Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Investor Day (May 2024)
89 slides from Pembina Pipeline's investor day presentation, May 16, 2024
Slide 1: Pembina Pipeline Corporation 2024 Investor Day
Pembina Pipeline Corporation 2024 Investor Day TSX: PPL; NYSE: PBA May 16, 2024
Slide 2: 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 3: Land Acknowledgement
Land Acknowledgement Pembina acknowledges that the City of Toronto is located on the traditional territories of the Anishinaabeg, Chippewa, Haudenosaunee, the Wendat and the Mississaugas of the Credit. Pembina also acknowledges our traditional hosts and thank them for their graciousness in welcoming
Slide 4: The Pembina Team
The Pembina Team Scott Burrows Eva Bishop Cameron Goldade Janet Loduca President & Senior Vice President & Senior Vice President & Senior Vice President, External Affairs & Chief Executive Officer Corporate Services Officer Chief Financial Officer Chief Legal and Sustainability Officer Chris Scherma
Slide 5: Agenda
Agenda Welcome and Opening Remarks 8:30 a.m. CEO Perspective Scott Burrows Strategy Chris Scherman Core Business Jaret Sprott, Chris Scherman Break 15 minutes New Ventures Stuart Taylor Financial Outlook Cameron Goldade Q&A All 4
Slide 6: CEO Perspective
CEO Perspective Heart of the Industry Scott Burrows President & Chief Executive Officer
Slide 7: Heart of the Industry: Positioned to Succeed
Heart of the Industry CEO Perspective Positioned to Succeed Strategy Poised to Capture Growth Core Business Global Access and the Future of Energy New Ventures Means to Execute Financial Outlook 6
Slide 8: Since 2019 Investor Day…Pembina has Executed on all Fronts
Since 2019 Investor Day…Pembina has Executed on all Fronts Conventional Volumes Major Projects Strategic M&A(1) 1,053 >$4B mbpd Under Development $11.0B $2.4B 897 In-Service >$1.2B $4.3B mbpd $3.1B Underway 2018 2024E Since 2019 Investor Day Today 2019 Kinder 2021 2024 Alliance Morgan Canada Pembina
Slide 9: Since 2019 Investor Day…Pembina has Expanded its Footprint
Since 2019 Investor Day…Pembina has Expanded its Footprint Peace & Northern Pipeline +460 mbpd of upstream debottlenecking LPG Export +20 mbpd Gas Processing(1) Alliance Pipeline +0.85 bcf/d +0.9 bcf/d +100% +17% Storage +17 mmbbl Fractionation(2) +121% +84 mbpd +26% Balanced organic and M&A growth
Slide 10: Since 2019 Investor Day…Pembina has Delivered for Investors
Since 2019 Investor Day…Pembina has Delivered for Investors Financial Performance Shareholder Returns $3.5B $6.00 $3.3B $3.1B $5.50 $7.52/sh - $2.9B $4.81/sh $7.08/sh $7.2 billion $4.5B $8.00 $6.95/sh $2.7B $5.00 $7.50 $4.0B ($13.27 per share) $2.5B $7.00 $4.27/sh $3.5B $5.61/sh $6.50 $2.3B $4.50 Co
Slide 11: Since 2019 Investor Day…Led the Evolution of Energy Infrastructure
Since 2019 Investor Day…Led the Evolution of Energy Infrastructure Balance Sheet Strength(1) Self-Funded Model(1)(2) Dividend Protection Return of Capital 800 $3.00 $578 $7.2bn 600 $2.90 95.0% 4.25x Common Share 400 $2.80 $2.74 $246 $2.70 $2.67 85.0% Dividend 200 $136 $2.60 $2.57 $2.51 $2.52 75.0% $
Slide 12: Since 2019 Investor Day…Our Customers Grew Stronger
Since 2019 Investor Day…Our Customers Grew Stronger Sustainable Business Models(1) Consolidation Enhancing Capability Egress Alleviating Growth Constraints Creditworthiness Scale 2.2x Growth Financial / Funding 0.9x Execution / Productivity LPG 2018 2023 Export West Coast LNG Petrochemical 7% TMX -1
Slide 13: Since 2019 Investor Day…Pembina has Elevated its ESG Strategy
Since 2019 Investor Day…Pembina has Elevated its ESG Strategy GHG Reduction Target EDI Targets(1)(2) ESG Ratings(3) 45% Target 40% 35% Target • 30% reduction in greenhouse Target 38% 39% 42% gas emissions intensity by Target 30% 2030(4) 26% ~7% achieved through 2023 Overall Executive Overall Executi
Slide 14: Global Energy Demand Forecasted to Grow Through 2030
