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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (46200)	1/16/2012 2:03:36 PM
From: E_K_S	Read Replies (1) \| Respond to of 78751

PEMBINA PIPELINE COR (PBNPF.PK) -Other OTC finance.yahoo.com Pembina Pipeline Corporation operates as an energy transportation and service provider in Canada. It operates in four segments; Conventional Pipelines, Oil Sands & Heavy Oil, Midstream & Marketing, and Gas Services. The Conventional Pipelines segment operates a 7,500 kilometer pipeline network that transports crude oil, condensate, and natural gas liquids in Alberta and British Columbia. The Oil Sands & Heavy Oil segment owns and operates the Syncrude pipeline, the Cheecham Lateral, and the Horizon pipeline, which deliver synthetic crude oil produced from oil sands. The Midstream & Marketing segment offers storage, terminal, and hub services. The Gas Services segment consists of natural gas gathering and processing facilities, including three gas plants and nine compressor stations. This segment also operates approximately 300 kilometers of gathering systems. The company was formerly known as Pembina Pipeline Income Fund and changed its name to Pembina Pipeline Corporation on October 2010. Pembina Pipeline Corporation was founded in 1997 and is headquartered in Calgary, Canada. --------------------------------------------------------------------------------------------- finance.yahoo.com Under the terms of the Arrangement Agreement, Provident shareholders will receive 0.425 of a Pembina share for each Provident share held (the "Provident Exchange Ratio") Benefits of the Combination The proposed transaction is expected to provide Pembina shareholders with an increase in cash flow per share, increased dividends per share and reduce Pembina's payout ratio, while giving Provident shareholders a significant premium and a 27.5% increase in monthly cash dividends on a per share basis after taking into account the Provident Exchange Ratio... --------------------------------------------------------------- Have you studied Pembina Pipeline? Is it a good value? It seems overvalued at $27.50 (GN shows a value of $12.00 but w/ the combined company with total cash flows and combined assets it could be higher). I do like the new footprint of their pipeline & storage assets. They also now have direct access to the Canadian Oil Sand region w/ distribution to the U.S. Not sure what to do with my remaining shares. I have 35% shares in an IRA and 65% in the taxable account. Should have loaded up the IRA especially now that the distributions are going to increase. My first take is to take the windfall from the taxable account and buy more Suncor Energy Inc. Common (SU) and let the IRA shares convert to Pembina Pipeline shares. If their Oil Sand pipeline division expands capacity and integrates the final distribution point into the U.S. (utilizing the PVX acquisition pipeline assets), it should benefit companies like Suncor providing better distribution capacity directly into the U.S.. Also, I believe SU is a net better value now than PBNPF based on the 27.5% premium paid to PVX shareholders. Any thoughts ? EKS