Boardwalk Real Estate Investment Trust T.BEI.UN

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:TD's Upgrading to ACTION LIST BUY from Buy; Q2/21 Results

[malx1]

autofocus111 wrote: @malx1 Migration into AB depends on job growth in the O&G sector. Stagant oil supplies ie. no production expansion projects means weak job growth for AB. Higher oil prices, while great for producers, means ziltch for housing demand in the province if there is minimal investment by O&G companies to increase production. As you yourself point out, increased focus on ESG and stretched balance sheets is putting a damper on new projects. Shareholders are signaling to producers that they want returns (buybacks and dividends), not higher production, when high leverage is addressed. Without production growth, jobs and RE will remain weak. 

And maybe that's where our macro views diverge.  I think a sustained $75wti will eventually repair balance sheets, put co's in position to pay dividends AND increase production marginally over next 36 months.  Only thing derailing this train will be unexpected event like Chinese financial crisis or NA covid lockdowns.   Time will tell. 

Oil inventories getting low, nat gas inventories getting low, the producers are set up to collect a healthy amount of FcF. 

Next few years will be exciting to watch for Western Canadians.  Hopefully they all participate. 

BEI should outperform.