ScotiaBank Canadian Pipeline and Midstream Infrastructure Sector Expert Mathew Akman Exclusive Interview

Wall Street Transcript

67 WALL STREET, New York - August 30, 2012 - The Wall Street Transcript has just published its Utilities, Alternative Energy and Water Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Outlook for Biofuels and Biochemicals - Asia Pacific Demand for Solar Energy - Grid Parity Timelines for Alternative Energy - Water Infrastructure Development - Irrigation and Metering Technology - Water Industry Consolidation

Companies include: TransCanada Corp. (TRP), Spectra Energy Corp. (SE) and many others.

In the following excerpt from the Utilities, Alternative Energy and Water Services Report, an expert in Canadian utility and power infrastructure equities discusses the outlook for the sector.

TWST: Please begin with a brief overview of your coverage, including some of the specific names you follow.

Mr. Akman: Sure, I cover Canadian energy infrastructure, which includes pipelines, utilities, midstream gas and oil companies, and renewable power. The large-cap names in my coverage universe include North American pipeline leaders Enbridge (ENB) and TransCanada (TRP). I also cover Spectra Energy (SE), even though it's New York listed because a big portion of their assets are in Canada, and it's a comparable company to Enbridge and TransCanada. So I think I can provide investors with unique insights there.

On the utility front, some of the larger Canadian utility companies include ATCO (ACO-X.TO), Emera (EMA.TO) and Fortis (FTS.TO), which are growing pretty quickly organically, but also making acquisitions abroad in the U.S. and elsewhere. So they're becoming more well known outside of Canada as they acquire foreign utility operating companies.

TWST: About which kinds of energy infrastructure companies are you most bullish about at the moment and why?

Mr. Akman: Generally, I like pipeline and midstream companies for a couple of reasons. In Canada, and to some extent in the U.S. as well, there is a resurgence of production growth in oil and also natural gas liquids, which is driving a big infrastructure expansion wave. Also, the reconfiguration of existing infrastructure to handle unconventional oil and gas is creating significant growth and investment opportunities for the companies. So whether you're in long-haul pipeline and you'll kind of connect the oil sands to new markets, or whether you're a midstream and you're trying to connect new oil and gas flows to long-haul pipelines, there is big investment opportunity here.

And generally, the returns on investment remain very attractive. So these investments are creating significant shareholder value. And the trend for this growth has been going on for a couple of years, but probably has a multiyear forward cycle behind it, but it should drive earnings and dividend growth for the foreseeable future. So I like this sector within my overall coverage universe.

TWST: Conversely, about which kinds of energy infrastructure companies are you a bit more hesitant and why?

For more from this interview and many more visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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