Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Merger or Acquisition (June 2021)
19 slides from Pembina Pipeline's merger presentation, Jun 1, 2021
Slide 1: Combination Presentation
Pembina Pipeline Corporation TSX: PPL; NYSE: PBA Inter Pipeline Ltd. TSX: IPL Combination Presentation June 1, 2021 (Revised June 15)
Slide 2: Forward-looking statements and information
Forward-looking statements and information This presentation contains certain forward-looking statements and forward-looking Pembina's business interruption insurance policy). costs; that counterparties to material agreements will continue to perform in a timely information (collectively, “forward-l
Slide 3: Non-GAAP measures
Non-GAAP measures In this presentation, Pembina has used the terms adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted EBITDA per common share, fee-based distributable cash flow, adjusted cash flow from operating activities after dividends, free cash f
Slide 4: Transaction summary
Transaction summary Overview Financial Highlights Next Steps Inter Pipeline shareholders to receive Near-term annual synergies of Further details to be provided in a joint 0.5 of a share of Pembina $150 to $200 million Information Circular by early July for each share of Inter Pipeline ----- ----- -
Slide 5: Accelerating Pembina’s strategic goals
Accelerating Pembina’s strategic goals Asset Integration and Expanded Customer Service Offering Creates the Leading Integrated Condensate Delivery Solution in Western Canada De-risking and Enhancing the Value of HPC Meaningful Operating & Project Synergies Strong Financial Platform Enhanced Scale an
Slide 6: Conventional Pipelines
CONVENTIONAL PIPELINES MID-SASKATCHEWAN PIPELINE CENTRAL ALBERTA PIPELINE BOW RIVER PIPELINE / MILK RIVER PIPELINE 6
Slide 7: Oil Sands & Heavy Oil Pipelines
OIL SANDS & HEAVY OIL PIPELINES CORRIDOR PIPELINE BOREAL PIPELINE POLARIS PIPELINE COLD LAKE PIPELINE 7
Slide 8: Gas Services
GAS SERVICES PIONEER 2 OFFGAS PIONEER 1 OFFGAS COCHRANE STRADDLE PLANT 8
Slide 9: NGL Services
NGL SERVICES REDWATER OLEFINIC HPC FRACTIONATOR (ROF) 9
Slide 10: Integrated and complementary business
Integrated and complementary business NORTHERN EUROPE ~6.2 mmbpd CORRIDOR hydrocarbon PIPELINE transportation capacity PIONEER 2 OFFGAS PIONEER 1 OFFGAS from 3.1mmbpd BOREAL PIPELINE POLARIS PIPELINE ~8.8 bcf/d gas processing capacity COLD LAKE from 6.1 bcf/d PIPELINE ~390 mbpd HPC fractionation cap
Slide 11: The Pembina Store
The Pembina Store Natural Gas Value Chain + Gas Consumers Mainline Extraction NGL and Fractionation (Younger, Empress, NGL Alliance Gathering, 3rd Party Aux Sable) Pipeline Processing, Pipelines Field Extraction Industrial Users NGL Value Chain C2 + + C2 + C3 C2+ mix C4 3rd Party C3+ mix Pipelines &
Slide 12: Significant combined set of opportunities
Significant combined set of opportunities $6+ billion Tanks & Cogeneration Gas Plants Cedar LNG • Heartland • Peace Pipeline Petrochemical Phase VIII Complex Expansion • Cochrane Straddle ROF Integrated Solutions • Prince Rupert Connectivity • Phase VII and IX Peace Expansion Terminal • Butane Split
Slide 13: Leverage our past to lead the future
Leverage our past to lead the future Lower Carbon Energy New Opportunities Global Impact Carbon Capture, Wind Cogeneration Hydrogen Liquified Natural Gas Utilization & Storage Pembina Operations Today In Strategy For the Future Pembina will form part of the solution towards a lower carbon economy Se
Slide 14: Meaningful synergies through combination
Meaningful synergies through combination Year 1 Synergies Lowering general, administrative and operating costs Year 2 Year 2 Synergies $50MM $150 – 200MM Year 1 Commercial and product optimization $100 - 150MM Long-term Synergies Higher capacity utilization Asset repurposing Lower general, Commercia
Slide 15: Financial Guardrails
Financial Guardrails Combined Today including HPC Maintain target of 80% fee-based contribution to 90-95% 85-90% % 1 adjusted EBITDA(1) Target <100% payout of fee-based distributable % 2 71-75% 72-77% (~xx%) cash flow(2) 3 Target 75% credit exposure from investment ~80%(3) ~79% ~% grade and secured
Slide 16: Diversified, low risk business supported by long-life assets
Diversified, low risk business supported by long-life assets Combined Current including HPC 8% 14% Cost-of-service/Take-or-pay Adjusted EBITDA(1) 24% 20% Fee-for-service by Type 68% 66% Commodity exposed 5% Crude oil & condensate 21% 30% 30% NGL Adjusted EBITDA by 27% Natural gas Commodity Type(2) 4
Slide 17: Pembina delivers through market cycles
Pembina delivers through market cycles Acquisition Acquisition Acquisition of of Veresen of KML 120 Provident 9 6.00 8 100 5.00 7 80 4.00 6 5 3.00 60 4 2.00 40 3 2 1.00 20 1 0.00 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E(2) 0 Financial Crisis Commodity Price Collapse C
Slide 18: Combination enables the ambitions of both companies
Combination enables the ambitions of both companies • Highly integrated and readily combinable businesses will lead to substantial synergies • Integration of services will enhance the ‘Pembina Store’ of customer offerings • Enhances duration of assets and contract life on top of very long-life, low
Slide 19: Contact Us
CONTACT US Pembina Pipeline Corporation Suite 4000 – 585 8th Avenue S.W. Calgary, Alberta T2P 1G1 www.pembina.com investor-relations@pembina.com Toll free: 1.855.880.7404 Phone: 403.231.3156