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Bullboard - Stock Discussion Forum Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

TSX:HSE.PR.B - Post Discussion

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Post by mrbb on Jan 29, 2021 5:18pm

my final thought on husky

LKS lost patience with canada, that's why he exited husky. 
 
His game plan to secure a decent and stable profit margin on heavy oil was to build up the downstream and upgrading infrastructure. The WCS differential was so attrattive that husky even made a takeover bid on MEG but Notley meddling in the free market, imposed production curtailment, collapsed the differential premium. Basically notley penalized husky for making investment in downstream refining/upgrading while helping to save Cenovus in a bind for having no measure at all to deal with low WCS pricing, high railing cost and little to no measure to reap the benefit of the high differential. The table turned to CVE's favor.  Gov't had chose the winner and loser.  No doubt husky's asset gonna save CVE. 
 
The federal gov't also screwed over husky too. LKS long term plan was to sell hse to the chinese for big $. Harper gov't then impose a law to prevent state own enterprise to buy up canadian resource companies. What chinese end up buying are mostly junk and near bankrupt oil/gas companies like twin butte, nexen and what have you. China really wanted hse but they can't at that time. 
 
i think the last straw came about when covid hit canada, Husky had asked liberal gov't for a little assistance on the east coast whiterose construction to save jobs.  Whiterose GBS project was 60% complete at Q3 2020 but with silent treatment and anti oil/anti pipeline sentiment stirring from the liberal party, LKS saw no silver lining staying in canada.   Yes, the thick skin LKS have rode through many oil crashes and adversities but he can't deal with anti oil, anti alberta, anti pipeline and anti business of liberal agenda. It's just too much for this 92 year old tycoon so he pull the plug on hse. 
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