Pembina is poised for strong growth

Article Excerpt

Pembina’s $9.7 billion purchase of Veresen Inc. in 2017 has already proven a great fit: Veresen’s U.S. exposure and its assets, including a 50% stake in the Alliance natural-gas pipeline, have broadened Pembina’s operations. Meanwhile, the company has lots of growth projects underway. Those, plus the addition of Veresen, should continue to boost Pembina’s cash flow and dividends—as well as its share price. PEMBINA PIPELINE $49.74 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $25.5 billion; TSINetwork Rating: Average; Dividend yield: 4.6%; www.pembina.com) 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. On October 2, 2017, Pembina completed its acquisition of Veresen Inc. for $9.7 billion. The firm’s holdings broadened Pembina’s operations as well as its U.S. exposure. In addition, Veresen came with key assets, including 50% of…