All financial figures are approximate and in Canadian dollars
unless otherwise noted. This news release refers to certain
financial measures that are not specified, defined or determined in
accordance with Generally Accepted Accounting Principles ("GAAP"),
including adjusted earnings before interest, taxes, depreciation
and amortization ("adjusted EBITDA"). For more information see
"Non-GAAP and Other Financial Measures" herein.
Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX:
PPL; NYSE: PBA) announced today its 2025 financial guidance and
provided a business update.
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Highlights
- 2025 adjusted EBITDA guidance of $4.2 billion to $4.5 billion,
which relative to Pembina’s guidance for 2024 is driven by the
positive impacts of continued volume growth across the Western
Canadian Sedimentary Basin ("WCSB"), new assets acquired or placed
into service, and the full year impact of the consolidation of the
Alliance and Aux Sable assets, partially offset primarily by the
impacts of the recontracting of the Cochin Pipeline, and moderation
of commodity margins in the marketing business.
- 2025 capital investment program of $1.1 billion reflects
ongoing construction of previously sanctioned projects, development
spending on potential future projects in response to growing
volumes across the Canadian energy industry, and sustaining
capital.
- Pembina continues to execute its strategy within a fully funded
model and consistent with its financial guardrails. Within the 2025
adjusted EBITDA guidance range, Pembina expects to generate
positive free cash flow, with all 2025 capital investment program
scenarios being fully funded by cash flow from operating
activities, net of dividends. Further, the Company is forecasting a
year-end proportionately consolidated debt-to-adjusted EBITDA ratio
of 3.4 to 3.7 times.
- Mr. Alister Cowan has been appointed to the board of directors
effective December 3, 2024.
Business Update
Pembina anticipates a record setting financial year in 2024
reflecting the positive impact of recent acquisitions, growing
volumes in the WCSB, and a strong contribution from the marketing
business. As expected, volumes in the conventional pipelines
business have strengthened in the fourth quarter relative to the
first three quarters of the year.
In 2024, the Company meaningfully advanced its strategy through
the full consolidation of Alliance Pipeline and Aux Sable (the
"Alliance/Aux Sable Transaction"), and by reaching a positive final
investment decision on the Cedar LNG Project. These two
accomplishments highlight Pembina’s focus on strengthening the
existing franchise, increasing exposure to resilient end-use
markets, and accessing global market pricing for Canadian energy
products. In addition, Pembina Gas Infrastructure ("PGI") announced
transactions with Veren Inc. and Whitecap Resources Inc., creating
opportunities with attractive economics that are expected to
enhance asset utilization, capture future volumes, and benefit
Pembina’s full value chain. Through these two transactions, we are
realizing the vision set forth with the creation of PGI in
2022.
Other accomplishments over the past year include the completion
of the $430 million Phase VIII Peace Pipeline Expansion and the $90
million NEBC MPS Expansion, on time and under budget; sanctioning
$210 million (net to Pembina) of new projects, including the Wapiti
Expansion and K3 Cogeneration Facility; and entering into long-term
agreements with Dow Chemical Canada to supply up to 50,000 barrels
per day ("bpd") of ethane for their Path2Zero Project (the "Dow
Supply Agreement").
Through its extensive asset base and integrated value chain,
Pembina can provide a full suite of transportation and midstream
services across multiple hydrocarbons – natural gas, crude oil,
condensate, and NGL. This uniquely positions the Company to benefit
from a robust, multi-year growth outlook for the WCSB driven by
transformational developments that include the recent completion of
the Trans Mountain Pipeline expansion, new West Coast liquefied
natural gas ("LNG") and NGL export capacity, and the development of
new petrochemical facilities creating significant demand for ethane
and propane. Growing production and demand for services in the WCSB
continues to provide opportunities to increase utilization on
existing assets and pursue expansion opportunities.
As attention turns to 2025, Pembina is focused on several key
priorities including:
- Safe, reliable, and cost-effective operations.
