CPGX

Columbia Pipeline Group Inc

Industrial/Transportation, Energy


Presented:01/14/2016
Price:$17.51
Cap:$5.58B
Current Price:$25.49
Cap:$0.25B

Presented

Date01/14/2016
Price$17.51
Market Cap$5.58B
Ent Value$9.70B
P/E RatioN/A
Book Value$8.17
Div Yield2.86%
Shares O/S318.40M
Ave Daily Vol3,247,059
Short Int1.15%

Current

Price$25.49
Market Cap$0.25B
Columbia Pipeline Group, Inc. provides gas transportation and storage services. It operates interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica Shale production areas. The firm offers services to local gas distribution companies and users of natural gas. Columbia Pipeline Group also operates natural gas storage systems. The company is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Columbia Pipeline Group Inc (CPGX), NiSource Inc (NI)

Highlights

The presenter is bullish on the three year outlook for Columbia Pipeline (CPGX) and is long the stock at present levels ($17.50). Despite all of the volatility in the energy sector, and MLP space in particular, he “is willing to have exposure to gas volumes out of the Marcellus and Utica.” Gas demand should remain solid given coal-to-gas switching, LNG and other forces at play. In his opinion, most of the supply needed to meet demand will come from the region(s) CPGX’s infrastructure is concentrated in. The Columbia Gas complex has a “spiderweb” of infrastructure in the Marcellus and Utica, and Columbia Gulf connects the Northeast assets with Louisiana. Overall, CPGX appears to be the best positioned midstream and gas storage play and the risk/ reward is favorable. It has no near-term funding risk due to a recent successful offering, a project backlog of roughly $8 billion, and EBITDA expected to grow at a 20% CAGR for the next three years.

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