TSX:HSE.PR.B - Post by User
Comment by
Olympicon Feb 16, 2018 11:14am
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Post# 27572183
RE:RE:The Elusive Dividend!!!
RE:RE:The Elusive Dividend!!!A recent rollercoater in the stock price for sure ... but much to do with macro factors. All equities and the energy sector generally have moved off recent highs.
Seems to me to be a lot of positive analyst comments recently, one exzmple is Menno Hulshof's Feb 5th upgrade of HSE to Buy. Summary of reasons supporting upgrade:
- HSE ranks first (ahead of SU) in mitigating risk to WCS price differential
- 90% of its dry heavy oil hedged by integration
- high probability that the dividend is reinstated with Q4 results. HSE's dividend conditions are met: balance sheet strength; free cashflow; and stable oil markets
- faster than anticipated resolution of White Rose issues ... resolved in 8 days with no material impact to production forecast
- lack of rationale for muliple gap in light of stong financial outlook. HSE trading at 4.9x 2019E EV/DACF when compared to peers averaging 8.8x
It appears as if Hulshof is anticipating $241 million of annual cashflow will be returned to shareholders ... equating to approximately a 6 cent quaterly dividend.