The Successful Investor Hotline – Thursday, April 8, 2016

Article Excerpt

FORTIS INC., $39.86, Toronto symbol FTS, owns electrical utilities across Canada and in the U.S. and the Caribbean. It also distributes natural gas in British Columbia. The company has completed its latest acquisition in northern B.C.—a 93.8% stake in the Aitken Creek natural gas storage facility. Fortis paid Chevron Corp (New York symbol CVX) $266 million U.S. for the underground complex. To put that in context, Fortis earned $589 million, or $2.11 a share, in 2015. BP Canada owns the remaining 6.2% stake in the B.C. facility. Currently, Fortis leases one-third of Aitken Creek’s capacity. Owning this facility should reduce the company’s costs. Aitken Creek should also benefit from plans to build terminals on B.C.’s Pacific coast in order to export liquefied natural gas to Asia. These new plants will likely need nearby facilities to store their unprocessed gas and avoid supply disruptions. OUR RECOMMENDATION: Fortis is a buy. Fortis recent coverage Hotline for February 12, 2016 January 2016 issue CANADIAN PACIFIC RAILWAY LTD., $175.31, Toronto symbol…