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

Pipeline Bottlenecks

[Dogsbreakfast4U]

If MEG shareholders say no to $11 or HSE shares you can bet their stock is going back down to $5 or lower with WCS trading at a huge discount for a least another 6 months. The stock would trade in that range right now had it not been for Husky's offer. There is no such thing as $19 " fair value" in the current Canadian oil market due to our lack of infrastructure. In the best case scenario this may resolve itself in 2020 but that is by no means certain as ecoterrorists and others continue to challenge line 3 and Keystone XL. By that time we may be at the beginning of a recession with oil prices going down. Good luck getting so called "fair value" then. This is why HSE must stick to its current offer and not a penny more! https://seekingalpha.com/news/3395528-canadian-crude-hits-record-low-vs-u-s-amid-pipeline-bottlenecks#/email_link

[Scottie99]

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[oilandgasmick]

Agreed, stick to the script because the bottle neck is not going away anytime soon and neither is 3.3B of debt. I think we could be looking at huge price differentials for a decade and MEG is debt distressed. If the deal is rejected then the stock could plunge 4 or 5 bucks a share in the space of a few hours. You are right in saying that there is no such thing as fair value in this situation. If

[Scottie99]

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[Eigen337]

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[Scottie99]

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[mrbb]

So, demanding higher bid but refuse to let the buyer to see the dataroom is hypocritical, something like you huh? Do u know why the previous meg CEO/BOD/co-founder quit? Why 'retire' when he is so close to bringing in record production and achieving company grand milestone?   You criticized hse BOD for not letting minority shareholder to vote on the bid but you praised meg BOD

[oilandgasmick]

Thanks MRBB, I always like your posts because I learn something that I did not previously know. I was not aware that the East Coast production was actually selling at a price >Brent Oil. Perhaps you could elaborate a bit on why that is the case. That is wonderful info when you consider that WCS was selling yesterday for around 29 bucks. The differntial problem is not going to be solved anytime

[mrbb]

thanks for the feedback. historically WTI always priced higher than brent because wti is a slightly lighter and sweeter crude than brent. Because rising US production from shale oil, export ban of crude by the US gov't (no anymore tho), and growing influence of oil market in russia, africa, OPEC decided to move away from wti benchmark and choose brent benchmark while US is suffering a little

[Scottie99]

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[mrbb]

[mrbb]

yah but meg has to shell out pipeline tariff and rail road fee to get the WCS price in the US.  To get WTI, upgrading is required.  Does meg has any upgrading capability?