Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility using well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - The Covered Calls Portfolio focuses on lower volatility income investing with an emphasis on capital preservation [2] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income while prioritizing capital preservation [3] - The investing group operates the Conservative Income Portfolio in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [3] - The fixed income portfolio aims to buy securities with high income potential and significant undervaluation compared to peers [2]

Key Takeaways PBA is expanding NGL exports via West Coast access to tap Asia's premium markets and reduce U.S. reliance. The Alliance and Aux Sable integration is driving C$40-C$65M in synergies and stronger Q1 adjusted EBITDA. 85-90% of PBA's EBITDA is fee-based, but weak NGL prices and low buyback activity weigh on investor sentiment.Pembina Pipeline Corporation (PBA) is a key player in North America’s midstream energy infrastructure sector, specializing in the transportation, storage and processing of ...

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The recent stock market rally is beneficial for capital gains on existing positions, but caution is advised for new investments in highly valued sectors like technology [2] - The analyst expresses a preference for defensive stocks with a medium- to long-term investment horizon [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [5]

Core Viewpoint - Pembina Pipeline Corporation (PBA) is a significant player in North America's energy infrastructure, managing extensive pipeline systems and gas processing facilities, which are crucial for hydrocarbon logistics across the continent [1][2]. Financial Performance - Pembina reported a strong first-quarter 2025 with adjusted EBITDA of C$1.2 billion, a 12% increase year over year, and earnings of C$502 million, up 15% [4][10]. - The company raised its quarterly dividend by 3% to C$0.71 per share, indicating confidence in cash flow stability [4][10]. - Pembina is trending toward the midpoint of its 2025 EBITDA guidance range of C$4.2 billion to C$4.5 billion, showcasing resilience amid macroeconomic volatility [4]. Strategic Positioning - Pembina secured long-term, take-or-pay agreements with a leading Montney producer, enhancing utilization across its pipeline systems and providing revenue visibility [5]. - The company is advancing a C$4+ billion portfolio of growth projects, including the Taylor-to-Gordondale expansion and Cedar LNG, aimed at capitalizing on rising volumes in the Western Canadian Sedimentary Basin (WCSB) [6]. - Pembina is diversifying its NGL marketing beyond U.S. markets, leveraging West Coast export capacity to access premium global markets, which enhances long-term resilience [7]. Financial Health - Pembina's debt-to-EBITDA ratio was 3.4x, below its target range, supporting a BBB credit rating [8]. - The company generated meaningful free cash flow in the first quarter, which was allocated to debt reduction and shareholder returns, positioning it for potential acquisitions or share buybacks [8]. Risks and Challenges - Pembina's marketing segment is exposed to commodity price volatility, with management cautioning that lower prices could offset gains later in 2025 [11]. - Regulatory uncertainty regarding Alliance Pipeline tolls could pressure EBITDA, with ongoing reviews adding to the uncertainty [12]. - Delays in partner projects, such as Dow's ethylene cracker, introduce execution risk that could affect cash flows and long-term demand for ethane infrastructure [13]. - The capital-intensive nature of Pembina's growth projects could strain free cash flow if execution challenges arise [15]. - Recent stock performance has shown a decline of 7%, contrasting with a 36.3% gain in its sub-industry, which may reflect investor concerns [16].

Group 1 - Pembina Pipeline reported revenue of $1.59 billion for the quarter ended March 2025, reflecting a 39.2% increase year-over-year [1] - The company's EPS for the quarter was $0.56, slightly up from $0.54 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $1.6 billion, resulting in a surprise of -0.48%, while EPS also missed the consensus estimate of $0.57 by -1.75% [1] Group 2 - Over the past month, Pembina Pipeline's shares returned +9.4%, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Group 3 - Total pipeline volumes reached 2808 million barrels of oil equivalent per day, slightly above the average estimate of 2799.12 million barrels [4] - Conventional pipeline volumes were 1033 million barrels per day, compared to the average estimate of 1052.21 million barrels [4] - Transmission pipeline volumes were 740 million barrels per day, exceeding the average estimate of 707.5 million barrels [4] - Marketing & New Ventures volumes totaled 369 million barrels per day, significantly higher than the estimated 302.01 million barrels [4] - Facilities volumes for gas services were 619 million barrels per day, close to the estimate of 621.53 million barrels [4] - NGL services volumes were 277 million barrels per day, surpassing the average estimate of 264.34 million barrels [4]

Core Viewpoint - Pembina Pipeline reported quarterly earnings of $0.56 per share, slightly missing the Zacks Consensus Estimate of $0.57 per share, but showing an increase from $0.54 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $1.59 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.48%, and a significant increase from $1.14 billion in the same quarter last year [2]. - Over the last four quarters, Pembina Pipeline has only surpassed consensus EPS estimates once, indicating challenges in meeting market expectations [2]. Stock Performance - Pembina Pipeline shares have increased approximately 6.7% since the beginning of the year, contrasting with a decline of 4.3% in the S&P 500 [3]. - The current Zacks Rank for Pembina Pipeline is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $1.64 billion, while for the current fiscal year, the estimate is $2.26 on revenues of $6.82 billion [7]. - The trend of estimate revisions for Pembina Pipeline is mixed, which could change following the recent earnings report [6]. Industry Context - The Oil and Gas - Production and Pipelines industry, to which Pembina Pipeline belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential headwinds for stock performance [8].

