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Why Is Pembina Pipeline (PBA) Up 5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Pembina Pipeline (PBA - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pembina Pipeline due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pembina Q4 Earnings Fall Short of Estimates
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 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Pembina Pipeline has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pembina Pipeline has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Pembina Pipeline (PBA) Up 5% Since Last Earnings Report?
A month has gone by since the last earnings report for Pembina Pipeline (PBA - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pembina Pipeline due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pembina Q4 Earnings Fall Short of Estimates
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 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Pembina Pipeline has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pembina Pipeline has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.