EPS of 65c beat estimates of 64c; revenue of $1.79B missed estimates of $1.96B. EBITDA of $1.01B matched estimates. Pembina's Ebitda could be little changed in 3Q on an annual and sequential basis. Pipelines and Facilities volume will likely improve after planned maintenance at Aux Sable, certain PGI facilities and its Redwater Complex limited throughput and Ebitda in the prior quarter. Yet revenue may increase more slowly than the actual conventional pipeline and gas-processing volume as customers grow into take-or-pay contracts. Marketing Ebitda could fall sharply again, due partly to continued commodity price and NGL margin pressure. Pembina downgraded 2025 Ebitda guidance to $4.23-$4.43 billion from $4.2-$4.5 billion. The company also raised its capital-spending view by C$200 million to C$1.3 billion, suggesting a significant acceleration in 2H that could strain free cash flow. The stock has lagged, but offers a good valuation and dividend. We think it remains solid as an income stock but would be less inclined to add right now if it is already owned.
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