Husky Energy has closed a transaction that results in the creation of a new limited partnership, Husky Midstream Limited Partnership, which will assume ownership of select midstream assets in the Lloydminster region of Alberta and Saskatchewan.

The Company has received $1.7 billion in cash proceeds from the transaction, which will be applied to strengthening the balance sheet. The transaction received regulatory approval earlier this month.

The partnership will facilitate the expansion of Husky's heavy oil thermal business, as financing has been secured for investment in new infrastructure to expand takeaway capacity for at least eight new Lloyd thermal projects. It also allows the partnership to expand its third-party transportation business.

Husky will remain operator of the assets, which include approximately 1,900 kilometres of pipeline, 4.1 million barrels of oil storage capacity and other ancillary assets, while retaining a 35 percent interest in the partnership. Cheung Kong Infrastructure Holdings Limited has a 16.25 percent ownership interest in the partnership and Power Assets Holdings Limited (PAH) has a 48.75 percent interest.

Husky Midstream Limited Partnership will be based in Calgary, Alberta.

About Husky Energy

Husky Energy (TSX: HSE) is one of Canada's largest integrated energy companies. It is headquartered in Calgary, Alberta, Canada and its shares are publicly traded on the Toronto Stock Exchange under the symbols HSE, HSE.PR.A, HSE.PR.B, HSE.PR.C, HSE.PR.E and HSE.PR.G.