Pembina Pipeline, a Canadian energy pipeline company, has announced its outlook for 2024, highlighting positive projections for commodity prices and improvements to the business.
Strong Financial Forecast
Pembina expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 to be in the range of 3.73 billion Canadian dollars ($2.75 billion) to C$4.03 billion. Analysts, according to FactSet, anticipate adjusted EBITDA of C$3.81 billion in 2023, with a further increase to C$3.84 billion in 2024.
Factors Driving Growth
The company attributes its optimistic guidance for 2024 to several key factors. These include continued volume growth throughout the Western Canadian Sedimentary Basin, the addition of new assets, the recontracting of specific assets, and the overall positive outlook for commodity prices.
Strategic Capital Investments
Pembina has allocated C$880 million for capital investments in the coming year. Of this total, C$380 million will be dedicated to the development of pipelines, while C$323 million will go towards enhancing facility operations.
The company plans to finance these investments through cash flow generated from its operating activities, after accounting for dividends. Any excess cash flow is expected to be utilized for debt reduction.
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