These utilities offer income—and growth

Article Excerpt

PEMBINA PIPELINE $45.89 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $23.1 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; 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. Veresen’s holdings broaden Pembina’s operations as well as its U.S. exposure. The acquisition came with key assets, including 50% of the Alliance gas line, which spans the 3,000 kilometres between Chicago and Fort St. John, B.C. In the quarter ended September 30, 2018, Pembina’s revenue jumped 95.7%, to $2.05 billion from $1.05 billion a year earlier. Cash flow rose 66.6%, to $523.0 million from $314.0 million. Due to shares Pembina issued for Veresen, cash flow per share rose 32.1%, to $1.03 from $0.78. Pembina trades at just 10.8…

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