Pembina Pipeline to Invest in Alberta - Analyst Blog


Energy transporter and service provider, Pembina Pipeline Corp. ( PBA ) plans to invest $110 million on a shallow cut gas plant, Musreau II, near its existing Musreau facility in central Alberta.

The company's plans include not only construction but also owning and operating the 100 million cubic feet per day (Mmcf/d) gas plant and associated natural gas liquids (NGL) and gas gathering pipelines.

The facility, which is designed to extract propane plus (C3+), is in sync with Pembina Pipeline's previously announced Conventional Pipeline expansion. It is expected to add 4,200 barrels per day of NGL for transportation through the company's Conventional pipelines.  

Musreau II is expected to be in service in the first quarter of 2015 subject to regulatory and environmental approvals. By the end of 2015, Pembina's daily processing capacity is expected to reach approximately 1.2 billion cubic feet (including contributions from the Musreau II gas plant).

This $110 million facility is backed by long-term contracts with area producers for 100% of the facility's capacity.

Calgary-based Pembina Pipeline Corporation operates in four segments; the Conventional Pipelines segment that transports crude oil, condensate, and natural gas liquids to the Alberta and British Columbia areas, the Oil Sands & Heavy Oil segment which transports synthetic crude oil produced from oil sands, the Midstream & Marketing segment that provides storage and terminal services, and the Gas Services which comprises of natural gas gathering and processing facilities.

The 60-year old North American energy firm, Pembina Pipelines currently holds a Zacks Rank #1 (Strong Buy), implying that it is expected to outperform in the broader U.S. equity market over the next one to three months.

Meanwhile one can also look at other stocks also that hold a Zacks Rank #1(Strong Buy) such as Magellan Midstream Partners LP ( MMP ), Cabot Oil & Gas Corp. ( COG ) and Range Resources Corp. ( RRC ) as good investment opportunities

CABOT OIL & GAS (COG): Free Stock Analysis Report

MAGELLAN MDSTRM (MMP): Free Stock Analysis Report

PEMBINA PIPELN (PBA): Free Stock Analysis Report

RANGE RESOURCES (RRC): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: COG , MMP , NGL , PBA , RRC

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