Husky Energy Inc. Annual Information Form For the Year Ended December 31, 2014 February 27, 2015 TABLE OF CONTENTS ADVISORIES .............................................................................................................................................................. 1 ABBREVIATIONS AND GLOSSARY OF TERMS ................................................................................................ 2 EXCHANGE RATE INFORMATION ..................................................................................................................... 6 CORPORATE STRUCTURE .................................................................................................................................... 7 Husky Energy Inc. ..................................................................................................................................................... 7 Intercorporate Relationships ...................................................................................................................................... 7 GENERAL DEVELOPMENT OF HUSKY .............................................................................................................. 7 Three-year History of Husky ..................................................................................................................................... 7 DESCRIPTION OF HUSKY'S BUSINESS ............................................................................................................ 12 General .................................................................................................................................................................... 12 Social and Environmental Policy ............................................................................................................................ 12 Upstream Operations ............................................................................................................................................... 15 Description of Major Properties and Facilities ................................................................................................... 15 Distribution of Oil and Gas Production .............................................................................................................. 24 Disclosures of Oil and Gas Activities ................................................................................................................. 25 Oil and Gas Reserves Disclosures ...................................................................................................................... 34 Infrastructure and Marketing .............................................................................................................................. 54 Downstream Operations .......................................................................................................................................... 58 U.S. Refining and Marketing .............................................................................................................................. 58 Upgrading Operations ......................................................................................................................................... 58 Canadian Refined Products ................................................................................................................................. 59 INDUSTRY OVERVIEW ......................................................................................................................................... 62 RISK FACTORS ....................................................................................................................................................... 69 HUSKY EMPLOYEES ............................................................................................................................................. 76 DIVIDENDS ............................................................................................................................................................... 76 Dividend Policy and Restrictions ............................................................................................................................ 76 Common Share Dividends .................................................................................................................................. 76 Series 1 Preferred Share Dividends .................................................................................................................... 76 Series 3 Preferred Share Dividends .................................................................................................................... 76 DESCRIPTION OF CAPITAL STRUCTURE ....................................................................................................... 77 Common Shares ...................................................................................................................................................... 77 Preferred Shares ...................................................................................................................................................... 77 Liquidity Summary ................................................................................................................................................. 78 MARKET FOR SECURITIES ................................................................................................................................. 80 DIRECTORS AND OFFICERS ............................................................................................................................... 81 Directors .................................................................................................................................................................. 81 Officers .................................................................................................................................................................... 88 Conflicts of Interest ................................................................................................................................................. 88 Corporate Cease Trade Orders or Bankruptcies ...................................................................................................... 88 Individual Penalties, Sanctions or Bankruptcies ..................................................................................................... 88 AUDIT COMMITTEE .............................................................................................................................................. 89 External Auditor Service Fees ................................................................................................................................. 90 LEGAL PROCEEDINGS ......................................................................................................................................... 90 INTEREST OF MANAGEMENT AND OTHERS ................................................................................................ 90 TRANSFER AGENTS .............................................................................................................................................. 90 INTERESTS OF EXPERTS ..................................................................................................................................... 90 ADDITIONAL INFORMATION ............................................................................................................................. 91 READER ADVISORIES .......................................................................................................................................... 92 Schedule A ....................................................................................................................................................... 97 Schedule B ..................................................................................................................................................... 101 Schedule C ..................................................................................................................................................... 104 Schedule D ..................................................................................................................................................... 106 ADVISORIES In this AIF, the terms “Husky” and “the Company” mean Husky Energy Inc. and its subsidiaries and partnership interests on a consolidated basis, including information with respect to predecessor corporations. Unless otherwise noted, all financial information included and incorporated by reference in this AIF is determined using IFRS as issued by the International Accounting Standards Board. Except where otherwise indicated, all dollar amounts stated in this AIF are Canadian dollars. AIF 2014 Page 1 ABBREVIATIONS AND GLOSSARY OF TERMS When used in this AIF, the following terms have the meanings indicated: Units of Measure bbl barrel bbls barrels bbls/day barrels per calendar day bcf billion cubic feet boe barrels of oil equivalent boe/day barrels of oil equivalent per calendar day GJ gigajoule lt litres lt/day litres per day m meters mbbls thousand barrels mbbls/day thousand barrels per calendar day mboe thousand barrels of oil equivalent mboe/day thousand barrels of oil equivalent per day mcf thousand cubic feet mmbbls million barrels mmboe million barrels of oil equivalent mmbtu million British thermal units mmcf million cubic feet mmcf/day million cubic feet per