Pembina Pipeline Reports Q3 Earnings and Revenues Below Expectations, Declining Year-over-Year
Earnings Performance: Pembina Pipeline Corporation reported Q3 2025 earnings per share of 31 cents, missing estimates and down from 44 cents a year ago, primarily due to weaker results in the Marketing & New Ventures segment and lower pipeline volumes.
Revenue and Cash Flow: Quarterly revenues decreased by 3.8% year-over-year to $1.3 billion, also missing estimates, while operating cash flow fell approximately 12.1% to C$810 million.
Growth Initiatives: The company made progress in growth initiatives, securing new transportation commitments and advancing over C$1 billion in proposed pipeline expansions, including a 20-year agreement with PETRONAS for the Cedar LNG facility.
Adjusted EBITDA and Dividends: Adjusted EBITDA increased slightly to C$1 billion, driven by higher revenues from the Peace Pipeline, and the board declared a quarterly cash dividend of 71 Canadian cents per share, payable on December 31, 2025.
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Pembina Aims for Expansion and LNG Initiatives to Drive Growth by 2026
Growth Strategy for 2026: Pembina Pipeline Corporation has outlined an ambitious growth strategy aiming for an adjusted EBITDA of C$4.1 billion to C$4.4 billion by 2026, driven by increased volumes across its diversified energy assets and significant capital investments, including C$1.6 billion for pipeline and facility expansions.
Strategic Agreements and Expansions: The company has secured a 12-year agreement with Ovintiv Inc. for liquefaction capacity at the Cedar LNG facility, expected to contribute C$220 million to C$280 million annually in adjusted EBITDA, while also expanding its Peace Pipeline System to meet rising energy product demand.
Leadership Transition: Pembina is undergoing a leadership transition with key executives retiring by the end of 2025, aiming to strengthen organizational capabilities and support its long-term strategic goals, including the development of the Greenlight Electricity Center for sustainable energy generation.
Market Position and Future Outlook: Despite challenges in its marketing segment due to fluctuating commodity prices, Pembina remains well-positioned in the North American energy infrastructure market, focusing on safe, reliable, and cost-effective solutions to meet future energy demands and drive innovation.
Pembina Pipeline Releases 2026 Forecast, Finalizes Cedar LNG Agreement, and Expands Peace Pipeline
2026 Financial Guidance: Pembina Pipeline Corp. forecasts adjusted EBITDA between C$4.125 billion and C$4.425 billion for 2026, indicating a four percent increase in fee-based adjusted EBITDA compared to 2025, with a capital investment program of approximately $1.6 billion.
New Commercial Agreement: The company signed a 12-year agreement with Ovintiv Inc. for 0.5 million tonnes per annum of capacity at the Cedar LNG facility, completing the remarketing of its total 1.5 mtpa allocation.
Peace Pipeline Expansion: Pembina approved a C$200 million expansion of the Peace Pipeline System to enhance propane-plus delivery capacity into the Namao, Alberta hub, with ongoing expansions in northeast British Columbia.
Greenlight Electricity Centre Project: Pembina and Kineticor are progressing on the Greenlight Electricity Centre project, with a final investment decision expected in the first half of 2026.
Pembina Pipeline Announces 2026 Financial Guidance with Adjusted EBITDA of $4.125 Billion
- Financial Guidance Upgrade: Pembina expects adjusted EBITDA for 2026 to be between $4.125 billion and $4.425 billion, reflecting approximately a 4% increase over 2025, which enhances investor confidence in the company's robust growth in fee-based business.
- Capital Investment Plan: The 2026 capital investment program is projected at approximately $1.6 billion, ensuring the company remains self-funded over the next three years, further solidifying its market position in energy infrastructure.
- Cedar LNG Agreement Signed: Pembina has signed a 12-year agreement with Ovintiv for a processing capacity of 0.5 million tonnes per annum, marking a strategic expansion into the global LNG market and expected to provide a stable long-term revenue stream.
- Pipeline System Expansion: Pembina has approved a $200 million expansion of the Peace Pipeline System, which is expected to enhance propane delivery capacity in Alberta, addressing growing customer demand and strengthening the company's competitive edge.
Pembina Pipeline Announces 2026 EBITDA Guidance of $4.125 Billion to $4.425 Billion
- 2026 Financial Outlook: Pembina anticipates adjusted EBITDA for 2026 to range between $4.125 billion and $4.425 billion, reflecting a 4% increase in fee-based adjusted EBITDA, indicating strong growth potential amid North America's energy transformation.
