Pembina Pipeline (PPL) AI Stock Analysis

• Market Cap: $29.58B
• Dividend Yield: 5.54%
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.72
• Revenue Growth: 2.81%
• EPS Growth: -14.92%
• Country: CA
• Employees: 2,997
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.43
• Shares Outstanding: 581,048,000
• 10 Day Avg. Volume: 4,194,805
• 30 Day Avg. Volume: 3,465,434
• PEG Ratio: 0.00
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 13.63
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 14.86
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $57.58
• Price Target Upside: 13.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.76
• Revenue Forecast (FY): $7.59B

• Rating: 70 Outperform
• Price Target: C$60.00 ▲(17.86% Upside)

Pembina Pipeline's overall stock score reflects a balance of strong technical indicators and strategic initiatives, offset by financial challenges such as declining revenue and free cash flow growth. The company's efforts to optimize its capital structure and secure long-term contracts are positive, but addressing financial weaknesses is crucial for sustained performance.

Positive Factors

Long-term Contract with PETRONAS

The long-term contract with PETRONAS secures stable revenue and enhances Pembina's position in the LNG export market, supporting sustained business growth.

Greenlight Electricity Center Progress

Progress on the Greenlight Electricity Center aligns with energy transition trends and diversifies Pembina's energy portfolio, positioning it for future demand.

Pipeline and Facilities Volume Growth

Volume growth in pipelines and facilities indicates strong demand and operational efficiency, supporting revenue stability and long-term business expansion.

Negative Factors

Decrease in Earnings

A significant drop in earnings due to higher costs and losses could strain financial resources, impacting future investment and dividend capabilities.

Marketing Business Weakness

Weakness in the marketing business from lower NGL margins can reduce profitability, highlighting vulnerability to commodity price fluctuations.

Commodity Price Pressures

Commodity price pressures can negatively impact margins and earnings, posing risks to financial performance and strategic planning.

Pembina Pipeline Business Overview & Revenue Model

Company Description

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 millions of barrels of oil equivalent per day, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.

How the Company Makes Money

Pembina Pipeline generates revenue through multiple key streams primarily from its pipeline transportation services, which include fees charged for the movement of crude oil, natural gas liquids, and natural gas through its extensive pipeline network. The company also earns income from its facilities that provide processing and fractionation services for natural gas liquids. Additionally, Pembina benefits from contracts with fixed fees and cost-of-service agreements that provide stable revenue. Partnerships with major oil and gas companies and strategic investments in infrastructure projects further contribute to its earnings, as do its initiatives in renewable energy and sustainability, which position it to capitalize on the evolving energy landscape.

Pembina Pipeline Financial Statement Overview

Summary

Pembina Pipeline shows strong profitability and a stable balance sheet, but faces challenges with declining revenue and free cash flow growth. The company needs to address these issues to maintain its financial health and support future growth.

Income Statement

Pembina Pipeline's income statement shows a mixed performance. The company has maintained strong gross and EBIT margins, indicating efficient operations and cost management. However, the TTM revenue growth rate is negative, suggesting a decline in sales compared to the previous period. The net profit margin remains healthy, but the drop in revenue growth is a concern.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is positive, showing that the company is generating returns for its shareholders. The equity ratio is healthy, suggesting a solid capital structure. However, the slight increase in debt levels over time could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges with declining free cash flow growth in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to profits. However, the negative free cash flow growth rate is a concern, highlighting potential issues in cash management or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.01B	7.38B	6.33B	11.61B	8.63B	5.95B
Gross Profit	3.22B	2.99B	2.52B	2.73B	2.49B	2.07B
EBITDA	3.58B	3.37B	2.71B	2.85B	2.61B	2.44B
Net Income	1.78B	1.86B	1.78B	2.97B	1.24B	-316.00M
Balance Sheet
Total Assets	35.45B	35.97B	32.62B	31.48B	31.46B	31.42B
Cash, Cash Equivalents and Short-Term Investments	149.00M	141.00M	137.00M	94.00M	43.00M	81.00M
Total Debt	13.29B	13.32B	11.14B	11.28B	11.96B	11.65B
Total Liabilities	18.44B	18.46B	16.80B	15.69B	17.09B	16.40B
Stockholders Equity	17.00B	17.51B	15.81B	15.73B	14.30B	14.96B
Cash Flow
Free Cash Flow	2.53B	2.23B	2.01B	2.30B	1.97B	1.18B
Operating Cash Flow	3.33B	3.19B	2.62B	2.91B	2.63B	2.21B
Investing Cash Flow	-1.10B	-3.89B	-774.00M	-133.00M	-1.01B	-1.44B
Financing Cash Flow	-2.18B	678.00M	-1.80B	-2.72B	-1.67B	-809.00M

