Pembina Pipeline Corporation · TSX:PPL
Pembina Pipeline — Shareholder Meeting (May 2019)
34 slides from Pembina Pipeline's shareholder meeting presentation, May 3, 2019
Slide 1: Annual Meeting
Pembina Pipeline Corporation Annual Meeting May 3, 2019 TSX: PPL | NYSE: PBA
Slide 2: Forward-looking statements and information
Forward-looking statements and information This presentation contains certain forward-looking parameters continue to exist in respect of current and future and the ability to obtain regulatory approvals; fluctuations in statements and information that are based on Pembina's growth projects (includin
Slide 3: Non-GAAP measures
Non-GAAP measures In this presentation, Pembina has used terms that are not defined by Generally Accepted Accounting Principles (“GAAP”) but are used by management to evaluate the performance of Pembina and its businesses. Since non-GAAP measures do not have a standardized meaning prescribed by IFRS
Slide 4: Highlights since last Annual Meeting
Highlights since last Annual Meeting Veresen • Successfully integrated the two organizations realizing expected synergies and a full year contribution from Integration assets • Pembina employees and contractors worked ~7 million hours and achieved strong performance against both Safety internal and
Slide 5: Purpose of Pembina
Purpose of Pembina Customers choose us first Investors receive sustainable for reliable and value-added industry-leading total returns services Employees say we are the Communities welcome us and ‘employer of choice’ and recognize the net positive value our safe, respectful, impact of our social and
Slide 6: Customers
Customers 6
Slide 7: System Map - Today
System Map - Today Pembina has built a large franchise allowing us to deliver safe, reliable, integrated and cost-effective customer service 7
Slide 8: The Pembina Store: integrated, customer-focused services
The Pembina Store: 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 Pipelines ("HV
Slide 9: Pipeline transportation
Pipeline transportation Net pipeline capacity through time 3,500 In-service ~3.0 3,000 Project under development 65 mmboe/d 245 180 125 2,500 133 330 2,000 mboe/d 625 1,500 106 230 250 1,000 389 500 555 0 Pre Expan sio n Syncrude Horizon Cheecham Nipisi & Mitsu e Pha se I, II & III AEG S & Allia nce
Slide 10: Largest third-party gas processor serving the WCSB
Largest third-party gas processor serving the WCSB Net processing capacity 7,000 Pembina Provident acquisition 6.1 Veresen acquisition 200 bcf/d(1) 6,000 Project under development 897 57 5,000 75 702 4,000 60 250 214 mmcf/d 400 3,000 2,038 2,000 1,000 460 455 318 0 Cutbank Cutbank Younger Empress Sa
Slide 11: Largest fractionation capacity serving the WCSB
Largest fractionation capacity serving the WCSB Net fractionation capacity 400 356 350 Pembina mbpd(1) Provident acquisition 30 Veresen acquisition (2) 39 300 Project under development 56 250 mbpd 200 55 150 73 100 10 20 50 73 0 RFS I Sarnia Younger RFS II RFS III Aux Sable (net) Empress Total 2012
Slide 12: Leading hydrocarbon storage position
Leading hydrocarbon storage position Net storage capacity 16 Merchant Underground Storage Capacity Merchant Above Ground Storage Capacity 14.3 mmbbls 14 0.5 Pembina 0.3 0.6 Provident acquisition 12 1.0 Veresen acquisition 1.6 10 1.5 mmbbls 8 6.5 0.6 mmbbls 1.7 6 4 2 0 Provident 3 Caverns (2013) 2 Ca
Slide 13: Customers choose us first for reliable and value added services
Customers choose us first for reliable and value added services Multi-product service offering Discounts for multiple service commitments Volume discounts Alignment of commitments across the value chain (i.e. outage coordination) Linked step-up rights across infrastructure Priority acces
Slide 14: Investors
Investors 14
Slide 15: Record setting 2018 financial performance
Record setting 2018 financial performance 22% 31% 41% Record results driven by the first full year of contribution from the Veresen assets and growth increase in increase in Adjusted increase in projects including Phase III Earnings per cash flow from Adjusted EBITDA Peace Pipeline Expansion commo
Slide 16: Financial Guardrails
Financial Guardrails 2015 2018 Maintain target of 80% fee-based contribution 1 ~77% ~85% to Adjusted EBITDA(1) Target <100% payout of fee-based 2 distributable cash flow by 2018(2) ~135% ~75% (72%) (52%) (Standard Payout Ratio) Target 75% credit exposure from investment ~80% (1) 3 grade and secured
Slide 17: Our business is highly contracted
Our business is highly contracted Adjusted EBITDA contribution by type (1) 77% fee-based 77% fee-based 80% fee-based 85% fee-based 86% fee-based $4 Take-or-pay/Cost-of-service ~8% $3 ~9% Fee-for-service ~7% ~6% Product margin $3 Frac spread ~23% ~24% $2 ~6% ~13% $2 ~4% ~23% Fee-based ~1% ~19% Adjust
