Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Shareholder Meeting (May 2023)
37 slides from Pembina Pipeline's shareholder meeting presentation, May 5, 2023
Slide 1: Pembina Pipeline Corporation 2023 Annual Meeting of Common Shareholders
Pembina Pipeline Corporation 2023 Annual Meeting of Common Shareholders May 5, 2023 TSX: PPL; NYSE: PBA
Slide 2: Welcome
Welcome Jaret Sprott Janet Loduca Cameron Goldade Senior Vice President & Chief Senior Vice President, Senior Vice President and Operating Officer External Affairs & Chief Legal Chief Financial Officer and Sustainability Officer Eva Bishop Stu Taylor Chris Scherman Scott Burrows Senior Vice Presiden
Slide 3: Forward-looking Statements and Information
Forward-looking Statements and Information This presentation contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legi
Slide 4: Highlights Since last Annual Meeting
Highlights Since last Annual Meeting • Outlined a renewed long-term strategy that continues to build upon the core business while capitalizing on Strategy opportunities arising from the transition to a lower-carbon economy PGI Transaction • Combined respective western Canadian natural gas processing
Slide 5: Strategic Priorities
Strategic Priorities PEMBINAN
Slide 6: Purpose, Values, and Strategy
Purpose, Values, and Strategy Purpose We deliver extraordinary energy solutions so the world can thrive Safe Trustworthy Respectful Collaborative Entrepreneurial Values We care for each other We have each other’s back We seek to be gracious and kind We are great together We create to succeed I II II
Slide 7: Pembina's Stakeholders
Pembina’s Stakeholders Customers choose us first for Investors receive sustainable reliable and value-added services industry-leading total returns Employees say we are the Communities welcome us and ‘employer of choice’ and value our recognize the net positive impact of safe, respectful, collaborat
Slide 8: Diversified and Integrated Transportation and Midstream Assets
Diversified and Integrated Transportation and Midstream Assets(1) ~2.8 mmbpd hydrocarbon transportation capacity ~5.4 bcf/d gas processing capacity ~115 mbpd condensate stabilization ~354 mbpd fractionation capacity ~32 mmbbl storage capacity ~20 mbpd propane export capacity Note:7Capacities are net
Slide 9: The Pembina Store
The Pembina Store Natural Gas Value Chain Gas Consumers NGL (pre-FID LNG Export Terminal) Mainline Extraction NGL Alliance Pembina Gas Infrastructure 3rd Party and Fractionation Pipeline Gathering, Processing, Pipelines (Younger, Empress, Field Extraction Aux Sable) Industrial Users NGL Value Chain
Slide 10: Leverage Our Past To Lead The Future
Leverage Our Past To Lead The Future Lower Carbon Energy Global Impact New Opportunities Wind Carbon Capture, Hydrogen Cogeneration Liquified Natural Gas 100MW & 105MW Power Utilization & Storage Aux Sable Canada's Heartland Redwater, Empress Cedar LNG Purchase Agreements Offgas Processing Plant Alb
Slide 11: What the Future Pembina Store Could Look Like
What the Future Pembina Store Could Look Like Natural Gas Value Chain CO2 CO2 Pembina Gas Infrastructure Gas NGL Mainline Extraction Gathering, and Fractionation (pre-FID LNG Processing, (Younger, Empress, Export Terminal) Field Extraction NGL Alliance Pipeline 3rd Party Pipelines Aux Sable) NGL Val
Slide 12: Recent Accomplishments
Recent Accomplishments PEMBINAN
Slide 13: Strong Results
Strong Results Full Year 2022 First Quarter 2023 • Growing volumes on key systems as a result of • Reported earnings and adjusted EBITDA of $369 strong commodity prices, and outperformance from million and $947 million, respectively, despite the the marketing business underpinned a record year impac
Slide 14: Pembina Gas Infrastructure (PGI)
Pembina Gas Infrastructure (PGI) PGI spans the Montney and 25 processing facilities Duvernay trends from North Central Alberta to Northeast ~5 bcf/d B.C. processing capacity ~3,350 km gathering and transport lines Efficiencies from the combination of three ~65 percent physical capacity utilization p
Slide 15: Key Commercial Successes
Key Commercial Successes • Long-term agreements with three premiere NEBC Montney producers • Renewed contracts and secured incremental volumes on the Peace Pipeline and Redwater fractionation facility • Successful recontracting of Alliance Pipeline; enhanced its longer-term contractual profile • New
Slide 16: Looking Ahead
Looking Ahead PEMBINAN
Slide 17: Pembina Can Benefit from Growth and New Developments in the WCSB
Pembina Can Benefit from Growth and New Developments in the WCSB The Montney The Duvernay West Coast LNG The Clearwater Oil Sands TMX Expansion PDH/PP Alberta Petrochemical Carbon Capture WCSB developments will drive volume increases, enhancing utilization of assets and providing growth opportunitie
Slide 18: Projects
Projects Phase VIII Peace Pipeline Expansion – Under Construction • New 10-inch and 16-inch pipelines, as well as additional new mid-point pump stations and terminal upgrades • Capital estimate: $530 million (trending under budget); expected in- service date: H1 2024 Redwater Fractionation IV – Rece
Slide 19: Redwater is Canada's Premier NGL Fractionation Complex
