1 Canadian Stock to Buy in July

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a leading transportation and midstream service provider. The company appears committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain.

These new developments will contribute to ensuring that hydrocarbons produced in the western Canadian sedimentary basin and the other basins where Pembina operates can reach the highest value markets throughout the world.

Pembina is working toward being the leader in delivering integrated infrastructure solutions connecting global markets. The company has received multiple awards for being an excellent employer and employees appear to value Pembina’s safe, respectful, collaborative, and fair work culture.

Value-added transportation services

Customers choose Pembina for reliable and value-added transportation services. Pembina has, historically, had a great relationship with local communities that recognize the net positive impact of the company’s social and environmental commitment.

Pembina values the company’s relationship with customers, investors, and the communities in which it has a presence.

The global economic slowdown, due to COVID-19, has led to significant operational disruption of businesses and workforces, a significant increase in economic uncertainty, and a decrease in demand for crude oil, natural gas, natural gas liquids (NGL), and other commodities.

Hence, the company has taken a cautious approach and continues to keep Pembina’s employees and stakeholders top of mind and supported while navigating through the pandemic response.

Pembina has adjusted the company’s pandemic response and based decisions on recommendations from public health experts, ongoing evaluation of global energy prices, and the impact on Pembina and the company’s customers’ businesses.

Significant pipeline transportation capacity

Also, Pembina’s pipelines division includes pipeline transportation capacity of approximately 3.1 million barrels of oil equivalent (mmboe/d) and above ground storage of approximately 11 million barrels of oil or natural gas liquids (mmbbls) within the company’s conventional, oil sands, and heavy oil, and transmission assets.

Pembina provides sweet and sour gas gathering, compression, condensate stabilization, and both shallow cut and deep-cut gas processing services with a total capacity of approximately six billion cubic feet per day (bcf/d) for the company’s customers.

Condensate and NGL extracted at virtually all Canadian-based facilities have access to transportation on Pembina’s pipelines. The company’s facilities division includes approximately 354 thousand barrels per day (mbpd) of NGL fractionation, 21 mmbbls of cavern storage, and associated pipeline and rail terminal facilities.

A comprehensive suite of services

In addition, the company is currently constructing a liquefied propane export facility on Canada’s west coast. These facilities are fully integrated with the company’s other divisions, providing customers with the ability to access a comprehensive suite of services to enhance the value of hydrocarbons. In addition, Pembina owns a bulk marine export terminal in Vancouver, British Columbia.

Within the marketing and new ventures division, Pembina undertakes value-added commodity marketing activities including buying and selling products such as natural gas, ethane, propane, butane, condensate, and crude oil. It also engages in commodity arbitrage and optimizing storage opportunities.

The marketing business enters into contracts for capacity on both Pembina’s and third-party infrastructure, handles proprietary and customer volumes, and aggregates production for onward sale.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

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