Leslie Lundquist Pembina Pipeline Corp PPL-T BUY Jul 25, 2007

Is Canadian-centric though has more cross-border exposure after buying a US company. Are the largest gas processor in Canada. Well-positioned for the short/medium/long-term to sell to multiple markets. Is -20% from highs, and pays a 5.5% growing dividend. 

Is the 3rd-largest energy infrastructure company in Canada and has the largest footprint in the Montney and its natural gas. They have several projects on the go that will support growth for the rest of the decade. Their payout ratio is decent and less leverage than TC Energy and Enbridge, so they can sell-fund projects. Pays over a 5% dividend.

It is the third largest energy infrastructure company in Canada and has the largest footprint in the Montney region. It has good revenue growth potential as well as a decent dividend payout ratio, Has lower leverage than other pipelines and with its recent pullback its dividend yield is just over 5%. Pipelines are stable but do move around quite a lot so you can trade them (or some) as well.     Buy 11  Hold 8  Sell 0

Energy infrastructure names provide good income flow. Less influenced by direction of commodity prices. Long-term contracts. Well positioned to benefit from increased nat gas production. Defensive. Yield is just under 6%; dividend increased consistently, and that should continue.

Does not own shares due to market cap size (prefers mid call names). Overall, is a high quality company. Assets are very valuable as it is very hard to replicate. National recognition that Canada needs new pipelines for energy security. Very strong dividend yield that is safe. 

In mid-December, PPL provided a business outlook, which we think was decent, but did result in a bit of a downward move in the stock and also saw it get a broker downgrade. The sector has also been a bit weaker with general inflation, rate and economic concerns. But, it is still up 15% in the past year, offers a solid, growing dividend, and consensus calls for low, but steady, growth, in the 3% to 5% range. At 16X earnings, we think it looks good for income primarily, but with at least some growth potential. 
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Growth estimates of pipelines have really gone up in past few months with nat gas prices going higher. More throughput looking likely on Trans Mountain. More incentive in Canada to talk about moving oil East-West and North-South.

Perhaps #4 or 5 on his list of which pipes to buy first. Solid company, valuation more attractive than previously. You won't get hurt with this one.

Great operator over time, nice dividend yield. All pipelines have had a rough patch -- markets correcting plus cloud over tariffs. Tariffs don't really impact it, as it's just a toll road. With Canada's interest rates going lower, and demand generally going up over time, this name should be OK.

Looking at how the chart's acting, you may want to wait for more of a correction to buy. If you're a long-term investor, sit tight, collect the dividend, and you'll be OK.

It was a top pick last month and he still likes the valuation. There is lots of growth ahead for natural gas since the demand for natural gas is expected to increase in North America in the next 10 years. This is due to the switch from coal to gas, LNG, on-shoring, and the needs of data centres. PPL is well diversified, has good supplies, a healthy balance sheet and good growth. There was a draw-down early in 2025 but he is not sure why.

Good run second half last year. Then a deeper correction, but it's broken out of the downtrend. Established pretty nice support ~$50. Technically encouraging, looks to be back under accumulation.