Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Shareholder Meeting (May 2018)
23 slides from Pembina Pipeline's shareholder meeting presentation, May 4, 2018
Slide 1: Annual Meeting
A n n u a l M e e t i n g | May 4, 2018 | TSX: PPL; NYSE: PBA
Slide 2: Forward-looking statements and information
Forward-looking statements and information This presentation is for information purposes only and is not intended to, and should not be construed to year ended December 31, 2017, and described in our public filings available in Canada at www.sedar.com and in constitute, an offer to sell or the solic
Slide 3: 2017 Highlights
2017 Highlights Customers Investors ✓ Placed $4.8 billion of projects into service, ✓ Completed the largest strategic acquisition extending our service offering for our in company history customers ✓ Achieved record adjusted cash flow per ✓ Secured an additional $1.2 billion of new share of $3.27, a
Slide 4: 2017 Financial Highlights
2017 Financial Highlights 2017 2016 % Increase Operating Margin per share(1) $4.47 $3.49 28% Adjusted EBITDA per share(1) $3.95 $3.06 29% Earnings per share (diluted) $1.88 $1.01 86% Adjusted Cash Flow per share(1) $3.27 $2.54 29% Pembina set financial records across all metrics in 2017 See "Non-GAA
Slide 5: Pembina's services reach natural gas, NGL and crude oil markets across North America
Pembina's services reach natural gas, NGL and crude oil markets across North America 5
Slide 6: Integrated, customer-focused services
Integrated, customer-focused services Empress, Sarnia and Corunna (Mainline Extraction, Fractionation, Distribution) Value chain extension opportunities Prince Rupert LPG Export Terminal (secured) Gas & NGL Via NGTL NGL Storage Fractionation Distribution Value Chain Conventional Pipelines NGL Midstr
Slide 7: New corporate structure to align operations and strategy
New corporate structure to align operations and strategy Operations Service Pembina has been reorganized to meet future needs of the business and achieve strategy execution 7
Slide 8: Hydrocarbon pipeline transportation systems
Hydrocarbon pipeline transportation systems Net pipeline capacity 3,500 In-service 3.0 3,000 Project under development MMboed 180 125 2,500 133 330 2,000 Mboed 625 1,500 106 230 250 1,000 389 500 555 - (2) (2) Pre Expan sio n Syncrude Horizon Cheecham Nipsi & Mitsue Pha se I, III & III AEG S & Allia
Slide 9: Largest third-party gas processor in the WCSB
Largest third-party gas processor in the WCSB Net processing capacity In-service 7,000 Project under development 6.0 6,000 100 Bcf/d(1) 897 5,000 702 75 60 250 4,000 214 MMcf/d 400 3,000 2,088 2,000 1,000 460 455 318 - Cutbank Cutbank Younger Empress Saturn Complex Resthaven SEEP Kakwa River Duverna
Slide 10: Largest fractionation capacity in the WCSB
Largest fractionation capacity in the WCSB Net fractionation capacity 350 307 In-service Project under development mbpd 300 30 250 56 200 55 Mbpd 150 73 100 20 50 73 - RFS I Sarnia RFS II RFS III Aux Sable (net) Empress Total 2012 2012 2016 2017 2017 2020 ~300+ mbpd of NGL fractionation capacity acr
Slide 11: Significant hydrocarbon storage capacity
Significant hydrocarbon storage capacity Net storage capacity 16.0 14.2 Underground Storage Capacity Above Ground Storage Capacity MMbbls 14.0 0.5 0.3 0.6 In-service 12.0 1.0 Project under development 1.6 10.0 1.5 MMbbls 8.0 6.5 0.6 MMbbls 1.7 6.0 4.0 2.0 - Provident 3 Caverns (2013) 2 Caverns (2015
Slide 12: Balance and diversification
Balance and diversification 11% Pipeline Division Operating Segment (2018 EBITDA)(1) 29% 60% Facilities Division Marketing & New Ventures 30% Crude Oil 36% Hydrocarbon Mix (2018 EBITDA)(1) NGL Gas 34% US 16% ✓ WCSB Currency Exposure (2018 EBITDA)(1) ✓ Bakken Canada 84% ✓ US Rockies 18% Investment Gr
Slide 13: Transformational growth completed in 2017
