Pembina Pipeline Q2 Earnings Match Estimates, Revenues Miss

Pembina Pipeline Corporation PBA reported second-quarter 2025 earnings per share of 47 cents. The figure was in line with the Zacks Consensus Estimate. The bottom line decreased from the year-ago quarter’s level of 55 cents. This decrease was primarily due to an asset retirement at the Redwater Complex, lower profit from PGI and lower other income.

Quarterly revenues of $1.3 billion decreased about 4.5% year over year. The metric also missed the Zacks Consensus Estimate of $1.6 billion significantly.

Pembina Pipeline Corp. Price, Consensus and EPS Surprise

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

In the second quarter, the oil and gas storage and transportation company witnessed volumes of 3,896 mboe/d compared with 3,890 mboe/d reported in the prior-year quarter.

The Canada-based company’s operating cash flow decreased approximately 17.2% to C$790 million. Adjusted EBITDA was C$1 billion compared with C$1.1 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 Sept. 15, 2025. The payout, which remains flat sequentially, will be paid on Sept. 29, 2025.

PBA’s Segmental Information

Pipelines: Adjusted EBITDA of C$646 million decreased about 1.4% from the year-ago quarter’s level. However, the figure beat our projection of C$631.3 million. This year-over-year decline was primarily attributed to lower firm tolls on the Cochin Pipeline due to recontracting in July of 2024, lower revenues at the Edmonton Terminals, largely related to the decommissioning of the Edmonton South Rail Terminal in the second quarter of 2024, lower interruptible volumes and lower tolls on the Vantage Pipeline.

However, volumes of 2,768 mboe/d in this segment saw an increase of about 2% compared with the year-ago quarter’s level.

Facilities: Adjusted EBITDA of C$331 million decreased from the year-ago quarter’s C$340 million, primarily due to lower volumes caused by planned outages at certain PGI assets and ongoing third-party egress restrictions impacting the Dawson assets. The figure slightly missed our prediction of C$331.3 million. 

Volumes of 826 mboe/d decreased about 3.4% year over year.

Marketing & New Ventures: Adjusted EBITDA of C$74 million decreased 48.3% from the year-ago quarter’s C$143 million. This decrease was primarily fueled by the net impact of lower net revenues due to a decline in NGL margins as a result of lower butane and propane prices, coupled with lower volumes resulting from third-party restrictions at the Channahon Facility and planned outages at both the Channahon Facility and the Redwater Complex, as well as lower realized gains on crude oil-based derivatives. The figure also missed our projection of C$117.8 million.

Volumes of 302 mboe/d decreased about 5.3% year over year.

PBA’s Capital Expenditure & Balance Sheet

Pembina spent C$197 million as capital expenditure in the quarter under review compared with C$265 million a year ago.

As of June 30, 2025, PBA had cash and cash equivalents worth C$210 million and C$12.7 billion in long-term debt. Debt-to-capitalization was 42.8%.

PBA’s 2025 Guidance

This Zacks Rank #3 (Hold) company expects its 2025 adjusted EBITDA to be in the range of C$4.2 billion to C$4.4 billion. Pembina has revised its outlook for the 2025 capital investment program to $1.3 billion, indicating continued progression of proposed conventional pipeline expansions to serve growing customer demand, approval of new projects and acquisitions at PGI.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed PBA’s second-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

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