|Bid||17.22 x 1100|
|Ask||17.46 x 1000|
|Day's Range||17.16 - 20.02|
|52 Week Range||10.58 - 40.65|
|Beta (5Y Monthly)||1.13|
|PE Ratio (TTM)||9.39|
|Forward Dividend & Yield||1.74 (8.36%)|
|Ex-Dividend Date||Mar 23, 2020|
|1y Target Est||41.93|
Market researchers at RBC Capital, led by Lori Calvasina, head of the bank’s US Equity Strategy, have analyzed current conditions, comparing them to past recessions, and see the coming downturn as both short and mild. They based their conclusions on the behavior of the S&P 500 during downturns since 1937.Getting into specifics, Calvasina’s team says of current conditions, “Our new YE 2020 S&P 500 price target of 2,750 implies a 15% drop for the full year, as well as a 15% rebound from recent levels… we continue to believe that the bulk of the stock market impact from the coronavirus will be felt early in the year, with the bulk of the economic impact coming in the middle of the year…”Looking ahead, the RBC team believes that the rebound will be longer-lasting than the drop. They write, “For 2021, we assume that the economic recovery will continue into the new year, and we have also modeled a single Fed rate hike in 2Q21, a modest increase in the 10-year yield, a slight rebound in oil prices, modest margin expansion, and the return of share buybacks to a pace slightly below that of 4Q19.”Turning from the macro view, RBC’s stock analysts have pinpointed high-yield dividend stocks with even higher upside potential – just the sort of opportunity that should attract return-minded investors in preparation for a market turnaround. Not all high returns are created equal, however, and RBC sees two of these as Buy-side, while leaving one as a Hold. We’ve used TipRanks database to pull the details on RBC’s picks. Let’s dive in.Enterprise Products Partners (EPD)RBC’s first Buy-rating goes to an oil and gas midstream company. Enterprise controls and operates over 50,000 miles of oil and gas pipelines, as well as facilities for the storage of 160 million barrels of oil and 14 billion cubic feet of natural gas, and shipping terminals on the Texas Gulf Coast. These are valuable assets, as they are essential for moving fuel into the economy, and they retain their worth no matter what the economic conditions – after all, there is always a need for fuel.Enterprise came into the current market downturn on a sound note, having reported better than expected Q4 earnings and revenues in the first week of February. The company showed 54 cents EPS on total quarterly revenue of $8.01 billion. Both numbers were up sequentially from Q3.RBC focused on dividend stocks, and EPD measures up. The company’s 44.5-cent quarterly payment annualizes to $1.78, and it has an 11-year history of keeping up reliable payments. The dividend has been increased gradually over the past three years, and the payment ratio of 82% indicates that there is still room available for further increases. And at 12.2%, the yield is simply stellar.In his comments on the stock, Schultz wrote, “We like EPD for the expansive asset footprint that is ideally situated to benefit on the key downstream export markets across multiple product streams. We also see growing FCF in 2019 as EPD dials back growth capex and puts in service new processing, frac, and export capacity. EPD remains a core holding, in our view.” (To watch Schultz’s track record, click here)5-star RBC analyst TJ Schultz Schultz backed his Buy rating with a $29 price target, implying an impressive upside of 125% for the coming year.EPS stock has a Strong Buy rating from the analyst consensus, based on 10 recent reviews. These include 9 Buy-side against a single Hold – a clear indication of collective confidence in the stock. EPS is selling for a discount price, $14.56, and the average price target of $26.89 suggests an upside potential of 85%. (See EPD stock analysis on TipRanks)Pembina Pipeline (PBA)Sticking with the oil and gas midstream business, RBC switched its focus north to Canada. Pembina is a major player in Western Canada midstreaming, with gas processing plants and pipelines throughout the Alberta-British Columbia oil and gas production regions. Pembina’s facilities and pipelines gather fuel and transport it across the border, through the Bakken field in the US state of North Dakota, and onward to export points on the Great Lakes.Declining energy costs on the open markets and long transit pathways put pressure on Pembina’s margins in recent months. The company reflected that in its Q4 earnings, which missed expectations and were down from year-over-year. In US currency, EPS came in at 16 cents against the 42 cents forecast. Revenue did better, growing yoy from $1.31 billion to $1.33 billion – although it did miss the estimates by 3.25%.PBA uses its earnings to keep up the dividend payment. The