Pembina Pipeline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PPL, the sentiment is Negative. The current price of 50.91 is below the 20-day moving average (MA) of 52.89, below the 50-day MA of 52.79, and below the 200-day MA of 51.58, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 8.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PPL.

Pembina Pipeline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	70 Outperform	$29.58B	18.15	10.22%	5.54%	2.81%	-14.92%
TRP	70 Outperform	C$78.01B	22.98	12.96%	4.50%	-3.98%	-33.45%
ENB	69 Neutral	C$140.26B	25.09	8.98%	5.86%	33.06%	-12.36%
GEI	68 Neutral	$4.15B	27.48	16.47%	6.72%	-12.18%	-29.17%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ALA	64 Neutral	$12.30B	16.45	9.01%	3.07%	-0.68%	49.61%
KEY	64 Neutral	C$9.92B	23.01	15.28%	4.90%	-4.09%	-3.57%

Pembina Pipeline Corporate Events

Pembina Pipeline Completes $225 Million Note Offering and Plans Redemption of Preferred Shares

Pembina Pipeline Corporation has successfully closed a $225 million offering of 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2, due in 2055. The proceeds from this offering will be used to redeem all outstanding Series 9 Class A Preferred Shares on December 1, 2025, at a redemption price of $25.00 per share. This strategic financial move is expected to optimize Pembina’s capital structure and support its general corporate purposes. The redemption process has been communicated to shareholders, ensuring a smooth transition and maintaining investor confidence.

Pembina Pipeline Announces $225 Million Subordinated Note Offering

Pembina Pipeline Corporation announced a $225 million issuance of 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2, due in 2055. This issuance follows a previous $200 million issuance of the same series, bringing the total to $425 million. The proceeds will be used to redeem outstanding preferred shares and for general corporate purposes. This move is expected to optimize Pembina’s capital structure and support its financial strategies, potentially impacting its market positioning and providing benefits to stakeholders.

Pembina Pipeline Declares Dividends and Announces Q3 2025 Results Call

Pembina Pipeline Corporation has announced the declaration of quarterly dividends for its preferred shares across several series, with payment dates set for December 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders. Additionally, Pembina will release its third quarter 2025 financial results on November 6, 2025, followed by a conference call and webcast on November 7, 2025, to discuss the results with investors and stakeholders. These announcements are part of Pembina’s efforts to maintain transparency and engagement with its investors, potentially impacting its market positioning and stakeholder relations.

Pembina Pipeline Considers Subordinated Note Offering

Pembina Pipeline Corporation announced its consideration of a subordinated note offering under its short form base shelf prospectus. If successful, the proceeds will be used to redeem outstanding preferred shares and for general corporate purposes. The announcement reflects Pembina’s strategic financial management and could impact its capital structure and shareholder value, although there is no certainty regarding the completion or terms of the offering.

Pembina Pipeline Secures Regulatory Approval for Alliance Pipeline Settlement

Pembina Pipeline Corporation announced that the Canada Energy Regulator has approved a negotiated settlement for the Canadian portion of the Alliance Pipeline. This approval establishes a tolling structure for the next decade, enhancing Pembina’s ability to deliver exceptional service and maximize the value of its North American energy infrastructure. The settlement is expected to positively impact Pembina’s operations and strengthen its industry positioning, benefiting stakeholders by ensuring a stable and predictable framework for the pipeline’s operation.