Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
CALGARY - Canada Energy Regulator (CER) has approved a negotiated settlement between Alliance Pipeline Limited Partnership and shippers for the Canadian portion of the Alliance Pipeline, Pembina Pipeline Corporation (TSX:PPL; NYSE:PBA), a $22.8 billion market cap energy infrastructure company with a solid 5.3% dividend yield, announced Tuesday.
The settlement establishes a tolling structure for the next ten years on the pipeline system, which delivers an average of 1.7 billion cubic feet per day of liquids-rich natural gas.
"We are pleased that the CER has approved the Settlement between Alliance and the Shipper Committee, resulting in a just and reasonable tolling structure for the next ten years," said Scott Burrows, Pembina’s President and Chief Executive Officer, in a press release statement. According to InvestingPro data, Pembina has maintained dividend payments for 21 consecutive years and achieved impressive revenue growth of 20.6% over the last twelve months.
The Alliance Pipeline consists of approximately 3,850 kilometers of integrated Canadian and U.S. natural gas transmission pipeline, connecting the Western Canadian Sedimentary Basin and the Williston Basin in North Dakota to natural gas markets in the Chicago area.
The Canadian portion includes a 1,561-kilometer natural gas mainline pipeline and related lateral pipelines connected to natural gas receipt locations in northwestern Alberta and northeastern British Columbia. The U.S. portion comprises 1,556 kilometers of infrastructure, including the 129-kilometer Tioga lateral in North Dakota.
Pembina Pipeline Corporation owns an extensive network of energy transportation and midstream assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, and export terminals.
The full CER decision is available on the regulator’s website. With a ’GOOD’ Financial Health score from InvestingPro and trading at a P/E ratio of 18.2, Pembina continues to demonstrate strong operational performance. Investors can access detailed analysis and 8 additional exclusive ProTips about Pembina through the comprehensive Pro Research Report, available to InvestingPro subscribers.
In other recent news, Pembina Pipeline Corporation announced a new tolling settlement for the Alliance Pipeline. The 10-year agreement, set to begin on November 1, 2025, aims to reduce long-term firm tolls by an average of 14 percent on a volume-weighted basis. This development marks a significant step for Pembina as it seeks regulatory approval for the settlement. Additionally, Raymond James has raised its price target for Pembina Pipeline to C$64.00, up from C$63.00, while maintaining an Outperform rating. Despite this positive outlook, Raymond James noted that Pembina has been the worst-performing company in its coverage universe over the past year. Concerns have been raised about the Alliance Pipeline, the deferral of the Dow project, and competition from KEY. These recent developments are crucial for investors to consider as they assess Pembina’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.