Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:RE:RE:Is Husky buying Athabasca Oil ?

[ManitobaCanuck]

firstworld wrote: Equinor would not even blink to write it off...just another poor decision from the boom times, like us shale, to exit from. These plays would never get sanctioned after 2015. HSE is in a perfect situation. Fully integrated don't need pipelines, and building cash pile for when the blood really starts to flow in 2022.

ManitobaCanuck wrote:

firstworld wrote: 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.


 

 

Are they already doing it, someone bought the debt and shorted the stock to drive them to bankruptcy  .
ATH is down  significantly and struggling to keep up stock price ,now coming up with a NCIB  . 
One possible impediment to this strategy is , Norwegian StatOil with a 20% interest in  Athabasca Oil .
  StatOil  market cap of 50billion vs 5 billion for Husky .
Will Statoil allow their stock  to be sold cheap ? 

Bought this and Athabasca both, ATH is up 35% since i bought and Husky is up 15% .Time to book some profits in both