Q: Just wondering about these pipeline companies and longevity. Are these companies to own and forget or they tied to oil and gas as a commodity so hence has a limited run? What is your outlook on them? I have done very well with WMB over 4 years, and wondering if I should leave it be say for another year or two, add, or sell. Bought ENB. this year for the Div and wondering how you see this stock as well. Thank you.
5i Research Answer:
We like both companies and think they can be held for income. While the trend generally is 'anti carbon', their businesses depend more on volume than prices. We doubt the oil flows will decrease much in the next ten years, and new pipeline approvals are few and far between. Thus, we would still consider these quite attractive for income for some time.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in WMB.