Group 1 - Pembina Pipeline Corporation and Kineticor Asset Management have formed a joint venture named Greenlight Electricity Center Limited Partnership, focusing on enhancing Alberta's power and data infrastructure [1] - The Greenlight Electricity Center is an advanced gas-fired power generation facility with a capacity of up to 1,800 MW, designed to be developed in modular phases of 450 MW each [2] - The project aligns with Alberta's goal of attracting $100 billion in data center investments by 2030, providing reliable power solutions to data centers [3] Group 2 - The joint venture allows Pembina and Kineticor to integrate their value chains, leveraging the proximity of the Alliance Pipeline to supply natural gas for the project [4] - Pembina Pipeline Corporation is recognized as a vertically integrated operator of energy infrastructure assets, currently holding a Zacks Rank 3 (Hold) [5] - Other top-ranked stocks in the energy sector include Repsol, Prairie Operating, and Gulfport Energy, with Repsol and Prairie Operating holding a Zacks Rank 1 (Strong Buy) [6]

Financial Data and Key Metrics Changes - The company reported quarterly earnings of $572 million, with record quarterly adjusted EBITDA of $1.254 billion, and record quarterly adjusted cash flow from operating activities of $922 million or $1.59 per share [6][7] - For the full year 2024, earnings reached $1.874 billion, with record annual adjusted EBITDA of $4.408 billion, a 15% increase from 2023, and record full year adjusted cash flow from operating activities of $3.265 billion or $5.70 per share [7][22] - The fourth quarter adjusted EBITDA increased by 21% compared to the same period in the prior year [19] Business Line Data and Key Metrics Changes - In the pipelines segment, higher contributions were noted from Alliance due to increased ownership and higher demand for seasonal contracts, while lower net revenue was observed on the Cochin pipeline due to lower firm tolls [20] - Facilities saw an increase in contributions from PGI due to higher revenue associated with oil batteries acquired in Q4 2024 [20] - The marketing and new ventures segment reflected higher net revenue from contracts with customers due to increased ownership interest in Aux Sable and higher NGL margins [20] Market Data and Key Metrics Changes - Total volumes were 3.67 million barrels per day in Q4, representing a 6% increase over the same period in the prior year [22] - The company executed contracts for approximately 170,000 BOE per day of pipeline transportation, primarily on Alliance and Peace Pipeline [9] Company Strategy and Development Direction - The company aims to strengthen its existing franchise, increase exposure to lighter hydrocarbons, and access global market pricing for Canadian energy products [8] - Pembina is focusing on capital-efficient projects, including the Cedar LNG project and the Phase VIII Peace Pipeline expansion, to accommodate growing production in the Western Canadian Sedimentary Basin [10][11] - The company is also exploring opportunities in the data center industry through the Greenlight Electricity Centre project [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the growth opportunities in the Western Canadian Sedimentary Basin and the company's strategic positioning to benefit from this growth [24] - The company anticipates continued momentum into early 2025, reflecting a strong position in the Canadian energy industry [17] Other Important Information - The company announced a 3.4% increase in the common share dividend, reflecting strong financial results [22] - The ratio of proportionally consolidated debt-to-adjusted EBITDA was 3.5 times, indicating a strong balance sheet and a BBB credit rating [23] Q&A Session Summary Question: What kind of commercial and growth opportunities might the rights to the NGLs off the Yellowhead mainline project create? - The company estimates it could build approximately 500 million cubic feet per day of extraction capacity, resulting in about 25,000 barrels of NGL extraction [29] Question: Can you talk about the potential capital requirement for the NGLs off the Yellowhead mainline? - The estimated cost for an asset of this size is in the range of $400 million to $500 million [49] Question: How is the company progressing in contracting capacity for Cedar LNG? - The company has received positive responses from a broad range of customers and is working through the contracting process [54] Question: What is the expected return profile for the Greenlight project? - The returns are expected to be consistent with midstream infrastructure returns, with ongoing negotiations for long-term contracts [66] Question: How is the company addressing the ongoing rate case situation with shippers on the Alliance pipeline? - The company is actively engaging with shippers to reach a negotiated settlement and is evaluating expansion opportunities based on shipper demand [41][72] Question: How does the company view the appetite for risk and purchase returns in the current market? - The company continues to evaluate opportunities across its value chain, focusing on creative solutions and maintaining a strong track record in capital execution [111]

