Gibson Energy (GEI.TO)

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.

Well liked mid stream pipeline. Caller wanted to ‘dip his toe in’ and guest agreed. A pretty good buy right here. 4.6% yield.

Energy infrastructure company that makes most of its money hauling oil. Relatively defensive name. Growth through acquisition and potential distribution increases along the way. 4.8% dividend.

A bit of an eccentric company in regards to their business mix. They have basically oil service companies, pipe, generation, etc. Right now they are benefiting from the whole trend of shipping oil through rail. Have a lot of logistics solutions and are making good acquisitions as well in the US. More of a yield play than anything else but on that point it’s nice and steady and has been around for a long time.

Acquired Omni Energy Services, which should be accretive to cash. Also, announced new financing and increased the dividend. Marvellous company with all kinds of peripherals to oil/gas services infrastructure, particularly oil sands.

(A Top Pick May 15/12. Up 9.92%.)

(Top Pick May 15/12, Up 5.07%) A little more volatile than the infrastructure guys as there is a big trucking component. As long as money keeps getting spent on oil sands development it will do well.

(Top Pick Aug 16/11, Up 39.67%) Owned since they went public. Small dividend. Mid-stream, diversified player. Should do well as North American economy grows.

Oil services and operates in a variety of different areas in Alberta such as transportation and marketing. Have only been public for 5 quarters, but every single quarter tends to deliver. Just committed $200 million plus to growth projects over the next couple of years, which should help its earnings. 4.5% dividend.

(A Top Pick Aug 18/11. Up 36.54%.) He is continuing to buy this stock. He is a big believer in the long-term secular theme in energy infrastructure. Have lots of opportunity to expand their business. He thinks they will grow the 4.5% dividend steadily over the next 5 years. (See Top Picks.)