Pembina Pipeline Q1 Earnings Miss Estimates, Sales Decline Y/Y

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13-05-2025

Pembina Pipeline Corporation PBA reported first-quarter 2025 earnings per share of 56 cents, which missed the Zacks Consensus Estimate of 57 cents. This underperformance was primarily due to weak delivery in the company's Facilities segment. PBA's Facilities volume for the same period was 619 thousand barrels of oil equivalent per day (mboe/d), missing the consensus expectation of 622 mboe/d. However, the bottom line increased from the year-ago quarter's level of 54 cents.
Quarterly revenues of $1.6 billion decreased about 39.2% year over year. The metric also missed the Zacks Consensus Estimate by $8 million.
In the first quarter, the oil and gas storage and transportation company witnessed volumes of 4,073 mboe/d compared with 3,698 mboe/d reported in the prior-year quarter.
Canada-based company's operating cash flow increased approximately 92.7% to C$840 million. Adjusted EBITDA was C$1.2 billion compared with C$1 billion in the year-ago period.
Pembina's board of directors declared a quarterly cash dividend of 71 Canadian cents per share to its common shareholders of record as of June 16. The payout, which represents a 2.9% sequential increase, will be paid on June 30, 2025.
Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote
Pipelines: Adjusted EBITDA of C$677 million increased about 13% from the year-ago quarter's level. Moreover, the figure beat our projection of C$646.9 million. This growth was primarily attributed to the strategic acquisition of Enbridge's interests in the Alliance, Aux Sable and NRGreen joint ventures, coupled with favorable U.S. exchange rates, contractual inflation-related toll increases and higher contracted volumes on the Nipisi and Peace pipelines, as well as increased seasonal demand on the Alliance system.
Volumes in this segment also saw a healthy 8.1% year-over-year increase to 2,808 mboe/d.
Facilities: Adjusted EBITDA of C$345 million increased from the year-ago quarter's C$310 million, primarily due to the inclusion of Aux Sable's earnings following the Alliance/Aux Sable Acquisition and higher contributions from PGI related to the Whitecap and Veren transactions. The figure, however, missed our projection of C$413.9 million.
Volumes of 896 mboe/d increased about 11.3% year over year.
Marketing & New Ventures: Adjusted EBITDA of C$210 million increased from the year-ago quarter's C$188 million. This increase was primarily fueled by higher net revenues generated from customer contracts, a direct result of Pembina's increased ownership in Aux Sable following the strategic Alliance/Aux Sable Acquisition. The figure beat our projection of C$117.8 million.
This positive financial outcome was supported by a 25.1% year-over-year increase in volumes, reaching 369 mboe/d, indicating robust operational momentum within the segment.
Pembina spent C$174 million as capital expenditure in the quarter under review compared with C$186 million a year ago.
As of March 31, 2025, PBA had cash and cash equivalents worth C$155 million and C$12.5 billion in long-term debt. Debt-to-capitalization was 41.6%.
This Zacks Rank #3 (Hold) company expects its 2025 adjusted EBITDA to be near the midpoint of its target range of C$4.2 billion to C$4.5 billion. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed PBA's first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter's reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper's long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter's profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton's revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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