Pembina Pipeline Corp (PPL.TO)

Going to be tough sledding for resources but one of the areas that has been a home run, has been the energy infrastructure space and part of it is that they bought Provident and have some of their assets in their base which allows them to do the fractionation and take liquids out of the pipeline stream and sell them for higher value. $3 billion in projects on the go. Good yield of around 5% so you are getting paid to wait. This company has a lot of growth and continues to pull more and more growth even though the valuation is high.

(A Past Pick. April 5/12. Up 12.58%.)

Buy this if you have a 2-3 year view. The macro thesis is that there are going to be a lot of new pipelines built for oil sands product. This and Inter Pipeline (IPL.UN-T) will be major beneficiaries.

Similar to Canadian banks. He has a large weighting. He continues to average into it. Doesn’t see dividend going lower.

Came out this morning with blockbuster numbers and the stock was up sharply. Decent yield of 5.6% while you wait. The stock can move sharply higher. You are seeing massive growth in its conventional system as well as its midstream assets.

(A Top Pick Feb 10/12. Up 8.16%.) Likes the yield and the fact that they can continue to deliver on earnings. Pipelines are the only way to ship oil. His target is $35.

Prefers IPL. If you can get PPL on a dip, there is some growth and a reasonable yield. He probably won’t re-enter it because he is looking for more growth.

Has shown a little bit more get up and go lately by making a good acquisition. Gathering systems are doing well. Oil sands industry continues to expand despite the price. Would add to this on any weakness.

The one issue with this and his long-time favourite Inter-Pipeline (IPL.UN-T) is that on a price to cash flow basis, especially to Enbridge (ENB-T) and Transcanada (TRP-T), these 2 are stretched. Has a price target of $32 plus. Good yield that continues to rise over the years but key issue is that they have more exposure to midstream operations than Inter-Pipeline so he could see this one doing a little better in the short term.

Has been a phenomenal stock. Seasonably, pipelines are very similar to the energy sector in general i.e. from 3^rd week in January right through until end of May. Stock is already in gear from a technical basis. Above its 20 day moving average, in an upper trend and is outperforming the TSE composite.

A lot of these pipeline/infrastructure companies have come down in the last 3 months or so but he is still positive on them.

Energy infrastructure company. What has happened in Canada and the US in the last few years has been an increase in unconventional oil and gas production. All this oil and gas has to be transported to refineries which has benefited this company. They provide transportation, pipelines and fracing facilities. Pretty attractive yield but he is concerned about the commodity price exposure, which is about 20%-25% of the overall pie. (See Top Picks.)

Pipelines in North America are going to be a growth business because of excess production of reserves in Canada.

Not as growth oriented as Inter Pipeline (IPL.UN-T) but have made some acquisitions. Not a bad payout. Situation for pipelines in Alberta is very positive because they are continuing to build all sorts of oil sands facilities that are increasing production.

This is a toll-road company. Company has great track record. People compare these companies to REITs. They are trading cheaper than REITs, pay dividend instead of distribution income and they raise their dividends.