Pembina and Innergex are both buys

Article Excerpt

PEMBINA PIPELINE $45.01 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $22.6 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.pembina.com) owns pipelines that carry almost all of B.C.’s oil and half of Alberta’s conventional oil. In addition, its network transports 30% of Western Canada’s natural gas liquids (NGLs). The company owns extensive facilities to extract, process and store NGLs; it also operates natural gas-processing plants. In October 2017, Pembina completed its acquisition of Veresen Inc. for $9.7 billion. The purchase is a great fit for the company: Veresen’s holdings broaden Pembina’s operations as well as its U.S. exposure. The acquisition comes with key assets: 50% of the Alliance gas line, which spans the 3,000 kilometres between Chicago and Fort St. John, B.C.; and 50% of the Ruby pipeline, which runs 1,100 kilometres from Wyoming to Oregon. In the three months ended March 31, 2018, Pembina’s revenue rose 24.1%, to $1.84 billion from $1.48 billion a year earlier. Its overall cash flow jumped 72.1%, to…