NEW YORK (TheStreet) -- Shares of Pembina Pipeline Corp. (PBA) are up 2.38% to $41.81 on Tuesday after the company announced it reached an agreement to proceed with construction of a new 55,000 barrel per day propane-plus fractionator at its Redwater fractionation and storage complex.
The Calgary-based transportation and midstream service provider, which transports conventional and synthetic crude oil and natural gas liquids, said the project, known as RFS III, is expected to cost $400 million and will be the company's third fractionator.
The company says it expects the addition of a third fractionator to bring its fractionation capacity to 210,000 barrels per day.
Pembina also announced it will begin constructing a new high vapor pressure pipeline lateral that will extend the gathering potential of its Brazeau pipeline.
"Projects like these support our continued focus on expanding our fee-for-service business and integrated service offering, which in turn help drive sustainable dividend growth - and ultimately value for our shareholders - for many years to come," the company said.
TheStreet Ratings team rates PEMBINA PIPELINE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEMBINA PIPELINE CORP (PBA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."