Stable post-conversion payouts are a plus

Article Excerpt

FORT CHICAGO ENERGY PARTNERS L.P. $11.72 (Toronto symbol FCE.UN; Units outstanding: 143.8 million; Market cap: $1.7 billion; SI Rating: Extra Risk; Dividend yield: 8.5%) owns and operates energy pipelines and processing plants across North America. One of its major holdings is a 50% interest in the Alliance natural-gas pipeline, which runs 3,000 kilometres from Fort St. John, B.C., to Chicago. Enbridge Inc. owns the other 50%. Fort Chicago and Enbridge also own 85.4% of the Aux Sable natural gas liquids plant. As well, Fort Chicago owns 100% of the 1,324-kilometre Alberta Ethane Gathering System. In the three months ended June 30, 2010, Fort Chicago’s revenue rose 12.5%, to $168 million from $149.3 million a year earlier. Cash flow per unit rose 17.2%, to $0.34 from $0.29. Fort Chicago will soon complete its $8.5-million, all-cash purchase of B.C. hydroelectric-power developer Swift Power. The purchase is small for Fort Chicago, and all of Swift’s projects are in the development stage. But adding Swift lets Fort…