TSX:HSE.PR.B - Post by User
Comment by
mrbbon Oct 25, 2019 12:14am
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Post# 30267829
RE:RE:RE:RE:WCS differentials have risen $5 per barrel since Oct 1
RE:RE:RE:RE:WCS differentials have risen $5 per barrel since Oct 1oilandgasmick wrote: Thanks for the post and for bringing a bit of "rationality" to the discussion.
As people have stated- differentials are way down, WTI is way down, insurance costs are up,curtailments are an issue and CAPEX has not yet seen the anticipated substantial declines so what can you rationally expect? Despite all, they covered dividends with cash to spare and production was in line with expectations.
Yes, this isn't a great earnings report but some of the above factors will be changing.
Contrast this discussion with discussions on other energy boards where companies are producing dry gas and selling it for a buck an MCF. What will be changing there anytime soon?
NG will be cheap for rest of my life due to shale gas. Shale oil is mostly not profitable and only a few big permian player can make it. Big benefactor of cheap NG is oilsand producers. Oilsand players without downstream operation like meg, cenovus rely of hedging which only buys them couple of years, then notley's curtailment saved them. I hate gov't choosing winners and losers. Husky would had done really well without the production curtailment. Back in late 2018, husky was making 50$bo just from downstream, no exploration risk. That's why hse can afford to offer meg $11/share. People then say hse overpaid meg but it was production curtailment that screw up the free market.