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AltaGas Ltd. (ALA)
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Northland Power Inc. (NPI)
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Capital Power Corporation (CPX)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
Q: If Trump were to win the US Election he suggested he would create a Dept overseen by Elon Musk to reduce US spending by 1/3rd. One of his targets is Green Energy which clearly he would be happy to eliminate.
How would this affect Renewable Producers like BEPC. Northland Power. Algonquin and other TSX wind n Solar Producers with operations in the US as well as other Canadian Power Generators like Capital Power and Altagas?
Would Trump go as far as to reduce the mandated usage of corn based ethanol or this would not be a target as it would hurt the US Ag industry?
How would this affect Renewable Producers like BEPC. Northland Power. Algonquin and other TSX wind n Solar Producers with operations in the US as well as other Canadian Power Generators like Capital Power and Altagas?
Would Trump go as far as to reduce the mandated usage of corn based ethanol or this would not be a target as it would hurt the US Ag industry?
5i Research Answer:
BEPC has most of its business outside the US, but still a significant amount in 'North America' (how it segments in reporting). ALA has 1/3 of its revenue in the US. CPX has about 12%; NPI very little. These numbers represent total revenue. 'Green' exposure would be even less. Still, there could be some impact, but the impact may already be (at least partially) embedded in the stock valuations. We would be more concerned about pure solar/wind companies under such a scenario, which may not happen, or may not see the market reaction that most expect. We doubt corn based ethanol would be a target, but one never knows. More clarity, of course, will come in two days.