+ Watch HUSKF
on My Watchlist
Canadian oil issues are undervalued vs. their US counterparts; Husky pays a decent dividend as well which brings up good ol' Canadian taxes. I think this issue should outpace a lot of US midcap producer/refiners just on the basis of a better environment and more opportunity for drilling
A+. Go Huskies!
The company's capital investments are starting to generate profits and long term resources. Replacement reserves - barrels of equivalent oil - increased 180% as of Dec 2011. Net profits up substantially based on more oil and refinery production. Several of its other capital investments are expected to come online 2013 -2014.
Oil will definately not stay in the $40-50 range for very long, and should be over $100 again once the worldwide recession lifts. Energy demand is not going away...
Husky Energy, unlike its North Amaerican competitors is a debt-free company. It is not leveraged by finances. It pays close to a 1.75% dividend. I believe in this down market, Husky will be one of the only North American energy companies to be able to gobble-up its competitors at fire sale type prices. My money is on Husky.
Husky Energy is more commonly listed on the Toronto exchange as HSE. This company holds a large section of leases in the Alberta Oil Sands region; and lease tracts off of China and Indonesia coasts which it is exploring. It has oil producing tracts offshore of Eastern Canada and is expanding exploration there as well. It has recently finalized an agreement with British Petroleum --- BP had no lease acces to the Alberta Sands (estimated to be 2nd to Saudia Arabia in total world oil reserves), but BP has major refinery capacity in Ohio area which BP will reconfigure to accomodate the heavier oils. Interestingly, Enbridge Coporation & Enbridge partners (other stocks I have covered) are in the middle of expanding their oil carrying-capacity to bring the oil from Canada to the US and Pacific terminals. While Husky is in the process of developing the region (actually building the extraction capabilities), the actual production date for phase 1 delivery won't be until 2012 and then 3 more production phase shortly thereafter. One of the difficulties with researching this stock is that many of the financial numbers are not easily available under the HUSKF listing. For instance, it shows no insider %, no dividends, no outside investor interests, and other absences. But, in fact the company has a established history of increasing dividends and had a 2:1 stock split within last 12 months. Husky is majority owned by Li Ka Shing and one of his investment arms, and investments of outside mutual funds are through the Toronto exchange as foreign fund investments. It would be useful for you to access the Husky website to see a more detailed business explanation since the company is far more involved in "energy" than simple exploration.Though production of the Alberta Sands is a few years down the road, this will turn out to be a major contributor to the US & world markets based on proven-reserves, political stability, deep financial backing, and an excellent integration of multiple companies for production, delivery, & refining. This is where you can still get in on the ground floor for oil.
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