Pembina(US:PBA)2026-02-26 23:09Financial Performance - Pembina reported adjusted EBITDA of $4.3 billion for 2025, achieving record Pipelines and Facilities volumes of 3.7 million barrels of oil equivalent per day[13]. - The company experienced a 14% decrease in fourth quarter adjusted EBITDA to $1,075 million compared to the prior year, primarily due to lower contributions from the Marketing & New Ventures Division[24]. - Pipelines division adjusted EBITDA was $643 million for the fourth quarter, reflecting a 6% decrease year-over-year[25]. - Pipelines reported adjusted EBITDA of $2,596 million for the full year, a $63 million or 2% increase compared to the prior year[27]. - Facilities reported adjusted EBITDA of $366 million for the fourth quarter, a $7 million or 2% decrease year-over-year[27]. - Marketing & New Ventures reported adjusted EBITDA of $116 million for the fourth quarter, a $118 million or 50% decrease compared to the prior year[27]. - Fourth quarter earnings for Pembina were $489 million, a $83 million or 15% decrease year-over-year[33]. - Pipelines had earnings of $470 million in the fourth quarter, a $64 million or 12% decrease compared to the prior period[34]. - Facilities had earnings of $178 million in the fourth quarter, a $1 million or 1% increase year-over-year[35]. - Marketing & New Ventures had earnings of $115 million in the fourth quarter, a $130 million or 53% decrease compared to the prior year[37]. - Corporate reported adjusted EBITDA of negative $50 million for the fourth quarter, an $11 million or 28% decrease year-over-year[29]. - For the 12 months ended December 31, 2025, total revenue was $7,778 million, an increase from $7,384 million in 2024, representing a growth of 5.34%[60]. - Adjusted EBITDA for the same period was $4,289 million, slightly down from $4,408 million in 2024, indicating a decrease of 2.69%[65]. - Net revenue for the 12 months ended December 31, 2025, was $4,877 million, compared to $4,776 million in 2024, reflecting an increase of 2.11%[61]. - The company reported earnings of $1,694 million for the 12 months ended December 31, 2025, compared to $1,874 million in 2024, a decrease of 9.59%[65]. - Adjusted EBITDA per common share for the 12 months ended December 31, 2025, was $7.38, down from $7.69 in 2024, a decline of 4.03%[65]. - For the 3 months ended December 31, 2025, total revenue was $1,913 million, down from $2,145 million in 2024, a decrease of 10.81%[60]. - Adjusted EBITDA for the 3 months ended December 31, 2025, was $1,075 million, compared to $1,254 million in 2024, a decline of 14.26%[64]. - The company’s net revenue for the 3 months ended December 31, 2025, was $1,139 million, down from $1,383 million in 2024, a decrease of 17.63%[60]. Future Guidance and Projects - Pembina's long-term guidance for 2026 adjusted EBITDA is between $4.125 billion and $4.425 billion, indicating a compound annual growth of approximately 5%[25]. - The company is advancing the Cedar LNG project, with construction of the floating LNG vessel over 35% complete, resulting in a 10% increase in expected base adjusted EBITDA contribution[13]. - Pembina has sanctioned over $600 million in conventional pipeline projects to respond to anticipated volume growth in the Western Canadian Sedimentary Basin (WCSB)[16]. - The company is proceeding with two conventional pipeline expansions totaling $425 million to meet rising transportation demands from growing production in the WCSB[15]. - Pembina's 2026 adjusted EBITDA guidance and future pipeline operations are anticipated to be influenced by market conditions and new project developments[50]. - Pembina is evaluating options for new ethane supply infrastructure, with a final investment decision expected in 2026[18]. Shareholder Returns - The board declared a common share cash dividend of $0.71 per share for Q1 2026, payable on March 31, 2026[41]. Cash Flow and Financial Adjustments - Adjusted cash flow from operating activities for Q4 2025 was $731 million, down from $922 million in Q4 2024, representing a decline of approximately 20.7%[73]. - Adjusted cash flow from operating activities per common share for the year 2025 was $4.91, compared to $5.70 in 2024, a decrease of about 13.9%[73]. - Cash flow from operating activities for Q4 2025 was $861 million, compared to $902 million in Q4 2024, a decline of approximately 4.6%[73]. - Total adjustments to share of profit from equity accounted investees for the year 2025 amounted to $535 million, compared to $516 million in 2024, an increase of about 3.7%[69]. - Net finance costs for the year 2025 were $98 million, down from $159 million in 2024, a reduction of approximately 38.2%[69]. - Income tax expense for the year 2025 was $46 million, compared to $73 million in 2024, indicating a decrease of about 37.0%[69]. - Pembina revised the definition of adjusted cash flow from operating activities following the acquisition of a controlling interest in Alliance and Aux Sable on April 1, 2024[72]. Equity Accounted Investees - Adjusted EBITDA from equity accounted investees for Q4 2025 was $200 million, up from $195 million in Q4 2024, reflecting a growth of approximately 2.6%[68]. - Total share of profit from equity accounted investees for the year 2025 was $744 million, compared to $844 million in 2024, indicating a decrease of about 11.8%[69]. - The company reported a share of profit from equity accounted investees in the Facilities segment of $134 million for 2025, down from $231 million in 2024, a decrease of approximately 41.9%[69].