Husky has successfully adjusted to the oil price outlook and is in a position of financial strength. However, this has come at the expense of the near-term growth outlook. Husky plans to address this by retrenching back to its core, heavy oil business. The company also recently sanctioned the West White Rose project in Atlantic Canada. We expect the company will be typically cautious before making any opportunistic acquisitions, or reinstating the dividend. But Husky is now well positioned to ride out a period of continuing low prices, and can accelerate development if prices rise.