[Management's Discussion and Analysis (MD&A) Q1 2025](index=1&type=section&id=REPORT%20TO%20SHAREHOLDERS%20First%20Quarter%202025) [Company Overview and Strategy](index=2&type=section&id=1.%20About%20Pembina) Pembina is a North American energy transportation and midstream service provider focused on core business sustainability, energy transition, global product export, and stakeholder experience - Pembina is a leading energy transportation and midstream service provider with an extensive network of assets including pipelines, gas gathering and processing facilities, and export terminals[6](index=6&type=chunk) - The company's strategic priorities are centered around resilience, energy transition investment, meeting global demand through exports, and enhancing stakeholder experience[8](index=8&type=chunk)[9](index=9&type=chunk) [Financial & Operating Overview](index=3&type=section&id=2.%20Financial%20%26%20Operating%20Overview) Pembina's Q1 2025 earnings increased to $502 million, driven by Alliance/Aux Sable consolidation, higher volumes, and NGL margins, partially offset by Cochin Pipeline revenue and corporate costs Consolidated Financial Highlights (Q1 2025 vs Q1 2024) | ($ millions, except where noted) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,282 | 1,540 | 742 | | Adjusted EBITDA | 1,167 | 1,044 | 123 | | Earnings | 502 | 438 | 64 | | Earnings per common share – basic ($) | 0.80 | 0.74 | 0.06 | | Cash flow from operating activities | 840 | 436 | 404 | - The increase in earnings was primarily driven by the Alliance/Aux Sable Acquisition, which led to the full consolidation of these entities starting April 1, 2024, adding **$327 million** in consolidated net revenue in Q1 2025[14](index=14&type=chunk)[15](index=15&type=chunk) - Adjusted EBITDA increased by **$123 million**, largely due to approximately **$140 million** from the increased ownership in the acquired entities (Alliance/Aux Sable) and higher demand on the Alliance Pipeline[15](index=15&type=chunk) - Partially offsetting the gains were lower net revenue on the Cochin Pipeline (**$37 million**) due to new contracts with lower tolls, and higher corporate and income tax expenses[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Results](index=5&type=section&id=3.%20Segment%20Results) All operating segments reported Q1 2025 adjusted EBITDA growth, primarily due to the Alliance/Aux Sable acquisition, while the Corporate segment's loss increased from higher costs Adjusted EBITDA by Division (Q1 2025 vs Q1 2024) | ($ millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Pipelines | 677 | 599 | 78 | | Facilities | 345 | 310 | 35 | | Marketing & New Ventures | 210 | 188 | 22 | | Corporate | (65) | (53) | (12) | | **Total Adjusted EBITDA** | **1,167** | **1,044** | **123** | - The Alliance/Aux Sable Acquisition, completed on April 1, 2024, was a primary driver of performance changes, as these entities shifted from being equity-accounted investees to fully consolidated subsidiaries[22](index=22&type=chunk) [Pipelines Division](index=8&type=section&id=Pipelines) Pipelines division's adjusted EBITDA increased by $78 million to $677 million, driven by Alliance consolidation and higher volumes, partially offset by lower Cochin Pipeline revenue Pipelines Financial Overview (Q1 2025 vs Q1 2024) | ($ millions, except where noted) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net revenue | 881 | 677 | 204 | | Earnings | 518 | 455 | 63 | | Adjusted EBITDA | 677 | 599 | 78 | | Volumes (mboe/d) | 2,808 | 2,598 | 210 | - The primary driver for increased net revenue was the Alliance/Aux Sable Acquisition, with Alliance contributing **$243 million** as a wholly-owned entity in Q1 2025[25](index=25&type=chunk) - Growth was partially offset by a **$37 million** decline in net revenue on the Cochin Pipeline due to lower tolls on new contracts that replaced long-term agreements expiring in mid-July 2024[25](index=25&type=chunk) [Facilities Division](index=10&type=section&id=Facilities) Facilities division's adjusted EBITDA rose by $35 million to $345 million, primarily from Aux Sable consolidation, despite a $10 million decrease in PGI's share of profit Facilities Financial Overview (Q1 2025 vs Q1 2024) | ($ millions, except where