Pembina Pipeline's Q3 Earnings Miss Estimates, Sales Fall Y/Y

In This Article:

Pembina Pipeline Corporation PBA reported third-quarter 2024 earnings per share of 44 cents, which missed the Zacks Consensus Estimate of 56.  This underperformance was primarily due to weak delivery in the company’s Pipelines and facilities segments. PBA’s Pipelines volume for the third quarter of 2024 was reported at 2,738 thousand barrels of oil equivalent per day (mboe/d), below the consensus estimate of 2,754 mboe/d. Facilities volume for the same period was 810 mboe/d, missing the consensus expectation of 853 mboe/d. However, the bottom line improved from the year-ago quarter’s 42 cents.

Quarterly revenues of $1.4 billion decreased about 20.9% year over year. The metric also missed the Zacks Consensus Estimate of $1.5 billion. Operating cash flow increased approximately 43.2% to C$922 million. Adjusted EBITDA was C$1,019 million compared with C$1,021 million in the year-ago period. In the third quarter, PBA witnessed volumes of 3,892 thousand barrels of oil equivalent per day (mboe/d) compared with 3,658 mboe/d reported in the prior-year quarter.

Pembina Pipeline Corp. Price, Consensus and EPS Surprise

Pembina Pipeline Corp. Price, Consensus and EPS Surprise
Pembina Pipeline Corp. Price, Consensus and EPS Surprise

Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote

 

Pembina declared a cash dividend of 69 Canadian cents per share for the third quarter, subject to applicable law, on Dec. 16, 2024, to its shareholders of record as of Dec. 16.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Canada-based oil and gas storage and transportation company reported a strong financial position as of Sept. 30, 2024. The ratio of proportionately consolidated debt-to-adjusted EBITDA on a trailing twelve-month basis was 3.6 times. The figure was at the lower end of the company's targeted range, indicating contributions of two quarters from the Alliance/Aux Sable Acquisition.

PBA’s Segmental Information

Pipelines: Adjusted EBITDA of C$593 million increased about 0.3% from the year-ago quarter’s level. This growth was driven by improved asset performance, an increase in ownership following the Alliance/Aux Sable acquisition, higher demand for seasonal contracts and the reactivation of the Nipisi Pipeline in late 2023. However, the figure missed our projection of C$621.6 million.

Volume increased about 2.2% year over year to 2,738 mboe/d.

Facilities: Adjusted EBITDA of C$324 million increased from the year-ago quarter’s C$319 million, driven by the recognition of Aux Sable volumes following the Alliance/Aux Sable acquisition. The figure, however, missed our projection of C$328.9 million.

Waiting for permission
Allow microphone access to enable voice search

Try again.