OREANDA-NEWS. Husky Energy continues to deliver on its balanced growth strategy in the ongoing volatile commodity price environment. The Company's diverse portfolio, which includes the Liwan Gas Project and the integrated Downstream business, produced steady results in the quarter.

Second quarter results included cash flow from operations of USD 1.2 billion and average Upstream production of 337,000 barrels of oil equivalent per day (boe/day). After taking into account a one-time provision of USD 157 million for the Alberta corporate tax increase, net earnings were USD 120 million.

"We draw strength from our portfolio diversity, with our fixed-price gas sales contracts in the Asia Pacific Region, a suite of bite-sized heavy oil thermal projects in Saskatchewan and our margin-based Downstream business providing added resilience," said CEO Asim Ghosh.

"Our hand has been reinforced by the structural changes and efficiencies we have put in place over the past five years as we further grow our low sustaining capital business."

Husky is building on the USD 1.3 billion in cost savings realized since 2010 with additional supply, procurement and operating efficiencies. The Company is on track to achieve its USD 400-600 million target in cost savings this year, with approximately USD 575 million locked in to date. This, combined with the transition to low sustaining capital projects and business efficiency initiatives, is expected to lead to greater resiliency.

The Company continues to deliver its near-term growth catalysts. Second quarter highlights include:
* First steam from the 10,000 barrels per day (bbls/day) Rush Lake thermal project in Saskatchewan, which is now on production.
* First oil at the 15,000 bbls/day South White Rose satellite extension in the Atlantic Region.
* Production ramp up at the Sunrise Energy Project.

All of these projects provide steady momentum as the Company advances activities that can deliver positive returns in a low oil price environment while offsetting natural declines across the portfolio.

Approximately 85,000 bbls/day of new production is expected to come online by the end of 2016, with more than 40 percent of total production anticipated to come from low sustaining capital projects by that time.