noted) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 307 | 231 | 76 | | Earnings | 184 | 177 | 7 | | Adjusted EBITDA | 345 | 310 | 35 | | Volumes (mboe/d) | 896 | 805 | 91 | - The increase in revenue and adjusted EBITDA was largely due to acquiring a controlling interest in Aux Sable; Q1 2025 includes **$80 million** in revenue and **$48 million** in operating expenses from Aux Sable as a wholly-owned entity[30](index=30&type=chunk) - Key ongoing projects include RFS IV (a propane-plus fractionator), the Wapiti Plant expansion, and the K3 Cogeneration Facility, all expected to be in-service by the first half of 2026[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Marketing & New Ventures Division](index=12&type=section&id=Marketing%20%26%20New%20Ventures) Marketing & New Ventures' adjusted EBITDA increased by $22 million to $210 million, driven by Aux Sable consolidation and NGL margins, despite a $36 million loss from Cedar LNG Marketing & New Ventures Financial Overview (Q1 2025 vs Q1 2024) | ($ millions, except where noted) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net revenue | 239 | 49 | 190 | | Earnings | 160 | 64 | 96 | | Adjusted EBITDA | 210 | 188 | 22 | | NGL sales volumes (mboe/d) | 281 | 215 | 66 | - Higher NGL net revenue was driven by the Alliance/Aux Sable Acquisition and higher WCSB NGL margins and volumes; Q1 2025 includes **$49 million** in net revenue from Aux Sable as a wholly-owned entity[40](index=40&type=chunk) - The division recorded a share of loss from equity accounted investees of **$36 million**, primarily from unrealized losses on interest rate derivatives at Cedar LNG[40](index=40&type=chunk) - A positive final investment decision was made on the Cedar LNG Project in June 2024, with an anticipated in-service date in late 2028; Pembina is actively negotiating with potential customers for its **1.5 mtpa** capacity[44](index=44&type=chunk)[45](index=45&type=chunk) [Corporate and Income Tax](index=14&type=section&id=Corporate%20and%20Income%20Tax) Corporate segment's adjusted EBITDA loss increased by $12 million due to higher incentive costs, while net finance costs and income tax expense also rose significantly - General and administrative expenses increased by **$16 million**, largely due to higher incentive costs driven by Pembina's share price performance[47](index=47&type=chunk) - Net finance costs increased by **$41 million**, primarily from higher interest expense on long-term debt following the Alliance/Aux Sable Acquisition and higher interest rates[47](index=47&type=chunk) - Income tax expense rose to **$137 million** from **$91 million**, reflecting a higher effective tax rate of **22%** (vs. **17%** in Q1 2024) due to increased earnings and a prior-year tax basis adjustment[47](index=47&type=chunk) [Liquidity & Capital Resources](index=14&type=section&id=4.%20Liquidity%20%26%20Capital%20Resources) Pembina maintained strong liquidity with $2.1 billion in cash and unutilized debt facilities, holding investment-grade credit ratings and complying with covenants, while total contractual obligations reached $32.1 billion Liquidity Position as of March 31, 2025 | ($ millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total loans and borrowings outstanding | 11,883 | 12,048 | | Cash and unutilized debt facilities | 2,147 | 2,518 | - Pembina's credit facilities total approximately **$3.5 billion**, including a **$1.5 billion** revolving facility, a **$1.0 billion** sustainability-linked facility, and various term loans[51](index=51&type=chunk) - The company was in compliance with its financial covenants, with a Funded Debt to Capitalization ratio of **0.40** (maximum **0.70**) and Debt to Capital ratio of **0.39** (maximum **0.70**)[57](index=57&type=chunk)[58](index=58&type=chunk) Contractual Obligations as of March 31, 2025 | ($ millions) | Total | Less than 1 year | After 5 years | | :--- | :--- | :--- | :--- | | Long-term debt | 19,479 | 1,584 | 12,483 | | Transportation and processing | 10,879 | 78 | 10,027 | | Leases | 844 | 112 | 377 | | **Total** | **32,101** | **2,209** | **23,139** | [Share Capital](index=18&type=section&id=5.