Pembina Pipeline Raises 2026 EBITDA Guidance on Marketing Strength
The energy infrastructure provider updated its 2026 adjusted EBITDA guidance range to $4.35 billion to $4.55 billion
Pembina Pipeline Corporation (PBA), an energy transportation and midstream service provider, raised its full-year 2026 adjusted EBITDA guidance to a range of $4.35 billion to $4.55 billion from a previous range of $4.125 billion to $4.425 billion. The company said the update primarily reflects the impact of stronger commodity prices on its marketing business.
For the first quarter of 2026, the company reported earnings of $498 million, a 1% decrease from the $502 million reported in the same period last year. Adjusted EBITDA for the quarter was $1,131 million, representing a 3% decrease from $1,167 million in the prior-year period. Adjusted cash flow from operating activities was $790 million, or 1.36 a share.
Performance across business segments diverged during the quarter. The Facilities division reported adjusted EBITDA of $363 million, a 5% increase over the prior year driven by higher volumes from certain PGI assets. Conversely, the Pipelines division saw adjusted EBITDA fall 4% to $647 million. The company attributed this decline to a $26 million drop in net revenue on the Alliance Pipeline following a negotiated settlement with shippers, though this was partially offset by higher interruptible and seasonal revenue due to natural gas demand in the U.S. Midwest.
The Marketing & New Ventures division reported adjusted EBITDA of $188 million, a 10% decrease from the prior year. The company said this was primarily due to narrower WCSB and U.S. NGL frac spreads caused by lower NGL prices and higher U.S. natural gas prices. These losses were partially offset by exposure to premium propane prices in Asian markets via West Coast exports.
Operational expansions continued as the company placed the K3 Cogeneration Facility and the Wapiti Expansion into service near the end of the first quarter. The Wapiti Expansion increased natural gas processing capacity at the Wapiti Plant by 115 million cubic feet per day. Additionally, Pembina renewed and executed new contracts for approximately 110,000 barrels per day of transportation capacity on the Peace Pipeline.
The board of directors declared a common share cash dividend for the second quarter of 2026 of $0.735 a share, which is an increase of approximately 3.5%.
Looking forward, the company remains on track to realize compound annual growth of approximately 5% in fee-based adjusted EBITDA per share from 2023 to 2026. The company has hedged approximately 90% of its exposure in the second and third quarters and 40% in the fourth quarter of 2026.