TSX:FRU - Post Discussion
Post by
Dibah420 on Jan 15, 2024 4:41pm
Consolidation?
Oil Industry Consolidation a Key Theme in 2024, National Bank Financial Says
MT Newswires - Jan 15, 2024 11:11 AM CST
12:11 PM EST, 01/15/2024 (MT Newswires) -- National Bank Financial on Monday said energy-industry consolidation emerged as a key theme at the investment bank's 14th annual Toronto Energy Conference.
"Everyone agrees, the industry should engage in a consolidation cycle (like that being seen in the U.S.); however, no one is clear on how that will evolve in Canada. Commodity prices are fine, balance sheets are in good shape and there isn't necessarily any cause for urgency, other than that producer's know being bigger would be enviable... The dance card isn't set, and we believe that tuck-ins around core assets (sourced from non-core elsewhere) is the most likely dynamic to persist before a shoe drops on anything more material. That said, one transactional avenue of interest might be for the royalty peers (FRU, PSK, TPZ), where the counter-cyclicality of their investments could resume (notably in gas, maybe in the Duvernay) as they continue to provide a source of competitive cost of capital," the bank noted
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