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Pembina (PBA) Q3 Earnings Fall Y/Y, Sales Beat Estimates
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Pembina Pipeline Corporation (PBA - Free Report) reported third-quarter 2023 net earnings per share of 57 Canadian cents, down from the prior-year quarter's level of C$3.23. This underperformance was primarily due to weak delivery in the company’s Marketing & New Ventures segment and increased year-over-year expenses during the quarter.
Revenues of $1.7 billion decreased about 19% year over year, but beat the Zacks Consensus Estimate of $1.6 billion on the back of strong Pipelines and Facilities Segments' results. Operating cash flow decreased approximately 10.9% to C$644 million. Adjusted EBITDA came in at C$1,021 million compared with C$967 million in the year-ago period.
In the third quarter, PBA witnessed volumes of 3,398 thousand barrels of oil equivalent per day (mboe/d) compared with 3,424 mboe/d in the prior-year quarter.
Pembina declared a cash dividend of 66.75 Canadian cents per share for the third quarter, subject to applicable law, on Dec 29, 2023, to shareholders of record as of Dec 15, 2023.
Pembina Pipeline Corp. Price, Consensus and EPS Surprise
Pipelines: Adjusted EBITDA of C$591 million increased about 10.5% from the year-ago quarter’s level. This upside was due to higher volumes from the company’s assets. The figure beat our projection of C$541.8 million. The volume fell about 2.5% year over year to 2,595 mboe/d.
Facilities: Adjusted EBITDA of C$319 million increased from the year-ago quarter’s figure of C$291 million. This was due to higher revenues resulting from the transfer of the majority of Pembina's wholly-owned field-based gas processing assets to Pembina Gas Infrastructure. The figure beat our projection of C$277.1 million. Volumes of 803 mboe/d dipped about 10.1% year over year.
Marketing & New Ventures: Adjusted EBITDA of C$159 million decreased from C$180 million reported in the third quarter of 2022. The downside can be attributed to a drop in commodity market prices, including NGL and crude oil. The figure missed our projection of C$258.3 million.
Capital Expenditure & Balance Sheet
Pembina spent C$169 million as capital expenditure during the quarter under review compared with C$131 million a year ago.
As of Sep 30, 2023, PBA had cash and cash equivalents worth $89 million and long-term debt of $7.4 billion. Its debt to capitalization was 40.5%.
Guidance
For full-year 2023, Pembina expects adjusted EBITDA in the C$3.75-C$3.85 billion range.
Liberty Energy is valued at $3.19 billion. LBRT currently pays a dividend of 20 cents per share, or 1.06% on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to North American onshore exploration and production companies.
CVR Energy is valued at $3.04 billion. In the past year, its shares have lost 23.7%.
CVI currently pays a dividend of $2 per share or 6.61% on an annual basis. Its payout ratio currently sits at 30% of earnings.
Delek US Holdings is worth approximately $1.64 billion. DK currently pays a dividend of 96 cents per share, or 3.75% on an annual basis.
The company operates in the integrated downstream energy business in the United States. It operates under three segments — refining, logistics and retail.
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Pembina (PBA) Q3 Earnings Fall Y/Y, Sales Beat Estimates
Pembina Pipeline Corporation (PBA - Free Report) reported third-quarter 2023 net earnings per share of 57 Canadian cents, down from the prior-year quarter's level of C$3.23. This underperformance was primarily due to weak delivery in the company’s Marketing & New Ventures segment and increased year-over-year expenses during the quarter.
Revenues of $1.7 billion decreased about 19% year over year, but beat the Zacks Consensus Estimate of $1.6 billion on the back of strong Pipelines and Facilities Segments' results. Operating cash flow decreased approximately 10.9% to C$644 million. Adjusted EBITDA came in at C$1,021 million compared with C$967 million in the year-ago period.
In the third quarter, PBA witnessed volumes of 3,398 thousand barrels of oil equivalent per day (mboe/d) compared with 3,424 mboe/d in the prior-year quarter.
Pembina declared a cash dividend of 66.75 Canadian cents per share for the third quarter, subject to applicable law, on Dec 29, 2023, to shareholders of record as of Dec 15, 2023.
Pembina Pipeline Corp. Price, Consensus and EPS Surprise
Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote
Segmental Information
Pipelines: Adjusted EBITDA of C$591 million increased about 10.5% from the year-ago quarter’s level. This upside was due to higher volumes from the company’s assets. The figure beat our projection of C$541.8 million. The volume fell about 2.5% year over year to 2,595 mboe/d.
Facilities: Adjusted EBITDA of C$319 million increased from the year-ago quarter’s figure of C$291 million. This was due to higher revenues resulting from the transfer of the majority of Pembina's wholly-owned field-based gas processing assets to Pembina Gas Infrastructure. The figure beat our projection of C$277.1 million. Volumes of 803 mboe/d dipped about 10.1% year over year.
Marketing & New Ventures: Adjusted EBITDA of C$159 million decreased from C$180 million reported in the third quarter of 2022. The downside can be attributed to a drop in commodity market prices, including NGL and crude oil. The figure missed our projection of C$258.3 million.
Capital Expenditure & Balance Sheet
Pembina spent C$169 million as capital expenditure during the quarter under review compared with C$131 million a year ago.
As of Sep 30, 2023, PBA had cash and cash equivalents worth $89 million and long-term debt of $7.4 billion. Its debt to capitalization was 40.5%.
Guidance
For full-year 2023, Pembina expects adjusted EBITDA in the C$3.75-C$3.85 billion range.
Zacks Rank and Key Picks
Currently, PBA carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Liberty Energy Inc. (LBRT - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and CVR Energy, Inc. (CVI - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty Energy is valued at $3.19 billion. LBRT currently pays a dividend of 20 cents per share, or 1.06% on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to North American onshore exploration and production companies.
CVR Energy is valued at $3.04 billion. In the past year, its shares have lost 23.7%.
CVI currently pays a dividend of $2 per share or 6.61% on an annual basis. Its payout ratio currently sits at 30% of earnings.
Delek US Holdings is worth approximately $1.64 billion. DK currently pays a dividend of 96 cents per share, or 3.75% on an annual basis.
The company operates in the integrated downstream energy business in the United States. It operates under three segments — refining, logistics and retail.