- Pembina Pipeline (PBA +0.9%) is heading into a “milestone year” with ~$4B of its project backlog coming online in 2017, a "key inflection point" that will bring considerable earnings growth, says Raymond James, which reiterates its Outperform rating and $43 price target.
- The comments follow PBA's announced $1.9B capital budget for 2017, up from Raymond James’ estimate of $1.3B, as the company directs much spending towards building new pipelines and expanding existing systems between B.C. and Alberta.
- The firm also notes that PBA's propane-to-plastics project was approved by the Alberta government to receive $300M in royalty credits, which was "encouraging to see certainty, [and] should, at the very least, be helpful with respect to the commercial developments necessary to advance this project."