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

Revision just announced

[onec007]

https://www.streetinsider.com/dr/news.php?id=16611540&gfv=1 Huge cut. So taking this into consideration this will get them close to cashflow neutral to negative $100 mil based on $35 WTI. We will weather this storm!!! Hopefully this will get analysts attention especially from Eight Capital (see recent comments). The $1.4 billion from $1.75 billion basically means that they paid some short term (6 months) debt. Eight Capital analysts say the Canadian corporate list will be purged of weak balance sheets/asset bases. Investors will focus on who has/doesnt have flexibility in their capex budget and near-term debt repayments. If oil prices continue to fall, most have room to reduce capex, but Husky Energy Inc. and Ovintiv Inc. are most at risk, Eight Capital analysts wrote in a note this morning. Ovintiv was down more than 50 per cent on the Toronto Stock Exchange. Again! I can't stress the importance of cash flow, low debt and being integrated means for the overall business. Cenovus is integrated but their issue is takeaway constraints now that they put a freeze on their rail production they will be in serious trouble. Not only are they getting less money for their product it also means that they are on the hook for empty rail cars. I worked for a mining company and I can tell you it costs on avg 600-1000 for a fully serviced rail car (PER CAR). They have unit trains of rail cars... How much can they contd to pay?

[oilandgasmick]

Wow, that is a huge cut but its not unexpected. It's survival mode for everybody in the patch. The market warned over a year ago that HSE was spending too much cash and they were a bit slow to react but this qualifies as good news.  Cash flow neutral in a 35 buck environment will look good in a couple of years when we are back to 50 buck WTI. The revolution in Suaid Arabia should be done