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

RE:RE:RE:RE:RE:RE:The Market is speaking

[mrbb]

mrbb wrote:

oilandgasmick wrote: Yes, of course a major shareholder is going to predict a bidding war--they would be foolish if they didn't. There is no advantage right now in saying "yes, this is probably the best we can do so let's jump on it." when the bid doesn't expire until 2019.

These MEG shareholders who think that they are going to get 15-19 bucks are daydream believers.

The debt load of 3.3B for a company that may (I say may) exit 2018 at 100k bbls/d is enormous when you consider that it is the same net debt figure as Husky, a much larger and more diversified company.

There may be another bidder but I have my doubts. SU already had their acquisition and it wasn't a pretty thing to go through. I doubt they will be too anxiousa second time. CVE blew their brains out with their big move and I am sure that other companies have taken note of what happened to their share prie. IMO is a possibility but they are notoriously conservative and usually don't get involved with this sort of thing.

If this was 15 years ago a number of American firms would at least take a look but they are long gone from the Canadian markets. Conoco pulled the plug entirely in Canada. Why would you want our governments when you can have Mr. Trump's policies?

So who does that leave?  Maybe Mr. Trudeau can buy it on behalf of Canadians.

my sentiment as well.

American E&P have and are exiting canada.  SU and CNQ are the real big oilsand players who likely want to stay with surface mining and don't want anymore SAGD, CVE blew their brain out on COP,  Devon is still on their way out of canada, i doubt SU want to enter another bidding war after COS experience, CNQ got their fill with CVE's pelican lake and more inhouse mining expansion, CNOOC-Nexen aren't allow to takeover anymore oilsand, IMO has the cash after selling their gas stations but their CEO recently said: "There is a cloud of uncertainty. There is a question mark,” Rich Kruger said in an interview with BNN Bloomberg.  Differential will be wide for another 2+ years. The timing for husky to snag meg is quite optimal.  I'm sure meg had many suitors before but Meg playing hard to get in past years has backfired. Like Nuttall, Meg management hope for the big payout day has passed. Their pursuit of high heavy crude production means d!ck without covering own production with upgrading. I'm surprised that even nuttall doesn't see that.  I was very surprised hse price drop so much after the bid announcement because meg is accretive to hse's asset, as ceo peabody said, fit like a glove. Just go to show alot of investors still don't understand the oilsand business.

On Oct 25, Peabody said the discounts are expected to last for two to three years until export pipeline capacity is expanded. He predicted heavy oil producers will start to shut down wells to relieve the glut of oil.

https://globalnews.ca/news/4596018/husky-energy-downstream-output-meg-hostile-takeover/

 

On Oct 5, I said "Differential will be wide for another 2+ years"
Read more at https://www.stockhouse.com/companies/bullboard?symbol=t.hse&postid=28749959#wHwfwVSoPbakDDeQ.99