Keyera stock continues to outperform
Canadian midstream operator Keyera is in the business of storage and distribution of natural gas and natural gas liquids in western Canada. Despite a small drop this week, Keyera stock has gained 30% so far this year, outperforming the TSX (which only gained 12% year-to-date).
Keyera is a major supplier of condensate (or diluent) to the oil sands industry. Diluent is used to reduce the viscosity of bitumen so it can be transported over long distances. Since the lows of January 2009, the stock has increased over 5-fold (including dividends) and remains in a strong uptrend.
Interestingly, energy infrastructure stocks, such as pipelines and rails, have greatly outperformed energy stocks since 2009. This is likely due to the rise in US and Canadian oil production which has tightened the bottlenecks in the energy transportation system. Infrastructure stocks also tend to pay a good dividend, which make these stocks very attractive in a low interest-rate environment.