Pembina Pipeline Corp (PPL.TO)

A mid-stream company and services the energy industry with existing capacity. Generally not as exposed to the energy cycle as oil companies are, but more exposed than Enbridge (ENB-T) and TransCanada (TRP-T). Just sold his TransCanada as he feels interest rates sooner or later are going to go up and it could be vulnerable. Doesn’t see the dividend not being safe, but as far as making any money on the stock in the near term, he doesn’t see it.

A steady cash flow business. In this environment, if you want to be involved in the energy sector, this is probably a good way to do it. Their pipes are mostly full and are usually “take or pay” contracts. If you want to be involved in the infrastructure sector of energy, this is probably a good way to do it. Gives you a nice dividend.

(Market Call Minute) The lowest risk part of the energy chain, but he would avoid the whole sector. The dividend will get paid, however.

Likes it because it is a core, divended player. Likes it for income more then growth. Partakes in energy without being related to price of energy. More reasonably priced than a year ago. Can put in portfolio, and hold for a long time.

Has just been caught in the downdraft of the oil stocks. It is like a semi-utility and the actual need for their services is going to stretch years down the road. Maybe over 4-5 years, the potential growth may go out of it. In the meantime, the dividend is quite safe. Reduced his position in the pipeline sector because he thinks the long-term growth prospects aren’t as strong as they used to be. If this stock continues to go down, he could see him getting back in.

Looks pretty good here. It is fine if you are only looking for yield.

Stock chart doesn’t look that great and he has always thought they were a little bit overvalued, particularly where oil prices have come. Have a lot of projects in the pipeline, but he doesn’t think they are all going to come through. He would suggest Enbridge (ENB-T) instead.

Have increased their dividend by 6% this year. He likes their assets. They have a big CapX program of $5.5 billion over the next 3 or 4 years. Most of that is cost of service or fee for service business. This will get down their energy exposure, which is 35% and it will get it down below 20%. Dividend yield of 4.51%.

Just increased their dividend and their ability to pay the dividend is still in good shape. Got stopped out in the fall, but is probably a name he will come back into. He would be looking at this more towards the fall after we get through these macro issues with Greece and the possible rate hike.

A well managed company. On a longer term basis there is some concern that relates to the oil sands, which he is negative on as an economic driver. It pays a good dividend and has projects still under way.

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.