TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Dec 20, 2020 11:06am
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Post# 32149004
Preferreds continue to POWER UP... It's no surprise.
Preferreds continue to POWER UP... It's no surprise.With the extra Equity of Cenovus added and Oil prices well above estimated Cash Flow Breakeven price of $36 for 2021, $33 for 2023..... Risk to dividends virtually ZERO. Add the possibility of $25/share event.... Yields are ridiculous. Not to mention that a Dividend INCREASE likely on some Preferreds when they reset.
Given that these are CUMMULATIVE Preferreds, the risk to them have always been fairly low, IMHO. Even when oil went NEGATIVE, Preferred dividends were not suspended.
Because of this transaction (Cenovus/Husky), I think there's still a possible ~$25/share event. This sets HSE Preferreds apart from all other Preferreds. I'm guessing that by Q2 of 2021 we should know if any possible ~$25 event action have/will be taken by the Preferreds. As I understand, over 50% didn't vote.
All Just My Opinion/view/thinking/understanding. Could be wrong.