%20Share%20Capital) As of May 2, 2025, Pembina had 580.9 million common shares outstanding, renewed its NCIB, redeemed Series 22 Preferred Shares, and continues regular dividend payments - Pembina renewed its NCIB, allowing for the repurchase of up to approximately **29 million** common shares until May 15, 2025; no shares were repurchased during Q1 2025[70](index=70&type=chunk) - On January 8, 2025, the company redeemed all outstanding Series 22 Class A Preferred Shares for a total of approximately **$26 million**[72](index=72&type=chunk) Outstanding Share Data (as of May 2, 2025) | (thousands) | Issued and outstanding | | :--- | :--- | | Common shares | 580,908 | | Stock options | 3,181 | | Total Class A Preferred Shares | 73,972 | [Capital Expenditures](index=19&type=section&id=6.%20Capital%20Expenditures) Q1 2025 capital expenditures decreased to $174 million, with Facilities accounting for the largest share, and future 2025 spending estimated between $570 million and $770 million Capital Expenditures by Division (Q1 2025 vs Q1 2024) | ($ millions) | 2025 | 2024 | | :--- | :--- | :--- | | Pipelines | 60 | 141 | | Facilities | 103 | 32 | | Marketing & New Ventures | 5 | 3 | | Corporate and other projects | 6 | 10 | | **Total capital expenditures** | **174** | **186** | - Future capital expenditures for the rest of 2025 are projected to be between **$570 million** and **$770 million**, primarily for projects like RFS IV and NEBC volume growth support[77](index=77&type=chunk) [Selected Quarterly Information](index=20&type=section&id=7.%20Selected%20Quarterly%20Information) This section summarizes eight quarters of operating and financial data, showing increasing volumes and a general upward trend in revenue, adjusted EBITDA, and earnings, influenced by the Alliance/Aux Sable acquisition Quarterly Financial Highlights | ($ millions) | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,282 | 2,145 | 1,844 | 1,855 | 1,540 | | Adjusted EBITDA | 1,167 | 1,254 | 1,019 | 1,091 | 1,044 | | Earnings | 502 | 572 | 385 | 479 | 438 | - Quarterly results have been significantly impacted by the Alliance/Aux Sable Acquisition (Q2 2024), an impairment reversal in Pipelines (Q4 2023), and contributions to Cedar LNG (2024)[84](index=84&type=chunk) [Selected Equity Accounted Investee Information](index=22&type=section&id=8.%20Selected%20Equity%20Accounted%20Investee%20Information) Pembina's proportionate share of equity accounted investee loans and borrowings increased to $3.44 billion, primarily due to the Cedar LNG project's $2.7 billion construction loan facility and PGI's credit expansion Proportionate Loans and Borrowings of Equity Accounted Investees | ($ millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pipelines | 18 | 19 | | Facilities | 2,976 | 2,941 | | Marketing & New Ventures | 448 | 373 | | **Total** | **3,442** | **3,333** | - The Marketing & New Ventures debt relates to the U.S. **$2.7 billion** senior unsecured construction/term loan facility for Cedar LNG[86](index=86&type=chunk) - In March 2025, PGI exercised an accordion feature and opened a new **$500 million** revolving credit facility, maturing in March 2027[87](index=87&type=chunk) [Related Party Transactions](index=23&type=section&id=9.%20Related%20Party%20Transactions) Q1 2025 services provided to related parties decreased to $67 million, primarily because Alliance and Aux Sable are now consolidated subsidiaries, with PGI remaining the main related party Services Provided to Related Parties (Q1 2025 vs Q1 2024) | ($ millions) | 2025 | 2024 | | :--- | :--- | :--- | | PGI | 63 | 73 | | Aux Sable | — | 32 | | Alliance | — | 4 | | Cedar LNG | 4 | 3 | | **Total services provided** | **67** | **113** | - Following the Alliance/Aux Sable Acquisition on April 1, 2024, Alliance and Aux Sable became consolidated subsidiaries and are no longer treated as related parties[92](index=92&type=chunk) [Accounting Policies & Estimates](index=24&type=section&id=10.%20Accounting%20Policies%20%26%20Estimates) Q1 2025 accounting policies are consistent with 2024, with no material impact from new standards, while the company assesses future impacts of IFRS 18 and IFRS 9/7 amendments - There were no material changes to accounting policies or critical accounting estimates and judgments in Q1 2025[93](index=93&type=chunk)[96](index=96&type=chunk) - Pembina is assessing the impact of IFRS 18 (effective Jan 2027) on financial statement presentation and IFRS 9/7 amendments (effective Jan 2026) related to its wind-based power purchase agreements[94](index=94&type=chunk)[95](index=95&type=chunk) [Non-GAAP & Other Financial Measures](index=25&type=section&id=11.