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Pembina Pipeline Corp PBA

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Inter Pipeline Is Now in Play With Higher Offer From Brookfield Infrastructure Partners

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

Brookfield Infrastructure Partners has made a compelling CAD 19.75 per share offer in cash and stock to acquire Inter Pipeline. This offer appears superior to Pembina Pipeline's announced combination with Inter Pipeline on June 1 for 0.5 share of Pembina stock, which is worth CAD 19.14 currently, for each share of Inter Pipeline. With Inter Pipeline's stock trading above CAD 20, the market clearly anticipates a higher counteroffer from Pembina. We have adjusted our fair value estimate for Inter Pipeline to CAD 19.75 but recognize that new and higher offers are very likely in the near future. Pembina remains under review.

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Company Profile

Business Description

Pembina Pipeline is an integrated midstream energy infrastructure company in western Canada and North Dakota, highlighted by its regional pipeline network. The company operates over 9,000 kilometers of conventional hydrocarbon pipelines, coupled with 1,650 kilometers of heavy oil and oil sands pipelines. Gas processing facilities, natural gas liquids infrastructure, and a marketing business round out the integrated value chain.

Contact
585 - 8th Avenue S.W., Suite 4000
Calgary, AB, T2P 1G1, Canada
T +1 403 231-7500
Sector Energy
Industry Oil & Gas Midstream
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 2,623

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