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“In such an environment, market forces rule. It’s equally evident that this current oil supply/demand imbalance will take time to correct itself … In light of these factors, Husky is continuing to fortify its business for the future, not just lower for longer, but higher price volatility.”

With the changes, Husky is striving to make its balance sheet “bullet proof” and operations profitable at low oil prices, Ghosh said.

The company, majority owned by Hong Kong billionaire Li Ka-Shing, is using for the next two years US$40 WTI oil and $3 AECO gas price assumptions for planning purposes.

It said its generous dividend will be paid out in shares to preserve cash, though the decision could be reversed if conditions improve.

Reluctant in the past to cut jobs, Ghosh said “circumstances require a bitter pill” and the company has cut 1,400 positions — 280 full time and the rest contract, representing 22 per cent of its workforce — with more coming as required by its business plan. A company-wide salary freeze implemented at the end of 2014 will be extended. The job losses are among the deepest announced in the sector.

Husky also said that it plans to sell non-core assets in Western Canada and that it took the large asset impairment, largely on natural gas properties, because it doesn’t see prices recovering beyond $3 AECO for a long time.