Pembina Pipeline Corporation Q4 FY2025 earnings call

• 2025 had solid financial and operating results, with earnings of $489 million in Q4 and $1.694 billion full year, adjusted EBITDA of $1.075 billion in Q4 and $4.289 billion full year. - Advanced strategic projects like RFS4 propane plus fractionator at Redwater Complex, Wapiti natural gas processing expansion, and K3 cogeneration facility, all on - time and on/below budget. - Supported long - term resilience through extensive re - contracting, renewed existing contracts and executed incremental new contracts totaling over 200,000 barrels per day of conventional pipeline transportation capacity. - Progressed development of conventional pipeline expansions to meet condensate and NGL transportation demand, announced Peace Pipeline system expansions and Northeast BC pipelines expansions. - Enhanced propane export capabilities with new LPG export agreement and Prince Rupert Terminal Optimization Project. - Advanced Cedar LNG project construction, completed remarketing of annual capacity with Petronas and Oventa. - Made progress in Greenlight Electricity Center, securing power grid allocation and land sale agreement, expecting FID in first half of 2026.

Fourth quarter adjusted EBITDA was $1.075 billion, a $179 million or 14% decrease year - over - year, mainly reflecting lower contribution from marketing and new ventures. Full - year adjusted EBITDA was $4.289 billion. Volumes across pipelines and facilities divisions reached record annual volumes, a 3% increase over 2024. Pipeline division in Q4 was affected by factors like higher volumes on Peace Pipeline system, lower revenue on Alliance Pipeline Canada portion, etc. Facilities division was affected by capital recovery impacts and operating expenses. Marketing and new ventures in Q4 were affected by narrower NGL frac spreads. Corporate segment was lower due to higher long - term incentive costs.

Fourth quarter announced 2026 adjusted EBITDA guidance range of $4.125 to $4.425 billion. Midpoint of the range represents 2023 - 2026 fee - based adjusted EBITDA per share compound annual growth of approximately 5%. 2026 year - end proportionally consolidated debt to adjusted EBITDA ratio is expected to be approximately 3.7 to 4.0 times. Excluding debt related to Cedar LNG construction, this ratio would be approximately 3.4 to 3.7 times. 2026 is expected to be the peak year for proportionally consolidated debt to adjusted EBITDA ratio, and leverage is expected to return to lower end of target range of 3.5 to 4.25 times.

• Project execution may be affected by customer production plans, commodity price fluctuations. - Uncertainty in Greenlight project regarding customer's final FID. - Regulatory and commercial uncertainties in various projects.

Q: Aaron McNeil asked about the decision not to pursue full Taylor to Gordondale expansion and outlook change.

A: Jared explained that Taylor to Gordondale is a growth project, got federal permit, but now focused on capital - light solution and prudent capital deployment.

Q: Jeremy Toney asked about Tourmaline contract extension.

A: Jarrett said extended partnership with Tourmaline, pipe and frac tolls consistent with rest of business, PGI side gas economics strong.

Q: Teresa Chen asked about Dow's revised timeline for Path to Zero and Greenlight next steps.

A: Chris said reevaluating infrastructure options for Dow, Greenlight targeting Q2 FID with commercial, regulatory, and engineering work streams progressing.

Q: Sam Burwell asked about Alliance short haul extension project.

A: Jared said strong demand in Alberta industrial heartland, expect announcement shortly.

Q: Praneeth Satish asked about Greenlight IRR, contract structure, and influence on EBITDA CAGR.

A: Chris said in negotiations, long - term contract with midstream - like attributes, Cam mentioned integration potential.

Q: Maurice Choi asked about investment capacity.

A: Cam said track record of funding capital with cash flow after dividends, expect free cash flow deficit in 2026 but growth in future.

Q: Robert Catalia asked about new pipeline and LNG.

A: Said no participation in LNG Canada sell - down rumors, Cedar LNG phase two dependent on gas supply.

Q: Benjamin Pham asked about power side and oil side.

A: Chris said potential growth in gas to power for data centers, Pemina focused on Nipissi pipeline and Charlie Lake oil play.

Q: Sumantra Banerjee asked about 2026 capital allocation priorities.

A: Cam said focused on project execution in 2026, anticipate growing dividend.

Q: Patrick Kenny asked about Yellowhead extraction opportunity and Redwater 5.

A: Chris said progressing Yellowhead, RFS 4 not online yet, NGL frac capacity growth with gas egress unlock.

Q: Scott Burrows asked about grand bargain MOU and carbon policy.

A: Said economic and fast - to - market expansions on Enbridge and TMX, optimistic about government progress on carbon policy.