Pembina Pipeline (PPL) AI Stock Analysis

• Market Cap: $35.76B
• Dividend Yield: 5.44%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.58
• Revenue Growth: 2.81%
• EPS Growth: -14.92%
• Country: CA
• Employees: 2,997
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.78
• Shares Outstanding: 581,048,000
• 10 Day Avg. Volume: 2,403,915
• 30 Day Avg. Volume: 2,286,538
• PEG Ratio: -1.63
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 12.21
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 6.28
• Enterprise Value/Gross Profit: 16.33
• Enterprise Value/Ebitda: 14.02
• 1Y Price Target: $61.18
• Price Target Upside: -0.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.85
• Revenue Forecast (FY): $7.72B

• Rating: 77 Outperform
• Price Target: C$68.00 ▲(10.50% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven mainly by solid financial performance (strong margins and reliable cash flow) and supportive technical trend strength. Earnings-call takeaways are constructive due to tightened EBITDA guidance and long-term contract wins, but near-term earnings/marketing pressure and a not-cheap P/E keep the overall rating in the mid-to-high range rather than top-tier.

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

Strong midstream profitability and dependable cash generation (steady operating cash flow and sizable free cash flow), supporting shareholder returns. Offsetting factors include uneven revenue trajectory, modest free-cash-flow decline in 2025, and leverage ticking higher with some margin/ROE softening.

Income Statement

Profitability is strong for a midstream business, with 2025 net margin around 22% and solid operating profitability (EBITDA margin ~44%). However, growth has been inconsistent: revenue was down in 2025 after a modest increase in 2024, and results have shown volatility over the cycle (including a net loss in 2020). Margins also eased from 2024 to 2025, signaling some pressure on earnings momentum.

Balance Sheet

Leverage looks manageable but meaningful: debt is roughly 0.83x equity in 2025 (up from 2024), which is typical for capital-intensive midstream but still a constraint in weaker commodity/volume environments. Equity remains sizable versus total assets, and returns on equity have been consistently positive since 2021 (about 10% in 2025), though below the higher level seen in 2022 and showing a gradual step-down recently.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are both large and steady (2025 free cash flow ~$2.5B). Cash flow has generally covered accounting earnings well, supporting reinvestment and shareholder returns. The main drawback is growth: free cash flow declined modestly in 2025 after improving in 2024, indicating limited near-term acceleration.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.68B	7.38B	6.33B	11.61B	8.63B
Gross Profit	2.81B	2.99B	2.52B	2.73B	2.49B
EBITDA	3.40B	3.37B	2.71B	2.85B	2.61B
Net Income	1.69B	1.86B	1.78B	2.97B	1.24B
Balance Sheet
Total Assets	35.55B	35.97B	32.62B	31.48B	31.46B
Cash, Cash Equivalents and Short-Term Investments	106.00M	141.00M	137.00M	94.00M	43.00M
Total Debt	13.85B	13.32B	11.14B	11.28B	11.96B
Total Liabilities	18.78B	18.46B	16.80B	15.69B	17.09B
Stockholders Equity	16.77B	17.51B	15.81B	15.73B	14.30B
Cash Flow
Free Cash Flow	2.49B	2.23B	2.01B	2.30B	1.97B
Operating Cash Flow	3.27B	3.19B	2.62B	2.91B	2.63B
Investing Cash Flow	-1.06B	-3.89B	-774.00M	-133.00M	-1.01B
Financing Cash Flow	-2.24B	678.00M	-1.80B	-2.72B	-1.67B

Pembina Pipeline Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PPL, the sentiment is Positive. The current price of 61.54 is above the 20-day moving average (MA) of 59.20, above the 50-day MA of 55.50, and above the 200-day MA of 52.46, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 73.40 is Negative, neither overbought nor oversold. The STOCH value of 80.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PPL.

Pembina Pipeline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	77 Outperform	$35.76B	22.47	9.91%	5.44%	2.81%	-14.92%
ENB	69 Neutral	C$160.84B	22.40	11.70%	5.80%	33.06%	-12.36%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TRP	65 Neutral	$92.65B	26.81	13.64%	4.41%	-3.98%	-33.45%
ALA	64 Neutral	C$14.54B	18.56	9.01%	2.99%	-0.68%	49.61%
KEY	61 Neutral	C$12.06B	27.60	15.28%	4.81%	-4.09%	-3.57%
GEI	58 Neutral	$5.12B	24.27	16.47%	6.61%	-12.18%	-29.17%

Pembina Pipeline Corporate Events

Pembina Pipeline Declares Preferred Share Dividends and Sets Date for Q4 2025 Results Call

Pembina Pipeline Corporation has declared its regular quarterly dividends on eight series of preferred shares—Series 1, 3, 5, 7, 15, 17, 21 and 25—setting specific per-share amounts and confirming the record and payment dates in line with its established dividend schedule. The announcement underlines the company’s continued commitment to providing stable income to preferred shareholders and reinforces visibility into its capital return framework, while the detailed payment calendar offers clarity to income-focused investors. Pembina also set the timetable for the release of its fourth quarter 2025 financial results, with earnings to be published after markets close on February 26, 2026, followed by a webcasted conference call the next morning for investors, analysts, brokers and media. The planned disclosure and investor outreach underscore ongoing efforts to maintain transparency and engagement with the market around the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$57.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Announces 2026 Guidance and Strategic Agreements

Pembina Pipeline Corporation announced its 2026 financial guidance, highlighting an adjusted EBITDA range of $4.125 billion to $4.425 billion, reflecting a 4% increase in fee-based adjusted EBITDA over 2025. The company also secured a 12-year agreement with Ovintiv Inc. for Cedar LNG capacity and approved a $200 million expansion of the Peace Pipeline System. Pembina’s strategy focuses on delivering growth within financial guardrails, with a commitment to safe, on-time, and on-budget project execution. The company is positioned to meet its three-year growth targets and is observing positive momentum in the Canadian energy industry, potentially reshaping Canada’s energy strategy.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.