Kinder Morgan Inc. (KMI)

Good management. Has a heck of a yield of over 4%.

No relation to Imperial and SU-T. It is largely a pipeline company.

A large energy infrastructure company in the US. Manager doesn’t take any salary. All of his income is from distributions. The knock on this is “Is it too big, and can it grow.” Competent management. Feels the business is well worth more than it is today.

Good, well managed company. One of the best things about pipelines that exist is that you don’t have to build them so you don’t need environmental approvals. Feels this is pretty good value right now. It is unpopular, which for him is the time to Buy. With dividend tax credits, he would prefer to own Canadian pipelines.

Recently sold her holdings when volatility got too high. Has come under a bit of pressure as a result of comments made out of the US that claimed they were underreporting the amount of maintenance capital they need to spend.

One of the big reasons investors have been focused on energy infrastructure is because of this boom in production that has been going on in North America. You have to move all the stuff around so many of the infrastructure companies have had a great opportunity to invest in new infrastructure and get great returns on capital. This company is seeing a slowing in their revenues and has not as quite an attractive profile as some of the other companies. He would prefer something like Williams Companies (WMB-N) which is also a pipelines, midstream and energy infrastructure and have raised a lot of equity in 2011-2012 to build up new projects which come into production and fruition in 2013, 2014 and 2015. They will also have close to 20% dividend growth per year for the next 5 years and will get 25%-26% earnings growth.

A pipeline company in the US and has been vastly underperforming its Canadian counterparts. Doesn’t know why you would want to own a US pipeline when you probably have better run in your own currency and greater growth prospects in Canada.

Look for some support at around $32 and then ease into it. You could take a 3^rd of a position at the current price and then, if it advances, Buy another 3^rd. If it breaks support, do not add to your position.

Very, very large infrastructure name that operates in the majority of the US. Prefers Canadian names, especially as the dividend tax credit is more favourable.

Loves the pipelines. Not sure this is the one he would be buying. Feels we have better ones in Canada. Likes infrastructure pipelines and he doesn’t think this company is much of that. You would be better off in something like an Inter Pipeline (IPL-T) for a number of issues. Going to be cheaper on a PE and has a 4.7% yield.

Pipeline stock to take advantage of all the fracing in the US? Structure is a little different in the US. You have pipelines as well as MLP (Master Limited Partnership) structures. Often US pipelines will drop-down a lot of their assets into an MLP structure to be able to pay a higher dividend because of their tax nature. As a Canadian shareholder, there is some blocking that goes on, so you can’t participate in those without tax consequences. To get around that, she has a position in this company. A negative report caused the stock to drop significantly, which gave her an opportunity to invest. Have a pipeline in BC and are going to twin to increase capacity from 300,000 to about 900,000. 4.5% dividend yield.

Pipelines, etc. will come under pressure as interest rates go up. $19.35 model price, -51% differential. Not on his buy list. Not a safe utility. So many other companies you could rest comfortably with.

Owns the Trans Mountain pipeline in BC, that they want to twin to bring in more oil from the oil sands to Vancouver. Feels these dividend paying stocks have seen their best days. Now that interest rates look like they are going to lift, interest is starting to wane. He would wait until the market settles down on these interest sensitive stocks.

Pipeline and gathering system. Company has been phenomenal but very, very pricey.

Enbridge (ENB-T) or Kinder Morgan (KMI-N)? Likes both. The move in the energy infrastructure stocks has been extremely durable. You have a long-term secular increase in volumes and those companies that provide infrastructure will be beneficiaries.