TSX:HSE.PR.B - Post by User
Comment by
mrbbon Apr 26, 2019 2:54pm
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RE:RE:RE:RE:RE:RE:RE:RE:Even Cenovus is Doing Better than Husky!!
RE:RE:RE:RE:RE:RE:RE:RE:Even Cenovus is Doing Better than Husky!!autofocus111 wrote: mrbb "SU and HSE are very vocal against the production cut. So, $10 WCS is what hse/su want."
Not necesaarily true for SU. I believe they produce a net surplus of oil, so a combination of high WCS/syncrude prices and a high crack spread (very high fuel prices) also works. That would also apply to a larger HSE+MEG company.
If I'm not mistaken, MEG had tax losses that HSE could have used to reduce tax payable, which made the MEG acquisition even less expensive than it appeared. Personally, I would have liked to have seen that deal go through.
HSE isn't against high WCS price and good crack spread, problem is you can't have both at the same time. You can explain away on SU like high WCS but bottom line is SU, HSE and IMO don't like mandatory production curtailment. Inventory problem isn't fix, WCS starting to widen. Curtailment didn't really fix anything other than saving CVS, CNRL and MEG at the expense of SU, IMO and HSE.