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Suncor Energy Inc. (SU)
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Canadian Natural Resources Limited (CNQ)
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Kelt Exploration Ltd. (KEL)
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Tennessee Valley Authority (TVE)
Q: What effect do you think Trump's election and energy policies (Drill, Baby, Drill) will have on Canada's energy industry, both on the big upstream companies such as CNQ and Suncor and the smaller exploration companies such as Kelt and Tamarack.
5i Research Answer:
We do not think there will be a huge direct impact. However to the extent that the US starts producing more there most certainly could be an indirect impact through prices and/or transportation issues. But the sector went up nicely yesterday in Canada. We think valuations are low enough that this may not be a big issue for the group, unless prices really decline, which may be months or years away and can always be offset by other world events as well.