- Stewardship of inflight construction projects, including the
RFS IV Expansion, Wapiti Expansion, and the K3 Cogeneration
Facility, to ensure safe, on-time and on-budget execution.
- Progressing the Cedar LNG Project, including completion of
detailed engineering followed by the start of construction of the
floating LNG vessel in mid-2025. Further, Pembina will continue the
process underway to assign its capacity in the project to a third
party. This represents the only capacity currently available for
contracting from a sanctioned west coast LNG project, and as such,
there is broad interest in the capacity from multiple
counterparties.
- Completing the evaluation of the options available to meet
Pembina’s commitment under the Dow Supply Agreement. Pembina is
seeking to fulfill its commitment in the most capital efficient
manner possible and is evaluating a portfolio of opportunities,
including the addition of a de-ethanizer tower at RFS III within
the Redwater Complex.
- Development of additional expansions to support growing demand
for services on Pembina’s conventional pipelines. In particular,
Pembina continues to advance expansions to support volume growth in
northeastern British Columbia ("NEBC"), including the Taylor to
Gordondale Project (an expansion of the Pouce Coupe system), which
is in the assessment phase of the Canada Energy Regulator’s (the
"CER") regulatory process. In addition, Pembina is undertaking
development work on an additional expansion of the Peace Pipeline
system. The current total capacity of the Peace Pipeline and
Northern Pipeline systems is approximately 1.1 million bpd and
Pembina has the ability to add approximately 200,000 bpd of
additional capacity to its market delivery pipelines from Fox Creek
to Namao through the relatively low-cost addition of pump stations
on these mainlines (the "Fox Creek-to-Namao Peace Pipeline
Expansion"), bringing the total capacity of these systems to 1.3
million bpd.
- Fully contracting the remaining available capacity on the
Nipisi Pipeline to serve growing volumes from the Clearwater
area.
Alliance Pipeline CER Toll
Review
The CER initiated a review of Alliance Pipeline’s tolls, which
were previously approved by the CER. As such, the CER has ordered
Alliance Pipeline to submit for approval a detailed toll
application justifying why the current tolling methodology remains
compliant with the Canadian Energy Regulator Act, or a new tolling
methodology application. Likewise, the CER has ordered that the
current tolls shall be deemed interim tolls until resolution of the
above.
Alliance Pipeline's tolls for the Canadian segment of the
pipeline are approved by the CER, while its tolls for the United
States segment are approved by the Federal Energy Regulatory
Commission. Alliance Pipeline's Canadian long-term firm service
tolls have remained level since they were approved by the CER in
2015, while its full path tolls to Chicago have declined by
approximately 15 percent. In comparison, tolls on alternative
systems have increased by approximately 30 percent. Likewise,
Alliance Pipeline has operated at an industry leading reliability
rate. Furthermore, Alliance Pipeline remains an ‘at-risk’
commercial model where returns and cost recovery are squarely
driven by the customer demand for its service and Alliance
Pipeline's ability to efficiently provide such service. By
contrast, the competitive alternatives and the majority of CER
regulated Group 1 natural gas pipelines' returns are not materially
exposed to volume or cost recovery risk.
Alliance Pipeline is working collaboratively with its
stakeholders through the CER review process and will remain focused
on delivering the highest standards of service that customers have
come to expect. Pembina will work expeditiously throughout 2025
with shippers towards a negotiated solution, in accordance with all
CER direction.
Approximately 60 percent of the adjusted EBITDA contribution
from Alliance Pipeline is generated from the Canadian portion of
the pipeline. Pembina’s 2025 adjusted EBITDA guidance, discussed
below, assumes the existing toll is in effect for the full
year.
Board of Directors Appointment
Pembina is pleased to announce that Mr. Alister Cowan has been
appointed to the board of directors effective December 3, 2024.
