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

RE:RE:RE:RE:Response from HSE to MEG circular

[mrbb]

Scottie99 wrote: You make it look like borrowing to ramp up production is a bad thing. In fact, the banks won't give you any loan as a company if they are not convinced you know what you are doing. So for MEG to secure such amount as loans shows they are doing something right. Also, from their NR, looks like the loans have very long maturity period, so the ease of servicing the loans looks like it is no problem for the company.

If they have found a way to make money in spite of their lack of refining capacity, it points to the fact that their debts is no show stopper. So they can afford to drag this out with HSE in this hostile takeover and still come out ahead. I am keeping a close eye on Chinese Private Equity firms, they might also step into the fight along with Suncor, Imperial Oil, CNRL and even CVE based on how messy this hostile takeover is getting!

mrbb wrote:

 

Easy, meg borrow and borrow lots of money to ramp up their production, convincing the banks of their hopium story.  Hedging helped meg too but hedging only buy some time, not a way to build a company.  Look at encana who bet the farm on natural gas.

 

sure oil looks good down the road but meg problem is can they convince their banks not to foreclose them in next 2 years?
 

the expert agree with me, it's a stupid time to ramp up production. https://calgaryherald.com/opinion/columnists/varcoe-alberta-faces-calls-to-crimp-oil-output-to-resolve-price-discount?fbclid=IwAR1nzxNxiuokW9ABHFPNwPcu_9_wJ6sPZIIpanEPNr-Ft-2Q1JAk8eJYjyA Also comments from cenovus and arc financials "The industry as a whole would benefit from other producers also The industry right now has a production problem. Were going to do our part, but were not going to carry the industry on our back....Were doing it because it is the right thing for our company and hopefully other industry players would have a similar view, Pourbaix said. I think people would be surprised at how a relatively small reduction in volume could be a very big benefit for Alberta and Canadians ARC Financial estimates that Canadas oil market is currently oversupplied by about 200,000 bbls/dreducing volumes, Cenovus CEO Alex Pourbaix said on a conference call this morning discussing the companys third quarter results."