Pembina Pipeline Corp (PPL.TO)

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.

He sold this because its multiple has gone significantly higher. It looks a little expensive.

(Market Call Minute.) Great visibility through to 2018. $5 billion worth of organic growth that they are going to be able to execute on, fully contracted and fully supported. Good cash flow visibility.

A really good strong story, and is in a high growth part of the basin. They have a lot of opportunity to grow their EBITDA. If you have a longer term horizon, this is definitely a Hold. She doesn’t own this right now, because valuation is a little rich. Dividend yield of 4.9%.

Has been taking a very good look at this lately to see if it might be one he would want to own. Pipelines tend to be expensive stocks from a valuation point of view, but that is because their income tends to be more regular. People pay a higher multiple for regular income. He would tend to look at TransCanada (TRP-T) today.

A provincial pipeline in terms of servicing mainly Alberta, BC and Saskatchewan, and not into the big political problems. Pays a pretty reasonable dividend. They service not only the regular industry, but the oil sands industry, which is part of the problem that he sees developing. With oil prices back into the $60 range, he doesn’t really see the long-term growth developing in the oil sands until prices get higher. Not a bad investment in your portfolio, simply because they produce a good cash flow.