Pembina Pipeline Corp

PPL: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 29.00	Xpwtm	Bgpt

Boosting Pembina's Fair Value Estimate After Increasing Tariffs to Reflect Inflation

Stephen Ellis

Feb 27, 2023

After taking a deeper look at Pembina's fourth-quarter results, we are boosting our fair value estimate to CAD 41 and USD 30 from CAD 37 and USD 27. The change is mainly due to higher near-term cash flows, including higher tariffs in 2023 to incorporate higher inflation-linked pricing. Our model also includes the pending sale of the 50% interest in KAPS for CAD 662.5 million and the Ruby pipeline payment as part of its bankruptcy for CAD 102 million.

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