Company Summary
Founded in 1954, Pembina Pipeline Corporation is a Canada-based vertically integrated operator of energy infrastructure assets. Headquartered in Calgary, Alberta, the company is active throughout the hydrocarbon value chain, offering a complete range of midstream and marketing solutions. Pembina Pipeline’s extensive network of conduits covers some of North America’s most prolific basins.
The company’s mix of transportation and midstream assets include conventional pipelines, oil sands pipelines, transmission pipelines, fractionator and gas processing plant. In total, the dual-listed (NYSE & Toronto) company has roughly three million barrels per day of hydrocarbon transportation capacity, six billion cubic feet per day of gas processing capacity along with 32 million barrels of hydrocarbon storage capacity. Pembina divides its operations into three major segments: Pipelines, Facilities, and Marketing & New Ventures.
The company is well diversified with crude oil and condensate representing 40% of its total volumes, while natural gas liquids (“NGL”) and natural gas comprise 25% each. As one of the few companies to pay a lucrative quarterly dividend (of 67 Canadian cents, which works out to C$5.64 annually), Pembina focuses on growth through a combination of acquisitions and new projects that are placed into service.
An Overview of Pembina Pipeline’s Divisions:
Pipelines: This division is the most important contributor to the company’s earnings and includes pipeline transportation, storage, rail services and terminalling. It had accounted for 58% of the firm's 2023 adjusted EBITDA (or Earnings Before Interest, Taxes, Depreciation and Amortization).
Facilities: Pembina’s second biggest unit, it consists of natural gas fractionation and processing plants among others. The Facilities division had accounted for 32% of the company’s overall adjusted EBITDA in 2023.
Marketing & New Ventures: This business unit, which focuses on marketing natural gas liquids to distribution companies, had contributed 16% to Pembina’s 2023 adjusted EBITDA.