Pembina Pipeline Corporation
- Open
- 48.64
- Day high
- 48.78
- Day low
- 48.45
- Prev close
- 48.59
- Volume
- 19K
- Mkt cap
- $28.4B
- P/E (TTM)
- 23.9
- EPS (TTM)
- $2.04
- P/B
- 2.3
- P/S
- 5.0
- Yield
- 4.25%
- Per share
- $2.07
Pembina Pipeline Corporation (PBA) is a Energy company listed on NYSE. The stock is up 29% over the past year. Drillr has 1 published research article covering PBA.
Pembina Pipeline Corporation (PBA) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PBA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.49 | $0.48 | -2.0% | $1.1B | -26.3% |
| May 8, 2026 | $0.52 | $0.59 | +13.5% | $1.1B | +4.5% |
| Nov 6, 2025 | $0.45 | $0.31 | -31.1% | $1.3B | -9.0% |
| Aug 7, 2025 | $0.47 | $0.47 | +0.0% | $1.3B | +19.2% |
| May 8, 2025 | $0.57 | $0.56 | -1.8% | $1.6B | +37.4% |
| Feb 27, 2025 | $0.59 | $0.66 | +11.9% | $1.5B | +48.7% |
| Aug 8, 2024 | $0.54 | $0.55 | +1.9% | $1.4B | -18.1% |
| May 9, 2024 | $0.53 | $0.53 | +1.3% | $1.6B | -11.2% |
| Feb 22, 2024 | $0.63 | $0.90 | +42.4% | $1.9B | -2.9% |
| Nov 2, 2023 | $0.54 | $0.42 | -22.2% | $1.7B | +6.1% |
| Aug 3, 2023 | $0.45 | $0.45 | +0.3% | $1.6B | -12.1% |
| May 4, 2023 | $0.51 | $0.45 | -11.0% | $1.8B | -5.3% |
Pembina Pipeline Corporation company profile
Overview
Pembina Pipeline Corporation (TSX:PPL) is a Canadian energy infrastructure company founded in 1954 and headquartered in Calgary, Alberta. The company has evolved from a regional pipeline operator into one of North America's largest energy transportation and midstream service providers. Pembina went public in 2010 and has since grown through strategic acquisitions and organic expansion to become a critical piece of energy infrastructure connecting Western Canadian energy production to North American and global markets.
Business
Pembina operates in the oil and gas midstream sector, which serves as the critical link between upstream energy production (drilling and extraction) and downstream refining and marketing. The midstream sector involves the transportation, storage, processing, and marketing of crude oil, natural gas, and natural gas liquids (NGLs) such as propane, butane, and ethane. The company operates through three main business segments: 1. Pipelines Segment (approximately 60% of revenue): This segment operates an extensive network of conventional oil, oil sands, heavy oil, and transmission pipelines with a total transportation capacity of 3.1 million barrels of oil equivalent per day. The pipeline network includes ground storage facilities holding 11 million barrels and rail terminalling capacity of approximately 105,000 barrels per day. Key assets include the Peace Pipeline system, Alliance Pipeline, and various regional gathering systems that collect production from wellheads and transport it to processing facilities or major transmission systems. 2. Facilities Segment (approximately 25% of revenue): This segment provides processing infrastructure for natural gas and NGLs, including 354,000 barrels per day of NGL fractionation capacity and 21 million barrels of underground cavern storage. Fractionation is the process of separating mixed NGLs into individual products like propane, butane, and ethane, which can then be sold to different end markets. The segment also includes the company's partnership with KKR through Pembina Gas Infrastructure (PGI), which owns and operates gas processing plants that remove impurities and separate valuable liquids from raw natural gas. 3. Marketing & New Ventures Segment (approximately 15% of revenue): This segment buys and sells hydrocarbon liquids and natural gas, primarily originating from the Western Canadian Sedimentary Basin. The marketing business takes advantage of price differentials between different markets and provides customers with access to diverse end markets, including export terminals and petrochemical facilities.
