Pembina Pipeline Corporation ('Pembina' or the 'Company') has announced its financial results for the third quarter of 2024, highlighting steady financial performance with strategic acquisitions and infrastructure developments.
Key Financial Metrics
| Metric | Q3 2024 (CAD) | Q3 2023 (CAD) | YoY Change (%) |
|---|---|---|---|
| Earnings | $385 million | $346 million | +11% |
| Adjusted EBITDA | $1,019 million | $1,019 million | 0% |
| Cash Flow from Operations | $922 million | $645 million | +43% |
| Adjusted Cash Flow per Share | $1.25 | $1.20 | +4% |
Interpretation: Pembina's financial results for Q3 2024 indicate stability in adjusted EBITDA compared to the previous year, with a significant increase in cash flow from operations, reflecting higher operational output and improved working capital management.
Revenue Performance by Segment
| Segment | Adjusted EBITDA Q3 2024 | Adjusted EBITDA Q3 2023 | YoY Change (%) |
|---|---|---|---|
| Pipelines | $593 million | $593 million | 0% |
| Facilities | $324 million | $319 million | +2% |
| Marketing & New Ventures | $159 million | $159 million | 0% |
| Corporate | -$57 million | -$48 million | -19% |
Interpretation: The Facilities segment showed modest growth, supported by increased contributions from Aux Sable operations. The Pipelines and Marketing & New Ventures segments maintained stable performance year-over-year, indicating resilience amidst external market fluctuations. The Corporate segment experienced higher costs, notably in long-term incentives.
Key Developments and Operational Highlights
- Acquired an additional 14.6% interest in Aux Sable's U.S. operations, consolidating full ownership.
- PGI announced key transactions with Whitecap Resources and Veren Inc., amounting to $820 million in infrastructure investments.
- Progression on the Cedar LNG Project with initiation of on-shore construction activities.
Executive Comments
Pembina's leadership expressed confidence in achieving a record financial year enabled by recent acquisitions and increased volumes in the Western Canadian Sedimentary Basin. The narrowed 2024 Adjusted EBITDA guidance from $4.225 billion to $4.325 billion underscores expected steady performance in the remaining fiscal year.
Dividends
The board of directors declared a common share cash dividend of CAD $0.69 per share for Q4 2024, payable on December 31, 2024, to shareholders of record as of December 16, 2024.
Forward Guidance
Pembina narrowed its 2024 adjusted EBITDA guidance range, reflecting positive momentum towards the mid-point due to ongoing marketing strategies and expected growth in pipeline volumes. The debt-to-adjusted EBITDA ratio target remains between 3.4 to 3.6 times by year-end.
Stock Price Movement
Post-earnings release, Pembina's stock price saw a modest increase of approximately 0.52%, signaling market approval of their strategic direction and operational performance.
Pembina continues to leverage its robust asset base and strategic investments to drive sustained growth and shareholder value. The focus on expanding infrastructure and increasing market reach through key partnerships and projects highlights Pembina's commitment to capitalizing on opportunities within North America’s evolving energy landscape.
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