Gibson Energy (GEI.TO)

Likes infrastructure plays (midstream assets). $3 billion market cap. IPO’d in June/11. Does some extraordinarily valuable things making sure that oil is terminaled and transported. It is a prime beneficiary of the railing movement of oil through Canada. Huge trucking fleet and has a lot of pipelines and other storage units. Company is investing a tremendous amount back into their business. Jumped the dividend 3 times in the last 18 months. 4.22% dividend yield.

Likes this because it is more about transportation. Loves the pipelines and the fact that we have to get the oil out. He has a $31 target on this one. 4% yield.

(A Top Pick June 21/12. Up 27.62%.) Trimming his positions. Still a great company but, post their Omni transaction that they did in the fall, the stock is now only about 40% infrastructure, which is what attracts the big market multiples. Has gotten ahead of itself.

Diversified in the energy deliverability space both in Canada and the US, whether it is trucking operations, rail terminals or marketing of propane and other liquids, they continue to do well. Pays a healthy dividend of 4.3%. A core holding for any portfolio.

(A Top Pick March 9/12. Up 30.09%.) A midstream company so it should benefit from whatever the infrastructure growth will put in to deliver oil to the US. Have several different things including storage tanks. Have also benefited by the crude by rail to the US. Dividend yield of 4.3%, which she sees as a growth dividend.

Likes this company and transportation. Benefiting from not enough pipelines being available to ship oil. Target of $29.

Moving fluids, trucking, handling oil, bringing it to railway terminals. A lot of growth projects ahead of them. Gives a good blend of 5% dividend and 5% growth opportunities. Growth opportunities are the most visible he has seen for this type of business over the last 5-10 years.

Mid stream company, a toll road. 4.2% dividend yield. Just increased to this this morning. Payout ratio is under 60%. Excellent cash flows. Because it is an infrastructure play, the gains are capped at 10% plus dividend.

(A Top Pick May 15/12. Up 19.42%.) Had a rough day yesterday when it got downgraded by a bank. Probably a buying opportunity. Midstream energy player but a lot less contracted revenue than some of the others. Have the ability to take advantage of the spreads that are hurting all the Canadian producers. 4% yield.

This is transportation of energy. They are using railroads and shipping oil and are benefiting from all the issues that energy companies are having. There are a lot of margins to be made because they are getting oil much cheaper in Canada and then selling it at a huge premium in the US. Yield of 4.13%.

Oil field services, which is the right place to be. This one has had a big bounce so he would be cautious about adding this one right now. Payout ratio is about 4.2%. He would prefer Western Energy Services (WRG-T) or Canelson Drilling (CDI-T).

Great long term trend. Excellent cap-x program coming up. Expects dividend to get raised. They are good at exploiting the heavy oil differential. Has a great seasonal spot into May.

(A Top Pick April 26/12. Up 14.73%.) Currently taking some profits. Acquired OMNI in the fall so about 60% of their business is in services as opposed to infrastructure. Services commands a much lower multiple and makes for lumpier earnings. More risk to it than there was and a little bit more in the clouds.

(A Top Pick June 29/12. Up 17.53%.) Made a nice acquisition of a US environmental services company, so he likes the greater diversification. Looking at 10% returns plus dividends because it is more of a “steady as she goes” type of company. 4.4% dividend. Still a good Buy today because of the growth outlook and the stable dividend.

Energy infrastructure. Very safe dividend. Has grown quite a bit and done very well for its investors. Good profitability.