%20Non-GAAP%20%26%20Other%20Financial%20Measures) This section defines and reconciles non-GAAP measures like Adjusted EBITDA and Adjusted Cash Flow from Operating Activities, which management uses to evaluate performance and provide supplementary investor information Reconciliation of Earnings to Adjusted EBITDA (Q1 2025) | ($ millions) | Amount | | :--- | :--- | | **Earnings** | **502** | | Income tax expense | 137 | | Adjustments to share of profit from equity accounted investees | 147 | | Net finance costs | 150 | | Depreciation and amortization | 233 | | Unrealized (gain) from derivative instruments | (9) | | Other adjustments | 7 | | **Adjusted EBITDA** | **1,167** | Reconciliation of Cash Flow from Operating Activities to Adjusted Cash Flow (Q1 2025) | ($ millions) | Amount | | :--- | :--- | | **Cash flow from operating activities** | **840** | | Change in non-cash operating working capital | (16) | | Current tax expense | (133) | | Taxes paid, net of foreign exchange | 62 | | Accrued & paid share-based compensation adjustments | 59 | | Preferred share dividends paid | (35) | | **Adjusted cash flow from operating activities** | **777** | [Condensed Consolidated Interim Financial Statements](index=36&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) The unaudited condensed consolidated interim financial statements for Q1 2025 are presented, showing total assets of $35.7 billion and total equity of $17.6 billion, with detailed notes on key financial aspects Consolidated Statement of Financial Position Highlights | ($ millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | 35,710 | 35,967 | | Total liabilities | 18,140 | 18,457 | | Total equity | 17,570 | 17,510 | Consolidated Statement of Earnings Highlights | ($ millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | 2,282 | 1,540 | | Gross profit | 928 | 730 | | Earnings | 502 | 438 | - Note 3 confirms the finalization of the purchase price allocation for the Alliance/Aux Sable Acquisition, with no further adjustments in Q1 2025[147](index=147&type=chunk) - Note 5 discloses an impairment test was performed on the Alliance Canada assets CGU due to an ongoing toll review by the CER; no impairment was recognized as the recoverable amount exceeded the carrying value[153](index=153&type=chunk)[154](index=154&type=chunk)

Core Viewpoint - The energy sector is facing challenges due to macroeconomic uncertainty and commodity price volatility, but some companies are positioned to potentially exceed earnings expectations, which could positively impact their stock prices in the near term [1]. Sector Snapshot - Oil prices have decreased in Q1 2025, with West Texas Intermediate crude averaging $71.84 per barrel, down from $77.56 in Q1 2024, attributed to soft global demand, rising inventories, and increased non-OPEC+ production [2]. - U.S. natural gas prices have rebounded sharply, averaging $4.15 per MMBtu compared to $2.13 a year ago, driven by colder weather and growing LNG exports [2]. Earnings Expectations - S&P 500 energy firms are projected to report a 12.9% year-over-year decline in earnings and a 0.3% dip in revenues, indicating ongoing pressure on profit margins [3][5]. - This decline is an improvement from the 22.4% earnings drop in Q4 2024, but still reflects significant challenges for oil-centric companies [3][6]. Company Performance Insights - Some energy companies are expected to perform better due to effective cost management, operational efficiency, and a focus on natural gas, which may lead to earnings surprises [4][7]. - Energy Transfer (ET) has an Earnings ESP of +9.23% and a Zacks Rank 3, with earnings scheduled for release on May 6 [11][12]. - MPLX LP also has a +9.23% Earnings ESP and a Zacks Rank 3, with earnings set to be released on May 6 [12]. - Pembina Pipeline (PBA) has an Earnings ESP of +2.93% and a Zacks Rank 3, with earnings scheduled for May 8 [13]. - ConocoPhillips (COP) has an Earnings ESP of +2.76% and a Zacks Rank 3, with earnings also scheduled for May 8 [14].

