Canadian energy infrastructure company, Pembina Pipeline, announced its 2022 earnings, revealing a record-breaking C$2.97bn ($2.19bn), up from C$1.24bn in 2021. The company’s adjusted full-year EBITDA also surged to a record-breaking C$3.75bn from C$3.43bn in 2021. Pembina Pipeline (TSX:PPL)reported Q4 earnings of C$243mn, which is a considerable increase from C$80mn.
The company attributed its success to the higher liquids volumes on the Peace Pipeline and Cochin Pipeline systems, stronger performance from particular gas processing assets in the Montney and Deep Basin regions, and the joint venture transaction that created Pembina Gas Infrastructure. Pembina Pipeline’s cash flow from operating activities for 2022 increased to C$2.93bn, up from C$2.65bn in 2021. The company also had “substantial” free cash flow, allowing for a 3.6% increase to Pembina’s common share dividend, the repurchase of C$350mn of common shares, and the redemption of C$300mn of preferred shares.
In 2022, Pembina Pipeline continued to advance the Alberta Carbon Grid carbon capture and storage (CCS) project, in partnership with TC Energy, which could capture and sequester 20mn mt/yr of CO2 at full build-out. Additionally, the company advanced the Cedar LNG floating LNG facility with BC’s Haisla Nation, on which it expects to take a final investment decision by Q3 2023.
Overall, Pembina Pipeline’s earnings for 2022 exceeded expectations and demonstrated the company’s strength in the energy infrastructure sector.
Pembina Pipeline Corp Stock Forecast
According to 15 analysts, the average target price for Pembina Pipeline Corp over the next 12 months is CAD 49.00, with an average analyst ratings of Buy. Stock Target Advisor’s analysis is Slightly Bullish, based on 10 positive signals and 5 negative signals. Pembina Pipeline Corp’s stock price at the last closing was CAD 45.22, representing a -2.75% change over the past week, a -5.93% change over the past month, and a +7.98% change over the last year.
Company Overview
Pembina Pipeline Corporation is an energy industry company that provides transportation and midstream services. It operates through three segments, including Pipelines, Facilities, and Marketing & New Ventures, and has a transportation capacity of 3.1 million barrels of oil equivalent per day. The Facilities segment offers infrastructure for natural gas, condensate, and natural gas liquids, and the Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas. Pembina Pipeline Corporation is headquartered in Calgary, Canada, and was founded in 1954.
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