Lower-risk growth ahead for these two

Article Excerpt

Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. But Pembina cut that risk with last year’s purchase of a rival in a business where it’s already a leader. Meanwhile, Veresen aims to add plants with longterm contracts already in place. PEMBINA PIPELINE $32.69 (Toronto symbol PPL; Shares outstanding: 294.9 million; Market cap: $10.2 billion; TSINetwork Rating: Average; Divd. yield: 5.0%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil production, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil output. In the quarter ended December 31, 2012, revenue rose 170.4%, to $1.3 billion from $468.1 million a year earlier. In April 2012, it paid $3.2 billion for rival Provident Energy, which extracts, transports and stores NGLs. Provident was the main reason for the higher revenue. Cash flow rose 161.5%, to $172.3 million from $66.0 million. Cash flow per share rose 51.3%, to…