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

results are not that bad, management is though

[lashing]

Every conference call is the same. Nothing real is discussed. They sound like college guys. Immature and without substance. 

I've always had the feeling they are less management and more installed puppets. Write downs have clouded everything. Its clear HUsky expects to make no money this year and when they say "next year" they mean delay for a year then proclaim "unforseen circumstancces"

The retail sale is taking to long. I suspect its not a great deal. Could be wrong. Obviously no one can talk about a deal not done but I think that space had its M&A a year earlier than HUskys decision to sell.

After this quarter that div is on the chopping block. HSE is rather brutal to investors so I see no reason they would keep it. The stock is already destroyed and destroying it further makes sense for taking private. Chinese billionaire can blame all on economy, market crash, carona virus and take this private for zero premium.

[firstworld]

I was impressed with the massive net back increases, almost all projects a head of schedule and looks to be firing on all 12 in the face of massive headwinds and govt supply controls / interventions .   Write downs made sense.  2-3 years to dispose of retail makes sense for Canada because the only buyers are institutional, most likely a consortium, and they need to endless 360

[firkantede]

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[firkantede]

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[Scottie99]

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[mrbb]

And you label me as a spin doctor and a hypster of hse. How hypocritical.  You have been singing the husky blues since your very first post in this forum.  Every major oil operators have experienced major oil spills and refinery accidents, it is part of learning process and beefing up internal health/safe protocols. Btw, the sask oil spill was not due to design flaw or human error, the

[pablo87]

At this 6.50-7.00 share price, they generated around 20% return (cashflow after $1.8B sustaining capex) in 2019. They're easily covering the dividend, just spending a lot on capex (debt up $750M). I'm shocked share price is so low.

[pablo87]

Lashing last paragraph hits the nail on the head - the share price is so low because the dividend is not secure. You listen to others, like suncor, pipelines even Tourmaline, the dividend is not to be touched - this is from management. Whereas with Husky, management are half mgmt/half puppets, and the 70% owner clearly doesn't care much for the other 30% just look at BoD composition. But

[firstworld]

Haha LKS smart knows Canada is captive backwater with zero population & capital mobility can do whatever he wants. If don't like it sell....everyone else is because they are racists, per the Canada norm, or can't stomach the 4th world level of political risk, or just need the money to make next months credit card payment.

[autofocus111]

pablo87 About security of the dividend... HSE indicated in the earnings call that they have flexibility to pull part of the 2021 400M capex reduction forward into 2020 if necessary to fill any FCF gap. To me, that says they see maintaining the dividend as a priority and it would take a large and prolonged drop in oil prices to force them into cutting it. I think this constant bashing of management

[autofocus111]

They know the dividend is an important commitment, They will not cut it unless absolutely necessary. >>>So what I just assure you is we've done enough to understand we do have more capital flexibility. There is more room that we can reduce CapEx this year. We haven't finalized those plans, but we're – our fingers over the trigger, I guess you could say if they're required

[Scottie99]

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[Nakate]

well they have not cut the dividend and you won't know if they are going to until they do, some time later this year after all this panic selling is long forgotten and something else is the issue like the US election is threatening economic stability Go Bernie, Theres always some alien threatening to blow up the planet. The market is always about to crash. Volitility is the engine, uncertainty

[onec007]

Thinking Bernie might be good for oil prices. Firstly, he won't be tweeting away if oil gets back above $60 about how OPEC needs to lower it. Secondly, banning fracking would be a great idea which would mean lower US production or at least more regulations and less investment sound of the border.

[oilandgasmick]

No matter who wins in November, the major news story in late 2020 (IMHO) will be the unravelling of Americcan fracking production due to the continued pressure of activist shareholders and much tighter equity and debt issues. Shareholders and bankers are finally on the same page when they ask "where are the profits and why has 80% of the capital been destroyed?"  The Big Short in

[mrbb]

another slash on new oil supply on MEG's 3 year delay of oilsand project. https://boereport.com/2020/03/02/meg-energy-asks-alberta-to-shelve-oil-sands-project-globe-mail/?fbclid=IwAR3EIaeIVFCyJQxY9vTV7y8NBP2CCyoaGb45Yx6_GYXCCAnalTQlhpDs_k8

[onec007]

You're definitely not kidding about companies such as Range Resources. 500K in cash with $3.8 billion in debt. What am I missing? Hopefully these horrible companies with mounting debt will end up just bankrupting soon and bankers won't rule their debt over. Matador is just as pathetic. That's exactly it the large Cdn energy companies have no debt issues and even if prices fall they are

[firstworld]

A new paradigm of Junk Debt. Will just be extend and pretend, repackaged, and sold to some retirees ...unfortunately.

[onec007]

You're definitely not kidding about companies such as Range Resources. 500K in cash with $3.8 billion in debt. What am I missing? Hopefully these horrible companies with mounting debt will end up just bankrupting soon and bankers won't rule their debt over. Matador is just as pathetic. That's exactly it the large Cdn energy companies have no debt issues and even if prices fall they are

[oilandgasmick]

Thanks for the post. When you dig into these "shale oil" numbers it's pretty shocking, isn't it? To be fair, the shale companies aren't all as bad as the examples cited here but over all it is a mess, plain and simple. Mountains of debt and little or no free cash flow-- a recipe for failure. The bankers don't want to admit that they really screwed the pooch here (having

[pablo87]

Autofocus111, thank you and my bad. That's as clear an enunciation of a dividend focused policy from Husky as I've heard in years. Not as firm as Suncor or Shell (which now yields 8%) of course but progress. Meanwhile, WTI $44.84 per Bloomberg.