Impact will Trump's Tariffs have on Canadian companies?
Posted: Fri Feb 28, 2025 2:29 pm
Watch this video from Eric Nuttall: https://www.youtube.com/watch?v=cEIcr9oentI
The maximum impact on oil & gas revenues of Trump Tariffs on Canadian upstream oil & gas companies that sell 100% of their production into the U.S. is 6%.
For the Canadian companies in our three model portfolios (OVV, VRN, BTE, JOY, ROK, RBY, SDE, HME, IPO, PEY, SGY) the impact will be less than that on their top line revenues and only 1% to 3% on their Net Income and Operating Cash Flow.
All of our Canadian companies are in good financial shape today. They have strong cash flow from operations and those that pay dividends have more than enough free cash flow to cover their current dividends.
InPlay Oil recently announced a large transaction that will significantly increase their free cash flow per share. Check out my updated forecast model for InPlay which can be found under the Small-Cap tab on the EPG website. InPlay's current dividend yield is over 11%.
PS: As Eric points out, the global oil market is much tighter that most people realize. Oil demand is seasonal. Between today and the end of May, global demand for oil-based products, primarily transportation fuels, will increase by 2 to 3 million bpd.
The maximum impact on oil & gas revenues of Trump Tariffs on Canadian upstream oil & gas companies that sell 100% of their production into the U.S. is 6%.
For the Canadian companies in our three model portfolios (OVV, VRN, BTE, JOY, ROK, RBY, SDE, HME, IPO, PEY, SGY) the impact will be less than that on their top line revenues and only 1% to 3% on their Net Income and Operating Cash Flow.
All of our Canadian companies are in good financial shape today. They have strong cash flow from operations and those that pay dividends have more than enough free cash flow to cover their current dividends.
InPlay Oil recently announced a large transaction that will significantly increase their free cash flow per share. Check out my updated forecast model for InPlay which can be found under the Small-Cap tab on the EPG website. InPlay's current dividend yield is over 11%.
PS: As Eric points out, the global oil market is much tighter that most people realize. Oil demand is seasonal. Between today and the end of May, global demand for oil-based products, primarily transportation fuels, will increase by 2 to 3 million bpd.