John StephensonPembina Pipeline CorpPPL.TOPARTIAL SELLAug 18, 2014

It broke out early this year and the move since has been sort of parabolic. A pullback is possible.

Are more aggressive than Enbridge in their backlog, a good thing. The Basin is well-positioned.

Nice yield, and more growth projects.

Owns in his firm's high-yield growth fund. Very well positioned, especially after today's government announcement about a Western pipeline -- Pembina gets a slice of that.

Western Canada has many opportunities for more production and PPL is in the middle of that. Is a decent long-term gold with a good dividend.

Both benefit from AI centre demand. Pembina is building a 1.8 gigawatt natural gas plant in Alberta. Half of ALA's business is in the US, regulated utilities, in Virginia--the world capital of data centre traffic. ALA also has activity in Western Canada. ALA's growth rate is higher than Pembina. ALA gets the slight edge.

All energy stocks have come off because we've had (cynically) a "peace scare" in the Middle East. Energy sector will continue to be robust.

Also likes, and owns, TOU.

A defensive holding. Surprised by how well the pipeline stocks have done. War has definitely had an impact on energy infrastructure. Still a standout to grow, with lower valuation and excess capital.

Pipelines and utilities have soared, because of energy demand from data centres. PPL is quality with a healthy balance sheet and growth outlook. Most of their projects are already sanctioned. 

Their PE is lower than TC and ENB. Better scale and diversification from all peers.

Likes the business of pipelines -- local monopoly, contracted cashflows. Problem today is that their value is not lost on investors. Trades at 22x forward PE, yield is 4-ish%. A HALO stock, which AI can't replace. He'd trim, look for a better valuation to enter.

He owns TRP.

Is bullish in gas with LNG exports, which PPL is exposed to. PPL's contracts are long-term which pays the stable, growing dividend.

APO has pretty smart people, and they're seeing an opportunity here. Purchase was from KKR, so nothing much changes.

As for PPL itself, trading a bit expensive with growth catalysts of 5-7%. Nice, visible project backlog. Nice dividend. Wouldn't add here, but you'll do OK if you own it.

Still thinks KEY is the better buy.

The chart looks good, bouncing off a low in the low-$50s at the end of 2025 and has since broken above $60 to an all-time higher. There's strength across the board in energy, a strong sector.

Well managed, decent distribution. Attractive opportunity today, but you have to have the medium-term view that the oil-price shock will be persistent. He's a buyer, but you have to be careful. Average in over time.