Core Insights - Pembina Pipeline Corporation (PBA) reported fourth-quarter 2024 earnings per share of 66 cents, exceeding the Zacks Consensus Estimate of 59 cents, driven by strong performance in facilities and marketing & new ventures segments [1][2] - The company's quarterly revenues of $1.5 billion decreased by approximately 15.4% year over year, missing the Zacks Consensus Estimate of $1.8 billion [3] - Operating cash flow increased by 2.5% to C$902 million, while adjusted EBITDA reached a record C$1,254 million compared to C$1,033 million in the prior-year period [3] Financial Performance - PBA's facilities volume for the fourth quarter was 877 thousand barrels of oil equivalent per day (mboe/d), surpassing the consensus mark of 860 mboe/d [1][3] - Earnings from the pipelines segment decreased by about 21% year over year to C$534 million, attributed to the reversal of a previous impairment related to the Nipisi Pipeline [6] - Facilities segment earnings increased by 24% year over year to C$177 million, driven by unrealized gains on interest rate derivative financial instruments [7] - Marketing & New Ventures segment earnings rose by 20% year over year to C$245 million, also benefiting from unrealized gains on interest rate derivative financial instruments [8] Volume and Sales - Total volumes for the fourth quarter reached 4,016 mboe/d, up from 3,752 mboe/d in the prior-year quarter [3] - Natural gas liquids (NGL) sales volumes totaled 252 mboe/d, reflecting a 16% increase compared to the year-ago quarter, supported by higher sales of ethane, propane, and butane [9] Capital Expenditure and Balance Sheet - Pembina's capital expenditure for the quarter was C$242 million, an increase from C$177 million a year ago [11] - As of December 31, 2024, the company had cash and cash equivalents of C$141 million and long-term debt of C$10.5 billion, with a debt-to-capitalization ratio of 37.6% [11] Future Guidance - For 2025, Pembina expects adjusted EBITDA to be in the range of C$4.2 billion to C$4.5 billion and aims to maintain a debt-to-adjusted EBITDA ratio between 3.3 and 3.6 times [12]

Core Viewpoint - Pembina Pipeline Corporation (PBA) is a significant player in North America's energy infrastructure, operating a comprehensive network of pipelines and processing facilities that support the hydrocarbon value chain [1][2][3] Financial Performance - PBA achieved record financial results in 2024, with adjusted EBITDA reaching $4.41 billion, reflecting a 15% year-over-year increase [4] - The company generates over 80% of its revenues from fee-based contracts, enhancing earnings stability and dividend security [4] - PBA maintains a low debt-to-adjusted EBITDA ratio of 3.5x, indicating strong financial discipline and growth capacity [4] Revenue Model - Approximately 70% of PBA's earnings are derived from long-term take-or-pay or cost-of-service contracts, ensuring predictable revenue streams [5][6] - The company's ongoing pipeline expansions and asset acquisitions further strengthen its contract base, providing confidence in earnings durability [6] Market Expansion - PBA is strategically investing in LNG and NGL infrastructure, including the Cedar LNG project and Redwater Fractionation expansions, to capitalize on growing global demand [7] - The Cedar LNG project, expected to be operational by late 2028, is supported by long-term contracts, mitigating market risk [7] - PBA's exports of LPG and propane to international markets contribute to volume growth and margin expansion [7] Growth Catalysts - The expansion of production in the Western Canadian Sedimentary Basin positions PBA to benefit from increased demand for natural gas, NGLs, and condensate [8] - Key projects like the Peace Pipeline expansion and Nipisi reactivation will accommodate rising supply, ensuring PBA's role as a critical service provider [8] Competitive Position - PBA's integrated infrastructure, including pipelines, processing facilities, and storage terminals, enhances operational flexibility and provides a competitive advantage [9] - The diversified asset base reduces dependency on single points of failure, ensuring continued revenue generation across various energy segments [9] Recent Stock Performance - PBA's share price has decreased by 5.8% over the past six months, contrasting with a 15.4% increase in its Production and Pipelines sub-industry [14]