Pembina Pipeline Corporation (PBA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how the energy that powers our lives gets from the source to our homes and businesses? Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA), a leading Canadian energy transportation and midstream service provider for 70 years, plays a vital role in this process, but how exactly does it work and make money? Keep reading to discover Pembina's fascinating history, its ownership structure, its mission, and its intricate operations, and understand how this dynamic company achieved record full year adjusted EBITDA of $4,408 million in 2024.

Pembina Pipeline Corporation (PBA) History

Pembina Pipeline Corporation Founding Timeline

Year established

Pembina Pipeline Corporation was established in 1954.

Original location

The company was founded in Alberta, Canada.

Founding team members

Pembina Pipeline was established to serve 53 small oil producers including.

• C.O. Nickle
• J.G. Palmer
• R.C. Brown

These individuals recognized the need for efficient transportation of petroleum and petroleum products in Alberta.

Initial capital/funding

Pembina Pipeline Corporation started with initial funding of $700,000.

Pembina Pipeline Corporation Evolution Milestones

Pembina Pipeline Corporation Transformative Moments

• Strategic Acquisitions: Pembina has grown significantly through strategic acquisitions, such as the 2017 acquisition of Veresen Inc. for approximately $9.7 billion. These acquisitions have expanded Pembina's asset base and service offerings.
• Infrastructure Development: Pembina's continuous investment in new pipeline and processing facilities has been crucial. For example, projects like the expansion of the Peace Pipeline system have enhanced its capacity to transport increasing volumes of crude oil and natural gas liquids.
• Diversification into Gas Services: Diversifying into natural gas processing and fractionation has allowed Pembina to capture additional value along the energy value chain. This includes operating major gas processing plants and fractionators that extract valuable components from natural gas.
• Indigenous Partnerships: Pembina increasingly focuses on partnerships with Indigenous communities, such as the Haisla Nation in the Cedar LNG project. These partnerships reflect a commitment to sustainable and inclusive development, ensuring that local communities benefit from infrastructure projects.

For more insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Pembina Pipeline Corporation (PBA).

Pembina Pipeline Corporation (PBA) Ownership Structure

Pembina Pipeline Corporation features a widely held ownership structure, with a mix of institutional and retail investors. This structure is typical of publicly traded companies, ensuring no single entity has absolute control.

Pembina Pipeline Corporation's Current Status

Pembina Pipeline Corporation is a publicly traded company. Its shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol PBA and on the New York Stock Exchange (NYSE) under the ticker symbol PBA. This allows anyone to buy and sell shares in the company, contributing to its diverse ownership base.

Pembina Pipeline Corporation's Ownership Breakdown

As Pembina Pipeline Corporation is a publicly traded company, its shares are held by a diverse mix of institutional and retail investors. While specific ownership percentages may fluctuate, major institutional holders are typically investment management firms, pension funds, and other large financial institutions. These firms manage large portfolios and invest in a wide range of companies, including Pembina Pipeline Corporation. Here is an overview:

Pembina Pipeline Corporation's Leadership

Pembina Pipeline Corporation is guided by a team of experienced leaders who oversee the company's strategic direction and operations. As of April 2025, the key members of the leadership team include:

• Scott Burrows: President and Chief Executive Officer
• Cameron Goldade: Senior Vice President and Chief Financial Officer
• Jaret Bilous: Senior Vice President and Chief Operating Officer

These individuals, along with other members of the executive team, bring a wealth of industry knowledge and leadership experience to Pembina Pipeline Corporation. The Board of Directors provides oversight and guidance to the management team, ensuring the company operates in the best interests of its shareholders and stakeholders.

To gain more insights into Pembina Pipeline Corporation's financial performance, you might find this resource helpful: Breaking Down Pembina Pipeline Corporation (PBA) Financial Health: Key Insights for Investors

Pembina Pipeline Corporation (PBA) Mission and Values

Pembina Pipeline Corporation focuses on transporting and storing various hydrocarbon liquids and natural gas, striving to deliver value through safe, reliable, and responsible operations while being a trusted partner in the communities where they operate.

Pembina Pipeline Corporation's Core Purpose

Official mission statement

Pembina Pipeline Corporation's mission statement is: 'To be the leader in providing integrated transportation and midstream services connecting North America’s hydrocarbon resources to its growing markets.'

Vision statement

Pembina's vision is centered around sustainable growth and delivering long-term value. Key aspects of their vision include:

• Sustainable Growth: Focusing on expanding their infrastructure and service offerings in a way that supports long-term environmental and social responsibility.
• Creating Value: Aiming to provide significant returns for shareholders through strategic investments and operational excellence.
• Stakeholder Relationships: Building and maintaining strong relationships with customers, communities, and other stakeholders based on trust and mutual benefit.

Company slogan/tagline

Pembina Pipeline Corporation's tagline is 'Moving Energy Forward'. This slogan encapsulates the company’s role in the energy sector and its commitment to progress.

To learn more about Pembina Pipeline Corporation's financial performance, see Breaking Down Pembina Pipeline Corporation (PBA) Financial Health: Key Insights for Investors.

