CALGARY, Alberta - Pembina Pipeline (NYSE:PBA) Corporation (TSX: PPL (NYSE:PPL); NYSE: PBA), a leading North American energy infrastructure company, has received approval from the Toronto Stock Exchange to initiate a normal course issuer bid (NCIB) to repurchase up to five percent of its common shares. The NCIB is set to commence on May 16, 2024, and will remain active until the earlier of May 15, 2025, or until Pembina decides to conclude the buyback program or reaches the maximum repurchase threshold.
As of May 8, 2024, Pembina had 579,531,577 common shares issued and outstanding. Under the NCIB, the company is authorized to repurchase up to 28,976,578 common shares. The acquired shares are expected to be cancelled, which Pembina believes could be a beneficial allocation of its financial resources if its stock is undervalued in the market.
The NCIB will be conducted through the facilities of the TSX, the New York Stock Exchange, and/or alternative Canadian trading systems, with the purchase prices reflecting the prevailing market rates. The number of shares purchased on any given day will not exceed 25 percent of the average daily trading volume, which is 664,745 common shares, with the exception of block purchase allowances.
Pembina has established an automatic share purchase plan with a broker to facilitate repurchases during self-imposed blackout periods. Outside of these periods, the company retains discretion over the timing and volume of buybacks.
The announcement follows the expiration of Pembina's previous NCIB on March 9, 2024, during which the company repurchased 1,197,432 common shares at an average price of $41.76 per share, excluding brokerage fees.
Pembina, with a 70-year history in the energy sector, operates a network of pipelines, gas processing facilities, and logistics services. The company's shares are traded on the Toronto and New York stock exchanges under the tickers PPL and PBA, respectively.
The information for this article is based on a press release statement from Pembina Pipeline Corporation.
InvestingPro Insights
As Pembina Pipeline Corporation (NYSE: PBA) signals confidence in its financial health and stock value through its new share repurchase program, investors are closely monitoring the company's performance indicators.
According to InvestingPro real-time data, Pembina boasts a solid market capitalization of $21.37 billion USD, underpinned by a Price/Earnings (P/E) ratio of 16.13, which adjusts to 19.04 when looking at the last twelve months as of Q1 2024. This suggests a fair valuation relative to earnings, especially when considering the company's consistent track record of dividend payments over the past 20 years.
Moreover, the company's revenue over the last twelve months stands at $6.679 billion USD, with a gross profit margin of 28.01%, indicating healthy profitability. These financials are complemented by Pembina's dividend yield of 5.48% as of the most recent data, which is particularly attractive to income-focused investors. The InvestingPro Tips further reveal that analysts have recently revised their earnings estimates upwards for the upcoming period, and the stock is known for its low price volatility. This could provide a sense of stability for investors amidst market fluctuations.
Investors seeking more comprehensive analysis and additional InvestingPro Tips can explore the full suite of insights for Pembina Pipeline Corporation at https://www.investing.com/pro/PBA. There are currently 5 more tips available, which can be accessed with an exclusive 10% discount using the promo code PRONEWS24 on a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.