Transformational growth completed in 2017 Historical Adjusted EBITDA & Adjusted EBITDA per share and 2018 Outlook $2,550 MM to $2,750 MM $5.00 - $5.50 per share $3,000 Adjusted EBITDA $6.00 Adjusted EBITDA per share $750 MM to $850 MM $2,500 $5.00 $4.00 $2,000 $4.00 Adjusted EBITDA per Share $1,705
Slide 14: Financial Guard Rails
Financial Guard Rails 2015A 2018E Maintain target of 80% fee-based contribution 1 ~77% ~87% to adjusted EBITDA Target <100% payout of fee-based 2 ~135% ~90% distributable cash flow by 2018(3) Target 75% credit exposure from investment ~80%(1) 3 grade and secured counterparties 79% ~80%(1) ~16% ~20%
Slide 15: Maintain target of 80% fee-based contribution to Adjusted EBITDA
Maintain target of 80% fee-based contribution to Adjusted EBITDA Contribution by revenue type ($MM) 77% fee-based 77% fee-based 83% fee-based 87% fee-based $3 ~8% Take-or-pay/Cost-of-service ~5% $3 Fee-for-service ~16% Product margin $2 Frac spread ~11% ~7% $2 ~4% ~13% Fee-based ~1% ~19% Adjusted $1
Slide 16: Capital expenditures and financing objectives
Capital expenditures and financing objectives Funding plan for 2018 capital(1) (~$1.3 BB) $4.0 2014 2015 2016 2017 2018 • Finance growth ~50/50 debt/equity over the long term • Maintain strong BBB rating with conservative balance $3.0 sheet metrics • Manage through the investment cycle • Ensure ampl
Slide 17: Our future is bright: many large-scale potential projects
Our future is bright: many large-scale potential projects Prince Rupert Export ~$20 Billion of Unsecured Growth Projects Terminal Veresen Midstream (Secured) Existing Business Additional Peace Pipeline Expansions New Ventures • Additional Peace Pipeline PDH / PP Facility Expansions • Alliance Expans
Slide 18: Customers choose us first for reliable and value added services
Customers choose us first for reliable and value added services ✓ Multi-product service offering ✓ Potential discounts for multiple service commitments ✓ Volume discounts ✓ Ability to align commitments across the value chain (i.e. outage coordination) ✓ Linked step-up rights across infrastructure St
Slide 19: Employees say we are the 'employer of choice'
Employees say we are the 'employer of choice' and value our safe, respectful, collaborative and fair work culture Employee summary Recognized for being a top employer Total Employees Location 2017 2010 430 57% 43% Field Head Office ~1,540 Employee recordable injury rates per 200,000 hours worked in
Slide 20: Communities welcome us and recognize the net positive impact
Communities welcome us and recognize the net positive impact of our social and environmental commitment $4,004,476 4,049 $2,485,119 Invested Hours volunteered In Staff Contributions $3,389,526 Total raised (with company match) 12 Number of Campaigns 523 Volunteer Hours Pembina makes meaningful and l
Slide 21: Investors receive sustainable industry-leading total returns
Investors receive sustainable industry-leading total returns Total Return: Pembina vs. S&P/TSX Energy Infrastructure(1) Key Metrics 600 ✓ 4.2% Dividend growth rate(2) Relative Total Return (100 = January 1, 2008) 500 ~350% ✓ $6 billion in dividends paid since inception(3) 400 300 ✓ 8% – 10% target a
Slide 22: Pembina's Value Proposition
Pembina’s Value Proposition ✓ Visible growth while remaining dedicated to our financial guard rails 1 ✓ Large scale growth projects under development 2 ✓ Organic growth is self-funded ✓ Fee-for-service assets support dividend 3 ✓ Strong balance sheet and conservative payout ratio 4 ✓ Committed to al
Slide 23: Non-GAAP measures
Non-GAAP measures In this presentation, Pembina has used the terms net revenue, operating margin, adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), cash flow from operating activities per common share, adjusted cash flow from operating activities per common s