| Over a week ago | ||||
RBC Capital analyst… RBC Capital analyst Robert Kwan lowered the firm's price target on Pembina Pipeline to C$26 from C$55 and keeps an Outperform rating on the shares. The analyst was positive on the steps the company took amid the market uncertainty and has confidence in the long-term value of the stock. | ||||
Pembina Pipeline… Pembina Pipeline announces receipt of a certificate of approval from the U.S. Federal Energy Regulatory Commission, or FERC, for Pembina's proposed Jordan Cove liquified natural gas terminal and Pacific Connector Gas Pipeline. "Jordan Cove is the first ever U.S. West Coast natural gas export facility to be approved by FERC. This federal approval is a significant milestone for the Project and for Pembina," the company said. | ||||
Pembina Pipeline is… Pembina Pipeline is reducing its 2020 capital spending plans by $900M-$1.1B in response to the COVID-19 pandemic and the recent significant decline in global energy prices. Pembina has taken steps to determine the essential staff and critical infrastructure required to ensure uninterrupted service to customers while maintaining safety. In light of the rapid and significant decline in global energy prices and uncertainty as to the duration of this downturn, Pembina has deferred some of its previously announced expansion projects. The following projects will be deferred: Peace Pipeline Phase VII, VIII and IX expansions, representing $1.55B of total capital; Empress Co-generation Facility, representing $120M of capital; Prince Rupert Terminal Expansion, representing $175M of capital; and Pembina's investment in the integrated propane dehydrogenation plant and polypropylene upgrading facility, representing $2.7B of capital, net to Pembina. Additional discretionary capital spending has been removed from Pembina's 2020 capital budget. The impact of these measures results in a reduction of $900M-$1.1B, or approximately 40%-50%, to the company's previously announced 2020 capital budget of $2.3B. Pembina now expects its revised 2020 capital budget to be $1.2B-$1.4B. Pembina still expects to place approximately $1.3B, net to Pembina, of new projects into service during 2020, including the Peace Pipeline Phase VI Expansion, Duvernay III, Empress Fractionation, Hythe Developments and the initial phase of the Prince Rupert Terminal, among others, to support Pembina's growth in 2020 and beyond. The deferred projects were expected to come into service largely in 2021 through 2023 and therefore will not materially impact Pembina's 2020 adjusted EBITDA. The underlying business remains highly contracted, with approximately 85% of 2019 adjusted EBITDA supported by long-term, fee-based contracts, including approximately 62% coming from cost-of-service or take-or-pay contracts with no volume or price risk. Approximately 80% of the company's credit exposure is with investment grade and split-rated counterparties as well as counterparties secured by letters of credit. Pembina is rated BBB with a Stable outlook by Standard & Poor's and BBB with a Stable trend by DBRS Limited. Pembina has $1.5B of available cash and borrowing capacity on its credit facility as of March 17, plus an additional $750M of capacity through an accordion feature and this facility does not mature until 2024. Pembina is continuing to progress work started earlier this year to pursue non-core assets sales in the range of $200M-$500M. | ||||
RBC Capital analyst… RBC Capital analyst Robert Kwan backed an Outperform rating and C$55 price target on Pembina Pipeline, saying that credit rating concerns are overly cautious. | ||||
| Over a month ago | ||||
Catch up on today's… Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Ionis Pharmaceuticals (IONS) initiated with a Buy at Citi. 2. Pembina Pipeline (PBA) initiated with an Overweight at Barclays. 3. TC Energy (TRP) initiated with an Overweight at Barclays. 4. Callaway Golf (ELY) assumed with a Buy at Roth Capital. 5. Dialog Semiconductor (DLGNF) initiated with a Neutral at UBS. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. | ||||
Barclays analyst… Barclays analyst Christopher Tillett initiated coverage of Pembina Pipeline with an Overweight rating and C$54 price target. The company's recently acquired Kinder Morgan assets bring "vital" infrastructure that should create low-multiple expansion opportunities, says the analyst. | |
Barclays initiated… Barclays initiated coverage of Pembina Pipeline with an Overweight rating and C$54 price target. | |
Reports Q4 revenue… Reports Q4 revenue C$1.75B vs. C$1.73B last year. Q4 Pipelines reported adjusted EBITDA of C$467 million and C$1,854 million for the full year, which represents 12% and 9% increases, respectively, compared to the same periods of 2018. The quarter was positively impacted by higher revenue from new assets placed into service, contribution from the Kinder Acquisition assets, higher tolls on AEGS, timing difference in the recognition of deferred revenue and the end of the third-party force majeure outage impacting Vantage Pipeline, partially offset by a lower contribution from Alliance Pipeline, higher operating expenses and higher general and administrative expense. Pipelines volumes of 2,667 mboe/d in the fourth quarter and 2,566 mboe/d for the full year, represent a five percent and two percent increase, respectively, compared to the same periods of 2018. | |
Wells Fargo analyst… Wells Fargo analyst Praneeth Satish upgraded Pembina Pipeline to Overweight from Equal Weight with a C$56 price target as part of a broader research note on Midstream C-Corps. In a research note to investors, the analyst says he prefers Canada over the U.S. given a better fundamental midstream outlook north of the border and would avoid names with meaningful Northeast G&P exposure. With low natural gas and NGL prices, we see growing E&P counterparty risk to Northeast midstream, creating headwinds to performance for companies with meaningful northeast G&P exposure, the analyst says. He is now Overweight all Canadian midstream names under coverage, Underweight all pure-play Northeast G&P companies, and Equal weight on large cap pipeline companies with significant Northeast G&P exposure. | |
JPMorgan analyst Jeremy… JPMorgan analyst Jeremy Tonet reinstated coverage of Pembina Pipeline with an Overweight rating and C$58 price target following a period of restriction. |