Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:RE:RE:The Market is speaking

[oilandgasmick]

Thanks for the good post mrbb- you obviously know a lot more about the oil sands and SAGD than many other investors. I did not mention CNQ in my post but yes obviously with the big acquistion of assets they made there is no need for any more in the immediate future.

Some HSE investors have bailed because of the new debt and the exposure to differentials but as you have said, the deal is accretive to earnings and with 2B a year in free cash flow then the debt it is certainly manageable. That is why I always see free cash flow/debt as the key metric.

We forget that 2 years ago HSE was in much more stress because they had 6B in debt and no cash on hand. Now they have around 2.5B in cash (2017 annual report) so they can afford to take more chances. Still, I would not want to see this bid sweetened much further. MEG made their bed so to speak.

One thing I like about the new entity is the huge reserve base the ;company would have. Of course, reserve numbers are also changing with the oil price but the new entity would have something like 3.5B barrels according to published data. That should be enough to play with for a long time.

Thanks again for the post and please post more with real facts about the industry.