- Cedar LNG Agreement: The 12-year agreement with Ovintiv for 0.5 mtpa of liquefaction capacity at Cedar LNG is expected to generate stable long-term revenues of $220 million to $280 million annually, further solidifying Pembina's position in the global LNG market.
- Pipeline System Expansion: The Fox Creek-to-Namao expansion of the Peace Pipeline System is projected to add 70,000 barrels per day of delivery capacity at an estimated cost of $200 million, with an expected in-service date in Q1 2027, significantly enhancing operational flexibility.
- Capital Investment Plan: Pembina's 2026 capital budget totals $1.6 billion, including $380 million for the Cedar LNG project, demonstrating the company's ongoing commitment to strategic growth and infrastructure development.
Ovintiv Signs 12-Year LNG Agreement with Pembina for 0.5 mtpa Capacity
- Long-Term Partnership: Ovintiv has signed a 12-year agreement with Pembina for 0.5 million tonnes per annum of liquefied natural gas (LNG) capacity, expected to commence commercial operations by late 2028, significantly enhancing Ovintiv's competitive position in the global LNG market.
- Market Access Expansion: This agreement enables Ovintiv to access additional export markets, complementing its existing natural gas transportation arrangements, thereby strengthening its market position on Canada's west coast and shortening shipping distances to Asian markets.
- Resource Maximization: Ovintiv's executives stated that this agreement is part of their strategy to maximize the profitability of their Montney gas resource through participation in global LNG markets, supporting energy security and global emissions reduction goals.
- Strategic Implications: The partnership with Pembina not only provides Ovintiv with a low-cost supply of Canadian natural gas but also enhances its long-term growth potential in international markets, aligning with the increasing global demand for clean energy.
Ovintiv Signs 12-Year LNG Agreement with Pembina for 0.5 mtpa Capacity
- Long-Term Partnership: Ovintiv has signed a 12-year agreement with Pembina to secure 0.5 million tonnes per annum of liquefied natural gas (LNG) export capacity, expected to commence commercial operations by late 2028, thereby enhancing Ovintiv's competitiveness in the global LNG market.
- Market Access Expansion: This agreement enables Ovintiv to access additional export markets, complementing its existing natural gas transportation arrangements, and further strengthens its market position on Canada's west coast by shortening shipping distances to Asian markets.
- Resource Maximization: Ovintiv's executives stated that this partnership will help maximize the profitability of the Montney gas resource by participating in global LNG markets, supporting energy security and global emissions reductions.
- Strategic Implications: This agreement not only marks a significant step for Ovintiv in expanding market access but also reflects the company's commitment to low-cost Canadian natural gas, which is expected to drive long-term growth and increase market share.
Pembina Aims for Expansion and LNG Initiatives to Drive Growth by 2026
Growth Strategy for 2026: Pembina Pipeline Corporation has outlined an ambitious growth strategy aiming for an adjusted EBITDA of C$4.1 billion to C$4.4 billion by 2026, driven by increased volumes across its diversified energy assets and significant capital investments, including C$1.6 billion for pipeline and facility expansions.
Strategic Agreements and Expansions: The company has secured a 12-year agreement with Ovintiv Inc. for liquefaction capacity at the Cedar LNG facility, expected to contribute C$220 million to C$280 million annually in adjusted EBITDA, while also expanding its Peace Pipeline System to meet rising energy product demand.
Leadership Transition: Pembina is undergoing a leadership transition with key executives retiring by the end of 2025, aiming to strengthen organizational capabilities and support its long-term strategic goals, including the development of the Greenlight Electricity Center for sustainable energy generation.
Market Position and Future Outlook: Despite challenges in its marketing segment due to fluctuating commodity prices, Pembina remains well-positioned in the North American energy infrastructure market, focusing on safe, reliable, and cost-effective solutions to meet future energy demands and drive innovation.
Pembina Pipeline Releases 2026 Forecast, Finalizes Cedar LNG Agreement, and Expands Peace Pipeline
2026 Financial Guidance: Pembina Pipeline Corp. forecasts adjusted EBITDA between C$4.125 billion and C$4.425 billion for 2026, indicating a four percent increase in fee-based adjusted EBITDA compared to 2025, with a capital investment program of approximately $1.6 billion.
New Commercial Agreement: The company signed a 12-year agreement with Ovintiv Inc. for 0.5 million tonnes per annum of capacity at the Cedar LNG facility, completing the remarketing of its total 1.5 mtpa allocation.
