RE: Canaccord
Pembina Pipeline* (PPL : TSX : $31.00), Net Change: 0.54, % Change: 1.77%, Volume: 1,677,612
Laying pipe. Shares of Pembina Pipeline jumped after the company announced that it is going ahead with a $1-billion expansion of several of its NGL assets. The company announced expansions that include twinning its Saturn facility, which is currently under construction, twinning its Redwater Fractionator and expanding capacity on its Peace/Northern NGL pipeline system. Although the projects have been announced previously, final investment decision was subject to the signing of underpinning long term commercial agreements with producers which has now been achieved. The expansions are all expected to be in service in 2015 and will add to the stability of Pembina's cash flows. Canaccord Genuity Pipeline and Utilities Analyst Juan Plessis noted that the recent announcement is an example of how Pembina is leveraging its existing assets in the region and capturing value along the entire hydro carbon value chain. Also, the company is conducting an open season for additional crude oil, condensate and NGL pipeline expansions between Taylor, B.C. and the Edmonton Fort Saskatchewan areas of Alberta which may lay the groundwork for additional projects. Pembina's growth portfolio now stands at $3 billion of committed projects with an additional $1 billion of uncommitted opportunities.