Montreal-based Jarislowsky Fraser disclosed a major purchase of Pembina Pipeline (PBA 0.34%), adding nearly 8.4 million shares in the third quarter. The estimated transaction value was about $316 million.
What Happened
According to a filing with the Securities and Exchange Commission released on Tuesday, investment management firm Jarislowsky Fraser increased its position in Pembina Pipeline by 8,372,612 shares during the third quarter. The estimated trade size was $315.9 million. The fund’s total stake at quarter-end was 8.8 million shares valued at $356.5 million.
What Else to Know
This was a significant buy, with Pembina Pipeline now representing 2% of the fund’s $18.2 billion in reportable U.S. equity holdings as of September 30.
Top holdings after the filing:
- NYSE:BN: $1 billion (5.6% of AUM)
- NYSE:TD: $938 million (5.2% of AUM)
- NYSE:CNI: $836.8 million (4.6% of AUM)
- NASDAQ:OTEX: $790.7 million (4.3% of AUM)
- TSX:BMO: $760.4 million (4.2% of AUM)
As of Thursday, Pembina Pipeline shares were priced at $38.41, down nearly 10% over the past year and underperforming the S&P 500, which has climbed 16%.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Thursday) | $38.41 |
| Market capitalization | $22.3 billion |
| Revenue (TTM) | $8.1 billion |
| Net income (TTM) | $1.9 billion |
Company Snapshot
- Pembina Pipeline provides transportation, storage, and midstream services for oil, natural gas, and natural gas liquids, with pipeline, storage, and fractionation infrastructure across North America.
- The company operates in its Pipelines and Facilities segments, and engages in commodity marketing and trading activities.
- It serves energy producers, refiners, and industrial customers primarily in the Western Canadian Sedimentary Basin and connected North American markets.
Pembina Pipeline operates an integrated network of pipelines and storage facilities across North America. Its diversified business model spans transportation, storage, and marketing, supporting a strong dividend. The company has significant scale and an extensive asset base in the oil and gas midstream industry.
Foolish Take
Jarislowsky Fraser’s aggressive buy into Pembina Pipeline suggests the firm sees long-term value in North American energy infrastructure despite recent weakness in the sector. The fund added roughly 8.4 million shares last quarter, a $316 million position that makes Pembina one of its larger new holdings—an interesting move for a manager known for measured accumulation.
The timing is also interesting: Pembina shares are down about 10% over the past year, trailing both the S&P 500 and Canadian energy peers. But the company remains a steady cash generator with a 5.3% dividend yield and a diversified portfolio of pipelines, storage, and natural gas processing assets across Western Canada. With its stable contracts and reliable dividends, the company offers a compelling income play.
Jarislowsky’s broader third-quarter moves—paring down Thomson Reuters and Shopify while adding midstream and industrial exposure—underscore a tilt toward stable, yield-focused assets. For long-term investors, Pembina’s pullback and dependable dividend could offer a patient entry point into a sector positioned for gradual recovery rather than necessarily fast growth.
Glossary
AUM: Assets Under Management – The total market value of investments managed by a fund or firm.
Reportable AUM: The portion of a fund’s assets required to be disclosed in regulatory filings.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
Filing: An official document submitted to regulators, often disclosing investment holdings or transactions.
Midstream services: Activities involving the transportation, storage, and marketing of oil and gas between production and end users.
Fractionation: The process of separating mixed natural gas liquids into individual components like propane or butane.
Commodity marketing: The buying, selling, and trading of raw materials such as oil or natural gas.
Integrated network: A system where various infrastructure assets, like pipelines and storage, are connected and operate together.
Dividend: A payment made by a company to its shareholders, usually from profits.
TTM: The 12-month period ending with the most recent quarterly report.
