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Opinions Stockchase Insights
Pembina Pipeline CorpPPL.TOBUY ON WEAKNESSNov 06, 2024
Stockchase InsightsStock price when the opinion was issued
As of Oct 09, 2026. Market Open.
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Exposure to the 4 horsemen of Western Canadian growth: gas, LNG, condensate, and crude. Partnership with META. Heartland Extraction Plant should see more volumes. Leverage to the pipeline going west out of Alberta. Exposure to Cedar LNG facility under construction.
Low double-digit internal growth, plus dividend yield, gives you ~15% annual compound return. Yield is 4.65%.
Dennis Mitchell, CFA
They will benefit from the long-term investments that Canadian government is making in Western Canada, like growing oil and natural gas production (LNG Canada). They have a good track record of completing projects on time and on budget. Always a good dividend payer, now at 4.5%. The midstreams are a safe way to play ongoing production in Western Canada.
It has support, so is good to buy now. All pipelines look good. Natural gas prices will play catch-up.
(Analysts’ price target is $73.18)
Keith RichardsThere are some overhangs on deals with KKR and Apollo but it is well run and has the best growth prospects of similar companies. The coming increase of LNG is good for Pembina as the Canadian infrastructure gets larger. Even at higher prices today it is showing strength.
Ryan BushellPays a 4.5% dividend. Good backlog so can increase cash flows and dividends for the next few years. Will benefit if a new LNG pipeline is built out west.
(Analysts’ price target is $72.67)
Christine PooleStill loves it (though not at these valuations ;) Growth is on track, and getting paid in the meantime. What's not to like?
Rebecca TeltscherHe doesn't own any of the pure-play oil producers right now (though he does own TOU). The reason is the volatility we're seeing.
His team plays energy these days by owning ENB, and some of the smaller midstream companies like PPL and GEI. He likes their stability.
Andrew Pink
A name for a good dividend and safety. Pipelines are not quite as good as utilities, because they're perceived as being commodity-sensitive (even though they're really not).
You'll get your dividend, and the safety means you can sleep at night (and that's worth something). You can get diversification via funds and ETFs.
Western Canada has many opportunities for more production and PPL is in the middle of that. Is a decent long-term gold with a good dividend.
Bruce Murray
EPS of 60c did miss estimates of 75c; revenue of $1.84B also missed estimates ($2.11B). EBITDA of $1.01B missed estimates by 4%. Pembina's 4Q Ebitda may expand by high-single digits, assuming it reaches the midpoint of narrowed guidance of C4.23-$4.33 billion. Contributions from increased stakes in Alliance Pipeline and Aux Sable will likely be the primary drivers, outweighing pressure on lower re-contracted tolls on the Cochin pipeline system. The narrower differential between US Gulf Coast and western Canadian condensate could continue to limit interruptible volume on Cochin. The Marketing segment may be little changed again as the fully consolidated Aux Sable asset and improved NGL margin -- partly due to weak natural gas prices -- buoy Ebitda. Capital spending in 4Q could be similar to 3Q's $262 million, supporting free-cash-flow generation to cover the dividend. It is up 24% this year, but could continue to benefit from lower interest rates. The quarter was clearly not perfect, but with its valuation and 4.9% dividend we would not necessarily see it as a sell if one wants sector exposure.
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