Company Overview - Kineticor Asset Management LP has partnered with Pembina Pipeline Corporation to acquire a 50 percent interest in the Greenlight Electricity Centre Limited Partnership [1] - Pembina is a leading energy transportation and midstream service provider with over 70 years of experience in North America's energy industry [9] - Kineticor has a portfolio exceeding 2,700 MW in various stages of development and operations [8] Project Details - The Greenlight Electricity Centre (GLEC) is a proposed multi-phased gas-fired combined cycle power generation facility with a capacity of up to 1,800 MW, including carbon capture optionality [2] - GLEC will be developed in modular phases of approximately 450 MW each, scaling with market demand, up to a maximum initial design of 1,800 MW [5] - The project is strategically located in Alberta's Industrial Heartland, near transmission lines and utility infrastructure [2][4] Market Demand and Strategy - The GLEC aims to support Alberta's growing data centre industry, which is expected to drive increasing electricity needs [5] - The Government of Alberta has set a target of attracting $100 billion in data centre investments by 2030, promoting the need for reliable power solutions [7] - Pembina and Kineticor are committed to delivering cost-effective power solutions to data centres in the province [7] Development Progress - GLEC is currently in Stage 3 of the Alberta Electric System Operator (AESO) interconnection process, progressing through permitting, design, and contracting [5] - Greenlight is targeting grid interconnection in early 2027 and is engaging with customers for long-term power offtake agreements [6] - The facility's location near Edmonton provides access to a skilled labor force, enhancing its development potential [6]

