TSX:HSE.PR.B - Post by User
Comment by
firstworldon Dec 18, 2019 8:37pm
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Post# 30470855
RE:RE:RE:Is Husky buying Athabasca Oil ?
RE:RE:RE:Is Husky buying Athabasca Oil ? That offer is over. LKS never goes back even for tier 1 assets in first world countries. They shoud buy the debt and call it, drive to bankruptcy and buy for pennies.
retirement55 wrote: 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.