Pembina Pipeline Q3 Earnings & Revenues Miss Estimates, Both Down Y/Y

Pembina Pipeline Corporation PBA reported third-quarter 2025 earnings per share of 31 cents, which missed the Zacks Consensus Estimate of 45 cents. The bottom line also decreased from the year-ago quarter’s level of 44 cents. This underperformance was primarily caused by weaker year-over-year results in the Marketing & New Ventures segment — including lower realized gains on derivatives and compressed NGL margins — as well as soft delivery in the Pipelines segment, with volumes of 2,750 mboe/d missing the consensus expectation of 2,768 mboe/d.

Quarterly revenues of $1.3 billion decreased about 3.8% year over year. The metric also missed the Zacks Consensus Estimate by 1.6%.

The Canada-based company’s operating cash flow decreased approximately 12.1% to C$810 million. Adjusted EBITDA increased 1.5% year over year to C$1 billion, driven by higher net revenues from the Peace Pipeline system and the Alliance Pipeline.

In the third quarter, the oil and gas storage and transportation company witnessed volumes of 3,959 mboe/d compared with 3,892 mboe/d reported in the prior-year quarter.

Pembina’s board of directors declared a quarterly cash dividend of 71 Canadian cents per share to its common shareholders of record as of Dec. 15. The payout will be paid on Dec. 31, 2025.

The company made meaningful progress across several growth initiatives. It secured new transportation commitments on the Peace Pipeline, renewing and adding roughly 50,000 barrels per day of volumes under agreements averaging about 10 years in term. Contract stability also improved on the Alliance Pipeline, with shippers using a one-time extension option and locking in a new 10-year toll on about 96% of available firm capacity. Pembina continued to advance more than C$1 billion in proposed pipeline expansions to support increasing production from the Montney, Duvernay and Deep Basin regions.

In addition, the company signed a 20-year agreement with PETRONAS covering 1.0 mtpa of its 1.5 mtpa capacity at the Cedar LNG facility. Pembina, together with its partner Kineticor, also moved the Greenlight Electricity Center closer to commercialization, with a final investment decision expected in the first half of 2026.

Pembina Pipeline Corp. Price, Consensus and EPS Surprise

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

PBA’s Segmental Information

Pipelines: Adjusted EBITDA of C$630 million increased about 6.2% from the year-ago quarter’s level.

This growth was mainly supported by stronger demand on seasonal contracts on the Alliance Pipeline, increased revenues on the Peace Pipeline system from higher tolls tied to contractual inflation adjustments, higher interruptible volumes on the Peace system and increased contracted volumes on the Nipisi Pipeline. However, the figure missed our projection of C$686.4 million.

Volumes in this segment also saw a 0.4% year-over-year increase to 2,750 mboe/d.

Facilities: Adjusted EBITDA of C$354 million increased from the year-ago quarter’s C$324 million, mainly driven by higher contribution from PGI related to transactions with Whitecap Resources Inc., increased capital recoveries due to a turnaround and higher volumes at the Duvernay Complex. The figure beat our projection of C$276.2 million. 

Volumes of 861 mboe/d increased about 6.3% year over year.

Marketing & New Ventures: Adjusted EBITDA of C$99 million decreased from the year-ago quarter’s C$159 million. This decrease was caused by lower net revenues, reflecting weaker NGL margins due to lower NGL prices, higher input natural gas costs at Aux Sable and lower realized gains on crude oil-based derivatives. However, the figure beat our projection of C$95.3 million.

This outcome was helped by a 1.2% increase in volumes from last year, reaching 348 mboe/d, showing steady activity in the segment.

PBA’s Capital Expenditure & Balance Sheet

Pembina spent C$178 million as capital expenditure in the quarter under review compared with C$262 million a year ago.

As of Sept. 30, PBA had cash and cash equivalents worth C$149 million and C$12.6 billion in long-term debt. Debt-to-capitalization was 42.6%.

PBA’s 2025 Guidance

This Zacks Rank #3 (Hold) company expects 2025 adjusted EBITDA in the range of C$4.25 billion to C$4.35 billion compared with the previous guidance of C$4.23 billion to C$4.43 billion.

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 third-quarter results in detail, let us take a look at three other key reports in this space.

Liberty Energy Inc. LBRT, a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.

As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.

San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.

The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.

Houston-based Halliburton Company HAL, one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.

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