Pembina Pipeline Corp

Pembina Pipeline reported second quarter 2026 results showing higher sales and net income compared with a year earlier, and affirmed its third quarter cash dividend. The company's share price of CA$66.69 has delivered a year-to-date return of 25.9%, a one-year total shareholder return of 42%, and a five-year total shareholder return of 117.23%. A popular valuation narrative places fair value at CA$71.22, suggesting the stock is modestly undervalued by about 6.4%. However, the stock trades at a P/E of 23.5x, above the Canadian Oil and Gas industry average of 20x, which may indicate a thinner margin of safety.

Meta Platforms broke ground on its first Canadian data center in Sturgeon County, Alberta, a 1 GW facility scalable to 1.8 GW representing a total investment of C$13 billion. The project is Meta's 33rd data center globally and is optimized for AI workloads. Construction will support approximately 3,000 workers at peak and more than 300 permanent operational jobs, with an additional C$60 million invested in local road and water infrastructure. The facility will consume electricity equivalent to roughly 800,000 homes, with a long-term tolling agreement with Pembina Pipeline for power from the Greenlight Electricity Centre, a new natural gas-fired plant expected to be operational in late 2030. Until then, Capital Power will supply 250 megawatts from its existing natural gas fleet, and Meta said all electricity use will be matched with clean and renewable energy, using a closed-loop liquid cooling system with no operational water consumption.

Pembina Pipeline Corporation, along with partners Morgan Stanley Infrastructure Partners and Kineticor Asset Management, congratulated Meta and the Province of Alberta on the announcement of a major new data centre project in Alberta. The partners, through the Greenlight Electricity Centre Limited Partnership, will provide dedicated behind-the-meter power generation to support the data centre. Pembina's President and CEO Scott Burrows stated that contracted gas-to-power infrastructure represents a promising new growth platform and will catalyze new natural gas demand, benefiting Western Canadian hydrocarbon production. The announcement follows a recent positive final investment decision on the Greenlight Electricity Centre.

U.S. tech giants are increasing their presence at the Calgary Stampede as Alberta seeks to attract C$100 billion in data center investment. Alphabet's Google sponsored the event for the second year and hosted a private party attended by politicians and government staff, while sources say Meta and Amazon also participated in events and meetings. The province is touting cheap natural gas and a cold climate to lure hyperscalers facing power constraints at home, with technology minister Nate Glubish confirming talks with multiple companies. Alberta plans to announce a major technology investment on Wednesday, and Pembina Pipeline recently approved a C$4.6 billion natural gas-fired project to power a large data center for an undisclosed customer.

Pembina Pipeline has agreed to join a proposed west coast oil pipeline of national interest and, with partners, proceed with the C$4.60 billion Greenlight Electricity Centre, a 932 MW gas-fired power plant in Alberta that will supply a large data centre under a long-term tolling agreement. These moves mark a meaningful expansion beyond traditional pipelines into large-scale power generation and export infrastructure, potentially reshaping how Pembina earns and diversifies its fee-based cash flows. The Greenlight Electricity Centre adds a sizable, contracted power asset to an already busy capital program that includes Cedar LNG and Heartland, reinforcing both the growth opportunity and the execution and balance sheet risks around its project backlog. Pembina's narrative projects CA$9.1 billion revenue and CA$2.0 billion earnings by 2029, requiring 6.0% yearly revenue growth and about CA$0.4 billion earnings increase from CA$1.6 billion today.

Resource Works welcomed the Canada-British Columbia Cooperative Prosperity Agreement and a new west coast oil pipeline proposal as a landmark day for Canada’s resource economy. The agreement, signed by Prime Minister Mark Carney and Premier David Eby, aims to unlock more than $200 billion in new investment and accelerates four LNG projects, expands the Red Chris copper mine with $500 million, provides $3.9 billion for the North Coast Transmission Line, and expands Roberts Bank Terminal. Alberta Premier Danielle Smith announced the pipeline partnership between Trans Mountain Corporation, Pembina Pipeline, and the province, a million-barrel-per-day route from Bruderheim to the southern B.C. coast costing $35 billion to $44 billion, expected to be listed as a project of national interest by October 1, 2026. Resource Works President and CEO Stewart Muir said the combined initiatives put natural resources at the centre of national economic strategy and signal cooperation between Alberta and British Columbia, with the pipeline and Pathways carbon capture project alone creating approximately 175,000 new jobs.

Pembina Pipeline Corporation has approved the final investment decision for the Greenlight Electricity Center, a major energy infrastructure project in Alberta's Industrial Heartland. The project, developed with Morgan Stanley Infrastructure Partners and Kineticor Asset Management, will supply dedicated electricity to a hyperscale data center under a long-term tolling agreement, with commercial operations expected in the second half of 2030. Total project expenditures are estimated at roughly C$4.6 billion, with Pembina's net investment at approximately C$2.1 billion after land sale proceeds. The facility will use combined cycle technology featuring Siemens Energy turbines and has expansion permits for up to about 1,864 megawatts. Pembina expects its ownership interest to generate around C$310 million in annual run-rate adjusted EBITDA once operational.

Aecon Group announced that the TRA consortium, in which it holds a majority share, has been awarded a multibillion-dollar contract for the Greenlight Electricity Centre project in Sturgeon County, Alberta. Aecon's share of the contract is valued at $1.7 billion and will be added to its Construction segment backlog in the third quarter of 2026. The project is a 932 MW natural gas-fired combined cycle power generation facility that will serve a major co-located data centre, with potential expansion to 1,864 MW. Construction is expected to commence in the third quarter of 2026 and be completed in 2030. The consortium includes Técnicas Reunidas Alberta, and the client is Greenlight Electricity Centre Limited Partnership, comprised of Pembina Pipeline Corporation, Morgan Stanley Infrastructure Partners, and Kineticor Asset Management.