OREANDA-NEWS. While Husky Energy (TSX: HSE) continues to make progress implementing cost reductions and efficiencies across its operations, it is taking further action to fortify its business in an extended low oil price environment.

"It is evident that the global oil dynamic has experienced a fundamental shift, driven by the resilience in supply," said CEO Asim Ghosh. "Back in 2010, we made the decision to stay diversified, integrated and begin a transition into a low sustaining capital business. In a lower for longer world, our low sustaining capital projects in the Asia Pacific Region, oil sands, heavy oil thermals and Downstream margin business have become even more strategic.

"With our underlying strategy that has stood the test of five years and the decisive steps we are taking, Husky will come out of this cycle with an even stronger, more resilient business that will grow profitably at USD 40 US WTI oil and USD 3 Cdn AECO gas," added Ghosh. "We are fortifying the business for today and for the long term."

Husky has taken a number of actions in response to the prolonged low oil price environment and continues to focus on maximizing the margin captured from every barrel produced.

To strengthen the business and the balance sheet for the long term, several parameters have been established. The business planning assumption for the next two years is USD 40 US per barrel WTI oil price and USD 3 Cdn per thousand cubic feet (mcf) AECO gas.

In addition, the Company intends to maintain a strong investment-grade credit rating, with no new net debt anticipated.

Based on these parameters, Husky expects to be able to support its sustaining, maintenance and growth capital requirements, further strengthen the balance sheet, be profitable and generate solid returns.

Several initiatives are being implemented in support of the business plan.

The Board of Directors has approved a quarterly dividend of USD 0.30 (Canadian) per common share for the three-month period ended September 30, 2015. To further support the Company's long-term business objectives, the quarterly dividend will be issued to all shareholders in the form of common shares.

This initiative will provide for cash flow retention while still delivering the dividend. In addition, it supports long-term value maximization while providing further financial flexibility for Husky to achieve its business and financial objectives.

The Board carefully considers numerous factors, including earnings, commodity price outlook, future capital requirements and the financial condition of the Company. As always, it will continue to review the Company's dividend policy on a quarterly basis.

The quarterly dividend will be issued in the form of common shares on January 11, 2016 to all shareholders of record at the close of business on November 27, 2015.

Husky has undertaken a number of actions to reduce its cost structure and further measures are planned.
* Capital Expenditures - Remain on track to achieve capital expenditure guidance of about USD 3.1 billion for 2015. This compares to capital expenditures of USD 5.0 billion in 2014. The 2016 capital expenditure budget will be announced in December.
* Low Sustaining Capital Transition - The transition to a higher percentage of production coming from lower sustaining capital projects is expected to free up additional capital for higher value projects that are resilient in a low oil price environment.