Pembina(US:PBA)2025-11-07 16:00Financial Data and Key Metrics Changes - Pembina reported adjusted EBITDA of CAD 1.034 billion for Q3 2025, representing a 1% increase year-over-year [15] - Earnings for the third quarter were CAD 286 million, a 26% decrease compared to the same period last year [16] - Total volumes in the pipelines and facilities divisions were 3.6 million barrels of oil equivalent per day, a 2% increase year-over-year [18] Business Line Data and Key Metrics Changes - In the pipelines segment, higher demand on seasonal contracts and increased tolls contributed to revenue growth, while lower firm tolls on the Cochin Pipeline impacted results [15] - The facilities segment saw higher contributions from Pembina Gas Infrastructure (PGI) due to transactions with Whitecap Resources and increased volumes at the Duvernay complex [15] - Marketing and new ventures experienced lower net revenue due to decreased NGL margins and higher input natural gas prices [16] Market Data and Key Metrics Changes - The company has secured a 20-year agreement with Petronas for 1 million tons per annum of liquefaction capacity at the Cedar LNG facility, enhancing its export business [5] - The Green Light Electricity Center project has secured a 907 megawatt power grid allocation, with expectations for development as early as 2027 [7] Company Strategy and Development Direction - Pembina aims to ensure long-term resilience and provide visibility to attractive growth through the end of the decade [4] - The company is focused on expanding its LNG business while maintaining a risk profile characterized by long-term, contracted cash flow streams [6] - Pembina continues to strengthen its core business through successful recontracting and capital project execution [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the tightened adjusted EBITDA guidance range of CAD 4.25 billion to CAD 4.35 billion for 2025 [18] - The company remains optimistic about growth opportunities in the Western Canadian Sedimentary Basin (WCSB) despite current commodity price pressures [19] - Management is in a listening mode with customers to refine the outlook for 2026 based on their transportation service needs [22] Other Important Information - Pembina is nearing completion on approximately CAD 850 million of projects expected to enter service in the first half of 2026 [11] - The company is progressing on various conventional pipeline projects to enable growth in the WCSB [12] Q&A Session Summary Question: Can you share insights on pricing outlook and volumetric expectations for 2026? - Management is currently meeting with customers to understand their needs and will provide a refined outlook in December [22] Question: What are the next steps for the Green Light project? - The company is continuing commercial discussions and engineering work, aiming for a final investment decision in the first half of 2026 [24] Question: Can you comment on the volume trends in the conventional business segment? - Conventional volumes in Q3 were up about 4% quarter-over-quarter, with expectations for continued single-digit growth supported by oil sands demand [80][82]