TSX:HSE.PR.B - Post by User
Comment by
autofocus111on Sep 30, 2018 9:20pm
104 Views
Post# 28718933
RE:RE:RE:HSE makes a tarsands move
RE:RE:RE:HSE makes a tarsands move@Scottie Yes it is a hostile takeover attempt by HSE.But the synergies are strong, which is why I think HSA believes they can get 66% of MEG shareholders to accept it. Of course, they may decide to bump up the offer price to get the MEG BOD on-board. The offer is largely HSE stock so minimal increase to HSE debt . I do like the strategy of balancing out upstream and downstream capacity. From what I read, it appears MEG has longterm pipeline capacity to match its output, but if HSE can leverage the WCS discount and run the whole output integrated then that sounds like a win-win for both companies.
>>>The combined company will have total Upstream production of more than 410,000 barrels of oil equivalent per day (boe/day) and Downstream refining and upgrading capacity of approximately 400,000 barrels per day (bbls/day), providing for increased free cash flow per share, production growth and a basis for potential future dividend increases.