15 Small-Cap Energy Stocks Hedge Funds Are Buying

13. Pembina Pipeline Corp. (NYSE:PBA)

Market Capitalization as of April 25: $22.38 billion

Number of Hedge Fund Holders: 17

Pembina Pipeline Corp. (NYSE:PBA) provides energy transportation and midstream services. It has 3 segments: Pipelines, Facilities, Marketing & New Ventures, and Corporate & Income Tax. The Pipelines segment operates conventional, oil sands & heavy oil, and transmission assets with a transportation capacity of 3.0 million BOE per day, the ground storage capacity of 10 million barrels, and rail terminalling capacity of ~105 thousand BOE per day.

The company announced several important developments in Q4 2024, such as entering into agreements for a 50% interest in the Greenlight Electricity Centre Limited Partnership, which is developing a power generation facility to serve the ballooning data centers industry. Pembina’s Pipelines segment saw increased contributions due to the fully consolidated ownership of Alliance, which brought higher revenue from increased ownership and greater demand for seasonal contracts.

Overall, the Pipelines segment benefited from ~170,000 BOE per day of incremental or renewed transportation contracts, primarily on Alliance and Peace Pipeline, as well as 25,000 barrels per day on the NEBC pipeline. The company is now growing this segment through projects like the Taylor to Gordondale project (currently in the regulatory process).