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by Stockwatch Business Reporter
West Texas Intermediate crude for November delivery added 36 cents to $52.81 on the New York Merc, while Brent for December added 66 cents to $58.37 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.45 to WTI, down from a discount of $13.16. Natural gas for November added two cents to $2.35. The TSX energy index lost a fraction to close at 129.05.
Li Ka-shing's Husky Energy Inc. (HSE) edged up seven cents to $9.12 on 3.05 million shares, after agreeing to sell its 12,000-barrel-a-day oil refinery in Prince George, B.C., to Tidewater Midstream. The purchase price is $215-million cash, plus an estimated $62-million worth inventory and contingency payments of up to $60-million over two years. Husky patted itself on the back for keeping its promise to shed non-core assets. It had put the Prince George refinery up for sale in January, along with its retail gas station/commercial fuels business. At the time, analysts had various price tags in mind for the refinery, such as $150-million to $180-million (Scotia Capital's estimate), $180-million to $225-million (RBC's estimate) and $120-million to $280-million (Canaccord Genuity's estimate). The actual price compares favourably with those estimates. As for the desired sale of the retail business, Husky says this "continues to progress." This business has been valued much more highly by analysts. Possible price tags have ranged from $525-million (Scotia) to $1.3-billion (Canaccord), depending on earnings estimates and how much value is attributed to the underlying land.
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