Financial Data and Key Metrics Changes - The company reported second quarter adjusted EBITDA of $1,013 million, representing a 7% decrease compared to the same period last year [15] - Earnings for the second quarter were $417 million, a 13% decrease from the prior year [16] - The updated full-year adjusted EBITDA guidance range is now $4,225 million to $4,425 million [17] Business Line Data and Key Metrics Changes - In the pipelines segment, lower firm tolls on the Cochin pipeline and lower revenue at the Edmonton terminals impacted results, while higher volumes on the Peace Pipeline system contributed positively [15] - The facilities segment saw lower volumes due to planned outages and ongoing third-party egress restrictions, but a higher contribution from PGI was noted [15] - Marketing and New Ventures experienced lower net revenue due to decreased NGL margins and lower volumes from planned outages [15] Market Data and Key Metrics Changes - The market for LNG supply on the West Coast of North America remains strong, with ongoing efforts to market 1.5 million tonnes per annum of Cedar LNG project capacity [5] - The company anticipates low to mid single-digit annual volume growth through the end of the decade across all WCSB products [6] Company Strategy and Development Direction - Pembina is focused on delivering capital projects that provide strong returns, with significant progress on the Cedar LNG project and RFS-four project [4][5] - The company aims to maintain and grow its position in the WCSB by enhancing its propane export capabilities and expanding pipeline infrastructure [7][10] - Pembina is committed to providing integrated solutions to support emerging markets, such as data centers and petrochemical facilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business, driven by customer demand and visible catalysts in the Montney basin [25] - The company is optimistic about capturing growth in the WCSB and believes it has a solid track record in the NGL midstream space [30] - Management highlighted the importance of maintaining a balance between growth capital and potential stock buybacks, with a focus on advancing key projects [80] Other Important Information - The company has approved a capital investment program of $1.3 billion, reflecting progress on core business initiatives and acquisitions [19] - Pembina is advancing over $1 billion in conventional NGL and condensate pipeline expansions to meet rising transportation demand [9] Q&A Session Summary Question: Concerns about Pembina's position in the Canadian NGL value chain - Management acknowledged the challenges but emphasized the solid fundamentals and customer demand driving the business [25][30] Question: Thoughts on capital allocation and potential buybacks - Management indicated that the majority of capital is committed to advancing projects, with ongoing discussions about the balance between growth capital and buybacks [40][80] Question: Long-term EBITDA growth rate expectations - Management reiterated the guidance for low to mid single-digit volume growth and indicated that they will refresh guidance as they approach 2026 [45][48] Question: Update on ethane and competitive landscape - Management noted that while there are significant ethane resources, current economics do not support scalable exports [62] Question: Progress on Cedar LNG remarketing - Management reported positive progress in remarketing capacity and is optimistic about finalizing agreements in 2025 [74][75]

Financial Performance - Q1 2025 Free Cash Flow after Distributions was $58.4 million[12,28] - Q1 2025 Net Income was $302 million[29] - Q1 2025 Adjusted EBITDA was $594 million[29] Operational Highlights - Record Delaware Basin natural-gas throughput of 1,975 MMcf/d in Q1 2025[12] - Total system operability reached a record 99.1% in Q1 2025[12] - Increased West Texas Complex processing capacity by 250 MMcf/d[12] Capital Allocation and Returns - The company's primary focus is on expansion opportunities, targeting organic capital projects with mid-teens or higher unlevered rates of return[14,16] - Targeting mid-to-low single-digits annual distribution increases[17] - Since 2020, $4.5 billion has been paid in distributions[51] - Since 2020, $1.13 billion has been used to repurchase 15% of unaffected unit count[51] 2025 Outlook - Free cash flow guidance range of $1.275 billion - $1.475 billion[19] - Adjusted EBITDA guidance range of $2.35 billion - $2.55 billion[32,41] - Total capital expenditures are projected to be between $625 million and $775 million, with 65% allocated towards expansion capital[19,32,44,45]