The Financial Post reports in its Wednesday, March 4, edition that there are still some good energy kicking around. The Post's John Shmuel writes in the Trading Desk column that
Barclays has released its top 10 energy-infrastructure picks. It says these companies have strong cash positions, and are set to benefit from mergers and acquisitions in an environment of low oil prices and low interest rates.
Analyst Richard Gross says, "Our top 10 ideas have above-average stability from largely fee-based cash flows, favourable contract structures, diversified assets, investment-grade credit and strong parents."
The 10 stocks are Enbridge, Cheniere Energy, Plains GP Holdings, Rose Rock Midstream, Shell Midstream Partners, Sunoco Logistics Partners, Targa Resources, Westlake Chemical Partners and Williams.
Barclays's top energy-infrastructure picks last year posted an average return of 39 per cent, versus the a negative 3-per-cent return of the Alerian MLP index of energy companies.
Mr. Gross notes many of this year's picks trade at a premium to other energy-infrastructure companies. He says it is critical that investors focus on quality names in the current low-oil-price environment.
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