Pembina Pipeline Stock Price, News & Analysis

Pembina Pipeline Corporation reported its second quarter 2021 results, highlighting an updated adjusted EBITDA guidance of $3.3 to $3.4 billion. Key financial metrics included adjusted EBITDA of $778 million, a 1% decrease compared to 2020. Total revenue reached $1.954 billion, up from $1.268 billion in Q2 2020. Despite a 9% drop in cash flow from operating activities to $584 million, volumes rose to 3,500 mboe/d, reflecting strong demand. Pembina also announced three significant partnerships and received a $350 million termination fee after ending its acquisition of Inter Pipeline.

Pembina Pipeline Corporation (PBA) confirmed it will not change the share exchange ratio of 0.50 common shares in its proposed acquisition of Inter Pipeline Ltd. (IPL). The board of directors of Inter Pipeline has unanimously recommended this Strategic Combination.

Shareholders are urged to vote in favor by the proxy voting deadlines on July 27, 2021, with the transaction expected to close in late Q3 or early Q4 2021.

Pembina Pipeline Corporation announced that the Alberta Securities Commission (ASC) upheld its proposed acquisition plan with Inter Pipeline and confirmed a $350 million break fee that may be payable by Inter Pipeline under certain conditions. The ASC dismissed Brookfield's bid application and established a higher minimum tender condition for Brookfield's takeover bid at 55% of the shares. This decision protects shareholder rights and emphasizes the advantages of the Pembina-Inter Pipeline Arrangement, which proposes a significant increase in dividends and aims to create a leading energy infrastructure firm.

Pembina Pipeline Corporation has declared a common share cash dividend of $0.21 per share for July 2021, payable on August 13, 2021 to shareholders of record as of July 23, 2021. This dividend is recognized as an 'eligible dividend' for Canadian tax purposes. For U.S. shareholders, the equivalent cash dividend is approximately $0.1687 per share. The Board of Directors also announced several quarterly preferred share dividends with varying payment dates in September 2021.

Pembina Pipeline Corporation (PBA) has filed a Joint Circular for a special virtual meeting scheduled for July 29, 2021, to discuss a proposed strategic combination with Inter Pipeline Ltd. The deal, endorsed by both boards, aims to create a leading energy infrastructure company in Canada. Shareholders of Inter Pipeline will receive 0.5 Pembina shares for each of their shares, equating to an immediate value of $20.06. This combination is expected to enhance shareholder value through increased dividends, synergies, and growth opportunities.

Pembina Pipeline Corporation (PBA) and Inter Pipeline Ltd. have filed cross-applications with the Alberta Securities Commission to address disclosure issues related to Brookfield's hostile takeover offer for Inter Pipeline. Pembina's CEO emphasized the importance of transparency for shareholders in choosing between offers. The Inter Pipeline Board supports Pembina's strategic share-exchange transaction, offering a 175% dividend increase for shareholders. Pembina seeks regulatory relief to ensure fair processes and protect shareholder rights against Brookfield's tactics.

Pembina Pipeline Corporation (PBA) and TC Energy are collaborating on a world-scale carbon transportation and sequestration system, the Alberta Carbon Grid (ACG). This project aims to transport over 20 million tonnes of CO2 annually, enhancing emissions management for industries in Alberta. The system will utilize existing pipeline infrastructure, facilitating a cost-effective and environmentally friendly solution.

With a target operational date for the first phase in 2025, the ACG is pivotal in supporting Canada’s climate targets and economic growth, creating jobs and promoting a lower-carbon future.

Pembina Pipeline Corporation (TSX: PPL, NYSE: PBA) announced a mid-year business update, showcasing robust growth in pipeline and facility volumes, exceeding pre-COVID levels. Over $400 million in assets were placed into service this year, including the new Prince Rupert Terminal. The company is reactivating the Phase IX Peace Pipeline Expansion, with a projected cost of approximately $120 million. Pembina identified over $7 billion in development projects, focusing on sustainable growth and partnerships with Indigenous communities. The positive outlook is supported by strong commodity prices and anticipated record volumes.