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

RE:RE:RE:RE:RE:RE:WCS

[mrbb]

lowe0 wrote: You are correct that the net revenue that producers get for the blend product is based on both the differential and the cost of the condensate. The consdensate price is driven by sipply and demand. More recently the condensate price is clsoe to 90% of WTI but there were times not that long ago where condensate was 130% of WTI.

You are correct that more condensate will be available  with LNG devlopment but that does not start up until 2023 and when LNG does start up it will drive the price of natural gas up which for the Thermal Facilities, who are consuming more natural gas daily than he city of Calgary on the coldest day of the year.

No matter how creative your math is, it is tough times and given MEG has 3 b$ in debt and is building debt every day due to the differentials, @ $11 HSE is overpaying.

in the normal past condensate were selling ~90% of wti because there is not much other market for it beside as a diluent. That 130% of wti price of condensate is just a blip, where producer rushes to fill in the available pipeline space for dilbit. My math was just for fun on a $200 case. I doubt Saudi want a oil war since they are no longer the sole price driver. No matter how hard meg shareholders whine, sub 11 meg trading prices mean the market don't believe a white knight is coming