CPG-T vs. SVE-T.  He does not think the energy sector is coming back in a big way any time soon.  There are over sold indicators so it is okay as a trade but not for long term.  We need pipeline capacity.  He is fine with CPG-T.

(A Top Pick October 3/17 Up 1%)  He did sell this back in late-May when it became apparent a refinery shutdown was going to cause differentials to blow out in the fall.  Still a good company, but having cut the dividend to less than 2%, there are better options now.  

He sold it this year, because he was reducing his energy weighting. New managers have done well selling assets to reduce debt. Have also lowered costs. They don't have the refining capacity, so that's a problem. By 2020, the debt should be low enough to increase the dividend, though he had been expecting 2019.

It is down 15% in the past month, due to widening heavy oil differentials.  With more rail capacity coming, it will support differentials near WTI less $23 – he is using $20 in his models.  They are paying down debt and he thinks the worst is behind them.  When stricter sulphur limits are imposed on marine fuels in 2020, he estimates this will have a $5 worsening impact on heavy differentials.  However, he thinks this will ultimately lead to higher oil demand globally and higher oil prices.