John Stephenson Williams Cos WMB-N TOP PICK Jun 10, 2004

(Top Pick Mar 6/12, Up 24.44%) US mid-stream energy companies are usually in master limited partnerships which pose tax filing difficulties. This one is a corporation. 4% yield. Happy to own. He moved into smaller companies that he feels will grow more quickly. He is sorry he sold it along the way.

(A Top Pick March 6/12. Up 23.05%.) Sold his holdings at $35 in October. This is a midstream energy infrastructure in the US. One of the few that is not held inside a Master Limited Partnership, which makes it attractive. Still a Buy.

This is a General Partner, which for tax purposes is investable by anybody, and is essentially a C Corp (?). They essentially own and operate the largest network infrastructure of energy assets in the Northeast, particularly in the Marsalis and Utica shale blue regions. This is one of the higher prolific liquids rich regions that you want to have exposure to in this market. Management team has been very proactive in extracting shareholder value out of the current business model. Their guidance is for 10%-15% dividend growth based on the current commodity strip. His view is that oil will recover at some point, and when it does the dividend gets rebased back up to north of 18%-20%. Dividend yield of 4.6%.

Hitting all-time valuation highs and is trading over EBV+5, which is a huge valuation for a utility. If we are in a bear market, in terms of bonds, look for these companies to come back in a major way, and they could be cut in half. His model price is $22.66, almost a 60% downside.

(Market Call Minute.) There are better opportunities at home. Buy TransCanada (TRP-T) instead.