Pembina Pipeline Corporation (PBA): history, ownership, mission, how it works & makes money

A Brief History of Pembina Pipeline Corporation (PBA)

Foundation and Early Years

Pembina Pipeline Corporation was founded in 1954 in the province of Alberta, Canada. It started with the construction of a 109-kilometer natural gas liquids pipeline from the Pembina oil field to the new rail terminal in Edmonton.

Public Listing

In 1997, Pembina became a publicly traded entity on the Toronto Stock Exchange under the symbol PIF (Pembina Income Fund). In 2010, it changed its structure to a corporation and adopted its current name, Pembina Pipeline Corporation.

Expansion and Growth

Over the years, Pembina has significantly expanded its operational footprint. By 2019, the company had approximately 20,000 kilometers of pipeline systems, serving various sectors including oil and gas exploration and production.

Financial Performance

As of Q3 2023, Pembina reported a revenue of approximately CAD 2.5 billion for the year. The EBITDA for the same period was approximately CAD 1.5 billion.

Dividend Policy

Pembina Pipeline Corporation has been consistent in its dividend payments. As of Q3 2023, the annualized dividend rate was CAD 2.67 per share, yielding approximately 6.2%.

Recent Developments

In 2023, Pembina announced its commitment to reduce greenhouse gas emissions by 30% by 2030. The company has begun investing in renewable energy projects to diversify its portfolio.

Key Partnerships

• Partnership with the Alberta government for infrastructure development.
• Collaboration with major oil sands producers in northern Alberta.
• Joint ventures for renewable energy projects.

Market Position

Pembina is one of the largest pipeline companies in Canada, operating across several key markets, including natural gas, NGLs, and crude oil. As of October 2023, its market cap stands at approximately CAD 15 billion.

Future Outlook

Pembina intends to invest CAD 1.5 billion in growth projects over the next five years. The focus will be on optimizing its existing infrastructure and expanding its capabilities in the renewable energy sector.

A Who Owns Pembina Pipeline Corporation (PBA)

Overview of Ownership Structure

Pembina Pipeline Corporation (PBA) is a publicly traded corporation listed on the Toronto Stock Exchange (TSE) under the ticker symbol PPL and on the New York Stock Exchange (NYSE) as PBA. The ownership of Pembina is diversified among institutional investors, retail investors, and company insiders.

Institutional Ownership

As of the latest available data, institutional ownership of Pembina Pipeline Corporation is significant. The percentage of shares owned by institutional investors is approximately 62.3%.

Retail Ownership

Retail investors also hold a noteworthy portion of Pembina's shares, representing about 37.7% of the outstanding shares. This percentage includes individual and smaller investor holdings.

Insider Ownership

Insider ownership is another key component of Pembina's ownership structure. As of the last reporting period, insiders own approximately 1.5% of the shares, indicating a level of confidence in the company's future.

Major Shareholders

The following table summarizes the largest shareholders of Pembina Pipeline Corporation:

Performance Indicators

Pembina Pipeline Corporation has reported the following financial statistics relevant to its performance:

• Market Capitalization: $20.3 billion
• Annual Revenue (2022): $3.8 billion
• Net Income (2022): $1.1 billion
• Dividend Yield: 6.8%

Recent Shareholder Activity

In the latest fiscal year, Pembina has seen fluctuations in its shareholder composition with notable transactions:

• Vanguard increased its holdings by 1.2 million shares.
• BlackRock reduced its stake by 500,000 shares.
• Insider purchases were reported at 600,000 shares.

Share Price Performance

The share price of Pembina Pipeline Corporation experienced changes over the past year:

• 52-week high: $47.80
• 52-week low: $32.10
• Current Share Price: $40.25

Pembina Pipeline Corporation (PBA) Mission Statement

Core Mission

Pembina Pipeline Corporation is dedicated to being a leading transportation and midstream service provider in North America, focusing on the creation of long-term value through the development of its extensive network of pipelines and infrastructure.

Strategic Objectives

• Growth of Operations: Increase operational capacity by expanding pipeline networks and enhancing services.
• Environmental Stewardship: Commitment to sustainable development and minimizing the environmental impact of operations.
• Safety and Compliance: Ensuring the highest safety standards and regulatory compliance across all activities.
• Customer Focus: Providing reliable and efficient service to meet customer needs effectively.

Financial Overview

As of Q2 2023, Pembina Pipeline Corporation reported:

Market Presence

Pembina operates a vast network of pipelines, extending over 18,000 kilometers across North America.

In 2023, Pembina transported approximately 3.2 million barrels per day (bpd) of hydrocarbons.