Mr. Cowan has over 20 years of experience in the energy industry
and has significant financial executive level experience at various
public companies. In 2023, he was Executive Advisor of Suncor
Energy Inc. ("Suncor") and was previously Chief Financial Officer
of Suncor from 2014 to 2023 where he oversaw financial operations,
accounting, investor relations, treasury, tax, internal audit, and
enterprise risk management. Prior to joining Suncor, Alister was
Chief Financial Officer of Husky Energy Inc. from 2008 to 2014.
Before that, he was Executive Vice President and Chief Financial
Officer and Chief Compliance Officer of British Columbia Hydro and
Power Authority. Mr. Cowan is a non-executive director of The
Chemours Company and of Smiths Group PLC. He has a Bachelor of Arts
in Accounting and Finance from Heriot-Watt University and is a
member of the Institute of Chartered Accountants of Scotland.
Mr. Cowan has also been appointed to the audit committee.
"The board of directors is excited to welcome Alister, and we
look forward to working with him. Alister is a seasoned financial
executive with extensive experience in Canadian energy. We are sure
to benefit from his contribution as we work together to ensure
Pembina's continued success during a transformational period of
growth in the Canadian oil and gas industry," said Henry Sykes,
Chair of the Board.
2025 Guidance
Pembina is anticipating 2025 adjusted EBITDA of $4.2 billion to
$4.5 billion. Relative to the midpoint of Pembina’s adjusted EBITDA
guidance range for 2024, the major factors driving the outlook for
2025 adjusted EBITDA include:
- Higher contracted and interruptible volumes and higher tolls on
Pembina's conventional pipelines (approximately $80 million),
reflecting increased producer activity across the WCSB and fewer
Pembina and third-party outages compared to the prior year.
Forecasted physical volume growth on Pembina’s conventional systems
is aligned with mid-single digit volume growth expected in the
WCSB, with revenue volume growth reflecting certain customers
growing into their contractual take-or-pay commitments.
- The full year impact of higher ownership of Alliance Pipeline
following the Alliance/Aux Sable Transaction in 2024 (approximately
$70 million).
- A higher contribution from gas processing assets (approximately
$50 million), primarily at PGI due to higher volumes and the
impacts of previously announced transactions with Veren Inc. and
Whitecap Resources Inc.
- A lower contribution from the Cochin Pipeline (approximately
$40 million) due to the full year impact of lower contracted tolls
that became effective in the third quarter of 2024, partially
offset by higher interruptible volumes and lower integrity
spending.
- A lower contribution from various oil sands assets
(approximately $10 million) due primarily to the sale of the
Edmonton South Rail Terminal, which occurred in 2024, lower
contracted rates at another terminal asset, and one-time items
which occurred in 2024, partially offset by a higher contribution
from Nipisi Pipeline.
- A lower contribution from the marketing business (approximately
$125 million) due to lower NGL prices and higher natural gas
prices, narrower margins and reduced blending opportunities in
crude oil marketing, and lower realized gains on commodity-related
derivatives, partially offset by a higher ownership of Aux Sable
following the Alliance/Aux Sable Transaction in 2024 and the
synergies associated with consolidating ownership of Aux
Sable.
Pembina has hedged approximately 32 percent of its 2025 frac
spread exposure. For 2025, the weighted average price of Pembina's
frac spread hedges, excluding transportation and processing costs,
is approximately C$36 per barrel, which compares to the prevailing
2025 forward price at the end of November 2024 of approximately
C$37 per barrel.
The mid-point of the 2025 adjusted EBITDA guidance range
includes a forecasted contribution from the Marketing & New
Ventures segment of $550 million.
Excluding the contribution from the Marketing & New Ventures
segment, the midpoint of the 2025 guidance range reflects an
approximately 5.5 percent increase in fee-based adjusted EBITDA,
relative to the forecast for 2024. Further, Pembina remains
on-track to achieve four to six percent compound annual growth of
fee-based adjusted EBITDA per share from 2023-2026.
The lower and upper ends of the guidance range are framed
primarily as a function of (1) commodity prices and the resulting
contribution from the marketing business; (2) interruptible volumes
on key systems; and (3) the U.S./Canadian dollar exchange rate.
