Canada's Pembina Pipeline Q2 revenue beats on Marketing & New Ventures growth

Pembina Pipeline

30/07/2026 23:41

Overview
Canada energy infrastructure firm's Q2 revenue rose yr/yr, adjusted EPS missed analyst expectations
Q2 adjusted EBITDA grew 5% yr/yr, driven by higher NGL prices and operational performance
Company sanctioned two new growth projects totaling about C$3 bln and reaffirmed 2026 EBITDA guidance

Outlook
Pembina reiterates 2026 adjusted EBITDA guidance of C$4.35 bln to C$4.55 bln
Company expects Q3 adjusted EBITDA below Q2, with higher contribution in Q4
Pembina targets 5-7% compound annual fee-based adjusted EBITDA per share growth through 2030

Result Drivers
NGL PRICES AND FRAC SPREADS - Higher NGL prices and wider frac spreads, including premium propane pricing in Asian markets, contributed to increased adjusted EBITDA in Marketing & New Ventures
FACILITIES GROWTH - Facilities division benefited from new Redwater Complex capacity (RFS IV), higher volumes from Wapiti Expansion, and fewer planned outages
PIPELINES IMPACTED BY TOLL STRUCTURE - Pipelines division saw lower adjusted EBITDA due to new Alliance Pipeline toll structure, partially offset by higher volumes and tariff adjustments

Company press release: ID:nBw8Frz3Va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$2.15 bln
C$1.94 bln (1 Analyst)
Q2 Adjusted EPS
Miss
C$0.66
C$0.73 (10 Analysts)
Q2 EPS
 
C$0.82
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Pembina Pipeline Corp is C$70.50, about 0.1% below its July 30 closing price of C$70.56
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
July 30 - Canada's TC Energy Q2 profit beats; EBITDA up 12%
July 30 - Canada's AltaGas Q2 adjusted EPS beats estimates, lifts 2026 outlook
July 30 - Enbridge pipeline trespassed on Wisconsin tribal land, must be moved, US appeals court finds

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)