Pembina Pipeline (PPL) AI Stock Analysis

• Market Cap: $29.70B
• Dividend Yield: 5.59%
• Average Volume (3M): 4.50M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.73
• Revenue Growth: -5.42%
• EPS Growth: -1.70%
• Country: CA
• Employees: 2,997
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.80
• Shares Outstanding: 580,908,000
• 10 Day Avg. Volume: 5,342,904
• 30 Day Avg. Volume: 4,495,415
• PEG Ratio: 0.05
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.51
• Price Target Upside: 19.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: C$58.00 ▲(14.20%Upside)

Pembina Pipeline's overall stock score of 76 reflects robust financial performance and attractive valuation, bolstered by a strong dividend yield. The positive sentiment from the earnings call further enhances the outlook. However, technical indicators suggest a cautious near-term trading environment, and some corporate challenges temper the upside potential.

Positive Factors

Earnings

Strong Q4/24 results with a record $1,254M adjusted EBITDA, well above consensus $1,128M.

Financial Performance

PPL shares are rated Outperform given positive free cash flow position and strong balance sheet.

Growth Projects

PPL unveiled a suite of potential new organic-growth projects, including gas power for a data center, straddle plant, and de-ethanizer.

Negative Factors

Project Timeline

Cedar LNG is still expected in-service late 2028, and could be further de-risked with PPL recently in receipt of non-binding proposals covering well in excess of its contracted capacity.

Pembina Pipeline Business Overview & Revenue Model

Company Description

Pembina Pipeline Corporation is a leading transportation and midstream service provider in North America. The company operates primarily in the oil and gas sector, offering a range of services including the transportation, storage, and marketing of crude oil, natural gas, and natural gas liquids. Pembina provides essential infrastructure that connects energy production to the market, ensuring the efficient and reliable delivery of resources. With a network of pipelines spanning the continent, Pembina is integral to the energy supply chain.

How the Company Makes Money

Pembina Pipeline Corporation generates revenue through several key streams. The primary source of income is from its fee-based transportation services, where the company charges customers for the volume of oil and natural gas transported through its extensive pipeline network. Additionally, Pembina earns money from its midstream services, which include processing, fractionation, and storage of natural gas liquids and other hydrocarbons. The company also derives revenue from its marketing and new ventures segment, where it buys, sells, and markets natural gas liquids and crude oil. Significant partnerships with energy producers and long-term contracts enhance revenue stability and predictability, contributing to the overall financial performance of the company.

Pembina Pipeline Financial Statement Overview

Summary

Pembina Pipeline demonstrates strong financial health across all verticals. The income statement highlights profitability and operational efficiency, with strong margins and cash flow metrics. The balance sheet shows a solid financial position with manageable debt levels.

Income Statement

The company's income statement shows strong profitability metrics with a TTM gross profit margin of 41.93% and a net profit margin of 23.73%. Both EBIT margin at 36.01% and EBITDA margin at 41.10% reflect efficient operations. Revenue growth has been volatile, with a decrease of 36.78% in 2024 from 2023 but a recovery in TTM revenue growth of 10.06% compared to the 2024 annual figure. Overall, the income statement indicates robust profitability and operational efficiency despite some fluctuations in revenue.

Balance Sheet

The balance sheet is strong with a moderate debt-to-equity ratio of 0.75, indicating a stable capital structure. The return on equity (ROE) for TTM stands at 10.97%, showing effective use of equity to generate profits. The equity ratio is 49.20%, reflecting a solid equity base. The balance sheet suggests financial stability with manageable leverage, which is crucial for sustaining operations in the capital-intensive oil & gas industry.

