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 - In 2024, the company achieved adjusted EBITDA of $2.64 billion, down from $2.8 billion in 2023, primarily due to extreme weather events in South America [40] - Adjusted EPS for 2024 was $2.14, an increase from $1.76 in 2023, driven by higher tax attributes on new renewable projects and a lower adjusted tax rate [40][41] - Parent free cash flow was $1.1 billion, at the midpoint of guidance [11] Business Line Data and Key Metrics Changes - The renewables business saw lower adjusted EBITDA due to historic weather volatility in South America, with significant impacts from droughts and floods [43] - The utilities segment experienced higher adjusted PTC driven by rate-based investments and new rates at AES Indiana [44] - The energy infrastructure segment's adjusted EBITDA declined due to outages and lower margins, but the new 670-megawatt gas plant in Panama is expected to enhance cash flow [30][40] Market Data and Key Metrics Changes - The US added 49 gigawatts of new renewable capacity in 2024, with expectations for 63 gigawatts in 2025, primarily from solar and wind [18][19] - The company signed 4.4 gigawatts of new power purchase agreements (PPAs) in 2024, aiming for 14 to 17 gigawatts by 2025 [9] Company Strategy and Development Direction - The company is focusing on high-risk-adjusted return projects and improving organizational efficiency while maintaining its dividend [8] - A shift towards fewer but larger projects is expected to enhance profitability and reduce capital requirements [13][35] - The company aims to improve credit metrics and maintain investment-grade ratings while executing on its backlog of projects [33][70] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with stock price performance but emphasized the resilience of the business model amid regulatory uncertainties [7] - The company anticipates over 60% year-over-year growth in renewables EBITDA in 2025, driven by new projects coming online [16] - Management highlighted strong demand from corporate clients, particularly in data centers, which is expected to continue driving growth [24][39] Other Important Information - The company plans to reduce parent investments in renewables by $1.3 billion through 2027, eliminating the need for new equity [35] - A restructuring program is expected to yield $150 million in cost savings in 2025, ramping up to over $300 million in 2026 [37][50] Q&A Session Summary Question: On cost savings and their sources - Management confirmed that the $150 million in cost savings, ramping to $300 million, are ongoing and not one-time, with confidence in achieving these reductions [78][80] Question: On renewable CapEx and growth strategy - Management clarified that the focus is on executing the existing pipeline rather than expanding it significantly, with a commitment to maintaining financial results despite reduced CapEx [87][88] Question: On asset sales and coal contributions - Management indicated that asset sales will include some coal exits and technology monetization, but the reliance on asset sales has decreased [92][93] Question: On cost reduction specifics - Management detailed that cost reductions include resizing the development program, cutting early-stage project costs, and a workforce reduction of about 10% [99][100] Question: On credit metrics and future expectations - Management provided insights on credit metrics, indicating a significant cushion above downgrade thresholds and expectations for improvement over time [104][106]