Apollo Funds to Acquire 40% Interest in Pembina Gas Infrastructure

The most recent announcement (April 23, 2026) details a transaction where Apollo-managed funds are acquiring a 40% interest in Pembina Gas Infrastructure Inc. (PGI) from KKR-managed funds. Pembina Pipeline Corporation retains its 60% ownership and operational control. The deal is expected to close by the end of Q2 2026. PGI operates significant gas processing capacity (5 Bcf/d) and gathering pipelines across the Montney and Duvernay trends. This follows a series of strategic updates throughout late 2025 and early 2026, including Cedar LNG agreements with PETRONAS and Ovintiv, guidance reaffirmations for fee-based EBITDA growth (5-7% CAGR to 2030), and financing activities involving subordinated notes to redeem preferred shares.

The Apollo transaction is assessed as Routine - Positive. While the entry of a premier infrastructure investor like Apollo validates the quality of PGI assets, the deal structure does not appear to generate immediate material capital for Pembina Pipeline Corporation's balance sheet, as it involves KKR selling its stake to Apollo rather than a primary issuance or sale by Pembina. Pembina retains 60% control and operational management. This is consistent with previous strategic moves (e.g., Cedar LNG remarketing) that strengthen the platform without altering the core equity structure of the parent company. It reduces execution risk for PGI development through Apollo's capital depth but does not materially change Pembina's near-term earnings profile or debt metrics directly.

Pembina Pipeline Corporation is a leading Canadian midstream energy company providing transportation, storage, and processing services for natural gas, NGLs, and crude oil. - Flagship Project: Cedar LNG (Joint Venture). A floating LNG facility in Kitimat, BC. Targeting late 2028 service. Pembina holds significant interest with long-term offtake agreements secured (PETRONAS 1.0 mtpa, Ovintiv 0.5 mtpa). - Other Key Assets: PGI (Gas Infrastructure), Peace Pipeline, Alliance Pipeline, and the Greenlight Electricity Centre (gas-to-power project in partnership with Kineticor).