Pembina Pipeline Drops 0.25% in After-Hours: 2025 Guidance and Business Update

Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) shares dipped by 0.25% in after-hours trading following the announcement of its 2025 guidance and business update. The company reported a 2025 adjusted EBITDA guidance range of $4.2 billion to $4.5 billion, driven by positive impacts such as continued volume growth and new assets, but partially offset by factors like the recontracting of the Cochin Pipeline and moderation of commodity margins in the marketing business.



Pembina Pipeline's 2025 capital investment program totals $1.1 billion, reflecting a balance between growth opportunities and financial stability. The program includes ongoing construction of previously sanctioned projects, development spending on potential future projects, and sustaining capital. Key projects include the RFS IV Expansion, Wapiti Expansion, and the K3 Cogeneration Facility, which contribute to the company's financial guardrails by ensuring safe, on-time, and on-budget execution, driving growth, and maintaining a strong balance sheet with a year-end proportionately consolidated debt-to-adjusted EBITDA ratio of 3.4 to 3.7 times.

As attention turns to 2025, Pembina is focused on several key priorities, including safe, reliable, and cost-effective operations, stewardship of inflight construction projects, and progressing the Cedar LNG Project. The company's strategy within a fully funded model and consistent with its financial guardrails is expected to generate positive free cash flow within its 2025 adjusted EBITDA guidance range, with all capital investment program scenarios being fully funded by cash flow from operating activities, net of dividends.

In conclusion, while Pembina Pipeline's shares experienced a slight dip in after-hours trading, the company's 2025 guidance and business update highlight its commitment to growth and financial stability. With a balanced capital investment program and a focus on key priorities, Pembina Pipeline is well-positioned to navigate the evolving energy landscape and deliver value to shareholders.