs are now fixed. With
regulatory approvals in place for a total of 200,000 bbls/day
(100,000 bbls/day net), development of the next phase of Sunrise is
underway with early engineering work scheduled for completion in
A regulatory application for a pilot at Saleski is being prepared and
is expected to be filed later this year. 

--  Atlantic Region 

Husky advanced several offshore satellite projects in the Atlantic
Region to further optimize the high netback potential of the White
Rose area.  
A subsea drill centre was excavated at the South White Rose extension
in preparation for project sanction with first oil planned in 2014.
Development concepts, including a wellhead platform, are being
evaluated for the West White Rose extension project in anticipation
of production in the 2016 timeframe. 
A fourth production well was completed and brought online during the
fourth quarter at the North Amethyst field, with plans to drill an
additional well in the deeper Hibernia formation later this year
pending regulatory review. 
As part of its Atlantic Region rejuvenation program, the Company
drilled its Searcher exploration prospect offshore Newfoundland and
did not encounter commercial hydrocarbons. Husky is participating in
the partner-operated Harpoon exploration well near the Mizzen
discovery in the Flemish Pass. Pre-drilling work was also completed
on two other potential exploration wells in the region.  
The Company awarded a five-year contract for a new harsh environment
semi-submersible drilling rig. The West Mira is scheduled for
delivery in 2015. 
As reported in 2012, the planned offstation for the SeaRose FPSO
vessel was executed safely, ahead of schedule and under budget,
ramping up to expected production rates in the third quarter. 
Consistently strong throughputs and reliable operations from the
Company's integrated Downstream business segments were driven by high
reliability and targeted investments to enhance feedstock, product
and market flexibility.  
Throughput averaged 327,000 bbls/day in 2012, compared to 317,000
bbls/day in 2011. The Lloydminster Upgrader achieved several
significant milestones during the year, including record monthly
production, shipments and throughputs. 
At the Lima Refinery in Ohio, construction of a 20,000 bbls/day
kerosene hydrotreater to increase on-road diesel and jet fuel
production is close to completion in anti
cipation of startup later
this year. As part of a multi-year plan to improve operational
efficiency and plant performance, the partner-operated Toledo, Ohio
refinery completed construction of a 42,000 bbls/day reformer in the
fourth quarter.  
Husky's Board of Directors has declared a quarterly dividend of $0.30
(Canadian) per share on its common shares for the three-month period
ending December 31, 2012. The dividend will be payable on April 1,
2013 to shareholders of record at the close of business on March 7,
A regular quarterly dividend on the 4.45 percent Cumulative
Redeemable Preferred Shares, Series 1 (the "Series 1 Preferred
Shares") will be paid for the period January 1, 2013 to March 31,
2013. The dividend of $0.27813 per Series 1 Preferred Share will be
payable on April 1, 2013 to holders of record at the close of
business on March 7, 2013. 
A conference call will take place on Wednesday, February 6 at 9 a.m.
Mountain Time (11 a.m. Eastern Time) to discuss Husky's year-end and
fourth quarter results. To listen live to the conference call, please
call one of the following numbers: 

Canada and U.S. Toll Free:  1-800-319-4610 
Outside Canada and U.S.:    1-604-638-5340 

CEO Asim Ghosh, COO Rob Peabody, CFO Alister Cowan and Senior
Downstream VP Bob Baird will participate in the call. To listen to a
recording of the call, available at 11 a.m. Mountain Time on February
6, please call one of the following numbers: 

Canada and U.S. Toll Free:  1-800-319-6413               
Outside Canada and U.S.:    1-604-638-9010               
Passcode:                   2658 followed by the # sign  
Duration:                   Available until March 6, 2013

An audio webcast of the call will also be available for approximately
90 days via Husky's website,, under Investor
Husky Energy is one of Canada's largest integrated energy companies.
It is headquartered in Calgary, Alberta, Canada and is publicly
traded on the Toronto Stock Exchange under the symbol HSE and
HSE.PR.A. More information is available at 
Certain statements in this news release are forward-looking
statements within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A of the
United States Securities Act of 1933, as amended, and forward-looking
information within the meaning of applicable Canadian securities
legislation (collectively "forward-looking statements.") The Company
hereby provides cautionary statements identifying important factors
that could cause actual results to differ materially from those
projected in these forward-looking statements. Any statements that
express, or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, through the use of words or phrases such as "will
likely," "are expected to," "will continue," "is anticipated," "is
targeting," "estimated," "intend," "plan," "projection," "could,"
"aim," "vision," "goals," "objective," "target," "schedules" and
"outlook") are not historical facts, are forward looking and may
involve estimates and assumptions and are subject to risks,
uncertainties and other factors some of which are beyond the
Company's control and difficult to predict.  
Accordingly, these factors could cause actual results or outcomes to
differ materially from those expressed in the forward-looking
In particular, forward-looking statements in this document include,
but are not limited to, references to:  

