TSX:HSE.PR.B - Post by User
Comment by
GoldOilInvestoron Oct 25, 2020 4:17pm
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Post# 31778869
RE:RE:RE:I think Husky is a better company and prefer it to pivot out
RE:RE:RE:I think Husky is a better company and prefer it to pivot out================
autofocus111 said GoldOilInvestor I don't see any good reason for CVE-HSE to divest this asset. The contract pricing is great, and it will generate decent profits for years to come, since natgas has a long runway in the transition to greener energy. If any assets do get sold, I suspect it might be the Atlantic Offshore biz (preferably only after the oil market stages a recovery in a year or two so there isn't a huge writedown on a sale). SU is a minority partner in White Rose and would be a logical buyer. There will be significant job cuts in this merger. That could put added pressure on the government to invest in the West White Rose project to keep it alive. =================
You make a lot of sense. That deal is so good for Husky. I remember my friend lost his job in California Resources and took a position in that operation because he used to work in Husky and is Chinese. He said that LKS complained that PetroChina took 51% controlling interest and Husky was a better leader, so it was unfair, blah, blah. He shut up later and laughing behind the door later because that is the only bright spot for him for years to come. His Husky failed miserably. Chinese natural gas price is 7.x USD and Canadian is 1.x, big difference. With China trying like crazy to explore gas to avoid US blockage of see transportation and deal with fast growing demand for electricity. The price only goes up. Artificial intelligence will bring in more demand. I noticed that China's AI application is spreading like wildfires. Many restaurants employ robots to serve orders. Driverless taxis become popular in big cities like Beijing. Natural gas in China has great future especially as they are reducing the portion of their 70% coal powerplants.