Pembina(US:PBA)2025-02-27 22:13Financial 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]