New U.S. assets spur Pembina

Article Excerpt

Pembina’s $9.7 billion purchase of Veresen Inc. late last year has already proven a great fit for the company: Veresen’s U.S. exposure and its assets, including a 50% stake in the Alliance natural-gas pipeline, have broadened Pembina’s operations. Veresen should also continue to boost Pembina’s cash flow and dividends—as well as its share price. PEMBINA PIPELINE $44.20 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $22.2 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; owns pipelines that carry almost all of B.C.’s oil and half of Alberta’s conventional oil. In addition, its network transports 30% of Western Canada’s natural gas liquids (NGLs). The company owns extensive facilities to extract, process and store NGLs; it also operates natural gas-processing plants. In October 2017, Pembina completed its acquisition of Veresen Inc. for $9.7 billion. Veresen’s holdings broaden Pembina’s operations as well as its U.S. exposure. The acquisition came with key assets, including 50% of the Alliance gas line, which spans the 3,000 kilometres between Chicago and…

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