Ryan Bushell Pembina Pipeline Corp PPL-T PAST TOP PICK Aug 15, 2025

Should benefit from the energy boom. Has held for 5 years, last year hasn't been the best. Can't pinpoint why it's down, but looks good fundamentally. Loves the improving ROC; used to be 5-6%, but now up to 9% (pretty good for a utility). Palatable valuation at 11x EV/EBITDA. 

Macro environment is tough for energy and energy infrastructure. 200-day MA starting to trend lower, not a fantastic sign. Regulatory environment isn't that helpful either. Nice yield of 5.8%, which will probably remain steady going forward.

Not sure that government's new openness to exporting energy gives him optimism, as the stock price isn't reflecting that.

The worst-performing infrastructure-pipeline name in the short term. Are some issues with an asset in Canada where the regulated pricing has been set lower. That's holding this stock back. A well-run business with good assets, but has volatility. It has more outlets for growth vs. peers like ENB. Can buy this for the dividend and wait. The PE is low, and will always trade at a discount to peers, because less of its cash flow is regulated.

About 70% of the business is take-or-pay -- no volume risk or commodity price risk. Another 20% is on fee-for-service contracts, where there is volume risk but no commodity exposure. Rest has commodity exposure to nat gas and oil. 

Over 10 years, has been competitive with the TSX. Compounding total shareholder returns just over 10%. A bit better than its energy infrastructure peers. Beta is about 0.7, low risk. Trading at low end of the range. Yield ~5.4%, and growing at a 5% pace for foreseeable future. Good sightline to high-single or low-double-digit return.

Head-scratcher as to why it hasn't moved along with TRP and ENB. Perhaps because those 2 names are the biggies where $$ flocks to in the sector. Unparalleled strategic positioning for nat gas and oil infrastructure in Canada. 80% of cashflows are contracted fee-for-service, and this funds the dividend. Good capital appreciation plus dividend growth.


Cloud on new contracted price for Alliance Pipeline was overblown by analysts, impact is minimal going forward. Cedar LNG and other levers for growth. Yield is 5.50%, and growing ~3% a year.

Worries over tolling on one of their pipelines has pressure PPL, but are well-positioned for future growth in energy infrastructure where more spending in pipelines looks likely. The dividend is safe. Has a low valuation and pays a decent dividend, though in the penalty box now. Stick with it. Good to buy now cheap.

Likes the technical picture. Trended up, and has been going sideways. A break above that (expects it later in the fall) is quite positive. Right space, which has been beaten up a bit. Good risk/reward plus a nice dividend. 

If it breaks below the lower channel, then something's wrong with the story and you wouldn't add more. Yield is 5.24%.

Chart shows an emerging downtrend. Support around $49.50. Hard to say if range-bound between $49.50 and $58.50, though it is creeping up toward the high end. He'd want to see it break out above $56-57, or at least take out the previous high so you're not in the trend of lower highs anymore.

Owns pipelines and midstream assets (where nat gas goes through, and they clean it up and send it out). Good growth projects on the West Coast with, potentially, Cedar LNG. Likes it a lot. Good dividend, which grows. Good balance sheet. Core holding.