Gibson Energy (GEI.TO)

Of the midstream peers that he looks at, this has the most commodity exposure, because of their trucking and terminals business and their oilfield services business. Great management team. Their assets in Edmonton are phenomenal. This is the cheapest of their peers. Trades at a discount, but thinks this is acceptable at certain levels here.

Has a model price of $22.71 or -16%. No one knows what is going to happen to the price of oil. He is concerned about the dividend as they are not covering with earnings. He is skeptical on the oil patch. There is more pain to go.

Solid company and in a trading range between $22 and $27. We will know in 6 months which end of the range it breaks out of. It has only been public in a bull market. He wants to see three quarters.

One issue is that only about 30% of their EBITDA is actually coming from infrastructure. The rest is coming from marketing, environmental services and trucking, which are much more volatile businesses and price sensitive to swings in energy. Still trades at a very high PE at about 28X, in line with the group. If you own, consider selling Calls.

Chart shows a long upward trend until late 2014 followed by “a flight pattern of a brick”. He can see some support at current levels that may or may not occur. It is hard to predict where support will come in. When it stops going down, making lower highs and lower lows, and then starts to base, that might be a time to Buy in.

The stock has come off fairly sharp along with pretty much everything else in the energy sector. Although they may not have direct commodity exposure, the big market they deal with is transporting and if the oil companies are producing less, they will not be using this company’s services the way they have in the past. He would want to see the oil price stabilize, some type of improvement in their earnings profile, and watch for the technicals to improve before going into a name like this.

They came out in the last few days and announced increased capital expenditures. Payout ratio of 60% and relatively modest exposure to oil. A great company. They are not cutting the dividend.

Earnings expectations have been priced into the market. They are the most exposed to oil in the energy infrastructure space. He expects a 10% drop in earnings, but the stock has dropped 30%. Thinks they will continue to raise their dividend. Thinks it is a great value.

He sees this as a much more substantial, important company and is into all manner of infrastructure services. Probably coming into a very good pricing area. Pays a good dividend.

(Top Pick Jan 8/14, Up 13%) Transportation division is producing at great rates and created new transportation hubs. Great third quarter read. They get a repeat star.

Diversified mid-stream player with pipelines, terminals, trucking and propane. Anything energy-related seems to have gotten killed over the last 1.5-2 months and this is no exception. However, this creates some opportunities for investors with longer-term views. Feels the concerns about the selloff in energy, as it relates to this company, is probably a little overdone. Management doesn't see a tremendous amount of slowdown in activity. Longer-term, this is a good company.

All the pipelines went down recently. However, they were all up on a stick and needed to take a breather for a few months. She puts these in with the midstream energy companies that have a high dividend yield and are growing. Because of this, they can accommodate higher interest rates.

This is a beneficiary of the boom in oil/gas production. Have all kinds of different operations in water treatment, disposal and oil field waste management. They are integrated through the industry. Will continue to benefit through cash flow growth. The risk would be if there is a very substantial pullback to the price of crude that would slow the growth of production. He doesn’t see this. 3.3% dividend yield which he expects will grow at 5%-6% a year.

(A Top Pick Sept 19/13. Up 54.78%.) Continue to do very well in their business. Last quarter was great. Definitely getting on the pricey side, but in the energy/infrastructure space, it is one of the cheaper stocks, but also has one of the least recurring guaranteed revenues. A good stock for an active oil market. 3.3% dividend yield.

This and a lot of the midstream companies have done well. It’s just what the market wants, a combination of a little better growth and some yield. Doesn’t think this is repeatable, and is a bit of a problem here. Getting to the point where it is pretty fully valued. If there was a pullback, this is one that would pull back fairly sharply, such as 10%. If you own, consider selling half.