​Husky ‘extremely shrewd’ to walk away from MEG bid: This week’s best quotes

Workers at Husky's Sunrise SAGD project, which it shares in a joint venture with BP. Image: BP

Here are some of the best news quotes from last week’s coverage in the Daily Oil Bulletin:

MEG Energy vice-president John Rogers, discussing the company’s $200 million base capital budget for 2019, with potential to increase to $275 million if market conditions improve, on the back of Husky Energy ending its hostile bid to acquire the smaller company:

“We wish Husky well in their future, but we now consider that chapter in our life closed. We are totally, totally focused on the future.”

Tim McMillan, CEO of the Canadian Association of Petroleum Producers, on the association’s new set of policy recommendations for the Alberta government:

“We set an ambitious vision for Alberta. We could double [oil and gas] investment…If Alberta does this right, Canada could be the fourth largest oil supplier in the world, pushing out Iraq and China. On the gas side we could become third largest, pushing out Iran and Qatar.”

Saskatchewan Energy and Resources Minister Bronwyn Eyre, announcing the province’s new regulations with the goal of reducing GHG emissions from venting and flaring in the province’s upstream oil and gas sector by 4.5 million tonnes per year by 2025.

“Our regulatory package commits us to an alternative, robust plan to implement GHG emission reductions that help to achieve our climate change goals, while providing industry with the flexibility to implement those reductions in an effective, economically viable way. This made-in-Saskatchewan approach will meet, and in many instances exceed, federal expectations.”

An energy M&A lawyer who declined to be identified because of his ties to both MEG Energy and Husky Energy, commenting on the latter company’s surprising move to end its hostile bid for MEG despite securing the support of 60 percent of MEG’s shareholders:

“The economics of the transaction changed very materially since they launched the bid. It was an extremely shrewd move by Husky to launch the hostile [offer] and just as smart to let it go.”

Despite trade headwinds and an oil shock, Canada’s Finance Minister Bill Morneau said the country’s economy remains on track to grow this year and in the “forecastable future.”

“There are headwinds, I don’t want to dismiss that as a challenge, but we do still see a period of growth. Right now, we are continuing to forecast growth this year and for the forecastable future.”