Pembina Pipeline Maintained at Buy at TPH Following Q4 Results; Price Target C$53.00
09:33 AM EST, 02/23/2024 (MT Newswires) -- Tudor, Pickering, Holt on Friday reiterated its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) with a C$53.00 price target after the oil and gas infrastructure and processing company reported fourth-quarter results.
"Positive. Pembina finished 2023 with record quarterly and annual adjusted EBITDA of C$1,033MM and C$3,824MM, respectively," analyst Zack Van Everen wrote. "TPH had estimated Q4 EBITDA at C$1,021MM, while the Street was slightly lower at C$1,017MM. PPL's fee-based segments drove the outperformance, with both Pipelines and Facilities reporting better-than-expected. Pipelines came in at C$617MM (TPHe C$600MM) and Facilities reported C$324MM (TPHe C$310MM). Pipeline volumes missed the mark slightly, coming in ~46 mb/d below our forecast. However, the company's transportation margins on a per-barrel-basis were higher due to higher tolls on the Cochin and Peace pipeline systems because of inflation adjustments. In the Facilities segment, reported volumes were 2% higher than our expectations, with the prepared remarks noting strong performance at certain PGI facilities situated around the northeast British Columbia Montney formation. Commodity sensitive earnings from the Marketing segment were in-line with TPH's estimate (TPHe C$176MM vs. actual C$173MM)."
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