StockNews.AI
PBA
StockNews.AI
103 days

Pembina Pipeline Corporation Reports Results for the First Quarter of 2025, Raises Quarterly Common Share Dividend, and Provides Business Update

1. Pembina reported Q1 2025 earnings of $502 million, with solid adjusted EBITDA. 2. Dividends increased by 3% to $0.71 per share for Q2 2025, reflecting growth. 3. Guidance for 2025 adjusted EBITDA is between $4.2 billion and $4.5 billion. 4. U.S. tariffs are not expected to materially impact Pembina's business outlook. 5. New commercial agreements bolster Pemina's capacity and revenue from the Montney producer.

39m saved
Insight
Article

FAQ

Why Bullish?

Strong quarterly earnings and dividend increase signal financial stability, possibly boosting stock prices. In the past, similar announcements followed by consistent performance led to positive stock reactions.

How important is it?

Quarterly earnings reports and dividend announcements are critical to investor valuations, thus significantly impacting stock performance.

Why Short Term?

The immediate increase in dividends and strong Q1 results will likely enhance short-term investor sentiment.

Related Companies

ENBPPLTRP

CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the first quarter of 2025.

Highlights

  • Quarterly Results - reported first quarter earnings of $502 million, adjusted EBITDA of $1,167 million, and adjusted cash flow from operating activities of $777 million ($1.34 per share).
  • Common Share Dividend Increase - the board of directors declared a common share cash dividend for the second quarter of 2025 of $0.71 per share, representing an increase of approximately three percent to be paid, subject to applicable law, on June 30, 2025, to shareholders of record on June 16, 2025.
  • Guidance - the Company is currently trending towards the midpoint of its 2025 adjusted EBITDA guidance range of $4.2 billion to $4.5 billion.

Financial and Operational Overview

 

3 Months Ended March 31

($ millions, except where noted)

2025

2024

Change

Revenue

2,282

1,540

742

Net revenue(1)

1,343

912

431

Operating expenses

226

189

37

Gross profit

928

730

198

Adjusted EBITDA(1)

1,167

1,044

123

Earnings

502

438

64

Earnings per common share – basic (dollars)

0.80

0.74

0.06

Earnings per common share – diluted (dollars)

0.80

0.73

0.07

Cash flow from operating activities

840

436

404

Cash flow from operating activities per common share – basic (dollars)

1.45

0.79

0.66

Adjusted cash flow from operating activities(1)

777

782

(5)

Adjusted cash flow from operating activities per common share – basic (dollars)(1)

1.34

1.42

(0.08)

Capital expenditures

174

186

(12)

For further details on the Company's significant assets, including definitions for capitalized terms used herein that are not otherwise defined, refer to Pembina's Annual Information Form for the year ended December 31, 2024, and Pembina's Management's Discussion and Analysis dated May 8, 2025 for the three months ended March 31, 2025, filed at www.sedarplus.ca (filed with the U.S. Securities and Exchange Commission at www.sec.gov under Form 40-F) and on Pembina's website at www.pembina.com.

Executive Overview and Business Update

With quarterly adjusted EBITDA of $1,167 million, Pembina has delivered a very solid start to the year. The Company remains confident in the full year outlook and is currently trending towards the midpoint of its 2025 adjusted EBITDA guidance range of $4.2 billion to $4.5 billion.

The guidance range reflects the following:

  • Pembina continues to benefit from growth across the Canadian energy industry and is experiencing rising utilization on its conventional pipeline systems and at Pembina Gas Infrastructure ("PGI") that aligns with the volume growth across the Western Canadian Sedimentary Basin ("WCSB"). However, in 2025, Pembina's revenue volume growth within the conventional pipelines and gas processing assets is expected to be lower than physical volume growth as certain customers expand into their contractual take-or-pay commitments;

  • higher contribution from Alliance in the first and fourth quarters due to the ability to transport higher volumes during colder periods;

  • planned routine maintenance at Aux Sable and Alliance during the second quarter;

  • the impact in the second quarter of planned routine maintenance at certain PGI facilities and the Redwater Complex, as well as restrictions on third-party natural gas egress within the basin;

  • higher integrity and geotechnical costs on the conventional pipeline assets in the third and fourth quarters, relative to the first half of the year; and

  • stronger first and fourth quarter results in the natural gas liquids ("NGL") marketing business due to typical seasonality. Additionally, while marketing results in the first quarter exceeded Pembina's original budget expectations, this has been offset by the outlook for the remainder of the year, which reflects lower commodity prices due to global economic uncertainty. As a result, Pembina's full year adjusted EBITDA outlook for the Marketing & New Ventures division of $550 million remains unchanged.

Given growth across Pembina's low-risk, fee-based business and confidence in the outlook for 2025 and beyond, we are pleased to announce an increase in the quarterly common share cash dividend of approximately three percent as detailed further below.

Related News