TSE:PPL

Pembina Pipeline Corp (PPL.TO)

68.23
+1.10 (1.64%)
as of Jun 10, 2026, 8:00:00 pm Market Open.
1161 watching
0
Investor Insights
star iconJun 10, 2026, 12:00 am

This summary was created by AI, based on 48 opinions in the last 12 months.

Pembina Pipeline Corp (PPL-T) has generally received favorable reviews from industry experts, highlighting its solid position in the energy sector and strong cash flow from contracted pipelines. Analysts appreciate its 5%-plus dividend yield, which is supported by a stable business model based on take-or-pay contracts. While some analysts caution that valuation appears stretched at current levels, they acknowledge the company’s potential for future growth, especially in LNG exports. Overall, the sentiment is largely positive, although there are differing views on timing and the need for a better entry point. Concerns over certain assets and competitive pressures exist, but many see long-term benefits, especially as energy demand is expected to increase.

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Consensus
Buy
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Valuation
Fair Value
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Similar
ENB
TOP PICK
A beautiful yield and decent upside. An excellent quality balance sheet. A safe place to put your money and avoid paying 30 times book value and taking on large market risks. Yield 7.5% (Analysts’ price target is $38.95)
COMMENT
He doesn't know which pipeline would be better than the other one. However, he prefers to play energy with pipelines in general. He has been focusing on the US since there, they are more supportive of the sector. The Canadian government is less supportive of pipelines. It's not a growth area for him.
BUY
A well-run pipeline company. The dividend is safe at 7.5%. As oil prices recover, he thinks pipelines will deliver crude for many years. Growth will be tough though. He'd be happy to hold it here.
COMMENT

Sell Banks for Pipelines? He likes this strategy. Balance the weight between both he suggests. Pipelines are economically sensitive these days, due to their weightings in the energy ETFs. ENB, TRP and PPL have been particularly sensitive. He thinks the valuations warrant investment here.

BUY
This is a smart long term play. It has a well contracted asset base. It is diverse. It has a lot of things going for it. Within the pipeline industry it is one he would find more exciting at this time.
BUY
A good company with take-or-pay contracts. If oil fills storage and producers go bankrupt, they may need to revise terms. He likes management and the dividend rate. In a world of higher oil prices, this will do well. You can add here. They have been a good steward of capital, with projects coming in on time and on schedule.
BUY
Preferred share with 8.73%. It is a mid-stream company and the underlying stock is down quite a bit. He likes it as a business. The credit that you have within this space is really quite good. He sees no reason why they would default on the payment. It is just lumped into energy.
HOLD
This is one of the difficult themes coming through these times. Energy is as cheap as it has been vs. the S&P in the last 30 years. Structurally there is a headwind. The most defensive part of energy would be the pipes and this one is a good quality company. He has almost no exposure to the energy space. He thinks you can count on the distribution, but the total return may not be great. He would prefer to see a turn happen first before putting new money to work.
PAST TOP PICK
(A Top Pick May 14/19, Down 28%) They still it own as one of two pipeline holdings. They were active mid-March as COVID began and oil prices collapsed. They cut their discretionary capex by $4.5 billion, of which $1 billion will be cut this year. Recent earnings reported were fine and they have continued guidance at the lower end of the range. Take or pay contracts are good. Dividend payout ratios are about 60%. Yield 7.5%
BUY ON WEAKNESS

PPL & ALA? PPL at $18.50 is his target buy price. ALA might be a good buy if we take out the lows of March.

BUY

Trashed along with the entire energy sector. Surprising how low this fell, but he bought in the mid-20s. Safe dividend. Smart operators. They can reduce costs further, if needed. The selling is way overdone here and with Enbridge.

COMMENT

Historically these have been great assets to own. They will follow energy stocks in general too. He prefers to own KEY over PPL. There have been concerns about insolvencies with producers in the energy space with low oil prices. He has added more to their KEY holdings, thinking the natural gas space is safer than oil right now. He would own a couple of holdings in a diversified way.

HOLD
The dramatic price decline was caused by reduced demand and lower commodity prices in Canada. Even with take or pay contracts they need healthy customers. He thinks they will be able to weather the storm, however.
WAIT
This is a company that will take time to recovery. In a world of $20 oil, we really are in uncharted waters. If there are bankruptcies in the oil patch it will take time to re-balance. Eventually they will become a buy, but only when they are cheap enough -- around $22.
TOP PICK
It has been one of the best managed companies in Western Canada for decades. The dividend is around 10%. If there is not a multi-year downturn in volumes they will be able to maintain the dividend. (Analysts’ price target is $38.11)
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