Pembina Pipeline Q3 Earnings & Revenues Miss Estimates, Both Down Y/Y

Core Insights - Pembina Pipeline Corporation (PBA) reported third-quarter 2025 earnings per share of 31 cents, missing the Zacks Consensus Estimate of 45 cents and down from 44 cents in the same quarter last year, primarily due to weaker results in the Marketing & New Ventures segment and soft delivery in the Pipelines segment [1][2] Financial Performance - Quarterly revenues were $1.3 billion, a decrease of approximately 3.8% year over year, and also missed the Zacks Consensus Estimate by 1.6% [2] - Operating cash flow decreased about 12.1% to C$810 million, while adjusted EBITDA increased 1.5% year over year to C$1 billion, driven by higher net revenues from the Peace Pipeline system and the Alliance Pipeline [2] - The company reported volumes of 3,959 mboe/d in the third quarter, compared to 3,892 mboe/d in the prior-year quarter [3] Dividends and Growth Initiatives - Pembina's board declared a quarterly cash dividend of 71 Canadian cents per share, payable on December 31, 2025, to shareholders of record as of December 15 [3] - The company made significant progress in growth initiatives, securing new transportation commitments on the Peace Pipeline and improving contract stability on the Alliance Pipeline [4] Segment Performance - In the Pipelines segment, adjusted EBITDA was C$630 million, a 6.2% increase from the previous year, supported by stronger demand and higher revenues [6] - The Facilities segment saw adjusted EBITDA rise to C$354 million, driven by higher contributions from PGI and increased volumes at the Duvernay Complex [7] - The Marketing & New Ventures segment's adjusted EBITDA decreased to C$99 million, down from C$159 million, due to lower net revenues and higher input costs [8] Capital Expenditure and Balance Sheet - Pembina's capital expenditure for the quarter was C$178 million, down from C$262 million a year ago [10] - As of September 30, the company had cash and cash equivalents of C$149 million and long-term debt of C$12.6 billion, with a debt-to-capitalization ratio of 42.6% [10] 2025 Guidance - The company expects 2025 adjusted EBITDA to be in the range of C$4.25 billion to C$4.35 billion, slightly adjusted from the previous guidance of C$4.23 billion to C$4.43 billion [11]