Pembina Announces 2026 Guidance, Agreement for Cedar Capacity, and Business Update

Core Insights - Pembina Pipeline Corporation announced its 2026 financial guidance, a commercial agreement for Cedar LNG capacity, and an expansion of the Peace Pipeline System to meet increasing customer demand [1][3]. Financial Guidance - The company expects adjusted EBITDA for 2026 to be between $4.125 billion and $4.425 billion, reflecting an approximate four percent increase in fee-based adjusted EBITDA compared to 2025 [5][6]. - The midpoint of the 2026 guidance indicates a compound annual growth rate of about five percent in fee-based adjusted EBITDA per share from 2023 to 2026, aligning with targets set during the 2024 Investor Day [5][6]. - The capital investment program for 2026 is projected to total approximately $1.6 billion, with a focus on sustaining capital and growth projects [13][16]. Cedar LNG Agreement - Pembina signed a 12-year agreement with Ovintiv Inc. for 0.5 million tonnes per annum (mtpa) of liquefaction capacity at the Cedar LNG facility, completing the remarketing of its total 1.5 mtpa capacity [18][21]. - The expected annual run-rate adjusted EBITDA contribution from Cedar LNG is revised to between $220 million and $280 million, reflecting a 10 percent increase from earlier estimates [21][22]. Pipeline Expansion and Capacity - Pembina approved a $200 million expansion of the Peace Pipeline System to enhance propane-plus market delivery capacity into the Namao, Alberta hub [5][6]. - The company is advancing additional expansions, including the Birch-to-Taylor and Taylor-to-Gordondale projects, to accommodate forecasted volume growth from Canadian oil and gas producers [25][28]. Market Dynamics and Strategy - The Western Canadian Sedimentary Basin is experiencing robust production growth, driven by new LNG and LPG export capacity and evolving energy demands [3][4]. - Pembina's strategy focuses on providing safe, reliable, and cost-effective energy infrastructure solutions, with a commitment to executing projects on time and within budget [4][29]. Organizational Changes - Pembina is consolidating key executive portfolios as part of an organizational evolution, with several senior executives set to retire by the end of 2025 [33][34].