Global Energy Demand Forecasted to Grow Through 2030(1) Natural Gas (bcf/d) Natural Gas Liquids (mmbbl/d) Crude Oil (mmbbl/d) To 2030 120 To 2030 450 120 To 2030 +34 bcf/d +11 mmbbl/d +9 mmbbl/d Since 2010 400 Since 2010 +13 mmbbl/d Since 2010 100 +75 bcf/d Global Demand +11 mmbbl/d Global Demand 35
Slide 15: Canadian Energy Production Forecasted to Grow Through 2030
Canadian Energy Production Forecasted to Grow Through 2030(1) Natural Gas (bcf/d) Natural Gas Liquids (mmbbl/d) Crude Oil and Condensate (mmbbl/d) To 2030 To 2030 +0.7 mmbbl/d 25 +6 bcf/d 1.0 5 Since 2010 Crude +1.7 mmbbl/d 20 0.8 To 2030 4 Since 2010 +0.15 mmbbl/d +3 bcf/d Since 2010 15 0.6 +0.15 m
Slide 16: Positioned to Support Growing Global Energy Demand
Positioned to Support Growing Global Energy Demand(1) Amid Shifting … Canada Plays a Critical Global Energy Role in the Energy Supply Dynamics… & Demand Landscape WCSB ~11 Reliable Global Oil and Gas Days Demand is Growing 0 Growing ~28 Days Asian Energy Demand Abundant Resource Outpacing Rest of Wo
Slide 17: Canadian Energy Growth Being Driven by Demand Pull Dynamics
Canadian Energy Growth Being Driven by Demand Pull Dynamics 1 2024 Incremental crude egress and 3 condensate demand 3 Fort St John Trans Mountain 3 Expansion 3 Fort Pembina PRT McMurray Prince Rupert 2 2025 Increased natural gas demand and 2 - associated NGL production Kitimat Coastal GasLink 2028 2
Slide 18: Leading Network of Pipeline Systems
Leading Network of Pipeline Systems(1) ~3.0 mmbpd hydrocarbon transportation capacity ~10 mmbbl above ground storage capacity Capacities are net to Pembina Irreplicable Pipeline Network Conventional - including the Peace Pipeline system; transports condensate, ethane-plus NGL, propane-plus NGL and c
Slide 19: Extensive Gas Processing, Fractionation, Storage and Export Facilities
Extensive Gas Processing, Fractionation, Storage and Export Facilities(1) ~6.3 bcf/d gas processing capacity ~115 mbpd condensate stabilization ~410 mbpd fractionation capacity ~21 mmbbl cavern storage capacity ~20 mbpd propane export capacity Pembina Gas Infrastructure Largest third-party gas proce
Slide 20: Complete Value Chain – Wellhead to Market
Complete Value Chain – Wellhead to Market Natural Gas Energy transition catalyst, full alignment with global ESG efforts • PGI - Premier natural gas processing partnership in North America • Alliance - Cross border WCSB gas transport to higher value, resilient, US Mid-Continent demand • Cedar LNG -
Slide 21: Superior Service Offering Across All Commodities
Superior Service Offering Across All Commodities(1) Canadian Natural Gas Liquids (NGL) Natural Gas Condensate Crude Oil Peers - (Ethane, Propane, Butane) WCSB Service Offering by Gathering & Domestic C2 + C3+ Domestic Domestic Export Fractionation Marketing LPG Export Import Storage Export Processin
Slide 22: Core Energy Infrastructure Holding in Any Portfolio
Core Energy Infrastructure Holding in Any Portfolio Full Value Chain Across All • Premier natural gas liquids franchise – gas processing plus NGL transportation and fractionation infrastructure Commodities • Natural gas transport / export through Alliance and proposed Cedar LNG • Leading condensate
Slide 23: Strategy
Strategy Positioned to Succeed Chris Scherman Senior Vice President, Marketing & Strategy Officer
Slide 24: Global Energy Demand - Range of Forecasts to 2050
Global Energy Demand - Range of Forecasts to 2050(1) Natural Gas (bcf/d) Crude Oil (mmbbl/d) 550 140 500 120 450 100 STEPS 400 STEPS 80 350 300 60 2010 2020 2030 2040 2050 2010 2020 2030 2040 2050 Global energy demand forecasts generally trending upward, but range of outcomes creates uncertainty 23
Slide 25: Scenario Based Approach to Developing Strategy
Scenario Based Approach to Developing Strategy Scenario A Scenario B Scenario C Scenario D Scenario E Expected level of success Robust strategy Traditional strategy Developed a strategy that thrives in the face of a range of outcomes 24
