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

The ask - an equity stake

[autofocus111]

HSE has clearly lobbed the ball into government's court. Will the government bite, now that jobs are on the line in NL? An equity stake makes sense in the current circumstances. They bought TMX after all. If that is rejected, HSE will either have to find a buyer (maybe for all their Atlantic offshore stakes) or cancel the extension project. Both those options will see some massive writedowns, which shareholders would obviously prefer not to see.

>>>Brown said Husky has a proposal before both the provincial and federal governments to get the project back on track. While he wouldn't provide details, Brown said Husky is asking for investment akin to Ottawa's deal with the Hibernia project back in the 1990s to keep it alive. At that time, the federal government invested $431 million for an 8.5 per cent stake in the operation. "What we've proposed is an investment that would allow the project to reach first oil, and commence that development phase of drilling and completion, and once that happens then they'll remain owners in the project, with the benefits that accrue," said Brown.

https://www.cbc.ca/news/canada/newfoundland-labrador/white-rose-review-1.5716913

[oilandgasmick]

There is no reason that the Feds can't take an equity stake here and the fact that much of their power base is in Atlantic Canada means that it makes sense for them to do so. Take the equity stake in the field or move one step closer to a major bailout of the province itself. Either way there is some risk involved but the interest in Canadian debt is still very strong so why not expand the

[Eigen337]

This post has been removed in accordance with Community Policy

[oilandgasmick]

Well, our Federal government seemingly has money to burn and has invested all kinds of dollars in an endless slue of dubious projects so HSE shareholders are just as entitled. Question-- why do you idiots only show up here to taunt the shareholders?  What is your net worth--about 50 cents/