Looking to create pure play #oil sands company, #Canada’s @HuskyEnergy offers 37% premium in hostile bid for @MEGenergyCorp $MEG.TO $HSE.TO

Will this mark the bottom and signal a major revival for the underperforming Canadian oil sector?

Not that long ago MEG energy,  $MEG.TO was considered a distressed company. Amazing how US$80 barrel can change things so quickly...

Investors have been focusing on high growth capital intensive Permian plays while ignoring large FCF stories in the oil sands. This may likely change soon. 

The combination of this announcement and the likely go ahead decision for the $31Bn LNG Canada project by Shell and its partners may mark the bottom and a major revival for the underperforming Canadian oil sector. 

Given the parties involved in this deal, implications and possibilities are significant for the sector. 

Still clearly cheaper to buy than to build in the oil sands. 

See more on the transaction on Bloomberg here: https://bloom.bg/2NcAxjF

https://Bit.ly/MasterEnergyBlog

https://www.facebook.com/MasterEnergyNews