Husky Energy Inc. (TSX: HSE) has sold a 65% stake in some of its midstream assets in the Lloydminster region of Alberta and Saskatchewan for C$1.7bn.
The company sold the stake to infrastructure firm Cheung Kong Infrastructure Holdings Limited and energy investment company Power Assets Holdings Limited.
Husky will retain a 35% interest in the assets and will remain operator, the company said.
Chief executieve Asim Ghosh said: “It was important to realize full value for these assets and to maintain operatorship and preserve the tight integration between our heavy oil production, marketing and refining assets.
“We sought partners who shared these objectives and who viewed these as top tier assets that provide considerable growth potential."
The assets involved in this transaction include approximately 1,900 kilometres of pipeline in the Lloydminster region, 4.1 million barrels of oil storage capacity at Hardisty and Lloydminster, and other ancillary assets.
The sale price represents about 13 times Husky’s expected 2016 EBITDA of approximately C$180mln.
"This transaction unlocks significant value and supports our objective of strengthening the balance sheet," Ghosh added.