WEBULL

Cedar LNG Progress and Contract Stability Could Be A Game Changer For Pembina Pipeline (TSX:PPL)

Simply Wall St · 2d ago
  • Pembina Pipeline recently drew fresh attention as investors focused on its steady dividend, fee-based midstream operations, and the resilience of long-term contract revenue despite volatile energy markets.
  • Progress on large infrastructure initiatives such as the Cedar LNG project, alongside generally positive analyst research, is reinforcing Pembina’s appeal for investors seeking stable, contract-backed energy infrastructure exposure.
  • We’ll now look at how Pembina’s progress on projects like Cedar LNG shapes the company’s broader investment narrative and risk profile.

AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Pembina Pipeline Investment Narrative Recap

Pembina’s investment case still rests on investors believing in the durability of its fee-based midstream cash flows and long-term contracts, supported by a consistent dividend. The latest attention on Cedar LNG and contracted revenues does not appear to materially change the near term tug of war between growth from capital projects and the risk of higher leverage and limited flexibility if returns or timelines disappoint.

Among the recent developments, progress on Cedar LNG is most relevant here, as it ties directly into Pembina’s largest growth initiative and its dependence on major projects to support future earnings. As this project advances, it magnifies both the potential benefits of additional long-term contracted capacity and the exposure to cost, timing, and regulatory risks that could weigh on Pembina’s balance sheet and payout capacity.

Yet behind Pembina’s appeal as a steady, contract-backed infrastructure owner, investors should be aware of the growing risk that...

Read the full narrative on Pembina Pipeline (it's free!)

Pembina Pipeline's narrative projects CA$8.1 billion revenue and CA$1.9 billion earnings by 2028. This implies essentially flat (0.0% annually) revenue and an earnings increase of about CA$0.2 billion from CA$1.7 billion today.

Uncover how Pembina Pipeline's forecasts yield a CA$58.72 fair value, a 16% upside to its current price.

Exploring Other Perspectives

TSX:PPL Earnings & Revenue Growth as at Jan 2026
TSX:PPL Earnings & Revenue Growth as at Jan 2026

Nine Simply Wall St Community fair value estimates for Pembina range from CA$31.80 to CA$176.38, underscoring how far apart individual views can be. When you set those against Pembina’s reliance on large capital projects like Cedar LNG, it becomes even more important to compare several viewpoints on how project timing and execution could affect future cash flows and risk.

Explore 9 other fair value estimates on Pembina Pipeline - why the stock might be worth over 3x more than the current price!

Build Your Own Pembina Pipeline Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Ready To Venture Into Other Investment Styles?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.