Pembina Earnings: Northern Pipeline Outage and Weak Marketing Create Headwinds

Pembina's first-quarter earnings were somewhat challenging with the negative impacts of the Northern Pipeline outage and weak marketing spreads. Overall EBITDA fell 6% to CAD 947 million from last year's levels. Despite the negative impacts of the North Pipeline outage (CAD 54 million) and marketing (a CAD 98 million decline from last year), Pembina reaffirmed its 2023 EBITDA midpoint of CAD 3.65 billion. Given this matches up well with our CAD 3.68 billion forecast, we expect to leave our CAD 41 and $30 fair value estimates and no moat rating unchanged.