Opinions Michael Decter
Capital PowerCPX.TOPARTIAL SELLNov 07, 2014
Michael DecterStock price when the opinion was issued
As of Sep 04, 2026. Market Open.
You might be interested:
Stock's attractive, worth buying at a modest weight. A call on the need for more power. Data centre power is a bit of a charged issue, though he thinks it's not warranted. In the US, many data centres are becoming ex-grid and self-sufficient. Over time, should be OK. Right theme, albeit with some hair. Decent yield.
If things go right, expect 10-15% per year.
A way to participate in huge electricity demand coming from AI and data centres. Pullback is pretty good entry point. Diversified portfolio of natural gas, renewables, and energy across NA. Key is that much of its power is reliable and flexible. Cashflow improved last quarter. Increased dividend for 13th consecutive year.
(Analysts’ price target is $78.00)
Brianne GardnerDepends whether you're a dividend investor. If you are, and you want dividends that grow over time, this name is one to look at. Doesn't anticipate dividend cut. Well run. Challenge is that utilities have become a second-derivative play on data centres. Quality name.
Disclosure: Owns the bonds, but not the equity.
We need more electricity and CPX has it. They completed a big coal-gas conversion plant in Alberta, and next to it 20,000 acres. They have excess power. They bought some US companies, older gas plants, which are enjoying demand.
(Analysts’ price target is $78.43)
Jamie Murray 
No real concerns. Probably good long-term hold. Predominantly nat gas with a bit of renewable energy. Half its business now in the dynamically growing, data-centre focused US.
Trades ~27x PE, premium to historical norms. Compound return over last 10 years is an impressive 21%. Chart looks good, management is pretty good. Yield is ~4%, with good cadence of dividend growth.
He prefers another name.
Utility sector is starting to slowly matter again. Getting attention because power demand is growing, especially in US with AI and data centres.
She invests selectively in the space, and this is a name to own.
Brianne GardnerLikes the business. Yield is pretty good. One issue management sees is that Alberta government has to get its act together for data centre projects to come to fruition. (He curls with an AI consultant who said that everyone's going to Texas: land, nat gas, minimal regulations.)
Has projects in US. Power demand will skyrocket no matter where AI is situated.
Bruce MurrayRecent earnings were in line. Great acquisition in Pennsylvania last year, which is getting increased prices. Front-and-centre for Alberta data centres. Trades at 8.5x forward operating cashflow. Good, safe utility play in growing areas.
John ZechnerHas done well because demand for power has shot through the roof, so its assets have been revalued significantly higher. Very well managed. Surplus of power, and chances are low this year that that excess will be released. Has opportunities in US to transition from coal to nat gas.
If you're focused on Canada, he'd be a buyer today as a derivative AI play. But his preference to play AI would be MSFT with a little bit of ORCL.
Dividend growth is expected at 2% to 4%. These numbers are OK, but we think investors are disappointed that dividend growth is not set higher. CPX is taking a 'growth' route and this may be at the expense of dividend growth and this has disappointed some.
Unlock Premium - Try 5i Free
As a reasonable conservative company, he thinks the dividend is sustainable. This is going to be more of a yields story as opposed to growth. The new premier of Alberta is very keen to get the Keystone approved, and there is talk and advocacy for carbon tax in Alberta as a quid pro quo for the Americans green lighting Keystone. There may be some more onerous measures that could affect this company. If you own, consider diversifying half of your position into something else with similar characteristics, but not in the Alberta geography.