We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pembina (PBA) Q4 Earnings Miss But Stock Gains: Here's Why
Read MoreHide Full Article
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.
Pembina Pipeline Corp. Price, Consensus and EPS Surprise
Pipelines: The unit reported adjusted EBITDA of C$577 million, up 24% from the year-ago quarters levels. The upside was the outcome of higher sales from the Cochin Pipeline and Edmonton Terminals — both inherited from Kinder Morgan Canada's acquisition — plus higher deferred revenues recognized on the Peace Pipeline system. The Pipelines segment saw volumes improve 2% year over year to 2,730 mboe/d.
Facilities: The segment’s adjusted EBITDA of C$255 million remained essentially flat year over year. The division was buoyed by contribution from the Vancouver Wharves marine terminal facility from the addition of the Kinder Morgan assets, coupled with the Duvernay II natural gas processing project and the Empress Co-generation facility coming online. However, these factors were offset by a revenue dip associated with the Resthaven Facility and Cutbank Complex, together with lower volumes at the Younger facility. Volumes of 884 mboe/d edged down 3% year over year due to decreased supply volumes at the Younger NGL extraction plant and Veresen Midstream.
Marketing & New Ventures: The division posted adjusted EBITDA of C$75 million compared to C$120 million in the fourth quarter of 2019. The decline resulted from depressed crude oil sales margins, coupled with commodity derivative losses. The Marketing & New Ventures segment recorded volumes of 207 mboe/d, which rose 9% from the same period in the prior year due to monetization of built-up storage positions and voluntary gains at the Aux Sable NGL extraction facility.
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).
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.
Image: Bigstock
Pembina (PBA) Q4 Earnings Miss But Stock Gains: Here's Why
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.
Pembina Pipeline Corp. Price, Consensus and EPS Surprise
Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote
Segmental Information
Pipelines: The unit reported adjusted EBITDA of C$577 million, up 24% from the year-ago quarters levels. The upside was the outcome of higher sales from the Cochin Pipeline and Edmonton Terminals — both inherited from Kinder Morgan Canada's acquisition — plus higher deferred revenues recognized on the Peace Pipeline system. The Pipelines segment saw volumes improve 2% year over year to 2,730 mboe/d.
Facilities: The segment’s adjusted EBITDA of C$255 million remained essentially flat year over year. The division was buoyed by contribution from the Vancouver Wharves marine terminal facility from the addition of the Kinder Morgan assets, coupled with the Duvernay II natural gas processing project and the Empress Co-generation facility coming online. However, these factors were offset by a revenue dip associated with the Resthaven Facility and Cutbank Complex, together with lower volumes at the Younger facility. Volumes of 884 mboe/d edged down 3% year over year due to decreased supply volumes at the Younger NGL extraction plant and Veresen Midstream.
Marketing & New Ventures: The division posted adjusted EBITDA of C$75 million compared to C$120 million in the fourth quarter of 2019. The decline resulted from depressed crude oil sales margins, coupled with commodity derivative losses. The Marketing & New Ventures segment recorded volumes of 207 mboe/d, which rose 9% from the same period in the prior year due to monetization of built-up storage positions and voluntary gains at the Aux Sable NGL extraction facility.
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 >>