Tudor, Pickering, Holt on Friday reiterated its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) with a C$64.00 price target following fourth-quarter results from the oil and gas infrastructure and processing company.

"Positive. Yesterday, after the close, PPL reported Q4 adjusted EBITDA of C$1,254MM, beating TPHe (C$1,139MM) and the Street (C$1,128MM) by more than 10%. It was a beat across the board, with all three business segments posting better-than-expected results and Corporate eliminations coming in C$21 lighter (lower incentive costs). In the Pipelines segment, EBITDA of C$686MM was C$18MM better than TPHe (C$668MM). Volumes were in-line with our estimate for PPL's conventional assets, while Transmission and Oil Sands missed slightly. Despite a slight miss in total volumes, unit margins were higher, likely driven by the recognition of capital recovery on certain pipeline assets. The Facilities segment reported EBITDA of C$373MM, which was C$29MM better than TPHe (C$344MM). Again, volumes were lower (TPHe 918 mbopd vs 877 mbopd), but financials were higher, driven by capital recovery recognition in addition to incremental revenues from the acquired oil batteries. PPL's Marketing segment had an exceptionally strong Q4, with EBITDA coming in at C$234MM compared to TPHe of C$188MM," analyst AJ O'Donnell wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 55.49, Change: +2.98, Percent Change: +5.68