Peace Pipeline Expansion: Pembina approved a C$200 million expansion of the Peace Pipeline System to enhance propane-plus delivery capacity into the Namao, Alberta hub, with ongoing expansions in northeast British Columbia.
Greenlight Electricity Centre Project: Pembina and Kineticor are progressing on the Greenlight Electricity Centre project, with a final investment decision expected in the first half of 2026.
Pembina Pipeline Announces 2026 Financial Guidance with Adjusted EBITDA of $4.125 Billion
- Financial Guidance Upgrade: Pembina expects adjusted EBITDA for 2026 to be between $4.125 billion and $4.425 billion, reflecting approximately a 4% increase over 2025, which enhances investor confidence in the company's robust growth in fee-based business.
- Capital Investment Plan: The 2026 capital investment program is projected at approximately $1.6 billion, ensuring the company remains self-funded over the next three years, further solidifying its market position in energy infrastructure.
- Cedar LNG Agreement Signed: Pembina has signed a 12-year agreement with Ovintiv for a processing capacity of 0.5 million tonnes per annum, marking a strategic expansion into the global LNG market and expected to provide a stable long-term revenue stream.
- Pipeline System Expansion: Pembina has approved a $200 million expansion of the Peace Pipeline System, which is expected to enhance propane delivery capacity in Alberta, addressing growing customer demand and strengthening the company's competitive edge.
Pembina Pipeline Announces 2026 EBITDA Guidance of $4.125 Billion to $4.425 Billion
- 2026 Financial Outlook: Pembina anticipates adjusted EBITDA for 2026 to range between $4.125 billion and $4.425 billion, reflecting a 4% increase in fee-based adjusted EBITDA, indicating strong growth potential amid North America's energy transformation.
- Cedar LNG Agreement: The 12-year agreement with Ovintiv for 0.5 mtpa of liquefaction capacity at Cedar LNG is expected to generate stable long-term revenues of $220 million to $280 million annually, further solidifying Pembina's position in the global LNG market.
- Pipeline System Expansion: The Fox Creek-to-Namao expansion of the Peace Pipeline System is projected to add 70,000 barrels per day of delivery capacity at an estimated cost of $200 million, with an expected in-service date in Q1 2027, significantly enhancing operational flexibility.
- Capital Investment Plan: Pembina's 2026 capital budget totals $1.6 billion, including $380 million for the Cedar LNG project, demonstrating the company's ongoing commitment to strategic growth and infrastructure development.
Ovintiv Signs 12-Year LNG Agreement with Pembina for 0.5 mtpa Capacity
- Long-Term Partnership: Ovintiv has signed a 12-year agreement with Pembina for 0.5 million tonnes per annum of liquefied natural gas (LNG) capacity, expected to commence commercial operations by late 2028, significantly enhancing Ovintiv's competitive position in the global LNG market.
- Market Access Expansion: This agreement enables Ovintiv to access additional export markets, complementing its existing natural gas transportation arrangements, thereby strengthening its market position on Canada's west coast and shortening shipping distances to Asian markets.
- Resource Maximization: Ovintiv's executives stated that this agreement is part of their strategy to maximize the profitability of their Montney gas resource through participation in global LNG markets, supporting energy security and global emissions reduction goals.
- Strategic Implications: The partnership with Pembina not only provides Ovintiv with a low-cost supply of Canadian natural gas but also enhances its long-term growth potential in international markets, aligning with the increasing global demand for clean energy.
Ovintiv Signs 12-Year LNG Agreement with Pembina for 0.5 mtpa Capacity
- Long-Term Partnership: Ovintiv has signed a 12-year agreement with Pembina to secure 0.5 million tonnes per annum of liquefied natural gas (LNG) export capacity, expected to commence commercial operations by late 2028, thereby enhancing Ovintiv's competitiveness in the global LNG market.
- Market Access Expansion: This agreement enables Ovintiv to access additional export markets, complementing its existing natural gas transportation arrangements, and further strengthens its market position on Canada's west coast by shortening shipping distances to Asian markets.
- Resource Maximization: Ovintiv's executives stated that this partnership will help maximize the profitability of the Montney gas resource by participating in global LNG markets, supporting energy security and global emissions reductions.
- Strategic Implications: This agreement not only marks a significant step for Ovintiv in expanding market access but also reflects the company's commitment to low-cost Canadian natural gas, which is expected to drive long-term growth and increase market share.
