Topic: How To Invest

Q: Hi. Do you think Pembina Pipelines PPL is a buy? I’m curious as to why its stock price is under pressure. Thanks.

Article Excerpt

A: Pembina Pipeline, $28.44, symbol PPL on Toronto (Shares outstanding: 549.8 million; Market cap: $13.5 billion; gives you a stake in pipelines carrying almost all of B.C.’s oil and half of Alberta’s conventional oil. The company’s network also transports 30% of Western Canada’s natural gas liquids (NGLs), while its extensive facilities extract, process and store NGLs. Pembina also operates natural gas-processing plants. The stock is down about 38% since the big market decline began at the start of March 2020. In comparison, the S&P/TSX Composite Index is down around 14%. The stock has dropped along with the market as a whole. Still, some other factors have worsened its decline. The most prominent of those factors is the sharp falloff in oil prices brought about by the COVID-19 economic downturn as well as the Saudi Arabia-Russia oil price war. However, most of Pembina’s pipelines operate under fixed-price contracts. And while the company’s long-term dividend and cash flow outlook will ultimately depend on the severity…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.