Slide 26: Themes Influencing our Strategy
Themes Influencing our Strategy Global Demand for Oil and Gas is Growing and will be Enduring The Energy Transition is Driving a Shift in the Global Energy Mix Canada is Positioned to Support Growing Global Energy Demand Pembina is Differentiated and Uniquely Advantaged Pembina is uniquely advantage
Slide 27: Strategy is an Extension of Our Proven Performance
To meet To set To be To thrive global ourselves resilient Strategy is an Extension of Our Proven Performance demand apart Strategy Positioning for the Future Predictable Cash Low Carbon Flow Growth Leveraging our Commodities Strengths and Success Stakeholder Financial Focused Guardrails Decarbonizat
Slide 28: Strategic Priorities
Strategic Priorities Purpose: We deliver extraordinary energy solutions so the world can thrive To set To thrive To meet To be ourselves Invest in the energy global resilient transition to improve apart Sustain, decarbonize, and the basins in which demand Create a differentiated enhance our business
Slide 29: To Be Resilient…
To meet To set To be To thrive global ourselves To Be Resilient… resilient demand apart …we will sustain, decarbonize, and enhance our business. Sustain Decarbonize Enhance Recent Accomplishments Operational Excellence Emissions Reduction Capture WCSB Growth Safe, reliable, and cost-effective operat
Slide 30: To Thrive…
To meet To set To be To thrive global ourselves To Thrive… resilient demand apart …we will invest in the energy transition to improve the basins in which we operate. Recent Accomplishments Low Carbon Low Carbon Carbon Transport • Advanced development of Cedar Infrastructure Hubs Commodities and Stor
Slide 31: To Meet Global Demand…
To meet To set To be To thrive global ourselves To Meet Global Demand… resilient demand apart …we will transform and export our products. Recent Accomplishments West Coast Coastal U.S. Midwest NGL • Advanced development of Cedar LNG Egress Platform LNG Expanding global market access for Rail and exp
Slide 32: To Set Ourselves Apart…
To meet To set To be To thrive global ourselves To Set Ourselves Apart… resilient demand apart …we will create a differentiated experience for our stakeholders. Recent Accomplishments Investors Customers Employees Communities • +70% total shareholder receive sustainable industry- choose us first for
Slide 33: By 2030
By 2030 To meet To set To be To thrive ourselves Invest in the energy global resilient transition to improve apart Sustain, decarbonize, and the basins in which demand Create a differentiated enhance our businesses Transform and export our we operate experience for products our Stakeholders Strength
Slide 34: Core Business
Core Business Poised to Capture Growth Jaret Sprott Chris Scherman Senior Vice President & Senior Vice President, Chief Operating Officer Marketing & Strategy Officer
Slide 35: Journey to 2030
Journey to 2030 To thrive To meet Invest in the energy global transition to improve demand To set To be the basins in which we operate Transform and export our ourselves resilient products apart Sustain, decarbonize, and Create a differentiated enhance our businesses experience for our Stakeholders
Slide 36: Safety is Foundational
Safety is Foundational 2023 Results • Incidents with serious injury or fatality potential reduced by 35% compared to 2022 • Lost workday injuries decreased by 29% compared to 2022 • Over 18,000 leadership engagements, a 100% increase over 2022 • Contractor Safety Summit held to listen, learn and u
Slide 37: Highly Reliable Operations
Highly Reliable Operations Gas Processing(1) Pipelines(2) Fractionation(3) ~99% Average ~98% Average ~97% Average 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23
Slide 38: Decarbonizing the Core Business
