Liwan’s value to Husky would drop by only ~$0.73/share (24%) if the gas price was lowered by US$4.00/mcf. Its valuation is not as sensitive as we would have thought, due to low costs, significant NGLs revenues, and recent positive reserve revisions. Husky will insist any compromise is value-neutral.
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Husky 1Q16 Update – Asset Sales Overshadowed by CNOOC’s Renege
- Published:
09 May 2016 -
Author:
Michael P. Dunn -
Pages:
12
Liwan’s value to Husky would drop by only ~$0.73/share (24%) if the gas price was lowered by US$4.00/mcf. Its valuation is not as sensitive as we would have thought, due to low costs, significant NGLs revenues, and recent positive reserve revisions. Husky will insist any compromise is value-neutral.