Expansion fuels Pembina’s dividend

Article Excerpt

Dear client: Pembina is set to complete a $5.2 billion expansion program this year. Those new operations will immediately add to cash flow and support the company’s plans for future dividend increases. In fact, Pembina has already begun to benefit from a new wave of growth. That includes a 20year deal, worth billions, to provide Chevron with natural-gas gathering systems for its operations in west-central Alberta. PEMBINA PIPELINE CORP. $44 (Toronto symbol PPL; HighGrowth Dividend Payer Portfolio; Utilities sector; Shares outstanding: 399.9 million; Market cap: $17.6 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Above Average; www.pembina.com) built its first pipeline in 1954 to pump crude oil to Edmonton from the Pembina field outside Drayton Valley, Alberta. The company now has over 10,000 kilometres of pipelines, in Alberta, B.C., Saskatchewan and North Dakota. They transport half of Alberta’s conventional crude oil production, about 30% of the natural gas liquids (NGLs) produced in Western Canada, and virtually all of the conventional oil produced in B.C. In…