Pembina Pipeline Maintained at Buy at TPH Ahead of Q2 Results; Price Target at C$56.00
09:28 AM EDT, 07/05/2024 (MT Newswires) -- Tudor, Pickering, Holt on Friday reiterated its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) with a C$56.00 price target ahead of second-quarter results from the Western Canadian oil and gas processing and infrastructure company.
"After updating our PPL model ahead of their Q2 earnings release, we are expecting an in-line print on adjusted EBITDA of C$997MM vs consensus of C$998MM. The latest version includes two months of Alberta processing plant and fractionation data and one month of British Columbia data. Volumes overall are down relative to Q1, as expected with lower basin production due to spring breakup. For the Pipelines segment, we expect EBITDA to come in at C$624MM (Street C$623MM), up C$123MM y/y. The large delta over the prior period is primarily driven by accounting for the Alliance acquisition and higher earnings from PPL's conventional assets, which were impacted by wildfires in Q2'23. These fires also impacted the Facilities segment in the prior period, resulting in our Q2'24 EBITDA estimate to increase by C$29MM to C$301MM (Street C$303MM)," analyst AJ O'Donnell wrote.