Pembina Pipeline Corp (PPL.TO)

(A Top Pick October 1/12. Up 30.31%.) Has $3.5 billion of visible contracted organic growth over the next 3 years. Wouldn’t be buying at these levels. Too expensive at 25X 2014, earnings. Continue to Hold and he would probably sell some Calls against it to generate cash flow above and beyond the 5% dividend...

(A Top Pick August 23/13. Up 6.33%.) He likes most of the pipelines with the exception of TransCanada (TRP-T). Trend line is up. Has just had a breakout. Great-looking chart.

(A Top Pick November 30/12. Up 26.4%.) Likes all of the pipelines, only because they are monopolies. They are cash flow machines.

Pembina (PPL-T) or Inter Pipeline (IPL-T) for growth? Of these 2, this one is actually much more highly valued, so he would tend to go with Inter Pipeline. Neither one of them is dirt cheap.

(Top Pick Sep 06/12, Up 30.66%) Got out to reduce interest rate sensitivity in the portfolio. It is expensive and interest rate sensitive. It will turn around.

Excellent growth profile over the next number of years. Could be expanding by as much is $3.5 billion in terms of their capital program and are very confident they will be able to increase earnings substantially with that. Because of this, they increased the dividend earlier than he had expected. Should be able to increase their dividend by 3%-5% a year over the next 3-5 years. Has a target of $36 over the next year but can grow well beyond that in the next 3 years. Yield of 5.2%.

Inter Pipeline (IPL.UN-T) or Pembina (PPL-T)? She holds both names and likes them both. There are good prospects for dividend increases over time.

Principal advantages and disadvantages of owning the common stock relative to its larger cousins of Enbridge (ENB-T) and TransCanada (TRP-T)? This operates in both Alberta and BC. The problem with the larger ones is that it becomes harder and harder to move the dial on growth. They have to take on bigger and bigger projects. Also, have bigger regulatory hurdles to overcome. You want to own the smaller guys because they can grow easier. This one can fund part of their growth through their cash flow generation whereas the others have to go to market.

Increase holdings in this one or Buy Pembina (PPL-T)? Between these 2, this would be his 2nd choice If you had 2 pipelines, it would be these 2 and would be equal weightings.

This is one of those “undervalued sold off” interest sensitives. The long-term trend is up. Currently is in a nice healthy consolidation and the chart shows a descending triangle. This gives you a dividend of about 6%.

Likes this. Just increased the distribution. Have projects in place where they can increase their distribution, maybe 3%-5% per year. Well-positioned in Western Canada as well with just the natural gas processing extraction acquisition they did last year to expand their presence.

(A Top Pick September 7/12. Up 27.9%.) Still loves this one. Delivering on all fields.

(Market Call Minute) Buy around $30-$31. Safe. Lots of growth projects. Just increased dividend.

Likes the infrastructure midstream type companies. $3 billion in CapX in infrastructure over the next 3 years. This will increase their earnings 6%-7% per year. Primarily cost of service. Decent yield of over 5% and increasing 3%-5%.

Class A preferred shares, series 1, reset on Dec 1/18 at 4.25%? The company is great. It’s in a sweet spot and does a lot of midstream pipeline and gathering. They have a chance to benefit from TransCanada’s (TRP-T)-eastern pipeline. Good management team. Their common equity is yielding about 5%. These are 4.25% and reset at Canada’s 247 basis points in 2018. The question is, where do you want to be in the capital structure? Their 5-year bonds are yielding around 3%. This would be your own personal preference.