A managing director at BMO Capital Markets is all-in on shale, and all-in on a few companies in particular. Why does he pick Williams, Kinder Morgan and El Paso , and will investors follow suit?

Carl Kirst, managing director and senior research analyst at BMO Capital Markets Corp., sees the “ongoing expansion of shale supply and the shift to NGL-rich supply sources” as a trend that  “continues to propel long-haul transportation needs for natural gas and liquids, as well as the midstream infrastructure side,” he tells The Wall Street Transcript , in an April 2 interview.

Shale stocks could break out in areas beyond drilling and exploration. “Increasingly, as shale technologies are being applied to oil, we have oil transportation opportunities,” he adds, saying that a weak bond market is steering more investors to growth and income plays – a “sweet spot” for shale oil right now.

“So when you combine that with the fact that we are still in a 2% Treasury curve, both in the U.S. and Canada, the demand for yield, especially for companies that have yield plus growth, makes for a compelling investment.”

Those factors, taken together, could help boost the shale market by 10%, he adds.

Kirst sees increased demand for oil services and equipment in key shale oil and gas regions like the Bakken, the Permian, and in Mont Belvieu and Conway.

“Each region has its own supply/demand constraints,” he says. “I think we are going to continue to see a need for new infrastructure in the Bakken. We are going to continue to see new infrastructure from the Permian, as well as between Mont Belvieu and Conway. A lot of this infrastructure has been proposed and is expected to come on line in the next two to three years, but these are still the areas that are getting a great deal of attention, as well as, of course, something that's been dominating our media headlines for the last year -- getting Western Canadian crude oil down to the U.S.”

There are a few stocks in particular that Kirst likes in the shale market -- especially Williams, Kinder Morgan and El Paso Corp. He says that while “you can’t retire off of these stocks” (each has had a nice run-up in share prices, taking a lot of growth out of the equation) he still refers to them as his “top picks”.

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