Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Shareholder Meeting (May 2020)
20 slides from Pembina Pipeline's shareholder meeting presentation, May 8, 2020
Slide 1: Annual Meeting of Shareholders
Pembina Pipeline Corporation TSX: PPL | NYSE: PBA Annual Meeting of Shareholders May 8, 2020
Slide 2: Forward-looking statements and information
Forward-looking statements and information This presentation contains certain forward-looking statements industry exploration and development activity levels and the operating results; the availability and cost of labour and other and information (collectively, “forward-looking statements”) that geo
Slide 3: Non-GAAP measures
Non-GAAP measures In this presentation, Pembina has used the terms adjusted EBITDA, adjusted EBITDA per common share, fee-based adjusted EBITDA, fee-based distributable cash flow, and funds from operations to debt (“FFO/Debt”), which do not have any standardized meaning under GAAP. Since these non-G
Slide 4: Highlights since last annual meeting
Highlights since last annual meeting • $4.25 billion acquisition of high quality, integrated assets supported by long-term contracts with investment grade Kinder Morgan counterparties Canada /Cochin • Assets acquired include the Cochin Pipeline System, Edmonton Terminals and Vancouver Wharves U.S. A
Slide 5: Pembina Prepared.
Pembina Prepared.
Slide 6: Past events prepared Pembina
Past events prepared Pembina Local Events: • Emergency Response › Pembina has always had a leading and well tested emergency response plan in place › Control center redundancy and Airdrie response center are good examples • 2013 Calgary Floods › Spurred development of work from home capability inclu
Slide 7: Past events prepared Pembina
Past events prepared Pembina Global Events: • 2008-2009 Financial Crisis › Realization that capital is not always available › Slow march toward self-sustaining funding model began • 2012 Rating Downgrade – Post Provident Acquisition › Started to position the Company to always have a buffer embedded
Slide 8: Pembina Decisive.
Pembina Decisive.
Slide 9: COVID-19: A time for taking decisive action
COVID-19: A time for taking decisive action In response to the COVID-19 pandemic and the recent significant decline in global energy prices, Pembina announced decisive actions to protect all stakeholders Employees & • Restricted business travel, cancelled large group meetings and enacted work-from-h
Slide 10: Revised capital program
Revised capital program Capital Budget (1) Secured Projects Under Development In-service ($MM) Phase VI Q1 2020 to Mid-2020 $280 Duvernay III Q4 2020 $200 Prince Rupert Export Prince Rupert Export Terminal Q1 2021 $250 Terminal Empress Infrastructure Late 2020 $120 Peace Phase VI, VII, VIII & IX Hyt
Slide 11: Pembina Strong.
Pembina Strong.
Slide 12: Offence sells tickets, but defence wins championships
“Offence sells tickets, but defence wins championships” • Pembina has diversified itself across commodities – NGL, natural gas, crude & condensate • An unwavering commitment to our financial guardrails means Pembina is well positioned › Focused on preserving our already strong balance sheet while fu
Slide 13: Diversified business
Diversified business Provident, Veresen and Kinder Morgan Canada acquisitions are serving Pembina well 2020E Commodity Exposure 2020E Currency Exposure ~20% ~30% ~40% Crude & CAD Condensate NGL USD Gas ~80% ~30% Pembina is diversified across multiple commodities and currencies See "Forward-looking s
Slide 14: Financial guardrails
Financial guardrails 2015 2019 2020E(5) 1 Maintain target of 80% fee-based contribution to Adjusted EBITDA(1) ~77% ~85% ~90-95% Target <100% payout of fee-based 2 distributable cash flow(2) ~135% ~73% ~70-75% (Standard Payout Ratio) (72%) (54%) (~60%) Target 75% credit exposure from investment 3 gra
Slide 15: Strong liquidity position
Strong liquidity position Instruments Capacity Maturity Available at May 7, 2020 Revolving Credit $2,500 million May-24 $1,558 million(1) Facility Revolving Credit $800 million Apr-22 $800 million Facility Operating $20 million May-20 $20 million Facility Cash $93 million Total $3,670 million $2,471
Slide 16: Pembina has maintained its strength through past cycles
Pembina has maintained its strength through past cycles Acquisition Acquisition Acquisition of of Veresen of KML 6.00 Provident 120 9 5.00 8 100 7 4.00 80 6 3.00 5 60 4 2.00 40 3 1.00 2 20 1 0.00 (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 0 Financial Crisis Commodity Price
Slide 17: Pembina Ready.
Pembina Ready.
Slide 18: Look across the valley – try not to look down too often
“Look across the valley – try not to look down too often” • An eventual return to a new ‘normal’ › Global demand for hydrocarbons will resume its trend; our working model is that ‘normal’ will resume in 12 to 24 months and we are planning accordingly › Significant new oil and natural gas export pipe
Slide 19: Prepared. Decisive. Strong. Ready.
Pembina Prepared. Decisive. Strong. Ready.
Slide 20: Contact Us
CONTACT US Pembina Pipeline Corporation www.pembina.com investor-relations@pembina.com Toll free: 1.855.880.7404 Phone: 403.231.3156