(Reuters) - Husky Energy (HSE.TO) said it would sell some assets in southwest Saskatchewan for C$595 million ($461 million) to fellow oil and gas producer Whitecap Resources Inc WCP.TO as it looks to raise cash.
This is Husky’s third asset sale this year. The company said on Tuesday the planned sale of several other assets in Western Canada was on track.
“Over the past two months we have made significant progress on three major divestiture initiatives that will materially strengthen our balance sheet and further our transition into a low sustaining capital business,” Chief Executive Asim Ghosh said in a statement.
Husky has been hammered by a nearly two-year slump in crude prices. The company announced plans in December to raise cash by selling assets, including around 60,000 barrels per day of non-core conventional oil and gas production.
Husky’s shares have lost nearly 38 percent of their value in the last 12 months.
Reporting by Sweta Singh in Bengaluru; Editing by Saumyadeb Chakrabarty