Pembina Pipeline Corporation Reports Results for the Second Quarter of 2025 and Provides Business Update

Executive Summary

• Pembina Pipeline Corporation reported second quarter 2025 earnings of $417 million ($0.65 per share), a decrease from $479 million in the prior year period, driven by lower firm tolls, interruptible volumes, and NGL margin compression.
• The company updated its 2025 adjusted EBITDA guidance range upward to $4.225 billion–$4.425 billion (from $4.2 billion–$4.5 billion) and revised its 2025 capital investment program to $1.3 billion.
• Significant operational updates include the acquisition of remaining interests in the Duvernay Complex, new propane export capacity agreements, and major construction milestones on the Cedar LNG project.

Key Details

• Q2 2025 Financial Performance:
  • Earnings: $417 million (vs. $479 million in Q2 2024).
  • Adjusted EBITDA: $1,013 million (vs. $1,091 million in Q2 2024).
  • Adjusted Cash Flow from Operating Activities: $698 million ($1.20 per share).
  • Revenue: $1,792 million (down from $1,855 million).
  • Net Revenue: $1,184 million (down from $1,222 million).
• 2025 Guidance Updates:
  • Adjusted EBITDA Guidance: Raised to $4.225 billion–$4.425 billion.
  • Capital Investment Program: Revised to $1.3 billion (up from $1.1 billion), reflecting pipeline expansions, PRT Optimization, and PGI acquisitions.
• Propane Export Expansion:
  • Approved $145 million optimization of the Prince Rupert Terminal (PRT) to expand storage and accommodate Medium Gas Carrier vessels; expected in-service mid-2028.
  • Entered into a long-term tolling agreement with AltaGas Ltd. for 30,000 bpd of LPG export capacity at Ridley Island Propane Export Terminal (RIPET) and future Ridley Island Energy Export Facility (REEF).
  • Total new access to 50,000 bpd of competitive propane export capacity.
• PGI Duvernay Acquisition & Agreements:
  • Acquired remaining 8.33% interest in three gas processing trains and related infrastructure at the Duvernay Complex from Whitecap Resources Inc. for $55 million ($33 million net to Pembina).
  • Concurrently entered into new/extended long-term take-or-pay agreements at the Duvernay Complex and KA Plant.
  • Agreed to fund and acquire an under-construction battery and infrastructure (North Gold Creek Battery) for a capital commitment up to $150 million ($90 million net to Pembina), supported by a new long-term take-or-pay agreement. Expected in-service Q2 2026.
• Pipeline Expansions:
  • Advancing >$1 billion in conventional NGL and condensate pipeline expansions.
  • Fox Creek-to-Namao Expansion: FID expected by end of 2025; adds ~70,000 bpd propane-plus capacity.
  • Taylor-to-Gordondale Project: FID expected Q1 2026; ~89 km, 16-inch pipeline for condensate.
• Cedar LNG Project:
  • US$4 billion gross project remains on budget and on time with expected in-service late 2028.
  • Major milestone reached: Steel cutting began on the floating LNG vessel hull and top-side facilities.
  • Pembina remarketing 1.5 million tonnes per annum of capacity; definitive agreements expected by end of 2025.
• RFS IV Project:
  • Trending ~5% under budget with revised expected cost of ~$500 million.
  • Field construction ~50% complete; expected in-service H1 2026.
• Dividend Declaration:
  • Board declared Q3 2025 common share cash dividend of $0.71 per share.
  • Payment date: September 29, 2025; Record date: September 15, 2025.
• Divisional Performance (Q2 2025 vs Q2 2024):
  • Pipelines: Adjusted EBITDA $646M (-1%); Earnings $473M (-2%). Lower tolls on Cochin and Vantage pipelines offset by higher Peace Pipeline volumes and Alliance seasonal demand.
  • Facilities: Adjusted EBITDA $331M (-3%); Earnings $142M (-22%). Lower volumes due to outages/restrictions at Dawson assets, partially offset by higher PGI contribution.
  • Marketing & New Ventures: Adjusted EBITDA $74M (-48%); Earnings $114M (-16%). Driven by lower NGL margins (butane/propane prices) and third-party restrictions at Channahon Facility.
  • Corporate: Adjusted EBITDA -$38M (improvement of 19%); Earnings -$196M. Lower long-term incentive costs due to share price changes.

Notable Quotes

• Note: No direct quotes from the CEO or President were included in the provided text.