Pembina Pipeline Corp (PPL.TO)

He likes this because of their potential acquisition of Veresen (VSN-T), which will give them some run room and better diversification in the US. There is $20 billion of potential projects out there. Dividend yield of 4.7%. (Analysts’ price target is $50.)

Veresen (VSN-T) has offered to buy this company for $3 billion. The pipeline sector is not a bad place to be as a low beta in a choppy market this summer. They’ll pay good dividends. However, he doesn’t expect tons of upside. This is a little bit near the upper end of a trend channel, so it might round over a little. However, it is a good place to be for the summer because you’ll make some dividends and you won’t lose a lot.

TRP-T vs. PPL-T. PPL-T has been expensive historically because management is worthy of it and so he would go for this one. He owns EMB-T because of the advantage that whoever you have to pay bills to you should own them. They have growing dividends at 8-10%. He likes the premium management of PPL-T and it is worthy of an increased multiple.

This is just completing phase 4 and 5 of pipeline gathering in the Duvernay Basin. They are also major players in the Montney. That has given them a stranglehold on future production and gas processing in those 2 areas. They have also done a deal with Chevron, which is going to require them to do additional infrastructure spending on their behalf, which will increase cash flow and dividends. Dividend yield of 4.61%. (Analysts’ price target is $49.)

They announced 2 new projects in April, and boosted their dividend by about 6%. This has really impressive growth. He is modelling 30% EPS 2017-2018. A really nice dividend with a steadily declining payout ratio. Good dividend, and the balance sheet is in really great shape. Trading in line with the other pipelines, but with a much better growth profile. You can add to this on any small pull back.

A great company because it is very defensive. It has basically undergone $5 billion worth of capital expenditure over the last several years, which is coming to an end now. As a pipeline company, you don’t have any direct commodity price risk. A fee for service business. It has increasing cash flow. Has bumped its dividend by roughly 5% on average for the last number of years.

Clients have owned it on and off for 17 years. It has survived and done beautifully. They have so many projects on the go. In this low oil environment they are doing well. He would prefer KEY-T because they have underperformed.

It is a very solid business. It is interest rate sensitive. It is not that sensitive to the price of oil. It has decent yield and is expanding. It will be fine over 3 to 5 years.

Technically this looks very interesting. The trend is still on the upside, and it recently just broke above a trading range. It looks like the stock is outperforming the TSX composite which is positive. Looks like a good trade right through until spring.

He likes this. It has a great pipeline of development, as well as being well-placed in terms of its current assets in the ground. Good management team. The commodity is likely to be range bound in $50-$55 for the foreseeable future, but he does think the transporters of the energy infrastructure are a pretty darn good way to play it.

It has had two pretty good days in a row. They have smart management. They don’t care what the price of oil is. They are a toll road. They have growing dividends. Buy on any pullback.

He likes management. Very conservative and have done a good job taking some gas fractionation business and turning it more fee for service, annuitizing the revenue. Pays out a consistent dividend with over a 4% yield. Thinks growth is still pretty good, but not as good as it was before. He is thinking of slightly reducing his position.

They have done exceedingly well. Mid-streamers have been able to concentrate, interprovincial. They all took on the assets of the majors and this takes the assets into their rate base and then they raise dividends. If interest rates go higher then the discount factor on their dividend will go up. It is a name for conservative income investors.

He continues to like it. They have a great backlog of projects. They can drive cash flow and dividend growth. They benefitted tremendously in the last couple of years from increases in production. There is not a lot of commodity exposure. Investors need to get more comfortable with the cap-x plans that these companies have. Their ability to service their debt is very good.

A fee for service business, so they don’t have commodity price risk. It has a great pipeline of development projects that should see very strong growth of over $1 billion, coming online in the next year or so. It has had a 5-year history of increasing their dividend, which is currently at about 4.6%. A very solid performer.