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

All the metrics for valuation out the door

[argon12]

This drop in oil is brutal.

i don't have a clue how to put a valuation on this company
due to oil price ups and downs.

The yield is juicy.

Would someone know the payout ratio on this dividend?

[newcoin]

I found this, I'm sure there is more up to date info. Greg Newman on BNN,  November 21, 2018. Stock trading at $16.35 at the time. "They benefit from the wide WCS differential. They just beat their earnings 7%. Excellent balance sheet. 0.3x net debt-to-EBITDA. 79% payout ratio supports their dividend, and trade cheaper than peers. Only caveat is he doesn't so as much growth in

[newcoin]

This is from July 26, 2019. Stock at $10.41. Jason Mann on BNN. " A year ago, energy was stabilizing. Now, it's terrible. Interesting: this stock price has been halved, but the metrics are the same. HSE is still really cheap: 3.7x EBITDA, 0.6x book value, 9x earnings. It beat its last quarter, but didn't matter. That's the story of half the energy sector. Pays a sustainable

[newcoin]

This might help. Joe Schacter, on BNN, on January 24, 2020. Stock price is $9.18. "Remember there is a nice dividend ($0.50 annually and a yield over 5%). The skepticism is in how are they going to grow the business. The balance sheet is in fine shape -- debt of only $4.6 billion and they are sitting on over $2 billion in cash. The key is with production, can they start growing it? Will be

[oilandgasmick]

Actually, if you look at the metrics today they are as good/better than what HSE had in 2014 when it was trading at 36 bucks a share. Debt ratio is not of concern but it was becoming issue when the stock price was much higher. As for production growth, I don't believe that's the issue. Thermal projects in Western Canada will add another 50K bbls. a day over the next few years so

[newcoin]

I agree with you and have averaged down now to $9.16/share. I get a great dividend and I'm in near the bottom of a stock that will show how undervalued it is very soon. I feel safe.

[pablo87]

First of all, is the dividend safe? Probably not based on the past, Peabody's multiple statement that the BoD decides, the BoD not being representative of 30% shareholders who probably only care for dividend, and the 70% owner not caring about it at all because they don't need it. This is why RBC said take it private LKS - because they more than anyone know that LKS group objective and

[oilandgasmick]

Kramer is another guy who should be on a sit-com but certainly not on a business show- if you want to call it that. He says that "fossil fuels are dead??"  If so then why is World oil consumption now at record levels of 100M bbls/day? Does this guy ever check the facts? What he doesn't know (and hasn't bothered to find out) is that most oil produced does not go into energy

[matt2018]

mick..... i don't watch Kramer (no time), but he's no clown. He's been around and knows his stuff. When he says "fossil fuels are dead", he is talking about the future, the pushback from the climate change movement, many financial instit not providing funding to energy Co., alternative energy sources, etc. Let's face it, there is too much supply for the demand. Production

[oilandgasmick]

Hi Matt: Do you think Kramer knows that most oil is used in manufacturing and not energy? Sure, alternate energies will have some impact, but what compound with the molecular density of oil will be used for all the goods that it produces? As emerging economies like India and China ramp up their middle class lifestyles, will they not need more of the same? The death of the oil industry has been

[matt2018]

mick....Other than a few headfakes, this downturn in Oil price been going on since 2014. Economies in India & China have been ramping up in same time period but hasnt helped? As well, in that same time period US Shale and many other countries (Russia for example) have been ramping up Oil fields non stop. Maybe the industry needs these low prices for awhile so you have more Venezuela factor

[oilandgasmick]

Yes, its been going down since 2014 because a ponzi scheme called the U.S. fracking industry sent U.S. production soaring from 5Mbbls a day to over 12M bbls. a day but take away the financing from this fracking industry (which has created a lot of production but little or no profit) and you drastically alter the supply situation. Then the increased demand from India/China makes a big difference

[onec007]

Completely agree with you. The presumption that oil is dead is just as outrageous as those that stated coal would be phased out almost immediately. Coal demand might have fallen in North America and Europe but the fall hasn't been enough to offset China, Southeast Asia and India. In terms of demand I am not concerned about it because poorer economies will be consuming fossil fuel for decades

[oilandgasmick]

Good points but if the move away from fossil fuels towards cleaner energy is so profound then why is everybody piling into "old world" shares like pembina and trp pipelines which are at 52 weeks highs and pretty close to all time highs?  Yield is a good answer with interest rates seemingly headed for zero but pipelines continue to carry so called "dirty" fuels and do well

[jazzlover]

"why pembina and trp pipelines which are at 52 weeks highs" It's become almost impossible to lay new pipe in Canada so the existing ones become more valuable. The government is killing any competition.

[autofocus111]

Impossible? TMX just got the final go-ahead, and L3RP also just got final approval by MNPUC.

[jazzlover]

It's all political. Canada's west will remain oil locked for the forseeable future. That's what the US wants, and as long as Quebec gets reliable oil from Saudi/Libya etc that's what they'll get, it will always be that way.. Heard it here first.

[oilandgasmick]

Horgan is whipped now. He has seen unanimous decisions by the BC supreme court, the Supreme court of Canada and now the Feral Appeals court that were firmly opposed to him. Like a hockey team in a slump, Horgan (and the guy who's pulling his strings--Suzuki) has been shut out entirely. Meantime he spent millions of taxpayer dollars knowing that he couldn't win. Trans-Mountain will still

[oilandgasmick]

Correction on last post- Federal court of appeal --not "feral" although it might be an applicable term.

[autofocus111]

pablo87 HSE has stated that the dividend is viewed as a key component of shareholder returns. They have also reduced capex for 20-21. I don't see the company cutting the dividend but rather at least maintaining it and if necessary slowing capex further to achieve that. Sadly, there is no discusssion of share buybacks in their capital allocation plans. That is quite unfortunate given the

[onec007]

Infliction point will occur in 2021 when many of their large projects have been completed. Provided that oil rallies back to $55 WTI we should expect to see some cash returned back to shareholders. I still think that going private is their best bet. I think most investors would be happy to sell at $15

[firstworld]

LKS thinks in 20+ year time-frames while 85% of Canadians are $200 away from bankruptcy. He was expanding outside of HK aggressively since early 1990s...mistakes are made and HSE is probably one of them in hindsight. Price is low because Canadians are focused on next month and quarter. NOT strategic at all which is why we produce the same stuff we did a century ago and cannot compete globally with

[oilandgasmick]

Your PHD was found in a popcorn box?

[mrbb]

yes, there are still lotta myth about husky's tie with and influenced by the chinese governments even though they can't provide 1 proof.   Husky hired Jeffery Rinker to run and optimize their downstream network. He move heavy oil around depending on the differential, short term pipeline tariff discount, buys other's spare production curtainment room, and