Financial Performance - Revenue for Q4 2024 was $2,145 million, a 17% increase from $1,836 million in Q4 2023, and full-year revenue reached $7,384 million, up 17% from $6,331 million in 2023[4] - Adjusted EBITDA for Q4 2024 was $1,254 million, representing a 21% increase compared to $1,033 million in Q4 2023, and full-year adjusted EBITDA was $4,408 million, a 15% increase from $3,824 million in 2023[9] - Net revenue for Q4 2024 was $1,383 million, up 21% from $1,142 million in Q4 2023, and full-year net revenue was $4,776 million, a 20% increase from $3,973 million in 2023[4] - Earnings for Q4 2024 were $572 million, an 18% decrease from $698 million in Q4 2023, while full-year earnings increased by 6% to $1,874 million from $1,776 million in 2023[18] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached $4,408 million, up 15.3% from $3,824 million in 2023[94] - The company reported earnings of $1,874 million for the twelve months ended December 31, 2024, compared to $1,776 million in 2023, reflecting a 5.5% increase[94] - Total revenue for the twelve months ended December 31, 2024, was $7,384 million, a 16.6% increase from $6,331 million in 2023[89] - The cost of goods sold for the twelve months ended December 31, 2024, was $2,608 million, compared to $2,358 million in 2023, indicating a 10.6% increase[89] Cash Flow - Cash flow from operating activities for Q4 2024 was $902 million, a 3% increase from $880 million in Q4 2023, and full-year cash flow was $3,214 million, a 22% increase from $2,635 million in 2023[25] - Adjusted cash flow from operating activities for Q4 2024 was $922 million, a 23% increase from $747 million in Q4 2023, and full-year adjusted cash flow was $3,265 million, also a 23% increase from $2,646 million in 2023[29] - Adjusted cash flow from operating activities increased to $922 million for Q4 2024, up from $747 million in Q4 2023, representing a 23.4% increase[103] - Total cash flow from operating activities for the year ended December 31, 2024, was $3,214 million, up from $2,635 million in 2023, marking a 21.9% increase[103] - Adjusted cash flow from operating activities per common share rose to $1.59 in Q4 2024, compared to $1.36 in Q4 2023, reflecting a 16.9% increase[103] Divisions Performance - Pipelines division reported adjusted EBITDA of $686 million for Q4 2024, an 11% increase from $617 million in Q4 2023, and $2,533 million for the full year, a 13% increase from $2,234 million in 2023[11] - Facilities division achieved adjusted EBITDA of $373 million for Q4 2024, a 15% increase from $324 million in Q4 2023, and $1,347 million for the full year, an 11% increase from $1,213 million in 2023[12] - Marketing & New Ventures reported adjusted EBITDA of $234 million for Q4 2024, a 35% increase from $173 million in Q4 2023, and $724 million for the full year, a 21% increase from $597 million in 2023[13] Volume Metrics - Total Pipelines and Facilities volumes increased by 6% to 3,667 mboe/d in Q4 and 7% to 3,548 mboe/d for the full year compared to the prior year[34] - Pipelines volumes rose by 5% to 2,790 mboe/d in Q4 and by 7% to 2,711 mboe/d for the full year, driven by the Alliance/Aux Sable Acquisition and the reactivation of the Nipisi Pipeline[35][36] - Facilities volumes increased by 9% to 877 mboe/d in Q4 and for the full year to 837 mboe/d, reflecting volumes recognized at Aux Sable post-acquisition[37][38] - Marketed NGL volumes grew by 16% to 252 mboe/d in Q4 and by 23% to 228 mboe/d for the full year, attributed to higher sales from increased ownership interest in Aux Sable[39] - Marketed crude oil volumes increased by 17% to 96 mboe/d in Q4 and by 15% to 99 mboe/d for the full year, reflecting enhanced blending opportunities[40] Capital Expenditures and Investments - Capital expenditures for the full year 2024 were $955 million, significantly up from $606 million in 2023, reflecting ongoing investments in growth initiatives[4] - Pembina is advancing the Cedar LNG Project, which is expected to connect Canadian natural gas reserves to global markets, particularly in Asia[45] - The company is developing the Greenlight Electricity Centre, a gas-fired power generation facility with a potential capacity of up to 1,800 MW, expected to be operational by 2029[50] - Pembina is constructing a new 55,000 bpd propane-plus fractionator (RFS IV) at the Redwater Complex, expected to be in service in the first half of 2026[64] - The company is evaluating an expansion of the Peace Pipeline system to add approximately 200,000 bpd of capacity, enhancing its market delivery capabilities[64] - PGI executed a long-term, take-or-pay agreement with Veren for approximately 95 MMcf/d of gas processing service, solidifying contracted volumes in the Kaybob area[66] - PGI closed its acquisition of a 50% working interest in Whitecap's Kaybob Complex, with a commitment of up to $400 million for future infrastructure development, expected to be in service by late 2026/early 2027[66] - Pembina expects total capital investment for the ethane supply commitment under the agreement with Dow to be less than $300 million, improving capital efficiency[67] - PGI acquired four batteries from Veren with a 15-year take-or-pay agreement, committing up to $300 million for future infrastructure in the Gold Creek and Karr areas, expected to be operational in the first half of 2026[67] - Pembina is constructing the Cedar LNG Project with a capacity of 3.3 mtpa, with site clearing commenced in Q3 2024 and construction expected to begin in mid-2025, aiming for an in-service date in late 2028[68] - Pembina has entered into an agreement for 1.5 mtpa of capacity at Cedar LNG and is actively remarketing this capacity, receiving positive market responses[68] Shareholder Returns - The board declared a common share cash dividend of $0.69 per share for Q1 2025, payable on March 31, 2025[71] - For U.S. fund shareholders, the expected cash dividend is approximately U.S.$0.4812 per share, subject to exchange rate fluctuations and withholding taxes[72] Guidance and Future Outlook - The 2025 adjusted EBITDA guidance is set between $4.2 billion and $4.5 billion, reflecting continued volume growth and the full-year impact of the Alliance and Aux Sable consolidation[57] - Pembina's 2025 guidance includes anticipated adjusted EBITDA and a year-end proportionately consolidated debt-to-adjusted EBITDA ratio, reflecting future operational expectations[78] - Pembina's forward-looking statements are based on various assumptions, including commodity prices, regulatory environments, and market conditions, which may impact future performance[79] Debt and Taxation - Proportionately consolidated debt increased to $15,393 million as of December 31, 2024, from $12,708 million in 2023, a rise of 21.0%[104] - Proportionately consolidated debt-to-adjusted EBITDA ratio was 3.5 times for 2024, up from 3.3 times in 2023[104] - The company reported a current tax expense of $261 million for the year ended December 31, 2024, down from $325 million in 2023, a decrease of 19.7%[103] - Preferred share dividends paid increased to $132 million in 2024 from $120 million in 2023, reflecting a 10.0% increase[103]

