Stock price when the opinion was issued
Oil price doing a bit better. Pipeline/utility mid-cap part of energy has done extremely well, holding up better than the producers. Great run second half last year, now sideways range. This is normal consolidation. Acting extremely well, very well supported, picking up within its current trading range.
It's hard for a non-expert to get a handle on how embedded energy infrastructure in NA really is. A lot of the oil coming from Canada into the US can't easily be replaced. Even if the US does produce a lot of oil itself, there are many factors to consider: where does it need to go, where does it need to be refined, and what grade is it. It's not like an on/off switch.
Largest oil pipeline operator in Canada. Pipelines are still the cheapest and fastest way to transport. Cheaper than rails. From what she understands, it doesn't seem that the pipelines themselves will be hit by tariffs. Recent move in the CAD would mitigate any tariff impact; even if not, the US depends on oil in this pipeline, so volume likely wouldn't be disrupted. Yield is 6%.
Canadian infrastructure name. She owns for income in client portfolios. Robust business model. Often has long-term, take-or-pay contracts; visible cashflow stream. Guided that it can grow EBITDA (cashflows) by single digits over next few years. She'd expect dividend increases to reflect that.
Stock's pulled back with underlying commodity prices. Should have lower volatility than energy producers. Yield is ~6%.
Prefers TRP. Still, a mighty solid company and second-best of this peer group. This pullback is buyable. Yield is ~6.3%, growing at about a 3% over last 5 years (significant slowdown from a decade ago). Good line of sight to high single-digit total shareholder return.
Not particularly cyclical or prone to fluctuating commodity prices; 90+% of business is rate-regulated and take-or-pay. Slowly greening the company.