Scotia McLeod Update OUR TAKE: Slightly Positive. Pembina's results were ahead of our expectation as strength in its Marketingbusiness offset some Pipeline weakness (part of which is timing related). While overall 2021 guidance wasmaintained, we increase our EBITDA estimates for 2021 to reflect the expectation of continued strength in theMarketing business.
The macro environment continues to improve for the midstreamers. We see Pembina as having torque to this environment both through higher marketing margins and volumes. It is looking more likely that Pembina resanctions growth projects later this year, though at this point we don’t include any restarted projects in our model.
Our 2022/2023 estimates increase slightly to reflect our expectations of higher volumes. This drives our target to$43 from $42 previously.
As a reminder, we will be hosting RBN Energy's Marty King for a deep dive into the North American NGLmarketing at the upcoming Scotiabank GBM Energy Infrastructure Conference on November 17.