Pembina Pipeline (PBA, Financial) has received the green light from the Toronto Stock Exchange to renew its normal course issuer bid (NCIB). This approval allows the company to repurchase up to 5% of its outstanding common shares. The buyback can be executed through the facilities of the TSX, the New York Stock Exchange, and other Canadian trading platforms. The repurchase program starts on May 16 and will run until May 15 of the following year, unless Pembina buys back the maximum allowed shares or decides to halt further purchases beforehand.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Pembina Pipeline Corp (PBA, Financial) is $42.85 with a high estimate of $44.53 and a low estimate of $40.22. The average target implies an upside of 15.26% from the current price of $37.18. More detailed estimate data can be found on the Pembina Pipeline Corp (PBA) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Pembina Pipeline Corp's (PBA, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Pembina Pipeline Corp (PBA, Financial) in one year is $30.86, suggesting a downside of 17% from the current price of $37.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Pembina Pipeline Corp (PBA) Summary page.
PBA Key Business Developments
Release Date: May 09, 2025
- Adjusted EBITDA: $1.167 billion for Q1 2025, a 12% increase over the same period in the prior year.
- Earnings: $502 million for Q1 2025, a 15% increase over the same period in the prior year.
- Total Volumes: 3.7 million barrels of oil equivalent per day in Q1 2025, a 9% increase over the same period in the prior year.
- Dividend Increase: $0.02 per share or 3% increase in the quarterly common share dividend.
- Debt to Adjusted EBITDA Ratio: 3.4 times as of March 31, 2025, with an expectation to exit 2025 at 3.4 to 3.7 times.
- 2025 Adjusted EBITDA Guidance Range: $4.2 billion to $4.5 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Pembina Pipeline Corp (PBA, Financial) reported a strong start to 2025 with a quarterly adjusted EBITDA of $1.167 billion, a 12% increase over the same period in the prior year.
- The company announced a $0.02 per share or 3% increase in the quarterly common share dividend, reflecting confidence in its sustainable and growing dividend strategy.
- Pembina entered into significant new and extended long-term take-or-pay volume commitments with a leading Montney producer, covering its full value chain.
- The company is progressing well with the remarketing of its capacity on the Cedar LNG Project, having shortlisted preferred counterparties and entered definitive agreement negotiations.
- Pembina is advancing several in-flight construction projects and has a strong competitive advantage in delivering projects safely, on time, and on budget, with superior capital efficiency compared to industry peers.
Negative Points
- The delay in Dow's Path2Zero project has impacted Pembina's timeline for developing potential infrastructure to meet its ethane supply commitments, although no material capital has been spent yet.
- There is ongoing uncertainty regarding the Canadian energy regulator review process for the Alliance Pipeline, with potential impacts on future tolls and risk-sharing arrangements.
- Pembina's revenue volume growth within conventional pipelines and gas processing assets is expected to be slightly lower than physical volume growth due to customers expanding into their contractual take-or-pay commitments.
- The company faces potential challenges from lower commodity prices due to global economic uncertainty, which could impact its marketing and new ventures division.
- Planned maintenance and third-party natural gas egress restrictions are expected to affect second-quarter results, with higher integrity and geotechnical costs anticipated in the third and fourth quarters.
