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Pembina (PBA) Unveils Strong 2024 Outlook & Expansion Plan
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Pembina Pipeline Corporation (PBA - Free Report) announced its optimistic projection for 2024 on Monday, with adjusted EBITDA between C$3.725 billion and C$4.025 billion. The energy transportation and midstream service provider concurrently unveiled a capital investment program of C$880 million for the upcoming year.
Pembina's capital investment program for 2024 is slated to be entirely funded by cash flow from operating activities, net of dividends. The company highlighted its commitment to financial prudence by ensuring self-sufficiency in funding without relying on external sources.
The disclosed capital investment program for 2024 includes approximately C$100 million in deferred capital expenditures from 2023. These deferrals are attributed to project reprioritization and adjustments in execution timing, indicating a strategic and adaptive approach to project management.
Notably, Pembina has hedged approximately 40% of its 2024 frac spread exposure, excluding Aux Sable. The weighted average price of these hedges, excluding transportation and processing costs, is estimated to be C$39.40 per barrel. This risk management strategy aims to provide stability and mitigate potential market fluctuations in the highly dynamic energy sector.
The company's income tax expense for 2024 is anticipated to be in the range of C$295-C$345 million, reflecting its financial projections and tax planning.
In addition to the outlined 2024 capital investment program, Pembina is actively developing additional growth projects that could further augment the program by up to C$280 million.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites.
EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.
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Pembina (PBA) Unveils Strong 2024 Outlook & Expansion Plan
Pembina Pipeline Corporation (PBA - Free Report) announced its optimistic projection for 2024 on Monday, with adjusted EBITDA between C$3.725 billion and C$4.025 billion. The energy transportation and midstream service provider concurrently unveiled a capital investment program of C$880 million for the upcoming year.
Pembina's capital investment program for 2024 is slated to be entirely funded by cash flow from operating activities, net of dividends. The company highlighted its commitment to financial prudence by ensuring self-sufficiency in funding without relying on external sources.
The disclosed capital investment program for 2024 includes approximately C$100 million in deferred capital expenditures from 2023. These deferrals are attributed to project reprioritization and adjustments in execution timing, indicating a strategic and adaptive approach to project management.
Notably, Pembina has hedged approximately 40% of its 2024 frac spread exposure, excluding Aux Sable. The weighted average price of these hedges, excluding transportation and processing costs, is estimated to be C$39.40 per barrel. This risk management strategy aims to provide stability and mitigate potential market fluctuations in the highly dynamic energy sector.
The company's income tax expense for 2024 is anticipated to be in the range of C$295-C$345 million, reflecting its financial projections and tax planning.
In addition to the outlined 2024 capital investment program, Pembina is actively developing additional growth projects that could further augment the program by up to C$280 million.
Zacks Rank & Key Picks
Currently, Pembina carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) , Liberty Energy Inc. (LBRT - Free Report) and EOG Resources, Inc. (EOG - Free Report) . While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and EOG Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites.
EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.