Keyera Corp (KEY.TO)

This is mostly fee-for-service in the energy industry. It doesn’t matter whether oil is $2 or $200, oil has to be moved. Had very good earnings. The valuation is heavy, so he is not buying at these levels.

This has been a core holding for over a decade. When you look at their map of what they control in Alberta, it is irreplaceable. They have a nice moat around their business. It is very defensible. A perfect acquisition target for a larger company that wanted to own infrastructure in Canada.

One of the best run infrastructure companies in Canada. Mostly gas processing and NGL processing. Have done a fantastic job of growing their business since going public in 2003, during a time when gas prices have gone from $6 to $2.50. Grown their EBITDA by 13% a share over that time period. Have also done a wonderful job of creating a very secure base of EBITDA for shareholders. 70% EBITDA is not a slave to commodity prices. Dividend yield of 3.05%.

Probably has one of the best management teams in the industry. This is a tougher business model to get your head around, because they have a very integrated footprint between terminals and condensates. Just announced a 50% $330 million project with Kinder Morgan (KMI-N). Also, have a joint venture with Enbridge (ENB-T). They do have liberal volume risks on their gas processing plants, but he thinks they can navigate that.

A very well run mid stream company. A lot of the assets are backed by multiyear contracts signed with very strong reputable companies. A Great way to produce sustainable growth and dividends. The company is relatively conservative of how they have done growth through their balance sheet. They are going through a very large capital expenditure program. It got to a price and earnings multiple level was quite high. It has fallen back down to where he likes it. Stock split scheduled shortly.

(Market Call Minute) There is not all that upside left for them.

She has others. This is a well managed company. They are taking a breather right now because they have energy exposure. Stay with it for the attractive dividend. Fresh money should go into others.

The Bull case for this is that it is a company with very long visibility on their revenue. They have “take or pay” contracts with customers, so looking out you could see what was coming. The downside is that it wears the halo of energy, so realistically while they are much more predictable than a producer, service company or an equipment company, there is concern. Doesn’t think the dividend is at risk in the near term, but the longer the weakness in energy goes on, the less patience investors may have.

One of the stronger in the energy group. He expects the group to build a symmetrical triangle, which could possibly go all through the summer. If you own, you could consider taking another position in another month or 2 as the triangle builds.

A pretty good asset with a pretty decent yield. The drop in the stock was obviously more energy related. There is a demand for their services. If you don’t believe that crude will stay down here for a long period of time, this company will continue to do well.

Well-run company in a sector that has been beaten up. You don’t want the $70 range to be violated. If you are looking to get in, the 1^st place he would look is around the $70 range. This is one of the best performers in this space. Excellent dividend. Wait for it to test the $70 range or wait until you start to see it move up.

Exceptionally well-run. This is more of a processor so is less exposed to the energy price shock, but not completely unexposed. They have contracts with their gas production companies, who have to pay them whether they deliver fuel or not for processing. Well financed. Have some big growth projects that they may delay because of what is going on, but he doesn’t think so.

Veresen (VSN-T) or Keyera (KEY-T)? Veresen has a higher dividend yield, while this has better execution. To him it is all about adding production. They are building an LNG plant south of BC. While a lot of projects have been cancelled, they are going ahead with theirs.

A very high quality, midstream company. There has been some volatility recently because of commodity prices. For the most part, Canadian midstream companies, as opposed to the US MLPs, are in excellent shape. Canadian producers tend to be well capitalized and he is not worried about them honouring those “take or pay” commitments that underpin these companies. This is a great buy.

Fundamentally, this is one of the better pipeline stocks. For a short-term trader, there is probably a bounce due. Thinks you are okay as either a short-term trader or a long term trader, on the stock.