--  with respect to the Company's Asia Pacific Region: planned timing of
    first production at the Company's Liwan Gas Project; anticipated timing
    of installation of the topsides portion of the platform at the Company's
    Liwan Gas Project; development plans for the Company's Madura Strait
    Block; and anticipated timing of first production at the Company's
    Madura Strait Block; 
--  with respect to the Company's Atlantic Region: planned timing of first
    oil from the Company's South White Rose extension project; anticipated
    timing of production at the Company's West White Rose extension project;
    planned drilling activity in the Hibernia formation; and scheduled
    timing of delivery of the Company's West Mira drilling rig; 
--  with respect to the Company's Oil Sands properties: anticipated timing
    of first production from Phase 1 of the Company's Sunrise Energy
    Project; scheduled timing of completion of early engineering work for
    the next phase of the Company's Sunrise Energy Project; and expected
    timing of filing for regulatory approval of the Company's Saleski pilot
--  with respect to the Company's Heavy Oil properties: anticipated timing
    of first production at the Company's Sandall thermal project; and
    anticipated timing of the pilot project and commercial production at the
    Company's Rush Lake thermal project; 
--  with respect to the Company's Western Canadian oil and gas resource
    plays: the 2013 work program at the Company's Slater River Project; and 
--  with respect to the Company's Downstream business segment: scheduled
    timeline of completion and startup for the kerosene hydrotreater at the
    Company's Lima Refinery in Ohio. 

Although the Company believes that the expectations reflected by the
forward-looking statements presented in this news release are
reasonable, the Company's forward-looking statements have been based
on assumptions and factors concerning future events that may prove to
be inaccurate. Those assumptions and factors are based on information
currently available to the Company about itself and the businesses in
which it operates. Information used in developing forward-looking
statements has been acquired from various sources including
third-party consultants, suppliers, regulators and other sources. 
Because actual results or outcomes could differ materially from those
expressed in any forward-looking statements, investors should not
place undue reliance on any such forward-looking statements. By their
nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, which
contribute to the possibility that the predicted outcomes will not
occur. Some of these risks, uncertainties and other factors are
similar to those faced by other oil and gas companies and some are
unique to Husky. 
The Company's Annual Information Form for the year ended December 31,
2011 and other documents filed with securities regulatory authorities
(accessible through the SEDAR website and the EDGAR
website describe the risks, material assumptions and
other factors that could influence actual results and are
incorporated herein by reference.  
Any forward-looking statement speaks only as of the date on which
such statement is made, and, except as required by applicable
securities laws, the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence
of unanticipated events.  
New factors emerge from time to time, and it is not possible for
management to predict all of such factors and to assess in advance
the impact of each such factor on the Company's business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statement.  
The impact of any one factor on a particular forward-looking
statement is not determinable with certainty as such factors are
dependent upon other factors, and the Company's course of action
would depend upon its assessment of the future considering all
information then available. 
Disclosure of Oil and Gas Information 
The Company uses the terms barrels of oil equivalent ("boe"), which
is calculated on an energy equivalence basis whereby one barrel of
crude oil is equivalent to six thousand cubic feet of natural gas.
Readers are cautioned that the term boe may be misleading,
particularly if used in isolation. This measure is primarily
applicable at the burner tip and does not represent value equivalence
at the wellhead.  
The Upstream netback per barrel of oil equivalent was determined by
taking the Upstream Exploration and Production netback (price
received less royalties, operating cost and transportation) and
dividing it by gross production for the respective period. The
results from Upstream Infrastructure and Marketing are excluded.
Please refer to Note 1 of the Company's Condensed Interim
Consolidated Financial Statements for the period ended September 30,
Husky Energy Inc. - Investor Inquiries:
Rob McInnis
Manager, Investor Relations
Husky Energy Inc. - Me
dia Inquiries:
Mel Duvall
Manager, Media & Issues
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