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

RE:RE:RE:RE:CK discussion on HSE

[onec007]

Assuming that WTI stays around $25 which is possible given April will and beyond will be nasty once SA, UAE and Russia increase production. Your FFO numbers look pretty accurate except I think you've missed out on couple of things regarding how much they will be in the hole. Correct me if I'm wrong but their proposed growth capex is about $500 mil and by reducing dividend of $500 mil will yield a wash. So if they reduce all growth capex and dividends will give them $1 billion in savings. So $0.8 bill FFO + $1 bil from additional savings should give them the ability to be cashflow neutral. However, it's not logical because there is no way that they can stop West Rose as they have contractors and materials already in place along with their capex plans for projects scheduled to be delivered for 2020. Realistically it will be $2.3 billion in capex (sustaining and growth) - $0.5 billion dividend reduction - $0.8 FFO. So yeah it's close to the $1 billion in the hole at around $25 There will most certainly be another round of layoffs which will probably save them about $75 million a year and probably another $100-200 savings and deferrals. So still will be looking at $800 million to $1 billion for this fiscal not including corporate expenses. 2021 should look better in capex since West Rose will be mainly completed. What are your thoughts given these numbers? Certainly they have the money to survive for a year without having to tap into their line of credit.