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

RE:Price prediction

[oilandgasmick]

I think the market will probably be neutral in the short term although we will probably see a bit of a bump up in the common shares tomorrow. The markets as a whole are not really interested in heavy oil and of course the "misperception" that HSE is an oil sands company won't help much either. Of course they are not an oil sands company but the WOKE crowd still despises them no matter who they team up with.

Something I like about the new company is that (supposedly) it will be at least cash flow neutral from its inception. The HSE slow cash burn has really hurt the stock price. Even with the CAPEX cuts it might have continued. We'll see when the new financials come out how that cash burn is going..

The retail outlets and the East Coast Gas will both be put on the block. I can't see the new company being interested in off-shore oil production in such an environmentally sensitive area although Federal aid for the project might be more likely now due to the perception that the new and bigger company probably won't fail in the next few years. I think they were leery of helping HSE because of the risk of bankruptcy down the road. That said, don't expect any big favors from Mr. Trudeau.

Liwan gas is a real plum for CVE and a good foothold in the Asian market.

So many uncertainties remain. A Biden victory won't help North American oil either.