Pembina Pipeline Corp
PPL: XTSE (CAN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CAD 23.00 | Gxnfl | Klqs |
We Think the Alliance/Aux Sable Deal Makes Sense for Pembina
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Business Strategy and Outlook
Pembina offers a fully integrated "store" to its customers, allowing it to retain full economics over the midstream value chain. Its major earlier growth opportunities across liquefied natural gas (a CAD 4 billion-CAD 5 billion net investment in Jordan Cove LNG and the related Ruby pipeline repositioning) and petrochemicals (a CAD 4.5 billion venture with Canada Kuwait Petrochemical) were essentially canceled in early 2021, leading to significant write-offs.