Investing

Highest Quality Canadian Midstream / Pipeline

  • Last Updated:
  • Jun 16th, 2018 9:24 am
[OP]
Deal Addict
Nov 9, 2013
2300 posts
968 upvotes
Edmonton, AB
charliebrown wrote:
Jun 14th, 2018 11:57 am
Altagas? Or is that too much of an utility play?
I think I would quantify ALA as a midstream. I hold a small amount in my TFSA, but my subjective assessment of management isn't the greatest. They decided to acquire WGL at peak prices, over paying, which looks even worse as the sector has corrected.
Sr. Member
Feb 26, 2017
676 posts
292 upvotes
I found this to be an interesting graphic showing the discount for Canadian energy.

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Deal Addict
User avatar
May 25, 2008
1296 posts
479 upvotes
Mississauga
I have/had them all and they are great investments. I'm inclined to go with the thoughts of many here and recommend ENB. Sure they have alot of debt but I believe they have the resources to manage it and the recent consolidation efforts will make this company stronger. Looking at the price action recently of ENB, I'm willing to say it has bottomed a few weeks ago and barring a capital market catastrophe/downturn, should provide decent returns going forward.

In my experience, with over 20 years of personal investing (backtested) data, pipelines fit the Chowder Rule model for predicting total returns based on dividend growth and current yield: https://www.suredividend.com/the-chowde ... explained/ . The current yield is a given, and if you can determine projected dividend growth of your selected pipeline, there is a reasonable chance realizing your expected returns.
Deal Addict
Sep 23, 2009
4167 posts
1249 upvotes
I think it depends on more of what you want from the investment.

I have been a fan of Interpipeline (IPL) for some time.

The issue is that the company has decided to take on a pretty big project (for the company's size) and I feel like the share price may not gain the most because of it. To me, that's fine because I can keep DRIPing shares at a decent clip .... if the share price is a little hot, I will take cash and make purchases at more opportune prices.

Of course new sizable projects have risks and I can see why someone may prefer something like ENB which does have a few ongoing projects, but is far bigger already.

Not really sure if we will see another company like IPL run like it did from 2009 to 2013 (ramping even further until 2014). I am kind of interested in looking for the next one .... but I am unsure of whether we will see another time like that in the market. May have been a right place, right moment kind of thing. That is having decent management in a sector that was HOT gave better than expected results.

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