Regardless of whether one's 'yay or nay' on the global pipeline issue, the fact is that many will be built over the next several years. The good news is the lengths pipeline companies will go to ensure the utmost safety and quality.
While related, Enterprise is an alternative (and potentially less volatile) vehicle to a straight resource investment with a focus on the delivery of low impact environmental solutions.
A subsidiary of Alberta-based infrastructure concern Enterprise Group (E: TSX) Artic Therm provides an efficient Flameless Heat and Green Air technology for multiple applications utilizing some or all of its 150-portable units at remote locations to deal with extreme climate challenges.
Oil, Gas and flame don't do well together. Therefore, flameless heat is an important part not only to the agricultural, industrial and resource industries, but also critical to pipelines.
Case in point; all pipeline to be buried must be dry and covered with a special coating to ensure against corrosion. The trick, particularly in -30 Celsius degree temps, is to dry out and repair digs in the coating, known as 'jeeps'.
In the case of Artic Therm and a recent gig for one of North America's largest natural gas storage and pipeline transportation providers, the Company acquired 40 km of pipe from another pipeline project. Courtesy of several moves, the pipes' coatings were banged up. And of course, impossible to keep dry. Artic Therm deployed two of its larger ATI-2500 flameless heat units. After roughly 3 weeks, the 40 km was dry, repaired and ready to be safely utilized and up to regulatory standards.
The revenue from this one project was approximately C$400k. And this is just one of the many infrastructure projects that are critical to all the industries. Multiply that deal by several each year (and growing); you have a compelling potential investment.
Artic Therm has already been approached by the same customer to do a larger gig next year. In the interim, this peerless company continues to grow throughout North America and add significantly to Enterprise Group's bottom line. And consistent value for Enterprise shareholders.
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