Gibson Energy (GEI-T)

Energy assets valuable.
Under appreciated business.
Current share price undervalued.
Expansion into Gulf of Mexico a good long term decision.
Expecting a $20 share price.
High dividend yield not a concern.

A yield play. Trading down at support level. Texas transaction will add to top and bottom lines. Yield is 8.03%.

Missed on Q2, but beat on marketing. South Texas should help them over time. Low valuation of 11x 2024, 3% EPS growth, 9% EBITDA growth. It gets no respect, but he likes it. If you buy down here, you'll do OK.

The chart doesn't look good. They just got hit with an environmental charge.

One of larger holdings in income growth portfolio.
Oil infrastructure assets valuable - hard to reproduce.
Recent acquisition of USA terminal a good business decision.
7% dividend yield very sustainable.

GEI has quite a high debt level, with debt at 4X cash flow. But, its dividend payout ratio is OK at 55% (last year). Cash flow is steady, and it has been profitable since a loss in 2015. Some growth is expected over the next 24 months. We would consider the dividend 'reasonably' secure over the mid-term. It is not one that would concern us that much, but we would like to see lower debt for greater comfort. The dividend was raised in February and was not cut during the pandemic. 
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He likes it since it is defensive and quite cheap with a great dividend of 7%. Doesn't have a great EPS though.

Top income idea. Storage. Since oil sands aren't growing as much, growth rate has come down but cashflow remains very strong, which gives them flexibility. Reducing debt, buying back shares. Good metrics for debt and payout ratio. Dividend safe, grows 5% a year. Yield is 6.96%.

Hurt by higher interest rates. Boosted dividend in Q4. Quite an unlevered balance sheet. Compelling PE of about 12x, with 7% growth rate. Still works in an opaque economic environment. Catalysts for additional growth in second half of year.

Simple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%.