The three Canadian pipeline stocks on our list have a good chance of continuing to ride higher along with a rising oil price
SmallCapPower | December 4, 2017: With OPEC extending cuts from March 2018 to the end of 2018, oil prices are continuing to look strong. Today, we have identified three Canadian pipeline stocks that could continue to see strength in the short to medium-term. These companies all provide a dividend and are heavily weighted towards the oil price. For reference, the EV/EBITDA and average dividend yield for these pipeline companies is 12.8x and 6.1%, respectively. Of note, in general, these larger-cap companies trade more expensive than others, depending on the historical reliability of their performance, and strength of their dividend yields.
Pembina Pipeline Corp. (TO:PPL)
Oil & Gas Transportation Services
Pembina Pipeline Corporation is a transportation and midstream service provider based in Calgary. The Company operates an integrated system of pipelines produced primarily in western Canada. PPL also owns and operates processing facilities.
- Market Cap: $22.6 Billion
- EV/EBITDA (One Year Forward): 18.2x
- Dividend Yield: 4.8%
- Month over Month Return: 4%
- Performance over last week: 0%
TransCanada Corporation (TO:TRP)
Oil & Gas Transportation Services
TransCanada Corporation, based in Calgary, develops and operates energy infrastructure in North America. Its pipeline network includes ~3,460km of oil pipeline and ~57,000km and ~11,500km of partially-owned gas pipeline that connects with virtually all major gas supply basins in North America. TRP is one of the largest providers of gas storage and related services, with an estimated ~653 billion cubic feet of storage capacity. TRP also owns ~11,800 megawatts of power generation.
- Market Cap: $54.3 Billion
- EV/EBITDA (One Year Forward): 13.2x
- Dividend Yield: 4.0%
- Month over Month Return: 0%
- Performance over last week: -2%
Enbridge Inc. (NYSE:ENB)
Oil & Gas Transportation Services
Enbridge Inc. based in Calgary, engages in distribution, transportation, and generation of energy, mainly in North America. The Company has the longest crude oil and liquid transportation system on the continent.
- Market Cap: $80.4 Billion
- EV/EBITDA (One Year Forward): 15.7x
- Dividend Yield: 5.5%
- Month over Month Return: -2%
- Performance over last week: 3%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.