Pembina Pipeline Corp (PPL.TO)

They have the end to end value chain. They have the network advantage. Their earnings are becoming more stable. Very stable contracted revenue streams. They continue to announce new projects and to move them forward. They can continue to grow in this environment.

(Market Call Minute) Buy KEY-T. It is more natural gas focused and is building its cash flow at a faster rate.

Stock vs. Stock. IPL-T vs. PPL-T. Both are excellent companies. The Alberta election has some negative implications for these. PPL-T has the better risk return profile going forward. Both will grow their dividend single digits.

Right now we are moving into the time of year when the energy sector can sort of fall off. However, this would not be a bad position to be in, in the energy sector.

Feels the oil sands pipeline business will keep on going. Long-term demand for oil is up, which will help this pipeline. The difficulty is that they have 33% of their business in commodity sensitive areas. Their goal is to get it down to 17%-18%. If, as and when these liquids recover in price, it will be a very positive leverage for them.

A pipeline. He sold this out of his equity platform. His equity platform objective is to outperform the stock market and he doesn’t think this is going to outperform the stock market. However, he still has it in income oriented accounts, because it pays about a 4% dividend and is a relatively stable stock. A well-run company. Probably doesn’t have a huge downside from current levels.

Very expensive. His bet is that a year from now this will be significantly lower.

This sector as a whole has held in remarkably well, especially given what the producers have done. The smaller companies like this are better positioned. Given what has happened to the oil price and the producers, there is a potential risk that sooner or later is a number of projects these companies go into will grind to a bit of a halt.

At an interesting entry point. If you are looking to build a position over a long time, you might want to get into this a little bit. This is the largest among the Canadian peers. Have about $6 billion of secured CapX program over the next 3 years, which is going to double their EBITDA. Great management team.

It has come down quite a bit, but he likes the assets. They touch more than half the oil moving around Alberta. They have assets where he expects development to continue. They have a decent dividend and decent growth prospects. If we run into more troubled commodity prices for longer there will be pressure on the stock price, but as for the information they have now, it is in the stock price.

(Top Pick Mar 10/14, Up 7.72% total return) Not a lot of commodity risk. They are a toll road. It is an income pick. The price of the stock will not move radically up or down. They are trading off yield.

Believes this is on sale at these levels. There was some concern about the company because of cost of service. Good CapX program with $1.5 billion this year coming on stream. Another $6 billion in the next 3 years. Their cost of service business is about 70% of their cash flow, and with these projects and re-contracting this gets up to about 80% 3 years out. Yield of 4.47%.

Loves this pipeline. These are great companies. They are to report in a couple of weeks.

Has always been an admirer of some of these pipeline stocks. At the current level, it seems a bit overvalued. Dividend quality is stronger now given the pullback in the stock. Mid-$30 would be a good entry point.

He is still buying it. The key point is that 30% of mid stream business is commodity price sensitive. Management is going to reduce that to less than 20% over the next few years. It is a great dividend stock going forward.