company has raised the payment twice in the last three years, and currently pays out 16 cents per share monthly. It’s uncommon for a company to pay out a dividend that frequently, but PBA manages it. The payments annualize to $1.88 (based on the last 12), and give a yield of 11.7%. Even better for investors, PBA has a four-year history increasing the payout. The next payment is due to be paid on March 24.Covering Pembina for RBC, 5-star analyst Robert Kwan describes this stock as “…disproportionately hit versus its peers based on concerns about counterparty exposure as well as Pembina’s own credit rating…” On the subject of PBA’s prospects, Kwan adds, "We applaud the company for taking decisive and tangible steps in the face of considerable market uncertainty. While the stock is under pressure, we have confidence in its long-term value and recommend that patient, long-term focused investors buy the stock while clipping a sizable dividend yield and waiting for the potential upside to materialize."In line with his comments, Kwan sets a price target on PBA of C$26, equating to USD$18 US at today’s exchange rate. This implies an upside for the stock of 18%. (To watch Kwan’s track record, click here)Pembina’s Strong Buy analyst consensus rating is unanimous, based on 12 recent Buy-side reviews. The stock is currently selling for C$23.13, or US$16.09, and the average price target of C$50.72 (US$35.28) suggests a strong 126% upside potential in the coming 12 months. (See Pembina stock analysis on TipRanks)L Brands, Inc. (LB)Last on the list RBC’s Hold call, L Brands. A rebranding of The Limited, this Ohio-based company has long owned well-known shopping mall staples Victoria’s Secret and Bath & Body Works. In a move made public last month, L Brands will be selling 55% of Victoria’s Secret to private equity firm Sycamore Partners, and that company CEO Leslie Wexner will step down after completion of the sale. The move will leave Bath & Body Works as the company’s only wholly owned brand, although it will retain a 45% interest in Victoria’s Secret.The fourth quarter, coming in the holiday shopping season, is L Brands’ strongest, and Q4 2019 was no exception. The company reported $1.88 in EPS, beating the forecast by 1%. Revenue also beat estimates, by a minimal 0.05%, and came in at $4.71 billion. The top line was down 2.8% year-over-year, however; an ominous sign entering Q1 2020. The current quarter has seen mall businesses buffeted by quarantines and social distancing restrictions, and retail is down across the board. LB forecasts a Q1 net loss of 5 cents per share when it reports in May.The company has been careful to maintain its dividend through these difficult times, paying out 30 cents per quarter. The annualized rate, $1.20, gives an impressive yield of 12.3%, and the payout ratio of 64% indicates that, at current income levels, the dividend is sustainable.RBC, however, wants to sit this one out, despite the high-yield dividend. The company is in the midst of a divestiture, and facing severe headwinds along with the rest of the retail sector. In comments on the stock, analyst Kate Fitzsimons says, “While we agree the math on a standalone BBW suggests value unlock, we remain comfortable on the sidelines as the next leg up in LB shares is likely to take time, with the bears focusing on mall exposure and sustainability of 20%+ margins, and the bulls on BBW's superior profitability and cash flows.”While she will wait to see if who is right, the bears or the bulls, on this one, Fitzsimons did ‘tweak’ her price target, raising it to $24 and suggesting an upside of 145%. That would imply she’s with the Bulls – but for now, she calls this one a Hold. (To watch Fitzsimons’ track record, click here)L Brands gets a Moderate Buy from the analyst consensus, reflecting Wall Street’s divided opinion on the stock. The rating is based on 24 reviews, including 8 Buys, 14 Holds, and 2 Sells. Shares are selling for a low $9.78, and the average price target of $27 reflects the possible rewards of a risky stock, in a 176% upside potential. (See L Brands stock analysis on TipRanks)
Rating Action: Moody's withdraws Veresen Midstream's ratings for Business Reasons. Global Credit Research- 20 Mar 2020. Toronto, March 20, 2020-- Moody's Investors Service withdrew its ratings for Veresen ...
U.S. energy regulators approved the Jordan Cove project on Thursday, but the ruling hardly settles the fight over the proposed Southern Oregon pipeline and liquefied natural gas terminal. The 2-1 decision by the Federal Energy Regulatory Commission came over the objections of Oregon. The state's Department of Land Conservation and Development last month cited several permitting failures by the Canadian developer Pembina Corp. in declaring the project should not go forward.
