Pembina Pipeline Corporation PBA reported fourth-quarter 2023 earnings per share of C$1.21, up from the prior-year quarter's level of 39 Canadian cents. This outperformance can be attributed primarily to increased contributions from all segments of the company.

Revenues of $1.8 billion decreased about 8.9% year over year but beat the Zacks Consensus Estimate by $21 million on the back of strong Pipelines and Facilities'results.

Operating cash flow decreased approximately 15.5% to C$880 million. Adjusted EBITDA came in at C$1,033 million compared with C$925 million in the year-ago period.

In the fourth quarter, PBA witnessed volumes of 3,453 thousand barrels of oil equivalent per day (mboe/d) compared with 3,392 mboe/d in the prior-year quarter.

Pembina's board of directors declared a common share cash dividend of 66.75 Canadian cents per share for the first quarter of 2024, to be paid, subject to applicable law, on Mar 28, 2024, to shareholders of record as of Mar 15, 2024.

Pembina Pipeline Corp. Price, Consensus and EPS Surprise

Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote

Segmental Information

Pipelines: Adjusted EBITDA of C$617 million increased about 12.6% from the year-ago quarter's level. This upside was attributed to higher volumes from the company's Peace Pipeline system, Drayton Valley Pipeline and the reactivated Nipisi Pipeline. The figure beat our projection of C$594.8 million. The volume increased about 2.3% year over year to 2,652 mboe/d.

Facilities: Adjusted EBITDA of C$324 million increased from the year-ago quarter's figure of C$288 million. This increase was primarily driven by higher contributions from the PGI assets, particularly from the former Energy Transfer Canada plants, the Hythe Plant and the Dawson Assets, due to increased volumes and higher revenues at Vancouver Wharves. However, the figure fell short of our estimate of C$341 million. Volumes of 803 mboe/d increased about 0.3% year over year.

Marketing & New Ventures: Adjusted EBITDA of C$173 million increased from C$171 million reported in the fourth quarter of 2022. The upside can be attributed to higher contributions from Aux Sable. The figure also beat our projection of C$169.7 million.

Capital Expenditure & Balance Sheet

Pembina spent C$177 million as capital expenditure compared with C$143 million a year ago.

As of Dec 31, 2023, PBA had cash and cash equivalents worth C$137 million and long-term debt of C$9.2 billion. Its debt to capitalization was 36.9%.