Pembina Pipeline Q2 Earnings Miss Estimates, Revenues Increase Y/Y

This Calgary-based oil and gas storage and transportation company’s quarterly sales of $1.55 billion increased about 20% year over year, driven by higher revenue performance across all three segments.

The company’s operating cash flow increased 13.5% to C$897 million. Adjusted EBITDA increased about 5% year over year to C$1.06 billion.

Pembina Pipeline’s board of directors declared a quarterly cash dividend of 73.5 Canadian cents per share to its common shareholders of record as of Sept. 15. The payout will be made on Sept. 29, 2026.

During the second quarter, Pembina Pipeline advanced major pipeline and facilities projects, approved nearly C$3 billion (net) for the Greenlight Electricity Center and Heartland Extraction Plant, joined a West Coast oil pipeline initiative, and expanded long-term ethane agreements, supporting its 3Cs strategy and 5-7% annual fee-based adjusted EBITDA per-share growth target through 2030.

PBA’s Q2 Segmental Information

Pipelines: Adjusted EBITDA of C$626 million decreased about 3.1% from the year-ago quarter’s level. This was caused primarily by lower net revenues on Alliance Pipeline as a result of the Alliance New Toll Structure.

Volumes in this segment saw a 1.5% year-over-year increase to 2,809 mboe/d.

Facilities: Adjusted EBITDA of C$386 million increased from the year-ago quarter’s C$331 million, driven primarily by higher revenues from the Redwater Complex as a result of RFS IV entering service in May 2026 and no comparable planned outage as occurred in the second quarter of 2025 and higher contributions from certain PGI assets due to higher volumes from the Wapiti Expansion entering service in March 2026, stronger performance at the Dawson assets, fewer planned outages compared to the prior period and higher recoveries driven by an asset upgrade.

Volumes of 889 mboe/d increased by about 7.6% year over year.

Marketing & New Ventures: Adjusted EBITDA of C$111 million increased from the year-ago quarter’s C$74 million. This increase was driven by wider WCSB and U.S. NGL frac spreads resulting from higher NGL prices, including the benefits from exposure to premium propane prices in Asian markets through West Coast exports, higher crude oil prices and sales volumes and higher realized losses on NGL-based derivatives and lower realized gains on crude oil-based derivatives.

Volumes of 372 mboe/d increased 23.2% year over year.

PBA’s Capital Expenditure & Balance Sheet

The company spent C$218 million as capital expenditure in the quarter under review compared with C$197 million a year ago.

As of June 30, 2026, PBA had cash and cash equivalents worth C$153 million and C$19.8 billion in long-term debt. Debt-to-capitalization was 53.7%.

PBA’s Q3 & 2026 Guidance

This Zacks Rank #4 (Sell) company reiterated its 2026 adjusted EBITDA guidance of C$4.35 billion-C$4.55 billion, noting that it is currently trending to the midpoint of the range. At the midpoint of its guidance range, Pembina Pipeline expects third-quarter adjusted EBITDA to be lower than the second quarter due to seasonal trends, spending timing and certain one-time items, with stronger earnings anticipated in the fourth quarter.

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Important Earnings at a Glance

While we have discussed PBA’s second-quarter results in detail, let us take a look at three other key reports in this space.

Halliburton Company HAL reported second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. Meanwhile, HAL’s second-quarter revenues of $5.7 billion were up 3.7% year over year and beat the Zacks Consensus Estimate of $5.5 billion. The outperformance was driven by higher revenues in both segments of the company — the Completion and Production segment and the Drilling and Evaluation segment.

Halliburton reported second-quarter capital expenditure of $235 million. As of June 30, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.

Liberty Energy Inc. LBRT reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses. LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.

As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%.

Houston, TX-based oil and gas storage and transportation company Kinder Morgan Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter. KMI’s revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.

Cash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million. As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end.

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