Husky Energy said it plans to keep its budget in the next year unchanged from 2015 and is planning for $40 per barrel of oil.
The company said it would spend $2.9billion to $3.1billion in 2016 in comparison with $3billion this year.
Husky also plans to sell some of its midstream assets in western Canada as it looks to strengthen its balance sheet.
Chief executive Asim Ghosh said: “Five years ago, Husky set out its balanced growth strategy, which included a deliberate decision to remain diverse, physically integrated and transition into a low sustaining capital business.
“We continue to reap the benefits of the changes we have implemented. We have substantially lowered the company’s earnings break-even point for USD WTI oil from the mid-$50s last year to the low $40s today and the sub-$40s by the end of 2016.
“At the same time, we have reduced our sustaining and maintenance average costs by 15 to 20 percent, which means we can now do more with even less.
“Looking to the future, our rich and diverse portfolio offers many opportunities for profitable growth, assuming current market conditions, and continued lowering of our earnings break-even price.”