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Highlights

  • Pembina reported a 16.6% YoY revenue increase to CAD 7,384 million for FY24
  • Gross profit rose by 16.8% YoY to CAD 3,316 million in FY24, driven by higher revenues
  • Net earnings increased by 5.5% YoY, reaching CAD 1,874 million, supported by tax recovery
  • Pembina forecasts FY25 adjusted EBITDA between CAD 4.2 billion and CAD 4.5 billion

 Pembina Pipeline Corporation (TSX:PPL) is a midstream company serving Canadian and North American markets with integrated pipeline, storage, and propane assets.

For the financial year 2024 (FY24), Pembina reported a revenue of CAD 7,384 million, marking a 16.6% YoY increase compared to FY23. This growth was driven by the acquisition of Alliance and Aux Sable, alongside higher NGL prices and increased crude oil volumes. The company also saw a rise in gross profit, which reached CAD 3,316 million, up by 16.8% YoY, reflecting the positive impact of higher revenues during the period.

However, earnings before income tax (EBIT) declined by 21.4% YoY to CAD 1,720 million, mainly due to a CAD 616 million loss on acquisition and increased finance costs. Despite the drop in EBIT, net earnings improved by 5.5% YoY, reaching CAD 1,874 million, supported by an income tax recovery.

Recent Business Developments

On February 27, 2025, PPL announced that Pembina Gas Infrastructure (PGI) finalized separate transactions with Whitecap Resources Inc. and Veren Inc. These transactions involve asset acquisitions and the funding of up to CAD 700 million for the development of new infrastructure.

On the same day, the company announced securing a contract with the Nipisi Pipeline. This contract will accommodate increasing volumes from the Clearwater area, with an additional 25,000 barrels per day of capacity contracted on a long-term basis.

Company Outlook

PPL’s management has forecasted that the adjusted EBITDA for FY25 will range from CAD 4.2 billion to CAD 4.5 billion. Additionally, the company anticipates generating positive free cash flow, with all capital investments for the 2025 program fully funded through cash flow from operating activities.

Top 10 Shareholders

The top 10 shareholders of Pembina collectively own approximately 24.29% of the company's total shares. Among them, The Vanguard Group, Inc. holds the largest stake at around 4.20%, while RBC Dominion Securities, Inc. owns about 3.98%.

Stock Information

The stock price of PPL has appreciated by around 6.34% and 10.95% in the past month and past nine months, respectively. The stock’s 52-week low and high spans from CAD 46.70 to CAD 60.72. As of March 03 2025, the stock’s closing price is CAD 55.79.

PPL Daily Technical Chart, Data Source: EODHD/Others

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 03 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.