Revenue model
Pembina generates revenue through multiple complementary business models. The Pipelines segment operates primarily on long-term contracted fee-for-service agreements, where customers pay transportation tolls based on volume shipped or reserved capacity. These contracts typically include inflation adjustments and minimum volume commitments, providing stable, predictable cash flows with limited commodity price exposure. The Facilities segment earns revenue through processing fees charged to producers for gas processing services and fractionation spreads, which represent the difference between the value of separated NGL products and the cost of mixed NGLs. This segment benefits from higher natural gas production volumes and favorable NGL pricing differentials. The Marketing segment generates profits by capturing location and timing arbitrage opportunities, buying hydrocarbons at one price and location and selling them at higher prices in different markets or at different times. This segment provides more volatile but potentially higher returns compared to the fee-based segments. Several factors influence Pembina's profitability margins. Positive margin drivers include increased Western Canadian energy production, expansion of LNG export capacity creating new demand for natural gas, growth in petrochemical demand for ethane and propane, favorable currency exchange rates (as some revenues are USD-denominated), and infrastructure bottlenecks that create arbitrage opportunities. Negative margin pressures come from pipeline capacity additions that reduce transportation spreads, economic downturns that decrease energy demand, regulatory changes affecting pipeline approvals, competition from alternative transportation methods like rail, and commodity price volatility that can impact marketing margins and customer drilling activity.
Competitive moat
Pembina possesses a strong economic moat built primarily on the irreplaceable nature of its pipeline and processing infrastructure. Once constructed, pipelines represent the lowest-cost method of transporting large volumes of hydrocarbons over long distances, and their routes are extremely difficult to replicate due to land acquisition challenges, environmental regulations, and the enormous capital requirements involved. The company's network effects create additional competitive advantages, as its integrated system of pipelines, processing facilities, and storage assets provides customers with comprehensive midstream solutions that would be costly and complex to replicate. The strategic positioning of Pembina's assets in the prolific Western Canadian Sedimentary Basin, particularly the Montney and Duvernay formations, creates natural barriers to competition. Regulatory barriers further strengthen the moat, as new pipeline projects face increasingly stringent environmental reviews and lengthy approval processes that can take years or even decades to complete. The company's existing assets benefit from grandfathered approvals and established right-of-way agreements. However, the moat faces some challenges. Potential disruption could come from the energy transition toward renewable sources, which may reduce long-term demand for hydrocarbon transportation. Competition from rail transportation, while more expensive, provides alternative routing options for producers. Additionally, large integrated oil companies or well-funded infrastructure investors could potentially develop competing systems, though the capital requirements and regulatory hurdles remain substantial barriers to entry.
Risks & safety
Pembina demonstrates a moderate to strong margin of safety with solid financial fundamentals but some leverage considerations. • Debt and Solvency: Debt-to-EBITDA ratio of 3.6x as of Q1 2025, within management's target range of 3.4x-3.7x. Strong cash flow generation of $589 million from operations in Q1 2025 provides adequate debt service coverage. • Liquidity Position: Current ratio of 0.64 indicates working capital challenges, but this is typical for pipeline companies with large capital programs. Free cash flow of $467 million in Q1 2025 demonstrates strong cash generation capability. • Valuation Metrics: Trading at 16.7x P/E ratio and 11.4x EV/EBITDA, representing reasonable valuations for a utility-like infrastructure business. Graham number of 24.25 suggests fair valuation relative to book value and earnings. • Other Considerations: Regulated utility-like cash flows provide stability, but commodity exposure through marketing segment adds some volatility. Strong dividend coverage with recent 3% increase demonstrates financial health.
Recent development
Over the past few years, Pembina has executed several transformative strategic initiatives to strengthen its market position and diversify its operations. The most significant development was the $3.1 billion acquisition of Enbridge's interests in Alliance Pipeline and Aux Sable, completed in 2024, which gave Pembina full control of these critical midstream assets and enhanced its integration across the value chain. The company achieved a major milestone with the Final Investment Decision on the Cedar LNG project, a floating liquefied natural gas facility that will provide Canadian producers with direct access to global LNG markets. This project represents Pembina's strategic pivot toward enabling energy exports and capturing global pricing premiums. Partnership expansion has been another key focus, including the formation of Pembina Gas Infrastructure (PGI) with KKR, which has completed multiple acquisitions of gas processing assets. The company also entered a 50% partnership in the Greenlight Electricity Centre, marking its entry into power generation to serve the growing data center market. Recent operational expansions include bringing the Phase VIII Peace Pipeline expansion into service, progressing the RFS IV fractionation project, and securing a significant ethane supply agreement with Dow Chemical. The company has also secured exclusive NGL extraction rights on the Yellowhead mainline, potentially adding 25,000 barrels per day of NGL production capacity. These developments reflect Pembina's strategy to integrate vertically across the energy value chain while maintaining its core focus on fee-based, contracted cash flows that provide stability and predictable returns.
PBA company profile · for informational purposes only — not investment advice.
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