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TFSA Investors: 1 Value Stock to Own for 100 Years

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Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a leading transportation and midstream service provider that has been serving North America’s energy industry for more than 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada.

The company also owns gas gathering and processing facilities, an oil and natural gas liquids infrastructure and logistics business, and is growing an export terminals business. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector.

Hidden value of new developments

Pembina is focused on 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 sedimentary basin and the other basins where Pembina operates can reach the highest value markets throughout the world.

Extensive pipeline network

The pipelines division provides customers with pipeline transportation, storage, and rail services in key market hubs in Canada and the United States for crude oil, condensate, natural gas liquids, and natural gas.

The conventional assets include strategically located pipelines that gather and transport light and medium crude oils, condensate, and natural gas liquids from northeast British Columbia to the Edmonton, Alberta, area for further processing or transportation on downstream pipelines.

Thriving oil sands business

The oil sands and heavy oil assets transport heavy and synthetic crude oil produced within Alberta to the Edmonton area and offer associated storage and rail services. The transmission assets transport natural gas, ethane, and condensate throughout Canada and the United States on long-haul pipelines linking various key market hubs.

In addition, the pipelines division assets provide linkages between Pembina’s upstream and downstream assets across North America, enabling integrated customer service offerings. Together, these assets supply products from hydrocarbon-producing regions to refineries, fractionators, and market hubs in North America.

Comprehensive suite of services

The company’s facilities division includes infrastructure that provides Pembina’s customers with natural gas, condensate, and natural gas liquids services. Pembina’s natural gas gathering and processing assets are strategically positioned in active, liquids-rich areas and are integrated with the company’s other businesses.

The company’s facilities are fully integrated with the company’s other divisions, providing customers with the ability to access a comprehensive suite of services. In addition, Pembina owns a bulk marine export terminal in Vancouver.

Creating new markets

Pembina’s marketing & new ventures division is focused on maximizing the value of hydrocarbon liquids and natural gas originating in the basins where the company operates. Pembina creates new markets, and further enhances existing markets, to support both the company’s business interests.

In particular, Pembina seeks to identify opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure. Pembina increases product demand to improve the overall competitiveness of the basins where the company operates.

In summary, Pembina owns high-quality assets and could be worth several multiples of the company’s current market capitalization 100 years from now.

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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.

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

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