Pembina Pipeline Corp (PPL.TO)

Closed at $42.91, and he has a model price of $53.25, a 24% premium over the current price. If it got $39.51, it would be interesting. Remember that in the 1^st part of 2016, the stock was basically down to about $27. It’s had a good recovery. Feels that a lot of interest sensitive stocks are meeting a lot of competition as interest rates move higher.

In the infrastructure industry. She likes the Veresen acquisition, located in the Montney region in Alberta and BC, which closed earlier this month. A very low-cost region where producers can make a reasonable return even at these low prices. The company is well positioned to service that area. Veresen also presents more longer-term opportunities, such as Jordan Cove. This is more for the income investor. Dividend yield of 5%, which she expects could be increased. (Analysts’ price target is $50.)

If there is a down day for oil, that is going to be a downer for this, because it is storage and pipelines. The big problem in Alberta is that there is nowhere to send by pipeline, because all the pipelines are being held up. This is one of the better providers for storage and pipelines. Their balance sheet is decent. They’ve been making acquisitions that have been improving their revenues over time. Free cash flow has been stagnant, but then it is basically a quasi utility anyways. Dividend growth is 7% and CapX is up 53%.

He recently purchased more shares, just before the merger was completed. The dividend increases is what is more exciting for him. There was a 12.5% dividend increase this year. A really well run-company, great assets in the Montney and the future is pretty bright.

Inter Pipeline (IPL-T) or Pembina Pipeline (PPL-T)? Local carriers in Alberta, Saskatchewan and BC. They take oil from various oil sands, do some treating, with some storage. They are local utility providers on the pipeline side. Don’t have the political problems of getting through province to province to province. He likes the business they are in. The reason he likes Inter Pipeline is that it yields 7%. This one yields 5%. Either one is a good investment.

Trading at its fair market value, so he doesn’t see any upside potential.

With weak energy prices, it is hard to get excited about anything in energy. Prefers pipelines where the fundamentals don’t really matter that much if oil is $50 or $100, the stuff has to be moved. In the process of acquiring Veresen (VSN-T), and if it goes through, they are promising a dividend hike. Has a great track record of raising dividends. A good business to be in. If interest rates continue to stay low, you can’t do worse than holding a stock that has a 4% plus dividend.

A little less oiler than IPL-T. They are working on the close of the VSN-T acquisition. It will ensure 5 years of growth on existing pipelines. (Analysts’ target: $50.00).

(Top Pick Jun 23/16, Up 8.60%) The dividend will grow over the years. It had an earnings miss, but the acquisition of VET-T will help them. He continues to hold it.

He added to it a couple of months ago. It has come off like the others. He likes it as well as the VSN-T acquisition. They still have a number of projects that are coming through and the expansion to the States so he is sticking with it.

Energy went out of favour in Jan-Feb as prices weakened, so producers and service companies really got a good shellacking. It has become more apparent that the Saudi’s are trying to keep oil prices relatively higher. It is possible we are going to see more weakness in the group. Even though this is volume driven, there is going to be more weakness. On the long-term chart, it still looks okay. For him, he has moved into a bunch of other sectors that are behaving better. If you think prices can hold at these levels, it is an easy way to participate in energy.

This is currently an attractive entry point. The stock held up quite well through the whole energy decline. They are in the process of acquiring Veresen (VSN-T), which will add to their growth outlook going forward. A good income stock. Dividend yield of 5%.

A really quality name and has been for some time. They control many parts of the Western Sedimentary Basin, and are very strong. It is going to swing up and down with the commodity, even though they have no commodity sensitivity to its earnings. Doesn’t think you can go too far wrong with this.

Switch out of Bell Canada (BCE-T) to Pembina Pipeline (PPL-T)? An interesting comparison. He wouldn’t make the switch. They are very different risk profiles. BCE is a very stable business and you can rely on the dividend and not have to worry about it. Yield of about 4.8%.

An Alberta company and quite active in terms of moving oil and gas. It has done well and has a good dividend. One of the advantages of this company is that it is not an international pipeline, so it has a very few political problems. A good, long term investment.