Is PBA a good stock to buy? We came across a bullish thesis on Pembina Pipeline Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on PBA. Pembina Pipeline Corporation’s share was trading at $48.11 as of June 9th. PBA’s trailing and forward P/E were 25.22 and 22.42 respectively according to Yahoo Finance.
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Pembina Pipeline Corp. (PBA) is positioned as a resilient Canadian midstream operator benefiting from supportive energy markets and stable long-term cash flow visibility. Despite reporting a 2.7% decline in 2025 EBITDA, results came in near the midpoint of management guidance, reflecting temporary headwinds from weaker comparisons in energy marketing operations and the initial impact of a new tolling structure at the Alliance Pipeline, which is expected to enhance margins over time.
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Looking ahead, management expects approximately CAD 725 million of infrastructure projects to come online in 2026, all backed by long-term take-or-pay contracts that provide volume-insulated revenue stability and strong cash conversion. Additionally, successful re-contracting across existing assets reinforces the durability of cash flows, while rising Canadian production and export growth toward Asian markets provide a supportive volume backdrop.
Although management had previously guided for a lower contribution from marketing operations due to softer commodity assumptions, recent market dynamics suggest potential for upward revision, providing an additional earnings tailwind. Importantly, fee-based asset growth alone is expected to sustain low-to-mid single-digit annual dividend increases, underscoring the company’s attractive income profile.
With disciplined execution, expanding contracted infrastructure, and improving visibility into cash flows, PBA offers a compelling risk-reward setup for income-focused investors, supported by both stability and moderate growth upside. Overall, the company remains well positioned to compound value through a combination of contracted expansion projects, resilient midstream fundamentals, and a steadily growing dividend profile. This reinforces PBA as a high-quality defensive income compounder in the midstream sector over time.
Previously, we covered a bullish thesis on Pembina Pipeline Corporation (PBA) by Canopy Research in March 2025, which highlighted political risk-driven undervaluation, fee-based cash flows, infrastructure expansions, strategic acquisitions, and potential regulatory tailwinds supporting upside re-rating. PBA’s stock price has appreciated by approximately 23.23% since our coverage. @MoneyShow shares a similar view but emphasizes near-term EBITDA resilience, take-or-pay contracts, and steady dividend growth visibility.
Pembina Pipeline Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held PBA at the end of the first quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of PBA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PBA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
