PrintNational Bank of Canada Maintains Pembina Pipeline's Outperform Rating, C$63 Price Target
BY MT Newswires | ECONOMIC | 11:13 AM EDT11:13 AM EDT, 05/25/2026 (MT Newswires) -- National Bank of Canada on Monday maintained its outperform rating on the shares of Pembina Pipeline
Pembina sanctioned the $570 million Heartland Extraction Plant (HEP), which includes a straddle plant on the Yellowhead Pipeline designed to extract natural gas liquids under the company's extraction rights.
Pembina and Dow (DOW) also amended their ethane supply agreement. Under the revised agreement, Pembina will now supply Dow 35,000 barrels per day of ethane beginning in 2029.
National Bank continues to highlight Pembina's $1.00 per share upside to the bank's discounted cash flow valuation from the project, while noting that HEP contributes to the company reaching its 5%-7% fee-based adjusted EBITDA per share growth target through 2030.
"We view the announcement as further strengthening Pembina's integrated NGL franchise while confirming its ability to convert broader hydrocarbon production growth across Western Canada into capital efficient, high-quality contracted opportunities with future growth potential," the bank said.
"Meanwhile, the amended Dow agreement reduces timing uncertainty surrounding Dow's Path2Zero project schedule while increasing the overall ethane supply commitment backed by economics of the HEP project," the bank added.
Price: 67.69, Change: -0.76, Percent Change: -1.11
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