Cash Flow

The cash flow statement displays healthy cash flow management with a robust operating cash flow to net income ratio of 1.87, indicating strong cash generation relative to net income. The free cash flow growth rate of 17.77% from 2024 to TTM demonstrates effective cash flow management. The free cash flow to net income ratio of 1.38 underscores efficient cash conversion mechanisms. Overall, the cash flow metrics suggest a strong ability to generate and manage cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.13B	7.38B	9.13B	11.61B	8.63B	6.20B
Gross Profit	3.41B	3.32B	2.84B	3.12B	2.65B	2.01B
EBITDA	3.34B	3.18B	3.01B	4.00B	2.55B	418.00M
Net Income	1.93B	1.86B	1.78B	2.97B	1.24B	-316.00M
Balance Sheet
Total Assets	35.71B	35.97B	32.62B	31.48B	31.46B	31.42B
Cash, Cash Equivalents and Short-Term Investments	155.00M	141.00M	137.00M	94.00M	43.00M	81.00M
Total Debt	13.14B	13.32B	11.14B	11.28B	11.96B	11.65B
Total Liabilities	18.14B	18.46B	16.80B	15.69B	17.09B	16.40B
Stockholders Equity	17.57B	17.51B	15.81B	15.73B	14.30B	14.96B
Cash Flow
Free Cash Flow	2.66B	2.26B	2.03B	2.32B	1.99B	1.22B
Operating Cash Flow	3.60B	3.21B	2.63B	2.93B	2.65B	2.25B
Investing Cash Flow	-3.71B	-3.89B	-789.00M	-154.00M	-1.04B	-1.48B
Financing Cash Flow	-1.47B	678.00M	-1.80B	-2.72B	-1.67B	-809.00M

Pembina Pipeline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 50.79 is below the 20-day moving average (MA) of 50.94, below the 50-day MA of 51.52, and below the 200-day MA of 53.07, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, 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	76 Outperform	$29.70B	16.67	11.55%	5.59%	-5.42%	-1.70%
KEY	76 Outperform	C$10.00B	18.31	19.55%	4.77%	8.00%	52.89%
ENB	75 Outperform	$134.63B	22.77	9.51%	6.20%	43.97%	2.65%
GEI	73 Outperform	$3.91B	24.09	17.23%	7.24%	-5.85%	-8.05%
TRP	68 Neutral	$69.09B	15.80	15.89%	5.21%	0.72%	60.40%
ALA	67 Neutral	$11.83B	20.97	6.56%	3.19%	2.27%	-9.19%
Sector *	52 Neutral	C$2.91B	-0.93	-3.26%	6.13%	2.20%	-43.43%

Pembina Pipeline Corporate Events

Pembina Pipeline Initiates Consent and Proxy Solicitation for Series 1 Notes

Pembina Pipeline Corporation has initiated a consent and proxy solicitation process for its 4.80% Fixed-to-Fixed Rate Subordinated Notes, Series 1, seeking approval for proposed amendments to the indenture governing these notes. The amendments would allow noteholders to exchange their Series 1 Notes for a new series of subordinated notes, Series 3, which have similar economic terms but differ in bankruptcy provisions. This move could impact the company’s financial structure and offer potential tax implications for stakeholders.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$58.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Announces $200 Million Subordinated Note Offering

Pembina Pipeline Corporation announced a $200 million subordinated note offering, with proceeds intended to fund the redemption of existing preferred shares and for general corporate purposes. This strategic financial move aims to optimize Pembina’s capital structure and enhance its financial flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline to Redeem Series 19 Preferred Shares

Pembina Pipeline Corporation announced its intention to redeem all 8,000,000 of its issued and outstanding Cumulative Redeemable Floating Rate Reset Class A Preferred Shares, Series 19, on June 30, 2025, at a redemption price of $25.00 per share, totaling $200 million. This move is part of Pembina’s strategic financial management, and the final dividend for these shares will be paid on the same date, marking the end of any accrued dividends, which could impact stakeholders by altering the company’s financial structure and investor returns.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Corporation Announces 2025 Shareholder Meeting Results

Pembina Pipeline Corporation announced the results of its 2025 annual meeting of shareholders, where 63.54% of the company’s common shares were voted. Key outcomes included the election of 11 directors, the appointment of KPMG LLP as auditors, the continuation of the shareholder rights plan, and the approval of the company’s approach to executive compensation. These results reflect strong shareholder support for Pembina’s governance and strategic direction.

Pembina Pipeline Declares Dividends and Announces Q1 2025 Results Call

Pembina Pipeline Corporation has declared quarterly dividends for its preferred shares, with specific payment dates set for various series. This announcement underscores Pembina’s commitment to returning value to its shareholders. Additionally, Pembina will release its first quarter 2025 results on May 8, 2025, followed by a conference call and webcast on May 9, 2025, to discuss the results with investors and stakeholders, highlighting the company’s transparency and engagement with its financial community.