Current income tax expense in 2025 is anticipated to be $415
million to $470 million as Pembina will continue to benefit from
the availability of tax pools from assets recently placed into
service.
Pembina's 2025 adjusted EBITDA may be directly impacted by
market-based prices as follows:
Key Variable
2025 Guidance Midpoint
Assumption
Sensitivity
Impact on Adjusted EBITDA
($millions) (1)
AECO / Station 2 Natural Gas (CAD/GJ)
(2)
$1.94
± $0.50
± 20
Chicago Natural Gas (USD/MMbtu)
$2.90
± $0.50
± 49
Mont Belvieu Propane (USD/usg)
$0.80
± $0.10
± 70
Foreign Exchange Rate (USD/CAD)
$1.39
± $0.05
± 50
(1)
Includes the impact of Pembina's hedging
program.
(2)
In addition, Pembina has asymmetric
exposure to AECO natural gas prices through a commercial contract
with a customer, where Pembina benefits as AECO price rises above
$3.00/GJ but does not have downside risk.
2025 Capital Investment
Pembina's 2025 capital program is expected to be allocated as
follows:
($ millions)
2025 Budget (1)
Pipelines Division
$330
Facilities Division
$345
Marketing & New Ventures Division
$15
Corporate
$55
Capital Expenditures
$745
Contributions to Equity Accounted
Investees
$355
Capital Expenditures and Contributions
to Equity Accounted Investees
$1,100
(1) Capital budget shown in Canadian dollars based on a forecasted
average USD/CAD exchange rate of 1.39.
Pipelines Division capital expenditures primarily relate to
sustaining capital, a terminal expansion within the conventional
pipeline system, development spending on potential future projects,
including the Fox Creek-to-Namao Peace Pipeline Expansion, and
investments in smaller growth projects, including various laterals
and terminals.
Capital expenditures in the Facilities Division primarily relate
to construction of the RFS IV Expansion, smaller growth projects,
and sustaining capital spending.
Capital expenditures within the Marketing and New Ventures
Division and the Corporate segment are primarily targeted at
information technology enhancements to further the Company's
continuous improvement aspirations.
Contributions to Equity Accounted Investees includes
approximately $200 million of contributions to Cedar LNG to fund
the construction of the Cedar LNG Project, and contributions to PGI
to fund development of the Wapiti Expansion, K3 Cogeneration
Facility, as well as development activities related to the
previously announced agreements with Veren Inc. and Whitecap
Resources Inc.
The Company's 2025 capital program includes:
- $200 million of non-recoverable sustaining capital to support
safe and reliable operations.
- $85 million related to digitization, technology, and systems
investments, which aim to enhance operational efficiency.
In addition to the 2025 capital investment program detailed
above, Pembina is in development of potential additional projects
that, if sanctioned, would increase the 2025 capital program by up
to $200 million. These projects primarily include pipeline and
terminal upgrades in support of volume growth in NEBC, the Fox
Creek-to-Namao Peace Pipeline Expansion, investments related to the
Dow Supply Agreement, including the addition of a de-ethanizer
tower at RFS III within the Redwater Complex, and optimization of
the Prince Rupert Terminal to allow for the use of larger vessels,
which would reduce per unit costs.
Capital Allocation
Pembina continues to execute its strategy within a fully funded
model and consistent with its financial guardrails. Within the 2025
adjusted EBITDA guidance range, Pembina expects to generate
positive free cash flow with all 2025 capital investment program
scenarios being fully funded by cash flow from operating
activities, net of dividends. Under prevailing market and economic
conditions, Pembina expects to prioritize the use of excess free
cash flow to debt repayment in 2025. As has been our approach since
2021, Pembina will continue to evaluate the merits of debt
repayment relative to share repurchases while considering expected
future funding requirements along with prevailing market conditions
and the risk-adjusted returns of the associated alternatives.
