Gibson Energy (GEI.TO)

Just announced they are going to be selling their propane business, which is 13% of their business mix. They want to focus more on infrastructure. This is probably the most commodity focused of the energy infrastructure, so it has been very volatile. From a very low base, he is modelling that their cash flow can grow 25% between 2015 and 2017. Very good balance sheet relative to other energy infrastructure names. Not a bad little play down here all things considered. It’s one you could consider selling Puts on.

This is not performing as poorly as the crude oil complex, because it does not have exposure to production. The short term chart is neutral. It probably attracts a lot of dividend seekers. The longer-term chart shows an overhead supply from 2013 to 2015, but is now struggling. There should be resistance at $16-$17 and upwards. Yield of about 9%.

(Market Call Minute.) There is a risk to the dividend, so he would be selling this.

Stumbled a little with the release of Q1. There was probably a bit of miscommunication between the analyst community and management. There are 2 segments to their business, transportation and wholesale. He still likes the company and thinks they are well positioned in terms of pipelining, storage, tankage etc. Current yield is about 8.6%, which he views as safe.

Thinks we have seen the bottom in the price of oil. This company has been really disappointing. It is obviously much more cyclical than all their competition. They have trucking and some oil/gas service business. The stock is really cheap now and has a yield of 9%, and doesn’t think they need to cut the dividend. It might be an interesting one to look at.

(Market Call Minute) The storage business is doing well, but the trucking business is lagging.

Their last quarter wasn’t great as their wholesale part of their business wasn’t great. This is a very diverse business mix. A good way to play the recovery in the energy space. Thinks the dividend is safe.

Not a bad place to start adding. Doesn’t see this as an energy company, but more as a pipeline. Dividend yield of 8%, which he thinks they can maintain.

Model price $7.11. It has some losses coming up. He sees downside. It is bumping up against a red line. It has a real top here. He needs it to break out above this. He thinks it is above its max right here. He would not touch it.

A little early to get back into the mid-streamers. Expects there will be some volume declines. This is a company he is going to be taking a look at. If he is right and the price of oil falls again, some of the smaller producers are going to have to go bankrupt. He would be a buyer on the next dip. A very well-run company. Once volumes come down to a base level, which he thinks they will in the summer, he expects the company will be a Buy. They won’t have a problem if oil prices go down, just if volumes go down.

7.2% dividend - just increased. He increased his weighting at that time. He is pretty confident in the resiliency of their earnings. They plan to be a dividend grower. It is sustainable and he likes it here.

Big transporter and storer of oil. Has traded a lot with commodity prices, which is a little unjustified. Valuation wise it looks really compelling versus its peers. Have spent a lot of money on terminals and pipelines to gather oil in the heart of Edmonton for shipment. This should improve their cash flow profile. Has a lot of “take or pay” contracts which provides a lot of help. Dividend yield of 8.55%.

(A Top Pick Nov 27/14. Down 41.99%.) This has been disappointing. Was surprised at the amount of commodity-based sensitivity and activity based sensitivity that the company had. Also, when the differentials are very wide, there is a lot of use of their type of assets, but when differentials on heavy and light crudes are very narrow, it means that they have less so. He is going through his numbers and may change his opinion on this company.

This doesn’t rate very well in his strategies, and yet it is a good dividend payer. You are exposed to the activity in the oil/gas area, not so much the oil/gas prices. If you own, he would be tempted to stay with this even though it rates so low. Doesn’t feel the dividend is going to get cut at this point.

It has many divisions. They have a refinery, energy storage and transportation. They also have an environmental business. 5.6% dividend.