Gibson Energy (GEI.TO)

Crude oil infrastructure. Own terminals, pipelines, blending and export facilities. One out of every four barrels of oil in Western Canada goes through one of its terminals. Business model has lots of take-or-pay contracts, so it doesn't depend on price of oil for its revenues. This means very stable cashflows. 

Management estimates it can grow EBITDA by ~7% a year. Combine that with the dividend yield to get a 13% total return. Valuation near the upper end in its segment, but that total return makes up for it. Yield is 5.82%.

He doesn't own any of the pure-play oil producers right now (though he does own TOU). The reason is the volatility we're seeing. 

His team plays energy these days by owning ENB, and some of the smaller midstream companies like PPL and GEI. He likes their stability. 

Hasn't run up as much as PPL, so it's a name you can add to.

OK stock, a Hold, fairly valued. Compared to other midstream companies, unable to break out of its range. Good company, you should be OK if you want to hold it for the yield. Other names might have more upside. Take a look at PSK, not a big yield but very defensive.

Likes it at these levels.

Payout on earnings is 124%. On cash flow 57%. Debt is still very high, which adds risks, but we would not view the dividend as in jeopardy. The dividend was last raised in February. While we consider it OK for income, we would not see it as reducing portfolio risk on the current companies noted in the question.
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Both really good, likes them both a lot. KEY has better growth now, but trades at a much higher valuation. GEI trades ~14x, with still a very good growth rate. 

Don't do stop losses for good companies that are paying you 6-7% to wait. You get stopped out, the stock starts to come back, and then when do you get back in? If it goes down 10-15% (which is very unusual), or even 30%, it doesn't mean the news flow has changed for a good stock. 

Trades more cheaply than some other names in the midstream space. Mostly focused on oil infrastructure. Not a bad business, but sees more growth in natural gas with LNG Canada and with power consumption. Nothing wrong with the name. Yield is almost 7%.

She prefers PPL, but you could own both.

Disclosure:  She doesn't own it, but a partner in her firm does and he likes it.

The energy sector in the TSX looks good for risk/reward with natural gas tailwinds. It has sold off a bit but there is 10 to 11% growth and its multiple is a lot lower than its peers. Has a good dividend. You could add in the $23 range.

A higher-quality player that you could put $$ into today. 

(All the past picks today were from October, when he thought we were late cycle. His view is that we've started a new cycle, so tech and consumer discretionary risk-on names should do better.) Thought we were heading into a market peak, which is when a lot of inflation plays do well. The 4-year cycle reset typically lasts ~34 weeks (8 months), and that's what we saw in 2022 from January to October. This year, we went through that in roughly 8 weeks. 

Pushing to new highs. Fundamental analyst on the team likes this name a lot. Hold, but don't buy more here.

It is shown as a sell. Its overall free cash flow of 2.5% is modest but standard. Look elsewhere for total investment opportunities in this sector, eg. Imperial Oil.

Name to look at in the same space as FTS, but at a much better valuation.

Likes the stock and the whole energy infrastructure space. It's a place you can hang out along with gold and yield plays. Doesn't get a lot of respect from the market. Q4 saw a market loss, but that's only 11% of NAV. 

Raised dividend by 5%. Baytex deal is accretive by ~1% to stable, long-term cashflows. Likes the infrastructure growth shown in Q4. Strong balance sheet, decent payout ratio, very high dividend. Cheap at 11.7x PE for 2027, and modelling ~14% EPS growth.