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

DIVIDEND

[Predator2018]

The last dividend suspension by Husky in 2016 hurt investors confidence in management.. I dont think they would suspend it. They may reduce it from current 50cents to say 20 cents yearly or 5cents quarterly which would result in $300m savings in dividend payout.

[autofocus111]

Predator Basic math says NO dividend and NO money for ANY form of capex. 321crack spread has all but vanished. See my previous post.

[onec007]

The 321crack spread just crashed significantly not sure what is going on other than the same narrative. Can someone please review my numbers if the below is correct.    Prior (billions) Now (billions) FFO  $  3,800,000,000.00   Capex  $  3,300,000,000.00

[autofocus111]

onec007 Yes, that is correct. As it currently stands, in order to break even they would have to cancel the dividend and all capex. Sustaining capex alone was initially estimated at 1.8B and growth capex at 1.5B. Even with the recently announced ~1B cut to capex they will wind up in the hole by ~2B this year at the current pricing (WTI, 321Crack, FX). Something is going to have to give. I think HSE

[zanadu123]

Trump will not allow tarsands to be brought in at expense of shale.,, lol

[autofocus111]

zanadu Still waiting to see just how he does that.  All of corporate America is on their knees begging for handouts, but the only thing I hear from the US government about 'saving shale' is cricket noises so far. Texas regulator is mulling production cuts and 'talking' to KSA about implementing quotas. Rampant greed in US shale was killing world oil prices. It's up to USA

[zanadu123]

Cost of WCS (ex Alberta) + Transport to US should be less than shale economics... Production cost of tar sands very high!  Trump is he can bring in any regulation to stop tarsands kill shale. Remember it's made in America for him.

[autofocus111]

zanadu Please post the Trump tweets that highlight these regulations you allude to that will save shale. I eagerly await your findings.

[oilandgasmick]

Yes,thats about right. The only real hope that the oil sands can survive is the fairly rapid implosion of the shale frackers. Unfortunately, I am told that 40% of the frackers production is hedged until 2021 so it won't happen soon enough to suit most of us. I really think the end of the oil sands would be both an immediate and long term disaster for the Canadian economy. At the end of the

[zanadu123]

$20-30/ bbl for next 6 months... only 2-5 companies in Calgary will survive. Unfortunately, Husky is not part of the list. This will sink soon, and Mr. Li will cut off the sore. He will pick best pieces and give $h$; to Canadians... very unfortunate. Also, this will be an eye opener for non-Albertan Canadians... they will then realize there is no one to pay their bills!! Watch out!!

[onec007]

So lets step back for a second and look at the scenario here and try to determine some logical outcomes.  Low prices is absolutely killing the entire industry including Russia, Saudis and all of their OPEC brothers. Low prices across the Arab nation is absolutely NEGATIVE and the leaders know it why? Arab spring. Guess how the Saudis avoided it last time by giving money and increasing

[autofocus111]

onec007 Actually I think SU is worse off than HSE. SU tarsands production exceeds their fuels refining capacity. HSE it's the other way around. Of course, with dismal crack rates it's not much consolation. But something is going to give here. My guess is it's going to be US shale since many E&Ps there are leveraged beyond repair and it's high cost at the marginal added barrels.

[autofocus111]

oilandgas 40% hedged means 60% unhedged and bleeding money profusely. Massive production cuts in shale output are going to happen soon as they start to fold and lenders refuse to step up with DIP financing. Even the oil majors are not going to buy the assets with the current squeeze on corporate debt rates.

[oilandgasmick]

Auto-- No arguments with your logic but the question is, does U.S. production fall quickly enough to save Canadian producers? The frackers will pump every barrel they can if they can frac the DUCs and still make the smallest of profits--although even that is looking extremely unlikely.

[zanadu123]

Don't work on assumption that US production will fall so you can benefit! Husky is fu**#*! That's the baseline. Cut dividends. Cut Capex! Lay-off 50% employees. And pay fat bonuses to senior management.

[firstworld]

He who has the cash makes the rules. Trudeau trying to bundle in blanket approval for unlimited borrowing and tax changes with no parliamentary process for next two years the little dictator.....LKS should pull all cash and credit out now! [hiquote=zanadu123]Don't work on assumption that US production will fall so you can benefit! Husky is fu**#*! That's the baseline. Cut dividends. Cut

[RagingBull3]

Logic would say that they would have frac them long ago when oil was $50-$60 if any profits could be made.

[oilandgasmick]

I think some of the DUCS had to line up and wait because up until recently there was a shortage of fracking equipment, that's how greedy for production the American companies have been. 13M bbls/d (up from 5M in 2005) says just how greedy and misalculating they have been.

[mrbb]

also greedy bankers and pension fund willing to lend money for superficial great yield but not knowing anything about shale oil well.  I doubt the lenders are to be fool again.