ZACKS·2025-12-16 14:46Core Insights - Pembina Pipeline Corporation has outlined a growth strategy for 2026, focusing on increasing fee-based adjusted EBITDA and expanding its pipeline systems to capitalize on market conditions and customer demand [2][3][18] Financial Performance - Pembina projects an adjusted EBITDA of C$4.1 billion to C$4.4 billion for 2026, representing an approximate 4% increase compared to 2025, driven by increased volumes across its diversified energy assets [3][9] - The company anticipates a compound annual growth rate of about 5% in fee-based adjusted EBITDA per share from 2023 to 2026 [4] Capital Investments and Expansions - Pembina's capital investment program for 2026 is set at C$1.6 billion, with C$640 million allocated to pipeline expansions and C$255 million for facilities projects [5][6] - The expansion of the Peace Pipeline System includes a C$200 million investment to increase propane-plus market delivery capacity by 70,000 barrels per day [10][11] Strategic Agreements - Pembina has secured a 12-year agreement with Ovintiv Inc. for 0.5 million tons per annum of liquefaction capacity at the Cedar LNG facility, expected to contribute C$220 million to C$280 million annually in adjusted EBITDA [7][8] Innovation and Sustainability - The Greenlight Electricity Center project aims to provide up to 1,800 MW of electricity to Alberta's power grid, with significant progress made in 2025 [12][13] - Pembina's focus on safe, reliable, and cost-effective energy infrastructure solutions is central to its long-term sustainability and growth strategy [19][20] Leadership Transition - Pembina is undergoing a leadership transition with key executives retiring by the end of 2025, aiming to strengthen organizational capabilities [14][15] Marketing Outlook - The marketing segment is expected to have a more moderate contribution in 2026 due to lower frac spreads and changing natural gas prices, but Pembina continues to navigate these dynamics through hedging strategies [16][17]