Pembina Pipeline Corp (PPL.TO)

It is fairly valued so wait for an opportunity in this and other oil related stocks. It has the largest infrastructure in the Montney region. In general oil companies are using their profits to pay down debt and increase shareholder value. Gas is at its lowest price since the 1990's.

ALA is your best pick in the space, followed by GEI. PPL and KEY round out the group of names to look at.

Interest-sensitive pipelines have all had a rough time. He owns ENB.

These companies have great assets that aren't going away. CEOs of these companies feel it's difficult to do business in Canada. ENB, for example, is dedicating all its capital to the US. That's going to be the strategy if these companies want to grow. 

Good time to buy. Though rates aren't going down as quickly as people think, they're not going up from here. That's the value proposition. Over the next 6-9 months or so, rates will come down at the short end and the yield curve will look differently. These companies will benefit from that.

Very inexpensive. High dividend yields and, as a Canadian company, gives you the dividend tax credit.

He should have bought only Pembina and not TCE and ENB as well. The latter two were impacted more by rising interest rates. PPL boasts lower debt that the other two and can finance their growth projects internally. Also, they have the largest infrastructure network in the Montney. By the end of this quarter, they will render their final investment decision in the Kitamat LNG project.

Recent beat, raised guidance. He models 5% EPS growth, 4% dividend growth, 15x 2025, not bad PEG. 59% payout ratio, so dividend is going to get paid. Balance sheet more leveraged than peers like ENB or TRP. Sets up well for a 7-year hold.

Really attractive at current prices. Exposure to natural gas growth in the Basin. Deal with ENB is good for them. Yield of 5.9% pays you while you wait for LNG egress to happen.

He likes the pipelines for their high dividends and have projects scheduled in coming years. Are safe to own now. PPL is one of the better-managed ones.

Energy infrastructure. Well diversified across the different commodities of natural gas, crude oil, natural gas liquid. Well positioned. Likes latest purchase from ENB, little integration risk. Operating and cost synergies. 70% of contracts are take or pay, so reliable cashflow. Yield is 5.9%, and dividend will probably go up a bit each year.

Encouraged that stock price has just about recovered from the funding equity issue discount of 7%, meaning the market liked the transaction.

Good business to own. Strong dividend yield. Recently bean earnings guidance. Leverage is lower than peers. Strong franchise value. Valuation not exactly cheap, but is a good long term hold. 

PPL offers a relatively safe 5.85% yield, steady cash flow and some upside potential from growth and an interest rate pivot. 
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Pipelines as a group are attractive for income. She owns ENB, yielding over 7%, and PPL with a yield of over 6%.

Defensive, pays a high dividend, low PE and not cyclical. Earnings last week beat in the EBIT side. Trading under 10x operating cash flow. Suffers fewer issues than TC and ENB.

Expects dividend increases in coming quarters, benefitting from higher oil prices. A good, long-term holding. It's cheaper than Enbridge but a little more expensive than TC Energy. Balance sheet is stronger than its peers. Pays a 6.5% dividend. He prefers TC because it yields a little more and trades a little cheaper, but there's nothing wrong with PPL.

PPL has been weak along with the sector, with higher interest rates the concern. But we think it is a good stock for income, and priced well. It has a decent record of dividend growth and its cash flow is highly stable. We would be comfortable owning it for income. 
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