Altagas Ltd (ALA.TO)

Have a lot of great things happening. Just increased the dividend. Forrest Kerr is coming on track and should be on time and on budget. Waiting for a BC Hydro line to give them the tie-in to the grid so the timing might be off for a month or so, but shouldn’t have a significant impact on cash flows. Have a ton of growth prospects ahead of them. Also, have some LNG projects on the books.

This is the only company that has a gas pipeline that they are expanding and are permitting on, so they will have the 1^st LNG plant. A great growth story. Have $2.5 billion of capital projects ahead of them. Earnings have been going up dramatically. Increased their dividends steadily. Yield of 3.62%.

Not cheap. Longer-term track record is good. He could see the LNG being a five-year ramp so there would still be some decent growth. The alternatives in this group are not particularly cheap either.

This is a core company in his most important theme – energy infrastructure. As an industry it has opportunity. They have been great at growing its dividend. Well situated from the next stage of energy build out – Liquefied Nat Gas. 3.6% yield.

This tends to do well during the summer and he is not sure of the reason. Energy can do moderately well during the summer, but that is not its peak period of seasonal strength which runs from January through to May. There is a push from July through to October. This one has seemed to find that strength and shows an average gain of 8% during that time. This would be a hold through to the end of September.

(A Top Pick May 2/13. Up 30.63%.) Has been a good company and a great sector. Thinks that when we start to deliver gas to the West Coast, this could be quite a good winner. While it has had a good run, there is potential for more to come.

(Top Pick Mar 25/13, Up 39.25%) Nowhere near attractive a valuation as it was. If interest rates go up this one will run into trouble, but he does not think that will happen. He is holding because he does not have good alternatives. At the low $40s he would look at buying more.

(A Top Pick May 23/13. Up 22.79%.) Growth over the next year is going to become more utility-like making it more conservative and lower risk which should give them a multiple expansion. Thinks there is 25%-30% upside to the stock price over the next few years because of the LNG opportunities. Contemplating a project on the West Coast to export propane. Sees a 25% further upside to the stock price. Yield of 3.32%.

Nice diversified energy company. They produce, distribute and store. For new money, he would be adding it to a portfolio. He has it as a “sector perform” with a medium risk. It is already ahead of his target of $43.

(Market Call Minute.) Likes it. Thinks it is a little bit expensive here.

(Top Pick Feb 14/13, Up 28.03% total return) Thinks it has about a 5 year tail wind in front of it. Has lots of growth in the regulated business. 4-5% dividend and 5-7% growth makes it very attractive.

Really likes the midstream space where there is a ton of opportunities in terms of growth for all midstream companies. For companies that are benefiting from the shift in the basin towards natural gas liquids and all the infrastructure that is needed now, this is a sweet spot. This company is probably one of the more defensive names. About a 3^rd of their business is in utilities, a 3^rd with power and some growth embedded through the gas gathering side of their business. Have a big power project coming on this year.

Is in his short list. It is a bit expensive in this market. Prefers others in the space.

Has had a great run. Has recently taken out the highs of last year. Steady dividend payer on the way up over the last 5 years. If it takes out the lows from last year it would kill the trend. $6 risk to new money put in right now. Upside is a couple of percent but 15% downside so he would not chase it.

Owns in his income fund and it ranks well fairly well in his process. Besides gas, they have a number of other projects on the go, where they are probably going to see some growth and also some stability. Has a decent yield and some growth prospects. Yield is well supported by its fundamentals. You might consider scaling in by Buying some now and the rest later.