Pembina expects to exit 2025 with a proportionately consolidated
debt-to-adjusted EBITDA ratio of 3.4 to 3.7 times. Excluding the
debt related to the construction of the Cedar LNG project this
ratio would be 3.2 to 3.5 times.
About Pembina
Pembina Pipeline Corporation is a leading energy transportation
and midstream service provider that has served North America's
energy industry for 70 years. Pembina owns an integrated network of
hydrocarbon liquids and natural gas pipelines, gas gathering and
processing facilities, oil and natural gas liquids infrastructure
and logistics services, and an export terminals business. Through
our integrated value chain, we seek to provide safe and reliable
energy solutions that connect producers and consumers across the
world, support a more sustainable future and benefit our customers,
investors, employees and communities. For more information, please
visit www.pembina.com.
Purpose of Pembina: We deliver extraordinary energy solutions so
the world can thrive.
Pembina is structured into three Divisions: Pipelines Division,
Facilities Division and Marketing & New Ventures Division.
Pembina's common shares trade on the Toronto and New York stock
exchanges under PPL and PBA, respectively. For more information,
visit www.pembina.com.
Forward-Looking Information and Statements
This news release contains certain forward-looking information
and statements (collectively, "forward-looking statements"),
including forward-looking statements within the meaning of the
"safe harbor" provisions of applicable securities legislation, that
are based on Pembina's current expectations, estimates, projections
and assumptions in light of its experience and its perception of
historical trends. In some cases, forward-looking statements can be
identified by terminology such as "continue", "anticipate",
"schedule", "will", "expects", "estimate", "potential", "planned",
"future", "outlook", "strategy", "project", "trend", "commit",
"maintain", "focus", "ongoing", "believe" and similar expressions
suggesting future events or future performance.
In particular, this news release contains forward-looking
statements, including certain financial outlooks, pertaining to,
without limitation, the following: Pembina's anticipated 2025
adjusted EBITDA, 2025 capital investment program costs, 2025
year-end proportionately consolidated debt-to-adjusted EBITDA ratio
and current income tax expenses in 2025; Pembina's capital
allocation plans, including with respect to debt repayment and
share repurchases; expected cash flow from operating activities in
2025 and the uses thereof; 2024 year-end financial results,
including the expectation that 2024 will be a record setting
financial year; expectations with respect to the impacts of the Dow
Supply Agreement and the transactions with Veren Inc. and Whitecap
Resources Inc., as well as future actions taken in relation
thereto; future pipeline, processing, fractionation and storage
facility and system operations and throughput levels; Pembina's
corporate strategy and the development and expected timing of new
business initiatives and growth opportunities, including the
anticipated timing and impacts thereof; expectations about industry
activities and development opportunities, as well as the
anticipated benefits and timing thereof; expectations about the
demand for services, including expectations in respect of increased
utilization across Pembina's assets, future tolls and volumes;
planning, construction, capital expenditure and cost estimates,
schedules, locations, regulatory and environmental applications and
approvals, expected capacity, incremental volumes, power output,
project completion and in-service dates, rights, activities and
operations with respect to planned construction of, or expansions
on, pipelines systems, gas services facilities, processing and
fractionation facilities, terminalling, storage and hub facilities
and other facilities or infrastructure; the development and
anticipated benefits of Pembina's new projects and developments,
including the K3 Cogeneration Facility, the Cedar LNG Project, the
Wapiti Expansion, the Taylor to Gordondale Project, Fox
Creek-to-Namao Peace Pipeline Expansion and the RFS IV Expansion,
including the completion and timing thereof; expectations regarding
CER's review of Alliance Pipeline's tolls, including the timing and
outcome thereof and steps taken in connection therewith; the impact
of current and future market conditions on Pembina; Pembina's
hedging strategy and expected results therefrom; Pembina's capital
structure, including future actions that may be taken with respect
thereto and expectations regarding future uses of cash flows and
uses thereof, repayments of existing debt, new borrowings and
securities issuances; and Pembina's commitment to, and ability to
maintain, its financial guardrails.
