Oil & gas

Canadian & U.S. morning comments

May 30, 2017

BC Election: It’s Not Easy Being Green, Orange or Red…Enter Lieutenant Governor

With the BC NDP and Green Parties coming to a four-year “Confidence and Supply Agreement” (pending NDP caucus approval – expected Tuesday), we are updating our views on the implications for E&P equities exposed to BC. In our previous report we detailed the results from the ballot boxes and experiences of minority governments in Canada. While the question of which party or parties will form the next BC government remains open, the potential for a NDP/Green Party stable minority government has dramatically increased with this announcement. Based on the platforms of both parties (see Exhibit 2 in the full comment for key points), we believe that a NDP/Green Party stable minority government would be a near-term negative for the equities of companies with significant BC exposure.

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