Corporate Social Responsibility

• Investment in local communities, exceeding CAD 5 million in community initiatives.
• Commitment to reduce greenhouse gas emissions by 30% by 2030.
• Strong community engagement with over 150 community partnerships.

Conclusion of Mission Alignment

Pembina's mission statement aligns with its operational strategies, emphasizing profitability while staying committed to environmental and social responsibilities.

How Pembina Pipeline Corporation (PBA) Works

Overview of Pembina Pipeline Corporation

Pembina Pipeline Corporation is a prominent North American energy infrastructure company, headquartered in Calgary, Alberta. It specializes in the transportation and processing of hydrocarbons and provides a range of services across various segments.

Business Segments

• Transportation: Involves the movement of crude oil, natural gas liquids, and other products.
• Gas Services: Provides processing and transportation services for natural gas.
• Facilities: Encompasses the development and operation of facilities for hydrocarbon processing.
• Infrastructure: Involves building and managing pipelines and processing plants.

Financial Performance

As of Q3 2023, Pembina Pipeline Corporation reported the following financial figures:

Pipeline Infrastructure

Pembina operates an extensive network of pipelines throughout Western Canada and into the United States. The total pipeline length exceeds 17,000 kilometers. This infrastructure supports the transportation of various products:

• Crude Oil: 3.4 million bbl/d capacity.
• Natural Gas Liquids: 1.5 billion cubic feet per day.
• Gas Gathering and Processing: 2.3 billion cu ft/d of natural gas.

Market Position

Pembina Pipeline Corporation holds a strong market position with a market capitalization of approximately CAD 21 billion as of Q3 2023. The company has established itself as a leader in the energy sector and has been recognized for its commitment to safety and environmental sustainability.

Investment Highlights

Future Growth Initiatives

Pembina Pipeline is actively pursuing opportunities for expansion and growth in the following areas:

• New Pipeline Projects: Expansion of existing pipelines and new builds.
• Renewable Energy: Investment in renewable energy infrastructure.
• Technological Innovation: Implementing advanced technologies for operational efficiency.

Sustainability Efforts

Pembina is committed to reducing its environmental impact and has set ambitious sustainability goals for the future. It reports annually on its emissions and environmental practices:

How Pembina Pipeline Corporation (PBA) Makes Money

Core Business Segments

Pembina Pipeline Corporation operates through several segments, which significantly contribute to its revenue streams. These segments include:

• Transportation: This segment involves the transportation of oil and natural gas liquids.
• Facilities: This includes the operation of natural gas processing and fractionation facilities.
• Marketing & New Ventures: Focuses on the marketing of hydrocarbons as well as new project developments.

Revenue Breakdown

As of 2022, Pembina Pipeline Corporation reported total revenues of approximately $7.16 billion. The revenue distribution among its segments was as follows:

Major Operations in Transportation

Pembina's transportation network includes over 18,000 kilometers of pipelines. This extensive infrastructure allows for substantial throughput of hydrocarbons, generating significant revenue. Key metrics include:

• Daily Throughput: Average of 3.3 million barrels of oil equivalent per day (boe/d) in 2022.
• Transportation Revenue per Barrel: Approximately $6.50 CAD.

Facilities Contribution

The facilities segment focuses on gas processing and fractionation facilities, which have a processing capacity of over 5 billion cubic feet per day (bcf/d). Financial highlights include:

• Processing Revenue: Approximately $1.2 billion CAD in 2022.
• Fractionation Capacity: 1.1 million barrels per day (bbl/d).

Market Trends and Pricing Impact

Pembina's revenue is heavily influenced by market conditions for oil and gas. In 2022, the average price per barrel of West Texas Intermediate (WTI) crude was around $95 USD, impacting revenue positively. The pricing dynamics include:

• Average Natural Gas Price: Approximately $4.50 USD per million British thermal units (MMBtu).
• Impact of Market Volatility: Fluctuations can affect transportation volume and pricing structure.

Financial Performance Metrics

Pembina's financial strength can be observed through key financial metrics as of the end of 2022:

Capital Expenditure and Investments

Pembina Pipeline Corporation has been actively investing in infrastructure to support growth. Capital expenditures for 2022 totaled about $2.5 billion, with planned investments in:

• Pipeline Expansions: $1.2 billion targeted towards new pipeline projects.
• Facility Upgrades: $800 million allocated for enhancing processing capabilities.

Conclusion on Diversification Strategies

Pembina’s diversification strategy across various segments helps mitigate risk and stabilize revenue streams during fluctuating market conditions. The company continues to evaluate opportunities in:

• New Ventures: Expanding its portfolio beyond traditional fossil fuels.
• Renewable Energy Projects: Investing in biofuels and other renewables.