Buy Enbridge Energy Partners (EEP)

As the U.S. onshore natural gas industry and the Canadian oil industry increasingly shift to unconventional sources such as the Barnett shales of Texas and the oil sands of Alberta, pipeline companies have had to expand their systems to get this new gas and oil to market. The recently completed $635 million Clarity pipeline moves natural gas out of East Texas while the Alberta Clipper Expansion is designed to move heavy crude between Canada and Wisconsin starting in 2010. Enbridge Energy Partners (EEP) has budgeted $2.2 billion on expansion projects from 2009 to 2010. This quite probably means that the company won’t be increasing its cash distribution during that period. The yield as of October 14, 2009 was 8.4%.