Decarbonizing the Core Business(1) 2023 Scope 1 and 2 Emissions Composition In 2023 We Achieved Scope 1 Total: 72% Scope 2 Total: 28% • GHG emissions intensity reduced by ~3% from 2022 (~7% cumulative Combustion 78% Purchased Electricity 97% compared to 2019 baseline) Flaring 19% Purchased Heat 3% •
Slide 39: Industry Leading Project Execution
Industry Leading Project Execution Major Projects Placed into Service since 2017 Completed On-Time? Completed On-Budget? Facilities RFS III Ahead of schedule Under budget Canadian Diluent Hub On time Under budget Duvernay I Ahead of schedule Under budget Redwater Co-generation On time Under budget D
Slide 40: Executing In-Flight Projects and Integration of Alliance / Aux Sable
Executing In-Flight Projects and Integration of Alliance / Aux Sable Peace Phase VIII • $430 million • Enables segregated service for C2+ and C3+ while adding 235 • On time, trending under budget mbpd of incremental capacity between Gordondale and La Glace • Commissioning underway and 65 mbpd betwee
Slide 41: Servicing North America’s Most Economic Plays
Servicing North America’s Most Economic Plays Gas Resources Play Payback Period(1) Oil Resources Play Payback Period(1) Montney (Karr) Clearwater (Nipisi) Natural Gas Plays Oil Plays Median Montney (Resthaven/Kakwa) Clearwater (Marten Hills) Median of 1.6 Years Frobisher Dual Leg of 1.8 Years Montne
Slide 42: Largest WCSB Integrated Transportation and Midstream Platform
Largest WCSB Integrated Transportation and Midstream Platform Uniquely positioned, irreplicable assets within integrated value chain poised to capture WCSB growth 41
Slide 43: Transformational Catalysts Driving Growth
1 2 3 4 Transformational v Catalysts Driving Growth Infrastructure Projects Benefit to Pembina 3 Trigon Pacific (Proposed) 1 Trans Mountain Expansion(1) Bitumen exports drive 3 Fort St John condensate demand met AltaGas REEF (Proposed) 2024 Capacity: 590 mbpd 3 Commodity: Light and Heavy Oil through
Slide 44: Trans Mountain Expansion | 2024
1 2 3 4 Trans Mountain v Expansion | 2024 Changing WCSB Market Dynamics 2023(1): Fort St John • ~4.1 mmbpd of WCSB crude oil production • ~3.2 mmbpd or ~75% derived from oil sands Pembina PRT Fort McMurray • ~460 mbpd of condensate produced in WCSB + ~ 290 mbpd of Prince Rupert Peace condensate impo
Slide 45: West Coast LNG | 2025 - 2028
1 2 3 4 West Coast LNG v | 2025 - 2028 Changing WCSB Market Dynamics 2023(1): NEBC Fort St John • ~18 bcf/d of WCSB natural gas production Pipeline • ~1,000 mbpd of WCSB NGL production Fort Pembina PRT McMurray Prince Rupert Impact of West Coast LNG Projects: LNG 2 Canada • ~2.8 to 4.9 bcf/d of natu
Slide 46: LPG Exports | 2026+
1 2 3 4 LPG Exports v| 2026+ Change to WCSB Market Dynamics 3 Trigon Pacific (Proposed) Pre 2017: 3 Fort St John • None AltaGas REEF (Proposed) 3 3 AltaGas RIPET Pembina PRT Fort 2023: McMurray Prince Rupert • ~130 mbpd(1) of LPG export from Pembina’s PRT and AltaGas’ RIPET and Ferndale Kitimat Gran
Slide 47: Dow Path2Zero Ethylene Cracker | 2027 - 2029
1 2 3 4 Dow Path2Zero v Ethylene Cracker | 2027 - 2029 Changing WCSB Market Dynamics 2023(1): Fort St John • ~250 mbpd of ethane demand from Dow and Nova Pembina PRT Fort Impact of Dow Cracker(2): McMurray Prince Rupert Peace • >100 mbpd of incremental ethane demand Pipeline • Significant associated
Slide 48: Potential Projects to Support Ethane Supply
1 2 3 4 Potential Projects v to Support Ethane Supply Exploring a Suite of Capital Opportunities BRITISH COLUMBIA ALBERTA Fort St John SASKATCHEWAN • Ability to extract 50 mbpd of ethane through a range of capital investment opportunities Hythe Deep Pembina PRT Cut Expansion Fort McMurray › Various
Slide 49: Advantaged Position to Benefit from Growth Catalysts
Advantaged Position v v to Benefit from Growth Catalysts Pembina Advantage Fort St John Fort • In aggregate, industry projects could add more Pembina PRT Prince Rupert McMurray than 1.5 mmboe/d of hydrocarbon production(1) LNG Canada Coastal GasLink • Significant long-term contracts and areas of Kit