The forward-looking statements are based on certain assumptions
that Pembina has made in respect thereof as at the date of this
news release regarding, among other things: oil and gas industry
exploration and development activity levels and the geographic
region of such activity; that favourable market conditions exist,
and that Pembina has available capital for share repurchases,
repayment of debt and funding its capital expenditures; the success
of Pembina's operations; prevailing commodity prices, interest
rates, carbon prices, tax rates and exchange rates; the ability of
Pembina to maintain current credit ratings; the availability of
capital to fund future capital requirements relating to existing
assets and projects; future operating costs; geotechnical and
integrity costs; that all required regulatory and environmental
approvals can be obtained on the necessary terms in a timely
manner; prevailing regulatory, tax and environmental laws and
regulations; maintenance of operating margins; and certain other
assumptions in respect of Pembina's forward-looking statements
detailed in Pembina's Annual Information Form for the year ended
December 31, 2023 (the "AIF") and Management's Discussion and
Analysis for the year ended December 31, 2023 (the "Annual
MD&A"), which were each filed on SEDAR+ on February 22, 2024,
as well as in Pembina's Management's Discussion and Analysis dated
November 5, 2024 for the three and nine months ended September 30,
2024 (the "Interim MD&A") and from time to time in Pembina's
public disclosure documents available at www.sedarplus.ca,
www.sec.gov and through Pembina's website at www.pembina.com.
Although Pembina believes the expectations and material factors
and assumptions reflected in these forward-looking statements are
reasonable as of the date hereof, there can be no assurance that
these expectations, factors and assumptions will prove to be
correct. These forward-looking statements are not guarantees of
future performance and are subject to a number of known and unknown
risks and uncertainties that could cause actual events or results
to differ materially, including, but not limited to: the regulatory
environment and decisions and Indigenous and landowner consultation
requirements; the impact of competitive entities and pricing;
reliance on third parties to successfully operate and maintain
certain assets; the strength and operations of the oil and natural
gas production industry and related commodity prices;
non-performance or default by counterparties to agreements with
Pembina or one or more of its affiliates; actions taken by
governmental or regulatory authorities and changes in legislation
(including uncertainty with respect to the interpretation of the
recently enacted Bill C-59 and related amendments to the
Competition Act (Canada)); the ability of Pembina to acquire or
develop the necessary infrastructure in respect of future
development projects; fluctuations in operating results; adverse
general economic and market conditions in Canada, North America and
worldwide; the ability to access various sources of debt and equity
capital on acceptable terms; changes in credit ratings;
counterparty credit risk; and certain other risks and uncertainties
detailed in the AIF, Annual MD&A, Interim MD&A and from
time to time in Pembina's public disclosure documents available at
www.sedarplus.ca, www.sec.gov and through Pembina's website at
www.pembina.com.
This list of risk factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could cause
actual results to differ materially from those predicted,
forecasted or projected by forward-looking statements contained
herein. The forward-looking statements contained in this news
release speak only as of the date hereof. Pembina does not
undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except
as required by applicable laws. Management approved the 2025
adjusted EBITDA, 2025 capital investment program costs, 2025
proportionately consolidated debt-to-adjusted EBITDA and 2025
income tax expense guidance contained herein as of the date of this
news release. The purpose of these financial outlooks is to assist
readers in understanding Pembina's expected and targeted financial
results, and this information may not be appropriate for other
purposes. The forward-looking statements contained in this news
release are expressly qualified by this cautionary statement.
Non-GAAP and Other Financial Measures
Throughout this news release, Pembina has disclosed certain
financial measures and ratios that are not specified, defined or
determined in accordance with GAAP and which are not disclosed in
Pembina's financial statements. Non-GAAP financial measures either
exclude an amount that is included in, or include an amount that is
excluded from, the composition of the most directly comparable
financial measure specified, defined and determined in accordance
with GAAP. Non-GAAP ratios are financial measures that are in the
form of a ratio, fraction, percentage or similar representation
that has a non-GAAP financial measure as one or more of its
components. These non-GAAP financial measures and ratios, together
with financial measures and ratios specified, defined and
determined in accordance with GAAP, are used by management to
evaluate the performance and cash flows of Pembina and its
businesses and to provide additional useful information respecting
Pembina's financial performance and cash flows to investors and
analysts.
