The stock of Canada-based energy midstream operator Pembina Pipeline Corporation (PBA - Free Report) has gained around 4% since its fourth-quarter earnings announcement on Feb 25. While the company reported a bottom-line miss, investors were impressed by year-over year EBITDA gains, plus the strength in its Pipelines and Facilities segments, to go with an improving macro environment for energy.
What Did Pembina Pipeline’s Earnings Unveil?
Pembina Pipeline reported fourth-quarter 2020 earnings per share of 42 cents, missing the Zacks Consensus Estimate by 3 cents. The underperformance was primarily due to the coronavirus-induced decline in energy demand.
However, Pembina Pipeline’s bottom line compared favorably with the year-earlier quarter's earnings of 16 cents due to contribution from the acquisition of Kinder Morgan’s (KMI - Free Report) Canadian assets.
Pembina Pipeline reported revenues of $1.3 billion that declined 2.2% year over year.
Operating cash flow rose by 5% to C$766 million. Meanwhile, adjusted EBITDA of C$866 million was C$79 million (or 10%) higher than the fourth quarter of 2019 as the company benefited from the Kinder Morgan Canada and the U.S. Cochin pipeline acquisitions.
In the fourth quarter of 2020, Pembina Pipeline saw volumes of 3,614 thousand barrels of oil-equivalent per day (mboe/d). This compares favorably to the 3,577 mboe/d that the firm had reported in the prior-year quarter.
Capital Expenditure & Balance Sheet
Pembina Pipeline spent C$161 million on capital expenditures during the quarter under review, compared to C$429 million a year ago. As of Dec 31, 2020, the company had cash and cash equivalents of $79 million and $7.7 billion in long-term debt. Debt-to-capitalization was approximately 42%.
Project Updates
The operator of energy infrastructure assets was unsure of the timeline regarding the proposed Jordan Cove LNG export terminal in Oregon, which has suffered several regulatory setbacks. But on a positive note, the company announced plans to move forward with expansions to the Peace Pipeline, citing renewed customer interest for more capacity.
Zacks Rank & Stock Picks
Pembina Pipeline currently carries a Zacks Rank #2 (Buy).
Apart from Pembina Pipeline, investors interested in the energy space might look at other options like Royal Dutch Shell and Ovintiv (OVV - Free Report) . Both companies carry a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Dutch Shell has an expected earnings growth rate of 166.94% for the current year.
Ovintiv has an expected earnings growth rate of 620% for the current year.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The stock of Canada-based energy midstream operator Pembina Pipeline Corporation (PBA - Free Report) has gained around 4% since its fourth-quarter earnings announcement on Feb 25. While the company reported a bottom-line miss, investors were impressed by year-over year EBITDA gains, plus the strength in its Pipelines and Facilities segments, to go with an improving macro environment for energy.
What Did Pembina Pipeline’s Earnings Unveil?
Pembina Pipeline reported fourth-quarter 2020 earnings per share of 42 cents, missing the Zacks Consensus Estimate by 3 cents. The underperformance was primarily due to the coronavirus-induced decline in energy demand.
However, Pembina Pipeline’s bottom line compared favorably with the year-earlier quarter's earnings of 16 cents due to contribution from the acquisition of Kinder Morgan’s (KMI - Free Report) Canadian assets.
Pembina Pipeline reported revenues of $1.3 billion that declined 2.2% year over year.
Operating cash flow rose by 5% to C$766 million. Meanwhile, adjusted EBITDA of C$866 million was C$79 million (or 10%) higher than the fourth quarter of 2019 as the company benefited from the Kinder Morgan Canada and the U.S. Cochin pipeline acquisitions.
In the fourth quarter of 2020, Pembina Pipeline saw volumes of 3,614 thousand barrels of oil-equivalent per day (mboe/d). This compares favorably to the 3,577 mboe/d that the firm had reported in the prior-year quarter.
Capital Expenditure & Balance Sheet
Pembina Pipeline spent C$161 million on capital expenditures during the quarter under review, compared to C$429 million a year ago. As of Dec 31, 2020, the company had cash and cash equivalents of $79 million and $7.7 billion in long-term debt. Debt-to-capitalization was approximately 42%.
Project Updates
The operator of energy infrastructure assets was unsure of the timeline regarding the proposed Jordan Cove LNG export terminal in Oregon, which has suffered several regulatory setbacks. But on a positive note, the company announced plans to move forward with expansions to the Peace Pipeline, citing renewed customer interest for more capacity.
Zacks Rank & Stock Picks
Pembina Pipeline currently carries a Zacks Rank #2 (Buy).
Apart from Pembina Pipeline, investors interested in the energy space might look at other options like Royal Dutch Shell and Ovintiv (OVV - Free Report) . Both companies carry a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Dutch Shell has an expected earnings growth rate of 166.94% for the current year.
Ovintiv has an expected earnings growth rate of 620% for the current year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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