Pembina Pipeline Corporation (PBA) How It Works

Pembina Pipeline Corporation operates by providing transportation and midstream services for energy companies, primarily focusing on crude oil, natural gas, and natural gas liquids (NGLs) in North America. The company facilitates the movement of these resources from production areas to end-use markets through its extensive pipeline network and processing facilities.

Pembina Pipeline Corporation's Product/Service Portfolio

Pembina Pipeline Corporation's Operational Framework

Pembina's operational framework is built around:

• Infrastructure Network: An expansive network of pipelines that transport hydrocarbons across long distances.
• Strategic Assets: Key facilities for processing, storage, and handling of natural gas and NGLs.
• Integrated Services: Combining transportation and midstream services to offer comprehensive solutions to customers.

The company generates revenue through:

• Transportation Tariffs: Fees charged for the volume of crude oil, natural gas, and NGLs transported through its pipelines.
• Processing and Fractionation Fees: Revenue from processing raw natural gas into marketable products and separating NGLs into individual components.
• Storage and Terminalling Fees: Charges for storing and handling products at its facilities.

For more insights into Pembina Pipeline Corporation, consider reading: Exploring Pembina Pipeline Corporation (PBA) Investor Profile: Who’s Buying and Why?

Pembina Pipeline Corporation's Strategic Advantages

Pembina Pipeline Corporation's strategic advantages include:

• Diversified Asset Base: A wide range of assets across the midstream value chain reduces reliance on any single commodity or market.
• Strategic Locations: Assets are strategically located in key production areas and demand centers, providing a competitive edge.
• Long-Term Contracts: Many of Pembina's services are underpinned by long-term contracts, providing stable and predictable cash flows.
• Focus on Safety and Reliability: Commitment to safe and reliable operations enhances its reputation and strengthens relationships with stakeholders.

Pembina Pipeline Corporation (PBA) How It Makes Money

Pembina Pipeline Corporation primarily generates revenue by providing transportation and midstream services for energy companies. This includes transporting hydrocarbon liquids and natural gas, as well as providing related services such as processing, fractionation, and storage.

Pembina Pipeline Corporation's Revenue Breakdown

Pembina's revenue is derived from diverse streams, each playing a crucial role in the company's overall financial health. A detailed look at these streams reveals the core areas of Pembina's business operations.

Pembina Pipeline Corporation's Business Economics

Pembina Pipeline Corporation operates within the midstream energy sector, where its economic success hinges on several key factors:

• Fee-Based Model: A significant portion of Pembina's revenue comes from long-term, fee-based contracts. This model provides stable and predictable cash flows, insulating the company from short-term commodity price volatility.
• Strategic Asset Base: Pembina's extensive network of pipelines and facilities is strategically located in key energy production regions. This positioning allows the company to capture significant market share and benefit from the growing demand for energy transportation and processing services.
• Infrastructure Development: Continuous investment in new infrastructure projects is crucial for Pembina's growth. These projects expand the company's capacity, allowing it to serve more customers and increase its revenue streams.
• Operational Efficiency: Maintaining efficient operations is essential for maximizing profitability. Pembina focuses on optimizing its processes and utilizing technology to reduce costs and improve service delivery.

Pembina Pipeline Corporation's Financial Performance

Pembina Pipeline Corporation's financial performance is characterized by consistent revenue generation and strategic investments aimed at long-term growth.

• Revenue Stability: Thanks to its fee-based business model, Pembina demonstrates relatively stable revenue even during periods of commodity price fluctuations. In 2024, Pembina reported total revenue of approximately $10.5 billion CAD.
• Profitability: Pembina maintains a healthy profit margin through efficient operations and strategic cost management. The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2024 was approximately $3.6 billion CAD, reflecting its strong operational performance.
• Capital Investments: Pembina consistently invests in expanding and upgrading its infrastructure. In 2024, the company's capital expenditure was around $800 million CAD, primarily focused on pipeline expansions and facility enhancements.
• Dividend Payouts: Pembina is known for its commitment to returning value to shareholders through dividends. The company has a track record of consistent dividend payments, with an annual dividend yield of approximately 5.0% as of late 2024.

To gain more insights into Pembina's core values and strategic direction, explore Mission Statement, Vision, & Core Values of Pembina Pipeline Corporation (PBA).

Pembina Pipeline Corporation (PBA) Market Position & Future Outlook

Pembina Pipeline Corporation is strategically positioned within the North American energy infrastructure sector, focusing on transportation and midstream services. The company's future outlook is shaped by its ability to capitalize on growing energy demand and optimize its existing asset base.

Competitive Landscape

Opportunities & Challenges

Industry Position

Pembina Pipeline Corporation holds a significant position in the midstream energy sector, characterized by:

• A diversified portfolio of pipelines, processing plants, and storage facilities.
• Strong relationships with key producers and customers across the energy value chain.
• Commitment to sustainable practices and responsible environmental stewardship.

For further insights into Pembina Pipeline Corporation's financial performance, see: Breaking Down Pembina Pipeline Corporation (PBA) Financial Health: Key Insights for Investors