Redwater is Canada’s Premier NGL Fractionation Complex RFS IV RFS IV With growing demand and an increase in customer commitments, Pembina sanctioned a 55,000 bpd expansion of the Redwater Complex. Expected in-service H1 2026 ~200,000 bbl/d of current NGL fractionation + extensive rail and storage fa
Slide 20: Cedar LNG
Cedar LNG • Proposed 3 mmtpa floating LNG project on Haisla Nation land • Memorandum of Understanding with ARC Resources - Working towards a 20-year liquefaction services agreement for 1.5 million tonnes of LNG per year • Received B.C. Environmental Assessment Certificate and a positive Decision Sta
Slide 21: Alberta Carbon Grid
Alberta Carbon Grid Pembina and TC Energy plan to jointly develop a world-scale CO2 transportation and sequestration system known as Alberta Carbon Grid (ACG) • Pembina and TC Energy are uniquely positioned given their collective skills and extensive networks of pipeline infrastructure • Open-access
Slide 22: Delivering Value to Shareholders
Delivering Value to Shareholders
Slide 23: Financial Guardrails
Financial Guardrails 2022 2023F Maintain target of 80% fee-based contribution to ~85% - 1 82% 90% adjusted EBITDA(1)(2)* Target <100% payout of fee-based distributable 80% 70-75% 2 (57%) (55-60%) cash flow (Standard Payout Ratio)(2)* 3 Target 75% credit exposure from investment 82% 80-85% grade and
Slide 24: Commitment to a Strong BBB Credit Rating
Commitment to a Strong BBB Credit Rating Proportionately Consolidated Debt-to-Adjusted EBITDA(1) 4.25x TARGET 3.6x 3.6x 3.50x Demonstrated discipline 3.4x* 3.6x - and commitment to the balance sheet 3.3x 2021 2022 2023 (F) * Excluding debt related to Ruby, which was extinguished pursuant to a Chapte
Slide 25: Capital Allocation and Funding
Capital Allocation and Funding 1 2023 SOURCES AND USES Maintaining balance sheet strength 2 Maintain dividends 3 Accretive growth capital 4 Discretionary cash flow: Debt reduction, dividend increase, or opportunistic 2023 Dividends (1) Capital (2) Debt share repurchase Guidance Expenditures Repaymen
Slide 26: Stable and Growing Dividend
Stable and Growing Dividend $2.655 >$12 billion $2.520 $2.520 $2.550 in common share dividends since inception(1) $2.360 $2.240 ~5% $2.040 10-Year Dividend per share CAGR $1.898 $1.800 $1.725 ~57% $1.645 2022 Standard Payout Ratio* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (F) Pembina h
Slide 27: A Decade of Industry Leading Returns
A Decade of Industry Leading Returns 300 250 ~140% 200 Total shareholder return since May 1, 2013 (1)(2) 150 100 50 - May '13 May '14 May '15 May '16 May '17 May '18 May '19 May '20 May '21 May '22 May '23 Alerian MLP Index S&P/TSX Energy Infrastructure Over the last ten years Pembina has outperform
Slide 28: Pembina's Value Proposition
Pembina’s Value Proposition ✓ Leading provider of essential North American energy services ✓ Track record of sector outperformance ✓ Resilient and diverse set of franchise assets and services along the energy value chain ✓ Established presence and further growth opportunities in the prolific Montney
Slide 29: Endnotes
Endnotes Slide 3: Highlights since last Annual Meeting (1) Annual 2022 volumes. (2) Projects places in-service includes Peace Pipeline expansion Phase VII and Phase IX and the Empress Cogeneration Facility. Slide 7: Diversified and Integrated Transportation and Midstream Assets (1) Capacities are sh
Slide 30: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Throughout this presentation, 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 excl
Slide 31: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("adjusted EBITDA") and adjusted EBITDA per Common Share Year Ended Year Ended Adjusted EBITDA is a non-GAAP financial measure and is calculated as earnings before net finance costs, income
Slide 32: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures 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
Slide 33: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Fee-Based Contribution to Adjusted EBITDA Year Ended ($ millions, except as noted) Notes December 31, 2022 Fee-based contribution to adjusted EBITDA is a non-GAAP measure defined as the portion of adjusted EBITDA derived from the fee-based, non commodity exposed
Slide 34: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Cash Flow After Dividends Year Ended ($ millions, except as noted) Notes December 31, 2022 Cash Flow After Dividends is a non-GAAP measure and is defined as cash flow from operating Cash flow from operating activities 2,929 activities less common and preferred d
Slide 35: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Rating Agency FFO-to-Debt Year Ended Year Ended ($ millions, except as noted) Notes December 31, 2021 December 31, 2022 Rating Agency FFO-to-Debt is a non-GAAP ratio defined and used by Pembina to replicate one of the Company’s rating agency methodologies, in th
Slide 36: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Year Ended Year Ended ($ millions, except as noted) Notes December 31, 2021 December 31, 2022 Senior Debt Loans and borrowings (current) 1,000 600 Senior debt is a non-GAAP measure and is defined as the sum of current and non-current loans and borrowings. Senior
Slide 37: Contact Us
Contact Us Pembina Pipeline Corporation www.pembina.com Investor Relations inquiries: investor-relations@pembina.com Toll free: 1.855.880.7404 Phone: 403.231.3156 Media Relations inquiries: media@pembina.com 36