Husky Energy says it may sell 500 retail operations and Prince George refinery

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Husky Vitality Inc. says it’s taking a look at getting out of retailing fuels to customers after 80 years within the enterprise.

The Calgary-based oilsands producer says it’s launching a strategic assessment that might end in it promoting its Canadian retail and industrial fuels enterprise and its small Prince George, B.C., refinery.

It says it prefers to concentrate on its built-in hall of upstream and downstream property in Alberta, Saskatchewan and the U.S. Midwest in addition to offshore companies in Atlantic Canada and the Asia Pacific area, including the choice isn’t associated to its provide that expires subsequent week to purchase oilsands rival MEG Vitality Corp.

READ MORE: Husky Vitality’s hostile takeover bid for MEG Vitality now anticipated to succeed as proposed

Watch under: Some movies from World Information’ protection of the oil business.

Husky has greater than 500 service stations, journey centres, cardlock operations and bulk distribution services from British Columbia to New Brunswick. Its myHusky Rewards loyalty program has about 1.6 million members.

The 12,000-barrel-per-day refinery in Prince George processes gentle oil into gasoline, diesel and different merchandise for close by areas of B.C. It owns two refineries and is half-owner of a 3rd in the USA.

CIBC analyst Jon Morrison mentioned Tuesday that the anticipated worth of those property is about $835 million.

“We imagine the retail community naturally has a pair strategic consumers that needs to be , whereas the refinery has a smaller listing of potential purchasers given the dimensions, dimension and site of the ability,” he mentioned in an electronic mail.

READ MORE: Husky Vitality trims 2019 capital price range by $300M, criticizes Alberta oil curtailment plan

Spokesman Mel Duvall says Husky began promoting gasoline to customers in 1938 shortly after the unique proprietor constructed a small refinery in Cody, Wyo. The refinery was moved to Lloydminster on the Alberta-Saskatchewan border in 1946.

CEO Rob Peabody says in a information launch the companies are “extremely marketable” and can appeal to sturdy curiosity and valuations.

TD Securities Inc. is performing as monetary adviser, with Torys LLP as authorized adviser.

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