In this news release, Pembina has disclosed adjusted EBITDA, a
non-GAAP financial measure, and proportionately consolidated
debt-to-adjusted EBITDA, a non-GAAP ratio, which that do not have
any standardized meaning under International Financial Reporting
Standards ("IFRS") and may not be comparable to similar financial
measures or ratios disclosed by other issuers. Such financial
measures and ratios should not, therefore, be considered in
isolation or as a substitute for, or superior to, measures and
ratios of Pembina's financial performance or cash flows specified,
defined or determined in accordance with IFRS, including revenue or
earnings.
Except as otherwise described herein, these non-GAAP financial
measures and non-GAAP ratios are calculated on a consistent basis
from period to period. Specific reconciling items may only be
relevant in certain periods.
Below is a description of each non-GAAP financial measure and
non-GAAP ratio disclosed in this news release, together with, as
applicable, disclosure of the most directly comparable financial
measure that is determined in accordance with GAAP to which each
non-GAAP financial measure relates and a quantitative
reconciliation of each non-GAAP financial measure to such directly
comparable GAAP financial measure. Additional information relating
to such non-GAAP financial measures and non-GAAP ratios, including
disclosure of the composition of each non-GAAP financial measure
and non-GAAP ratio, an explanation of how each non-GAAP financial
measure and non-GAAP ratio provides useful information to investors
and the additional purposes, if any, for which management uses each
non-GAAP financial measure; an explanation of the reason for any
change in the label or composition of each non-GAAP financial
measure and non-GAAP ratio from what was previously disclosed; and
a description of any significant difference between forward-looking
non-GAAP financial measures and the equivalent historical non-GAAP
financial measures, is contained in the "Non-GAAP & Other
Financial Measures" section of the Annual MD&A, which
information is incorporated by reference in this news release. The
Annual MD&A is available on SEDAR+ at www.sedarplus.ca, EDGAR
at www.sec.gov and Pembina's website at www.pembina.com.
Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization
Adjusted EBITDA is a non-GAAP financial measure and is
calculated as earnings before net finance costs, income taxes,
depreciation and amortization (included in operations and general
and administrative expense) and unrealized gains or losses on
commodity-related derivative financial instruments. The exclusion
of unrealized gains or losses on commodity-related derivative
financial instruments eliminates the non-cash impact of such gains
or losses.
Adjusted EBITDA also includes adjustments to earnings for losses
(gains) on disposal of assets, transaction costs incurred in
respect of acquisitions, dispositions and restructuring, impairment
charges or reversals in respect of goodwill, intangible assets,
investments in equity accounted investees and property, plant and
equipment, certain non-cash provisions and other amounts not
reflective of ongoing operations. In addition, Pembina's
proportionate share of results from investments in equity accounted
investees with a preferred interest is presented in adjusted EBITDA
as a 50 percent common interest. These additional
adjustments are made to exclude various non-cash and other items
that are not reflective of ongoing operations.
The equivalent historical non-GAAP financial measure to 2025
adjusted EBITDA guidance is adjusted EBITDA for the year ended
December 31, 2023.
12 Months Ended December 31,
2023
Pipelines
Facilities
Marketing &
New Ventures
Corporate &
Inter-segment
Eliminations
Total
($ millions, except per share amounts)
Earnings (loss)
1,840
610
435
(696)
1,776
Income tax expense
—
—
—
—
413
Adjustments to share of profit from equity
accounted investees and other
172
438
84
—
694
Net finance costs
28
9
4
425
466
Depreciation and amortization
414
159
46
44
663
Unrealized loss from derivative
instruments
—
—
32
—
32
Impairment reversal
(231)
—
—
—
(231)
Transaction costs incurred in respect of
acquisitions, gain on disposal of assets and non-cash
provisions
11
(3)
(4)
7
11
Adjusted EBITDA
2,234
1,213
597
(220)
3,824
Adjusted EBITDA from Equity Accounted
Investees
In accordance with IFRS, Pembina's jointly controlled
investments are accounted for using equity accounting. Under equity
accounting, the assets and liabilities of the investment are
presented net in a single line item in the Consolidated Statement
of Financial Position, "Investments in Equity Accounted Investees".
