Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

Inter Pipeline: Impressive Q1 Results Imply A 25% Total Returns This Year And Next

Inter Pipeline (OTCPK:IPPLF) announced excellent Q1 earnings yesterday. Funds from operations ("FFO") were $132 million (+20% yoy), and were strong across all business segments. Net income was $90 million, a gain of $17 million (+24% yoy). It was an impressive performance considering oil sands transportation volumes were 7% lower than in Q1 2013 due to inclement weather, the impact of maintenance activities, and steam injection cycles at certain producer-operated facilities. Several positive catalysts suggest the stock should deliver a total return of 25% by year-end and another 25% return next year.

Q1 Earnings Report

First-quarter earnings revealed nicely higher FFO across all of IPL's business segments. As a result, net income rose to $89.6 million -...

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