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

Takeway for Yesterday's Presentation

[Dogsbreakfast4U]

Webcast is available online. Overall positive.

1. Suspension at SeaRose not expected to affect production guidance issued in December.

2. Dividend will be reinstated at a rate comparable to peers on the low side. It will not put a significant dent on free cash flow in 2018 expected to be at 1 billion (assuming $55 WTI.)

3. Debt of 2.7 billion and going down fast.

4. Extra cash could be used for special dividend. Share buyback also an option but did not seem to be the preferred option.

[Olympic]

I would add, Peabody's value proposition that the integrated operations mitigates exposure to WCS discount / pipeline and rail risk

[Kherson]

Another way to mitigate exposure to the WCS discount is with job cuts in that sector. If Husky wants to really see investors excited about the stock, they will talk about the dividend, which they now are and when they do release the audited 2017 year end financials, announce the streamlining of their Western Canada operations by reducing staff! Kherson

[truthteller2]

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[mrbb]

i have said it before, i wish HSE does more hedging to protect themselves.  Back in Nov 2017, tt is no brainer that this huge discount to WCS is coming due to pipeline disruption and upgrader turnaround. If i can see this, surely all oilsand/heavy oil producers should saw it too. here is basic primer on value chain.  Glad that HSE didn't split itself into upstream and downstream