TSX:HSE.PR.B - Post by User
Comment by
oilandgasmickon Mar 15, 2020 12:06pm
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Post# 30809540
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Husky Energy cuts 2020 budget by $1-billion
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Husky Energy cuts 2020 budget by $1-billionI think its a foregone conclusion that they will cut the dividend next quarter, my guess is by 50% but that cut along with the capex reduction should ensure survival for the next few years. Thats alot better than the fate of many other energy companies. Let's face it, most of the smaller players are finished, I can't see how they can survive with the huge debt loads they are carrying.
If HSe cuts the dividend by 50% then its a $500M savings over the next two years.
Thats enough to pay for the next major debt installment due in 2022 and I am thinking that they will try to reschedule other debt for somewhere down the road given the very low interest rates that we will have now and probably for the next decade.
Very little room left for Fed stimulus now.
Wouldn't be surprised though if Russia and Saudi Arabia back off within 6 months. I don't believe for one moment that the Saudis can ramp it up past 13M bbls/day. As an analyst said on BNN the other day, "little boots" is off his rocker.