(Jonathan Ratner – Financial Post)
Declining oil prices will likely have a negative impact on Canadian railroads given their exposure to the energy sector, but the damage may not be as bad as some expect.
Shares of both Canadian Pacific Railway Ltd. and Canadian National Railway Co. fell sharply on Friday as OPEC’s decision not to cut production caused a sharp retreat in crude prices.
The overall revenue exposure in 2014 for both CN and CP stands at roughly 9%, but CN has higher frac sand exposure and CP has higher crude-by-rail exposure. Read more here.