Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Merger or Acquisition (March 2022)
15 slides from Pembina Pipeline's merger presentation, Mar 1, 2022
Slide 1: Pembina and KKR Create Joint Venture to Merge Western Canadian Processing Assets
Pembina and KKR Create Joint Venture to Merge Western Canadian Processing Assets March 1, 2022 TSX: PPL; NYSE: PBA
Slide 2: Forward-looking Information and Non-GAAP and Other Financial Measures
Forward-looking Information and Non-GAAP and Other Financial Measures 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
Slide 3: Forward-looking Information and Non-GAAP and Other Financial Measures (continued)
Forward-looking Information and Non-GAAP and Other Financial Measures (continued) In respect of the forward-looking statements concerning the anticipated increase in Pembina's common dividend following completion of the joint venture transaction, Pembina has made such forward-looking statements in r
Slide 4: Transaction Summary
Transaction Summary Pembina and KKR to combine their respective western Canadian natural gas processing assets into a single, new joint venture entity ("Newco") • Assets › Pembina’s field-based natural gas processing assets › Pembina and KKR’s interests in Veresen Midstream › KKR’s 49% interest in E
Slide 5: Strategic Highlights
Strategic Highlights Ability to serve customers throughout the Montney and Duvernay trends from North Central Alberta to Northeast B.C. (“NEBC”) Efficiencies from the combination of three platforms, enabling cost reductions and an enhanced customer service offering Greater exposure to NEBC growth –
Slide 6: Financial Highlights
Financial Highlights Mid to ~$700 million of cash proceeds to High single digit accretion to Pembina expected on closing adjusted cash flow per share(1) over next five years ~$150 million to incremental common share repurchases and ~$550 million to debt reduction 3.6% increase to common share divide
Slide 7: Newco Platform Spans the Montney and Duvernay Trends
Newco Platform Spans the Montney and Duvernay Trends 25 Pembina assets contributed processing facilities to Newco ~5 bcf/d Veresen Midstream assets contributed to Newco processing capacity ETC assets attributed to ~3,350 km VERESEN Newco gathering and transport lines MIDSTREAM ~65 percent PATTERSON
Slide 8: Newco Governance
Newco Governance Governance • Pembina will serve as the manager and operator of Newco • Joint venture to benefit from Pembina’s operating capabilities, institutional Operations knowledge, and management systems • Governing principle = alignment • Pembina and KKR have agreed to Area of Mutual pursue
Slide 9: Continued ESG Leadership
Continued ESG Leadership Newco will adhere to, and build on, Pembina’s strong program of continuously improving ESG performance and will integrate ESG considerations into its long-term business strategy Pembina ESG Reporting and Ratings Initial Priorities for Newco • Aligning with Pembina’s target t
Slide 10: Key Takeaways
Key Takeaways • Combining three complementary platforms to create a premier, highly competitive western Canadian natural gas processing entity • Scaled platform spanning the Montney and Duvernay trends creates value for customers and owners alike • Founded on a principle of strong alignment between
Slide 11: 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 defined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either exclude an amount that is inc
Slide 12: 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 Pembina has included in this news release 2022 adjusted EBITDA projections, a forward-looking non-GAAP financial measure, for (i) the
Slide 13: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted EBITDA From Equity Accounted Investees 12 Months Ended December 31, 2021 In accordance with IFRS, Pembina's jointly controlled investments are Marketing & New accounted for using equity accounting. Under equity accounting, the assets and ($ millions, ex
Slide 14: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted Cash Flow From Operating Activities and Adjusted Cash Flow From Operating Activities per Common Share Year Ended Adjusted cash flow from operating activities is a non-GAAP measure which is defined as cash flow from operating ($ millions, except as noted
Slide 15: Contact Us
CONTACT US Pembina Pipeline Corporation www.pembina.com investor-relations@pembina.com Toll free: 1.855.880.7404 Phone: 403.231.3156
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