Investment Q&A

Q: Hi 5i
Gibson Energy (GEI) has been quoted as being open to a sale and Keyera (KEY) has been mentioned as the next midstream target for a consolidation in the industry. Now that Pembina Pipelines (PPL) has walked away from the IPL takeover, do you see PPL looking at Keyera and/or Gibson Energy (GEI) as potential takeover targets? Thanks

Q: Hi Team,
I am currently holding PPL in a cash account for energy exposure and as one of my few dividend plays. I like the company, but I am also looking at buying either of or all 3 of MG, BAM, BEP but I would need to raise cash to do so. Over the long term (10yrs), even though PPL div is much higher, which of the names listed do you believe to have the highest potential total return? Would it be advisable to sell some PPl and diversify into one of the other names listed? If so which would you buy today, or all of them? Thanks again

Q: Now that the IPL,PPL combo is off the table which of the three has the best prospects going forward? Thanks Ron

Q: Hello 5i Team,

If interest rates were too rise, how would you rank these pipeline companies in regards to their debt levels and their potential future growth.

I appreciate you response as all ways.

Ed

Q: Hello 5i Team

With respect to the ongoing take-over/merger of IPL by BIPC/PPL, I have the following questions:

1 – There appears there is a time lag of 22 days from the filing date of BIPC “Notice of Variation” to the meeting date (i.e. third Notice of Variation filed July 15 to proposed meeting date of August 06). Is this a stipulated regulatory
requirement?

2 – If the required notice period is 21 or 22 days, then is it correct that PPL would NOT be able to revise its offer of 0.5 shares of PPL for each IPL share prior to BIPC meeting date?

3 – At current prices, for BIPC/IPL/PPL, who is buying/selling IPL in the market?

If an IPL purchaser would want to vote for the BIPC offer, they could buy shares of BIPC cheaper than the equivalent amount of BIPC they would receive in the BIPC offer.

If an IPL purchaser would want to vote for the PPL offer, they could buy shares of PPL cheaper than they could buy equivalent amount of IPL shares.

It would make sense for existing shareholders (from prior to announcement) to hold and wait for the results of the bidding war unless one wants cash from either proposal.

4 – What are 5i thoughts on who will ultimately win this takeover battle?

Thanks

Q: Peter; If PPL loses the IPL fight what do you think the stock would do ? Thanks. Rod

Q: I have heard we can expect to pay more to fill up at the pumps. Are you more bullish on oil or gasoline? If you are more bullish on gas oriented companies, what companies would you recommend?

Q: is ppl still interested taking control of ipl

Q: The Dividend Updates section of your website indicates that Pembina Pipeline raised their dividend by 4.7% on June 1st. I cannot find any other reference to this dividend increase anywhere. Is your website correct? If it is, do you have the exact dollar amount of the new dividend? Thank you!

Q: I own both PPL and BIP.UN. It seems that IPL wants a deal with PPL having rejected BIP.UN's latest offer.
My question is the "potential deals" that PPL is chasing down. They are looking to partner with indigenous groups for TMX and of course the IPL deal.

Will their balance sheet be able to handle this if they are successful with both?
What are your thoughts on the management team's ability to combine these businesses into 1 large company?
Does that change your opinion about PPL as an "income" stock to an income stock with growth potential?

Thanks for your comments

Q: I have just sold my Inter Pipeline stock which was about 2% of my portfolio. I am looking to re-deploy proceeds. Was considering investing in Pembina but am now wondering if Enbridge would be a better play but am unsure of where things stand with the Michigan pipeline. I would appreciate you thoughts on PPL vs ENB. I have a 10 year investment term.

Q: Hi
Please note PPL is not available in the short search. It was required to add :ca to bring it up.

Would you please expand on your comment earlier about Brookfield wining the bid for IPL? Was this just because the bid is out there or do you have an opinion.


In my position Brookfield deal is a big loss due to taxation(25% capital gains hit) as well as the benefit of holding PPL shares ( dividend, growth, Heartland participation, PPL Reputation) The share price of IPL is now tracking PPL (0.5 x $41.40 = $20.70) and is way above the Brookfield offer($19.50 Maybe? or some kind of shares?).

Brookfield offer is no longer financially better than PPL offer.

Is there something else in this?
Dave

Q: Good afternoon,
Given recent corporate developments at PPL - would you view it as having much more room for price appreciation or view primarily as a hold for income?

Thank you

Q: A question on PPL, specifically regarding the potential for it having to tap the debt markets, possibly in a very material way, given its ambition to close on IPL, build out LNG growth with its plans announced yesterday, and its rumoured desire to bring TMX in-house as well. Could they actually achieve this - financially - from the base where they sit today? Would it be wise to take a position in this ambitious set of (possible) plans, or would the debt simply be too much for the rating agencies to like, and therefore be an overhang on the stock?

Appreciate your views very much...

Q: I have 1100 shares of Pembina (PPL)in three accounts- cash, rrsp and my tfsa. present share price approx $38.00 my costs are $35, $42.and $49, What in light of the Inter pipe deal is your view of ppl. I was thinking of a trade for TC energy.

Q: Lots of questions on this topic! Senior, primarily dividend oriented but like some upside catalysts... Would it be an entry point for ppl given all the noise or wait till dust settles. I hold enb and divested most of my IPL as a precaution but looking to enter PPL or would it be wiser to wait and see where the dust settles. If PPL is not successful in the acquisition might they see a significant pull back ?
BTW not a BAM fan don't trust they would be good for IPL
Appreciate your commentaries

Q: Looking to add another pipeline for my Rif account. Have ENB already. Can you rate them in terms of dividend sustainability and modest growth, please and thanks.

Q: I own both IPL and PPL and thank BIP for the boost. Noticeably Brookfield has also made a few dollars just by bidding.
- Are there regulations on a 10% owner of IPL, running up the price to PPL ?

Q: I hold both Interpipeline and Pembina. If the PPL takeover of IPL goes through, I will have a bit more PPL than I am comfortable with, and would consider moving a portion to a company in a similar space. Assuming the deal happens, how would you rate the combined PPL/IPL compared to similar alternatives ENB, KEY, TRP. Could you give a rating for each of the 4 on a scale of 1 -10 for desirability as a long term hold in a balanced portfolio. Looking at total return over a 5 - 10 year period. Thanks.

Q: Greetings,

I have 4% cash currently and would consider short term opportunities. With a new competing bid IPL is trading below the offer price. Do you see an opportunity here to purchase IPL and hold for the sale and possible counter offer? Or is the difference more related to the half cash half PPL stock offer which will be more volitile? Hence risk. I appreciate your insite.

Cheers!