Slide 50: Marketing Business Unlocks the Intrinsic Value of our Assets
Marketing Business Unlocks the Intrinsic Value of our Assets Buying and selling Marketing and Utilize storage to Aux Sable’s natural Marketing on behalf of commodities to take distribution of NGL manage short and gas processing, NGL customers as an advantage of price, products long-term differences
Slide 51: Marketing Supports Pembina’s Strategic Priorities
To meet To set To be To thrive global ourselves Marketing Supports Pembina’s Strategic Priorities resilient demand apart Enhance value of Pembina’s assets Drive incremental returns from physical assets and commodity exposure through integrated commercial activities Manage risk Natural hedges through
Slide 52: Break
si PEMBINN"
Slide 53: New Ventures
New Ventures Global Access and the Future of Energy Stuart Taylor Senior Vice President & Corporate Development Officer
Slide 54: Journey Beyond 2030
To meet To set To be To thrive global ourselves resilient Journey Beyond 2030 demand apart Carbon Capture, Utilization, Energy Transition Low Carbon Complex Liquified Natural Gas and Storage Fuels & Chemicals Developing new infrastructure platforms linked to the base business 53
Slide 55: Alberta Carbon Grid (ACG)
Alberta Carbon Grid (ACG) Pembina and TC Energy plan to jointly develop a proposed world-scale CO2 transportation and sequestration system • Open-access system to serve Alberta’s emerging Carbon Capture, Utilization and Storage industry • Connecting multiple hubs to key sequestration locations • The
Slide 56: Pembina Low Carbon Complex (PLCC)
Pembina Low Carbon Complex (PLCC) Proposed industrial complex for low-carbon energy infrastructure • Focused on attracting and developing investment for: 1) emerging energy transition technologies 2) sustainable fuels 3) chemicals, specifically low-carbon hydrogen and hydrogen carriers such as ammon
Slide 57: Cedar LNG Overview
Cedar LNG Overview • 3.3 mtpa floating LNG facility in Kitimat, British Columbia, within the Project traditional territory of the Haisla Nation • 50.1% Ownership • 49.9% • Underpinned by 20-year take-or-pay tolling agreements Commercial • ARC and Pembina have each contracted for 1.5 mtpa • Pembina i
Slide 58: Cedar LNG is Squarely Aligned With All Four Strategic Priorities
Cedar LNG is Squarely Aligned With All Four Strategic Priorities To meet To set To be To thrive ourselves Invest in the energy global resilient transition to improve apart Sustain, decarbonize, and the basins in which demand Create a differentiated enhance our businesses we operate Transform and exp
Slide 59: Haisla Nation
Haisla Nation Band of Government of the Haisla People Cedar LNG Aligns with Haisla Nation Values • Comprised of 2,000+ members • Environmental responsibility by minimizing impacts on land, air and water • Occupying its territory in Northwestern British Columbia for more than 9,000 years • Long-term,
Slide 60: Cedar LNG site map
Cedar Pipeline (8.8km) Cedar LNG Marine Terminal LNG Canada Cedar LNG CGL Delivery Point Meter Station to Cedar LNG Cedar Link Pipeline (1.1km) 59
Slide 61: Cedar LNG Economics
Cedar LNG Economics US$4.0 Billion Gross Capital Cost Onshore Infrastructure, Spending Profile IDC & Transaction Owner’s Costs, and Contingencies Costs FLNG PST Production Unit ~US$0.6 Owner’s Costs & Other Pipelines $4.0B $1.1B ~US$2.3 ~US$1.1 Commissioning & Start-up Transmission, 2021 2022 2023 2
Slide 62: Prudent Approach to Mitigate Cost Risk
Prudent Approach to Mitigate Cost Risk ~70% Under Lump-Sum and Date-Certain Contract Onshore Infrastructure • EPC contract for Floating LNG (“FLNG”) unit guarantees cost, performance and schedule • Construction scopes executed by an • Manufacturing in controlled conditions of a shipyard with local l
