TSX:HSE.PR.B - Post by User
Comment by
autofocus111on Mar 23, 2020 5:44pm
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Post# 30839443
RE:RE:RE:DIVIDEND
RE:RE:RE:DIVIDENDonec007 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 is going to dig deep to find a way to squeeze another 1B out of capex, unless they can miraculously pull off the retail biz sale (which seems doubtful in the current environment). It's either that, or oil prices are going to have to stage a serious recovery, and soon. A collapse in US shale production is looking increasingly likely, and that could end up being the tarsands (and HSE's) saving grace.