Net earnings from investments in equity accounted investees are
recognized in a single line item in the Consolidated Statement of
Earnings and Comprehensive Income "Share of Profit from Equity
Accounted Investees". The adjustments made to earnings, in adjusted
EBITDA above, are also made to share of profit from investments in
equity accounted investees. Cash contributions and distributions
from investments in equity accounted investees represent Pembina's
share paid and received in the period to and from the investments
in equity accounted investees.
To assist in understanding and evaluating the performance of
these investments, Pembina is supplementing the IFRS disclosure
with non-GAAP proportionate consolidation of Pembina's interest in
the investments in equity accounted investees. Pembina's
proportionate interest in equity accounted investees has been
included in adjusted EBITDA.
12 Months Ended December 31,
2023
Pipelines
Facilities
Marketing &
New Ventures
Total
($ millions)
Share of profit (loss) from equity
accounted investees - operations
109
233
(26)
316
Adjustments to share of profit from equity
accounted investees:
Net finance costs
22
160
1
183
Income tax expense
—
41
—
41
Depreciation and amortization
150
207
25
386
Unrealized loss on commodity-related
derivative financial instruments
—
16
—
16
Transaction costs incurred in respect of
acquisitions
—
14
58
72
Total adjustments to share of profit from
equity accounted investees
172
438
84
694
Adjusted EBITDA from equity accounted
investees
281
671
58
1,010
Proportionately Consolidated
Debt-to-Adjusted EBITDA
Proportionately Consolidated Debt-to-Adjusted EBITDA is a
non-GAAP ratio that management believes is useful to investors and
other users of Pembina’s financial information in the evaluation of
the Company’s debt levels and creditworthiness.
12 Months Ended
($ millions, except as noted)
September 30, 2024
December 31, 2023
Loans and borrowings (current)
946
650
Loans and borrowings (non-current)
11,182
9,253
Loans and borrowings of equity accounted
investees
2,770
2,805
Proportionately consolidated debt
14,898
12,708
Adjusted EBITDA
4,187
3,824
Proportionately consolidated
debt-to-adjusted EBITDA (times)
3.6
3.3
($ millions)
12 Months Ended September 30,
2024
9 Months Ended September 30,
2024
12 Months Ended December 31,
2023
9 Months Ended September 30,
2023
Earnings before income tax
1,791
976
2,189
1,374
Adjustments to share of profit from equity
accounted investees and other
640
454
694
508
Net finance costs
514
398
466
350
Depreciation and amortization
805
627
663
485
Unrealized loss on derivative
instruments
83
129
32
78
Non-controlling interest(1)
(12)
(12)
—
—
Loss on Alliance/Aux Sable Acquisition
616
616
—
—
Derecognition of insurance contract
provision
(34)
(34)
—
—
Transaction and integration costs in
respect of acquisitions
20
18
2
—
Gain on disposal of assets, other non-cash
provisions, and other
(5)
(18)
9
(4)
Impairment reversal
(231)
—
(231)
—
Adjusted EBITDA
4,187
3,154
3,824
2,791
=A+B-C
A
B
C
(1) Presented net of adjusting items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241212048876/en/
For further information:
Pembina Investor Relations (403) 231-3156 1-855-880-7404
investor-relations@pembina.com www.pembina.com
Pembina Pipeline (NYSE:PBA)
過去 株価チャート
から 11 2024 まで 12 2024
Pembina Pipeline (NYSE:PBA)
過去 株価チャート
から 12 2023 まで 12 2024