Slide 63: Cedar LNG’s Global Advantage
Cedar LNG’s Global Advantage ✓ Indigenous Led ✓ Advantaged Shipping Route to Asia ✓ Powered by Renewable Energy / Low Emissions ✓ Floating Facility Minimizes Environmental Impact ✓ Abundant Supply of Natural Gas via Scarce Pipeline Capacity ✓ Competitive Economics and Cost Protection ✓ Leverages Exi
Slide 64: Financial Outlook
Financial Outlook Means to Execute Cameron Goldade Senior Vice President & Chief Financial Officer
Slide 65: Strategy Execution Through Capital Excellence
Strategy Execution Through Capital Excellence To meet To set To be To thrive ourselves Invest in the energy global resilient transition to improve apart Sustain, decarbonize, and the basins in which demand Create a differentiated enhance our businesses we operate Transform and export our experience
Slide 66: Capital Allocation Principles
Capital Allocation Principles 1 Maintain balance sheet strength • Proven track record • Priority to maintain strong BBB rating • Creates competitive advantage 2 Maintain dividend • Core to investment proposition • Sustainable, reliable, and growing • Supported entirely by fee-based business 3 Accret
Slide 67: Project Portfolio Responding to Basin Growth and the Energy Transition
Project Portfolio Responding to Basin Growth and the Energy Transition >$1.2 Billion of Projects >$4 Billion of Projects Early-Stage Projects Currently Underway Under Development Under Evaluation • Phase VIII Peace Pipeline Expansion Greenfield • Pembina Low Carbon Complex • Cedar LNG (ammonia, hydr
Slide 68: 2024 Outlook
2024 Outlook(1) 2024 Guidance Q2’24 through Q4’24 Sensitivities • Adjusted EBITDA of $4.05 to $4.30 billion Key Variable Assumption Sensitivity Impact on adjusted • Primary drivers compared to 2023 Adjusted EBITDA: EBITDA ($ millions) › Increased ownership of Alliance and Aux Sable AECO / Station 2
Slide 69: Three Year Outlook
Three Year Outlook(1) 2023 to 2026 Fee-Based Adjusted EBITDA per share Tailwinds $6.55 - $6.90 $7.00 • Growing volumes and utilization across asset $6.50 base, namely Conventional Pipelines and Gas $6.00 $5.82 Services $5.50 • New assets entering service $5.00 2023 2026E • Synergies and integration
Slide 70: Three Year Funding Outlook: 2024 to 2026
Three Year Funding Outlook: 2024 to 2026 ~$9.9B ~$2.4B - - ~$9.1B ~($0.2B) ~$4.0B ~$5.3B Projects Under Development Cedar LNG Contributions Sanctioned Projects Cash Flow from Operating Activities Dividends (1) Capital Free Cash Flow Expenditures & Contributions to EAI Pembina’s visible growth underp
Slide 71: Financial Guardrails
Financial Guardrails 2018 to 2023 Range 2024F Maintain target of 80% fee-based contribution to ~85% - 1 ~82% to ~95% 90% adjusted EBITDA(1)(2) Target <100% payout of fee-based distributable ~69% to ~78% 70-75% 2 (~52%) to (~61%) (55-60%) cash flow (Standard Payout Ratio)(2) 3 Target 75% credit expos
Slide 72: Diversified and Highly Contracted Business with ~70% Take-or-Pay
Diversified and Highly Contracted Business with ~70% Take-or-Pay Commodity Type NGL Crude Oil & Commodity Take-or-Pay / Condensate Exposed Cost-of-Service 10% - 20% ~35% ~40% Fee-for- 15% - 20% Service 65% - 70% ~25% Natural Gas Pembina’s business is highly diversified and substantially underpinned
Slide 73: Committed to a Strong BBB Credit Rating
Committed to a Strong BBB Credit Rating Proportionately Consolidated Debt-to-Adjusted EBITDA(1) 4.25x 4.0x 4.0x TARGET 3.6x 3.6x 3.6x 3.50x 3.3x 3.6x - 3.4x 2018 2019 2020 2021 2022 2023 2024 (F) Rating Agency FFO-to-Debt(1) 23% 24% 22% 22% TARGET 24% - 18% 17% 18% 21% 18% 2018 2019 2020 2021 2022 2
Slide 74: Increasing Return on Invested Capital (ROIC)
Increasing Return on Invested Capital (ROIC)(1) 10.5% ROIC Drivers 10.0% • Asset integration 9.5% • Operational excellence • Margin enhancement 9.0% • Acquisition synergies 8.5% • Brownfield investment • Marketing 8.0% 2020 2021 2022 2023 Track record of disciplined capital allocation and increasing
