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Husky Energy Says Will Not Extend Offer For MEG Energy - Quick Facts

Husky Energy Inc. (HSE.TO) said Thursday that its offer for MEG Energy Corp. (MEG.TO) expired on January 16 and that the minimum tender condition was not met.

Due to insufficient MEG Board and shareholder support, Husky has decided not to extend its offer. Accordingly, the company said that all MEG shares that have been tendered to the offer will be promptly returned to shareholders.

Husky Energy noted that since its offer for MEG Energy commenced 105 days ago, the Government of Alberta departed from free market principles by introducing uncertainty through the imposition of government-mandated production cuts. There has also been a continued lack of meaningful progress on Canadian oil export pipeline developments.

"Given the outcome of the tender process, Husky will continue to focus on capital discipline and the delivery of the five-year plan we set out at our Investor Day in May 2018. We are investing in reliable, higher margin production growth that continues to lower the oil price we need to break even," said CEO Rob Peabody.

Husky Energy said that record daily production rates were achieved at the Sunrise Energy Project (62,600 barrels per day (bbls/day) gross) and Tucker Thermal Project (31,700 bbls/day) in the fourth quarter of 2018.

Sunrise has been in operation since 2015, with significant investments made to enhance production over the past three years. Husky continues to work with the Alberta government to mitigate inequities in the curtailment methodology, costs and other unintended consequences.

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