Slide 18: Transformational growth is generating record financial results
Transformational growth is generating record financial results Adjusted EBITDA and Adjusted EBITDA per share $2,850 MM to $3,050 MM $3,000 $5.62 ~$5.60 - ~$6.00 per share $6.00 Adjusted EBITDA Adjusted EBITDA per share $2.8 B $2,500 $5.00 $3.98 Adjusted EBITDA per Share $2,000 $4.00 $1.7 B Adjusted
Slide 19: Dividend growth supported by growing cash flow
Dividend growth supported by growing cash flow 5.3% dividend increase announced May 2, 2019 ACFPS CAGR: ~11% Dividend per share CAGR: ~4.5% (1) TTM Strong history of growing Pembina's dividend and adjusted cash flow per share (1) Assumes a $0.20 per share monthly dividend from May 2019 through Decem
Slide 20: Investors receive sustainable industry-leading total returns
Investors receive sustainable industry-leading total returns 700 Key Metrics Relative Total Return (100 = January 1, 2009) 600 ~480% ~4.5% dividend growth rate(2) 500 ~$7.1 billion in dividends paid ~345% since inception(3) 400 ~250% 300 ~220% 11% Adjusted cash flow per share compound annual g
Slide 21: Commitment to a strong BBB credit rating
Commitment to a strong BBB credit rating Debt/Adjusted EBITDA (2019 Forecast)(1) Leverage comparison across industry(4) x x 3.75x - 4.25x x Pembina continues to employ less leverage x 3.7x 10.0x than its peer group average x x 9.0x 2019 Forecast Target 8.0x Fund from Operations/Debt (2019 Forecast)(
Slide 22: Employees
4 ; ' Employees 22
Slide 23: 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 (1) Recognized for being a top employer Total Employees Location 2018 2010 430 54% 46% Field Head Office ~2,200 Employee motor vehicle rates Employee recordable injury r
Slide 24: Communities
| Communities 24
Slide 25: Communities welcome us and recognize the net positive impact
Communities welcome us and recognize the net positive impact of our social and environmental commitment We invest in: Community Building Playgrounds, community halls, $7,500,000 5,500 $4,000,000 recreation facilities Invested in 2018 Hours volunteered in 2018 Raised for United Way in 2018 ~$3,400 pe
Slide 26: Sustainability at Pembina
Sustainability at Pembina • In 2018, Pembina released its inaugural Sustainability Report, consolidating and sharing our work in the areas associated with corporate sustainability • The report is rooted in the way we do business, largely aligned with Pembina’s Purpose and a natural evolution of the
Slide 27: What is next?
What is next? Doing more of the same Doing new things that strengthen and diversify our value chain 27
Slide 28: Pipeline Division
Pipeline Division Projects recently placed into service • Phase IV Peace pipeline expansion • Phase V Peace pipeline expansion Secured projects(1) • Phase VI Peace pipeline expansion • Phase VII Peace pipeline expansion • Phase VIII Peace pipeline expansion Future opportunities • Phase IX Peace pipe
Slide 29: Facilities Division
Facilities Division Secured projects(1) Prince Rupert Export Terminal • Duvernay II Hythe Developments • Duvernay III • Prince Rupert Export Terminal • Hythe Developments • Empress Fractionation Duvernay II Future opportunities and Duvernay III • Duvernay development • Processing facilities • Storag
Slide 30: Facilities Division: Prince Rupert LPG Export Terminal
Facilities Division Prince Rupert LPG Export Terminal Project overview • Developing the Prince Rupert LPG Export Terminal with an expected capital cost of ~$250 million • Permitted up to ~25 mbpd of LPG export capacity with expansion opportunities • Site features sheltered berth, adequate existing d
Slide 31: New Ventures Division: CKPC
New Ventures Division CKPC: stronger than the sum of its parts $4.5 billion gross ($2.5 billion net) Pembina Canada RFS Propane PP Propylene United States Complex (~23,000 bpd) (550,000 MT) (550,000 MT) Asia South America Third Party PDH Facility PP Facility Shipping Fractionation Facilities Pembina
Slide 32: New Ventures Division: Jordan Cove LNG
New Ventures Division Jordan Cove LNG Accomplishments to date • Draft Environmental Impact Statement from FERC • Non-binding off-take agreements with customers in excess of the planned capacity • Right of way land acquisition • Class II cost estimate for the facility with leading consortium Outstand
Slide 33: Pembina's value proposition
Pembina's value proposition Diverse, integrated, strategic assets serving world-class geology Visible growth while conforming to our financial guardrails Value chain extension projects under development to enhance customer netbacks Organic growth of $1 to $2 billion per year is self-funded
Slide 34: 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