Slide 75: Market Leading Total Shareholder Returns
Market Leading Total Shareholder Returns(1) 250 200 150 100 50 - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Pembina S&P/TSX Energy Infrastructure Alerian Midstream Index A decade of industry leading total shareholder returns 74
Slide 76: Dividend Track Record
Dividend Track Record $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- 1999 2001 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Financial Crisis Commodity COVID and Price Trust Conversion Collapse Consistent dividend increases through trust conversion, commodity cycles, and macro volatility 75
Slide 77: Core Energy Infrastructure Holding in Any Portfolio
Core Energy Infrastructure Holding in Any Portfolio Full Value Chain Across All Commodities Integrated commercial framework – wellhead to market Visible Growth 4% to 6% fee-based adjusted EBITDA per share growth Financial Discipline Strict adherence to financial guardrails Predictable Cash Flow ~80%
Slide 78: Q&A
Q&A 77 PEMBINA
Slide 79: Endnotes
Endnotes Slide 7: Since 2019 Investor Day…Pembina has Executed on all Fronts Slide 17: Leading Network of Pipeline Systems (1) Ascribed value of PGI transaction totaled $11.0 billion, excluding the value of assets under (1) Capacities are shown net to Pembina’s interest as at April 1, 2024. construc
Slide 80: Endnotes
Endnotes Slide 44: West Coast LNG | 2025 - 2028 Slide 73: Increasing Return on Invested Capital (ROIC) (1) Source: CER, AER, and Government of B.C. websites plus Pembina estimates. Includes ethane, (1) Calculated as Adjusted EBITDA divided by 12-month average capital in-service, inclusive of goodwil
Slide 81: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Throughout this presentation, Pembina has disclosed certain financial measures and ratios that are not specified, defined or determined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either excl
Slide 82: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("adjusted EBITDA") and adjusted EBITDA per Common Share Year Ended Year Ended Year Ended Adjusted EBITDA is a non-GAAP financial measure and is calculated as earnings before net finance cos
Slide 83: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted EBITDA From Equity Accounted Investees In accordance with IFRS, Pembina's jointly controlled investments are accounted for using equity accounting. Under equity accounting, the assets and liabilities of the investment are presented net in a single line
Slide 84: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted Cash Flow From Operating Activities and Adjusted Cash Flow From Operating Year Ended Activities per Common Share ($ millions, except as noted) Notes December 31, 2023 Adjusted cash flow from operating activities is a non-GAAP measure which is defined as
Slide 85: 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, 2023 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 86: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Year Ended ($ millions, except as noted) Notes December 31, 2023 Cash Flow After Dividends and Free Cash Flow Cash flow from operating activities 2,635 Cash Flow After Dividends and Free Cash Flow are non-GAAP measures and Cash Flow After Dividends paid – common
Slide 87: 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, 2022 December 31, 2023 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 88: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Year Ended Year Ended ($ millions, except as noted) Notes December 31, 2022 December 31, 2023 Senior Debt Loans and borrowings (current) 600 650 Senior debt is a non-GAAP measure and is defined as the sum of current and non-current loans and borrowings. Senior D
Slide 89: Contact Us
Contact Us www.pembina.com Toll Free: 1.855.880.7404 Phone: 403.231.3156 investor-relations@pembina.com