(PPL) Pembina Pipeline - Ratings and Ratios

Pembina Pipeline Corporation is a leading Canadian energy infrastructure company specializing in the transportation and midstream services of hydrocarbons. Established in 1954 and headquartered in Calgary, Alberta, Pembina operates through three core business segments: Pipelines, Facilities, and Marketing & New Ventures. Its extensive network spans key hydrocarbon-producing regions in North America, including the Western Canadian Sedimentary Basin (WCSB), one of the most prolific energy basins globally.

The Pipelines segment manages a vast network of conventional, oil sands, and heavy oil pipelines, offering a combined transportation capacity of 3.0 million barrels of oil equivalent per day (MBOE/d). This segment also includes 10 million barrels of ground storage capacity and 105,000 barrels of oil equivalent per day (BOE/d) of rail terminalling capacity, enabling efficient transportation to major markets across North America. Pembinas pipeline assets are strategically positioned to connect production areas with key demand centers, including refineries, petrochemical facilities, and export terminals.

The Facilities segment provides critical midstream infrastructure, including processing, storage, and terminalling services for crude oil, natural gas, condensate, and natural gas liquids (NGLs). This segment boasts 430,000 barrels per day of NGL fractionation capacity, 21 million barrels of cavern storage, and a liquefied propane export facility. Additionally, Pembina operates oil batteries, associated pipelines, and rail terminalling facilities, enhancing its ability to deliver integrated solutions for hydrocarbon producers. Its facilities are designed to handle a wide range of products, including ethane, propane, butane, and condensate, catering to the diverse needs of its customers.

The Marketing & New Ventures segment focuses on optimizing the value of hydrocarbons through active trading and market access initiatives. Pembina leverages its extensive infrastructure and market expertise to buy and sell hydrocarbon liquids and natural gas, primarily originating from the WCSB and other key basins. This segment plays a critical role in connecting producers with end markets, ensuring competitive pricing and maximizing resource utilization. By continuously exploring new ventures and partnerships, Pembina remains at the forefront of the evolving energy landscape.

With a market capitalization of CAD 30.521 billion, Pembina is a large-cap company with a strong financial profile. Its forward P/E ratio of 16.42 indicates expectations of stable earnings growth, while its return on equity (RoE) of 10.65% reflects efficient operations. The stock currently trades at CAD 52.56, with a 20-day moving average of 54.35, suggesting recent price consolidation. Average trading volume of 3.499 million shares per day underscores its liquidity.

Over the next three months, Pembinas stock is expected to remain range-bound between CAD 50 and CAD 55, influenced by its stable cash flows and the energy sectors outlook. The 20-day and 50-day moving averages (SMA 20: 54.35, SMA 50: 53.66) suggest near-term resistance at CAD 54.35, while the 200-day moving average (53.30) provides longer-term support. The average true range (ATR) of 1.34 indicates moderate volatility, with potential pullbacks to CAD 51.22 and CAD 50.90 as key support levels. Fundamental strength, supported by a P/B ratio of 1.99 and a forward P/E of 16.42, positions Pembina as a defensive play in the energy sector, though upside may be capped by valuation multiples.