TSX:HSE.PR.B - Post by User
Comment by
retirement55on Dec 17, 2019 10:19pm
156 Views
Post# 30466708
RE:RE:Is Husky buying Athabasca Oil ?
RE:RE:Is Husky buying Athabasca Oil ? I think that Husky could for sure take over Athabasca. While I think MEG would give them scope and size (adding 25% of Husky production), Athabasca gives them a good deal. If you take Athabasca buyout at $525M ($1/share) or 100% premium it looks pretty good to almost any existing shareholder to redeploy to any other undervalued oil and gas company.
From the debt side, their cash $325M - debt of $550M, you get $200M debt reimagining over 37,500/barrel or $5,333 a flowing barrel. With the debt & equity, you are all in at $15k/flowing, which is like 50-60% of what crescent point just sold off terrible assets off at. Imagine any decent timing in the market picking future cash low up for that. And the fact that husky could refine and/or ship down to the USA at. Plus, you could save 10% money on ATH debt. I think it would be an amazing deal for any company with cash on the balance sheet and long term gamelan on heavy oil assets.