Introduces Neil Mehta, Head of Americas Natural Resources Equity Research at Goldman Sachs, and asks about Valero's stock move on potential Venezuelan oil flows.
Brian
Neil Mehta
Most constructive on refining within hydrocarbon complex. Supply-demand tight over next 5 years (supply +2M b/d, demand +4-5M b/d), margins structurally higher. Valero is low-cost Gulf Coast producer and could benefit from Venezuelan heavy crude.
Asks if Canadian stocks like Suncor falling on Venezuela news was an overreaction, given similarity of crude types.
Brian
Neil Mehta
Yes, overreaction. Western Canadian crude price down $3 on headlines. Suncor has low sensitivity due to integrated refining business, strong operational momentum beating estimates by 6%.
Asks if money-making in independent power producers (IPPs) is done after strong run.
Brian
Neil Mehta
Bullish on regulated utilities, neutral on IPPs currently. Supports electrification theme. Highlights Cameco (uranium) as nuclear is necessary for baseload power from data centers. Anticipates 2.6% CAGR in power demand to decade-end.