Pembina Pipeline Corporation ("Pembina" or the "Company") is pleased to announce receipt of a certificate of approval from the U.S. Federal Energy Regulatory Commission ("FERC") for Pembina's proposed Jordan Cove liquified natural gas ("LNG") terminal and Pacific Connector Gas Pipeline (together known as "Jordan Cove" or "the Project"). Jordan Cove is the first ever U.S. West Coast natural gas export facility to be approved by FERC. This federal approval is a significant milestone for the Project and for Pembina.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This news release refers to adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), the ratio of adjusted funds from operations to adjusted debt, and fee-based distributable cash flow, which are financial measures that are not defined by Generally Accepted Accounting Principles ("GAAP"). CALGARY , March 18, 2020 /CNW/ - In response to the COVID-19 pandemic and the recent significant decline in global energy prices, Pembina Pipeline Corporation ("Pembina" or the "Company") is taking action to protect all of our stakeholders.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
Federal energy regulators are set to take up the controversial Jordan Cove project next week. The Federal Energy Regulatory Commission hit pause on issuing a final permit for the Southern Oregon pipeline and liquefied natural gas project last month, as an assumed supporter said he needed to study Oregon’s objections in greater depth.
Pembina Pipeline Corporation (TSE:PPL) shareholders (or potential shareholders) will be happy to see that the...
Unfortunately for some shareholders, the Pembina Pipeline (TSE:PPL) share price has dived 33% in the last thirty days...
CALGARY , March 4, 2020 /CNW/ - Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that its Board of Directors declared a common share cash dividend for March 2020 of $0.21 per share to be paid, subject to applicable law, on April 15, 2020 to shareholders of record on March 25, 2020 . For non-resident shareholders, Pembina's common share dividends should be considered "qualified dividends" and may be subject to Canadian withholding tax. For shareholders receiving their common share dividends in U.S. funds, the March 2020 cash dividend is expected to be approximately U.S. $0.1571 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7483.
Pembina Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA) has filed its audited consolidated financial statements for the year ended December 31, 2019 as well as the related management's discussion and analysis, with Canadian securities regulatory authorities. Pembina has also filed its Form 40-F for the year ended December 31, 2019 with the U.S. Securities and Exchange Commission. Investors and other stakeholders can obtain these documents via www.sedar.com, www.sec.gov (for the Form 40-F), www.pembina.com under Investor Centre, or they may request a printed copy free of charge by contacting Investor Relations at email@example.com or 1-855-880-7404.
Pembina Pipeline (PBA) delivered earnings and revenue surprises of -61.90% and -3.25%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
CALGARY , Feb. 27, 2020 /CNW/ - Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the fourth quarter and full-year 2019.
Pembina Pipeline (PBA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Department of Land Conservation and Development cites several failures to “establish consistency with specific enforceable policies.”
Today we'll look at Pembina Pipeline Corporation (TSE:PPL) and reflect on its potential as an investment. In...
Sen. Ron Wyden is calling for federal regulators to hold off on a decision on the controversial Jordan Cove project. The Federal Energy Regulatory Commission is set to rule on the Southern Oregon LNG pipeline and export terminal on Feb. 13, with license approval widely expected.
With federal approval seemingly imminent, state battle over pipeline and gas export terminal heats up.
Pembina Pipeline Corporation (TSE:PPL) stock is about to trade ex-dividend in 4 days time. You will need to purchase...
Apache (APA) shares rocket following a discovery offshore Suriname block 58. BP plc (BP) agrees to divest certain North Sea assets for $625 million.
Houston-based Kinder Morgan Inc. (NYSE: KMI) has sold all of the shares of Pembina Pipeline Corp. (NYSE: PBA; TSX: PPL) that it received in deal that was announced in August. Selling the 25 million shares of Pembina resulted in after-tax proceeds of $764 million, according to a Jan. 9 press release. Kinder Morgan plans to use the proceeds to pay down debt, which will create flexibility in the balance sheet that the company could use to repurchase shares or for other growth projects, Kinder Morgan said previously.
CALGARY , Jan. 10, 2020 /CNW/ - Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) is pleased to announce that it has closed its previously announced offering of $1 billion of senior unsecured medium-term notes (the "Offering"). The Offering was conducted in three tranches consisting of $250 million principal amount issued through a re-opening of the Company's 4.02% medium-term notes, series 10, due March 27, 2028 (the "Series 10 Notes"); $500 million principal amount issued through a re-opening of the Company's 4.75% medium-term notes, series 11, due March 26, 2048 (the "Series 11 Notes"); and $250 million principal amount issued through a re-opening of the Company's 3.62% medium-term notes, series 12, due April 3, 2029 (the "Series 12 Notes").