Core Points - The Alberta Energy Regulator (AER) has imposed a $24,000 administrative penalty on Pembina Pipeline Corporation for violating the Public Lands Act [1][2] - The violation occurred between January 23 and 28, 2023, when Pembina began activities near Saddle Hills County without conducting a required wildlife sweep [2] - The penalty must be paid within 30 days of the decision [2] Regulatory Context - Administrative penalties are part of the AER's compliance and enforcement tools for companies that fail to meet regulatory requirements [3] - The AER's role includes ensuring the safe and environmentally responsible development of energy and mineral resources in Alberta [4]

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Core Insights - Pembina Pipeline Corporation is a significant player in the energy transportation and midstream services sector, operating in three main segments: Pipelines, Facilities, and Marketing and New Ventures [1] - The company expects an adjusted EBITDA of C$4.2 billion to C$4.5 billion for 2025, driven by increased activity in the Western Canadian Sedimentary Basin and new asset acquisitions [2] - Pembina plans a capital expenditure (Capex) of C$1.1 billion for 2025, with the potential to increase by C$200 million if additional projects are approved [2] Financial Performance - Pembina reported an adjusted EBITDA of C$1 billion for Q3 2024, with cash flow from operations increasing by 43.2% year over year to C$922 million, indicating financial stability [4] - The company maintains a consistent quarterly dividend of 69 Canadian cents per share, appealing to income-focused investors [7] Strategic Growth Initiatives - Pembina completed the acquisition of a 50% stake in Whitecap's Kaybob complex, enhancing operational efficiency and market position [5] - The core Pipelines and Facilities segments have shown positive volume trends, with pipeline volumes growing by 5.5% year over year [6] Project Developments - The Cedar LNG Project, in partnership with the Haisla Nation, is progressing with early construction milestones completed, alongside other expansion projects aimed at increasing capacity [8] Market Position and Challenges - Pembina's stock has declined by 13.3% over the past three months, underperforming compared to peers in the industry [11][12] - The company faces challenges with its Cochin Pipeline, resulting in a C$44 million EBITDA decline due to lower tolls and contracting gaps [9] - Regulatory approvals for expansion projects like Cedar LNG are critical, as delays could impact project timelines and costs [10] Commodity Price Sensitivity - The Marketing and New Ventures segment is sensitive to commodity price fluctuations, which can lead to revenue instability [13] Capital Expenditure Concerns - Significant capital expenditure commitments for major projects, such as the C$4 billion Cedar LNG facility, could strain free cash flow and limit returns for investors [14]

Pembina Pipeline Corporation (PBA) has closed its 50% working interest acquisition in Whitecap Resources Inc.'s (Whitecap) 15-07 Kaybob Complex, effective Dec. 31, 2024. This strategic acquisition is significant in Pembina’s continued efforts to expand its infrastructure capabilities and further set the company’s position in the energy sector. As part of the transaction, PBA’s subsidiary, Pembina Gas Infrastructure Inc. (“PGI”), has entered long-term, take-or-pay agreements with Whitecap for capacity at the ...

Pembina Pipeline Corporation’s (PBA) 2025 corporate guidance is driven by a focus on stability and growth. In 2025, the company projects an adjusted EBITDA of C$4.2 to C$4.5 billion driven by positive impacts of volume growth in the Western Canadian Sedimentary Basin (WCSB), new assets acquired and consolidation of the Alliance and Aux Sable assets.PBA’s Adjusted EBITDA GuidanceThe 2025 EBITDA outlook of PBA is driven by several positive impacts, like increased producer activity across WCSB, higher volumes ...

Pembina Pipeline Corporation (PBA) reported third-quarter 2024 earnings per share of 44 cents, which missed the Zacks Consensus Estimate of 56.  This underperformance was primarily due to weak delivery in the company’s Pipelines and facilities segments. PBA’s Pipelines volume for the third quarter of 2024 was reported at 2,738 thousand barrels of oil equivalent per day (mboe/d), below the consensus estimate of 2,754 mboe/d. Facilities volume for the same period was 810 mboe/d, missing the consensus expectat ...