TSX:HSE.PR.B - Post by User
Comment by
jwallingfon Mar 04, 2019 2:42pm
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Post# 29439796
RE:RE:Lots of headwinds
RE:RE:Lots of headwindsNo question the Line 3 delay will have an effect on earnings but the amount is still in question. The company produced over C$4 billion in cash flow in 2018 on production of 299k boe/d. Guidance for 2019 is 290k-305k per day so a mid-point number of 295k is not a significant reduction from this past year. Paying 3.4% dividend which is safe. Funds from operations in 2018 was C$3.98/share which gives a P/CF of 3.64, cheap by any measure. Earnings of C$1.41 (P/E of 10.28), consensus for 2019 currently C$1.02 so a forward P/E of 14.2, hardly expensive. C$2.87 billion in cash plus proceeds from downstream asset sales (if they happen) shows a solid company that will eventually grow profits and cash flow leading to a rising dividend.