Pembina Pipeline CorporationThe company’s PBA stock has shown no substantial movement since the announcement of first quarter 2021 results on May 6.

In the profits of Pembina Pipeline

Pembina Pipeline reported first quarter 2021 earnings per share of 39 cents, missing the Zacks consensus estimate of 6 cents. The underperformance is mainly due to lower sales volumes.

However, Pembina Pipeline’s bottom line compared favorably to the previous year’s quarter profit of 37 cents on improved natural gas liquids, as well as crude oil prices and margins.

Pembina Pipeline reported revenue of $ 1.57 billion, which improved 26% year over year.

Cash flow from operations increased 11.2% to C $ 456 million. Adjusted EBITDA of C $ 835 million was C $ 5 million higher than the figure for the first quarter of 2020.

In the first quarter of 2021, Pembina Pipeline recorded volumes of 3,482 thousand barrels of oil equivalent per day (mboe / d), which compares unfavorably with the 3,508 mboe / d reported in the previous year’s quarter.

Segment information

Pipelines: The unit reported adjusted EBITDA of C $ 529 million, down 3.8% from quarterly levels last year. The downside was a result of reduced interruptible volumes from the Drayton Valley, Peace and Vantage pipelines, as well as higher operating costs due to increased electricity expenses and integrity expenses. The pipeline segment experienced a 1% year-over-year decrease in volume to 2,587 Mboe / d.

Installations: Segment adjusted EBITDA of C $ 269 million improved from C $ 256 million in the quarter last year. The division was driven by the increased contribution to the supply volume of the Redwater complex and the additional revenue amounts associated with the start-up of Duvernay III in November 2020. Volumes of 895 mboe / d increased by 1.8 % year over year.

Marketing and new businesses: The division posted adjusted EBITDA of C $ 90 million compared to C $ 55 million in the first quarter of 2020. The increase was attributable to higher net sales resulting from higher prices for propane and crude oil in the first quarter. quarter of 2021 in combination with increased sales. LGN volumes.

The Marketing and New Business segment recorded volumes of 221 mboe / d, up 13% compared to the same period of the previous year thanks to monetized built storage positions and an improvement in supply volumes at Redwater complex.

Pembina Pipeline Corp. Price, Consensus and Surprise EPS

Pembina Pipeline Corp. Price, Consensus and Surprise EPS

Pembina Pipeline Corp. graph-price-consensus-eps-surprise | Quote from Pembina Pipeline Corp.

Capital expenditure and balance sheet

Pembina Pipeline spent C $ 127 million on fixed assets during the quarter under review, compared to C $ 483 million a year ago. As of March 31, 2021, the company had cash and cash equivalents worth $ 51 million and long-term debt of $ 8.5 billion. Debt-capitalization was around 43%.

Project updates

Pembina Pipeline and its 45% -owned Veresen Midstream joint venture successfully launched Hythe Developments during the quarter under review.

In addition, the company completed construction of the Prince Rupert terminal and made it operational. It is a propane export terminal on Watson Island, British Columbia, with a licensed capacity of 25,000 barrels per day at the end of the first quarter.

Management also informed of the signing of a 100 MW Long Term Power Purchase Agreement (PPA) with a subsidiary of TransAlta Corporation. The company will benefit from the PPA in a number of ways, including obtaining renewable energy at a competitive price and setting a price for a portion of the energy it uses.

Advice

Pembina Pipeline is sticking to its previously issued Guided Adjusted EBITDA range of $ 3.2 billion to $ 3.4 billion for 2021.

Zacks rank and key selections

Pembina Pipeline currently has Zacks # 3 (Hold) rank. Some better ranked players in the energy space are SilverBow Resources Inc. SBOW, Matador Resources Co. MTDR and Continental Resources, Inc. CLR, each currently displaying a Zacks # 1 rank (strong buy). You can see The full list of current Zacks # 1 Rank stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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