Pembina Pipeline (NYSE:PBA) reported a 9% increase in third-quarter adjusted EBITDA and raised the lower end of its 2026 guidance, as higher natural gas liquids margins and demand for propane in Asian markets supported results.
The company reported adjusted EBITDA of CAD 1.128 billion for the quarter. President and CEO Scott Burrows said performance exceeded initial expectations largely because of Pembina’s exposure to premium Asian propane prices through West Coast exports late in the quarter.
Pembina now expects 2026 adjusted EBITDA of CAD 4.45 billion to CAD 4.55 billion, compared with its previous range of CAD 4.35 billion to CAD 4.55 billion. Based on the current market outlook, the company is trending toward the upper end of the revised range, Burrows said.
Higher Margins Support Quarterly Results
CFO Cameron Goldade said the year-over-year increase in adjusted EBITDA reflected higher NGL margins, strong operational performance and increased volumes across the Pipelines and Facilities divisions. The change was partly offset by a new toll structure and revenue-sharing mechanism on the Alliance Pipeline that took effect in November 2025.
Third-quarter earnings rose 99% from a year earlier to CAD 570 million. Adjusted earnings increased 11% to CAD 479 million. Total volumes across the Pipelines and Facilities divisions were 3.7 million barrels of oil equivalent per day, up approximately 1% year over year.
Facilities adjusted EBITDA was CAD 400 million, supported by the RFS IV project entering service at the Redwater Complex in May, increased terminalling demand and higher contributions from PGI. Marketing and New Ventures adjusted EBITDA was CAD 167 million, reflecting higher NGL margins and gains on crude oil-based derivatives, partly offset by higher realized losses on NGL-based derivatives. Pipelines adjusted EBITDA was CAD 606 million.
Goldade said Pembina expects several factors to support fourth-quarter results, including seasonal increases in marketed NGL volumes and Alliance Pipeline transportation, higher interruptible volumes on the Cochin Pipeline and contributions from new PGI assets. Commodity prices, exchange rates, interruptible volumes and incentive compensation costs remain factors in the guidance range.
Propane Prices and Hedging
Asked whether the strength in Asian propane pricing could last, Goldade described the market as “very frothy” and said several price differentials in which Pembina participates were at record levels. He said the company benefits from access to multiple markets, including Asia, the U.S. Midwest and Eastern Canada.
Goldade said Pembina used third-quarter price strength to add hedges under its risk-management policy. The company was closer to 55% hedged for 2027 at the time of the call, compared with 15% to 20% at the time of its second-quarter call.
He also said the company’s guidance reflected the effects of disruption at AltaGas’s RIPET export facility. Pembina can move products through multiple channels to help mitigate effects from the disruption, he said.
Growth Projects Advance
Burrows said Pembina has sanctioned nearly CAD 3 billion in projects since its April business update and remains confident in its target of 5% to 7% compound annual growth in fee-based adjusted EBITDA per share through 2030.
Among recent developments, the Lator infrastructure entered service in early October, while Pembina agreed to participate in Pacific Link, a proposed crude oil pipeline and export terminal connecting Alberta to Canada’s West Coast. Pembina and its partners also sanctioned the 932-megawatt Greenlight Electricity Centre, a natural gas-fired facility in Alberta linked to data center development.
Burrows said construction work is underway at Greenlight and that the existing site is licensed for 1.8 gigawatts, roughly double the capacity being built in the first phase. Chief Marketing and Strategy Officer Chris Scherman said Pembina plans to work with customers through the fourth quarter and into the first quarter on agreements to support a second phase.
At Cedar LNG, Burrows said the facility was more than 80% complete and tracking as expected, with the company preparing for operations in 2028. Pembina’s initial priority is to secure additional gas to use the facility’s capacity before considering a potential expansion, he said.
Goldade said Pembina plans to provide its 2027 guidance in December.
About Pembina Pipeline (NYSE:PBA)
Pembina Pipeline Corporation is a Canadian energy transportation and midstream services company headquartered in Calgary, Alberta. Founded in 1954, it began as a pipeline operator serving oil fields in Alberta and has expanded into a range of energy infrastructure businesses.
The company transports crude oil, natural gas and natural gas liquids through its pipeline networks. Its operations also include natural gas gathering and processing, liquids fractionation, storage and terminalling, along with services that help connect producers with domestic and export markets.
Pembina’s assets and services are concentrated in Western Canada, with additional operations and market connections in the United States.
