RE:It will be interesting the market viewed the news positively.
cve down ~1.3%, SU down ~2.1%, MEG down ~3.5%, WTI down ~1.8%
All prior cost on WWR are sunk down in business accounting and economics, it had been written off by husky and priced in by CVE during the takeover already. Since the project is ~60% completed, cve got a ~60% price discount of WWR project compared to starting from scratch PLUS as mentioned by other, ~$1.6 billion decommision liability (in the red) has turned into another 1.6 billion (in the black) in captial saving. These unanticipated bonuses more than cover the inflation on the completion of the remaining 40% of the project. Ask any oil major in canada today (if not north america), flush with cash, will they propose a brand new multi billion oil project given today's red tape, ESG, anti oil anti pipeline environment. Analogy is CVE is buying a 60% completed beach front house in vancouver with all the permit and approval in place while saving a pending demolition cost.
divime1 wrote: to see how the market views this news . A few years ago the stock price would jump . Now with everyone wanting dividend increases the prospect of loading up on more debt in this inflationary enviroment may not be what shareholders want .
It will be interesting to see what Nuttall does . CVE is a major holding in both of his funds .