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

vanishing crack spread

[autofocus111]

Now quoted at 5 and change. HSE 2020 giudance assumed $18.  Cash flow sensitivity is -100M per dollar drop. That is a -1.3B drop in cash flow if it stays down there. Guidance for WTI was 55 and sensitivity there is also -100M per dollar drop. That's a -3.0B drop at 25. FX shift brings a +0.5B increase at .70 vs .75 assumption. 2020 FFO was forecasted at +3.8B. WIth these adjustments as they now stand they are looking at FFO of ZERO. No money for sustaining capex. No money for growth capex. No money for a dividend. Unreal.


https://www.energystockchannel.com/3-2-1-crack-spread/

[display_name]

navigating low cracking spreads is nothing new for Husky, tehy've done it before and they'll manage to do it again :) https://static.seekingalpha.com/uploads/2015/4/9671461_14289799700821_0.png

[zanadu123]

Very right! Zero dollars for new or sustaining capex. Will be shutting down all projects soon! 

[pablo87]

Yeah I've never seen RBOB so low (0.46 cents per gallon). Could be wrong but Husky feeds heavy oil to its refineries so the input cost of the 3 barrels is significantly less than WTI (of course have to include the transportation costs - this is the problem of having sold 2/3 of midstream...the corridor is not so integrated...for us minority shareholders at least...).  Plus, they can

[zanadu123]

In addition, CKI has interests in Husky Midstream Limited Partnership, which comprises oil pipelines, storage facilities and ancillary assets. https://www.cki.com.hk/english/about_CKI/cki_at_a_glance/index.htm   Read the fine prints!  

[autofocus111]

Pablo Crack spread is vanishing due to falling demand for fuels. XOM announced a reduction in refinery run rates over the weekend. >>>HOUSTON (Reuters) - Exxon Mobil Corp cut production on Saturday at its 502,500 barrel-per-day Baton Rouge, Louisiana, refinery as poor demand has pushed up inventories and filled storage tanks, said sources familiar with plant operations. The number of

[pablo87]

Auto, RBOB (gas futures) went as low as 41 cents monday - in the last 30 years, the only years where the low for March was less than that is 1999. (now back up to 53 cents.)