Solid Operating Results and Progress on Capital Projects
Continues to Support Financial Resiliency; Board Approves 5.2
Percent Dividend Increase
All financial figures are in Canadian dollars unless noted
otherwise. This news release contains forward-looking statements
and information that are based on Pembina Pipeline Corporation's
("Pembina" or the "Company") current expectations, estimates,
projections and assumptions in light of its experience and its
perception of historic trends. Actual results may differ materially
from those expressed or implied by these forward-looking
statements. Please see "Forward-Looking Statements &
Information" herein and in the Company's Management's Discussion
& Analysis for the period ended March
31, 2015 ("MD&A") for more details. This news release
also refers to net revenue, operating margin, earnings before
interest, taxes, depreciation and amortization ("EBITDA") and
adjusted cash flow from operating activities (and cash flow from
operating activities per common share and adjusted cash flow from
operating activities per common share) which are financial measures
that are not defined by Generally Accepted Accounting Principles
("GAAP"). Pembina's methods of
calculating these financial measures may not be directly comparable
to that of other companies. Pembina considers these non-GAAP financial
measures to provide useful information to both management and
investors in measuring Pembina's
financial performance and financial condition. For more information
about the measures which are not defined by GAAP see "Non-GAAP and
Additional GAAP Measures" herein and in the MD&A, which is
available at Pembina's website at
www.pembina.com and on SEDAR at www.sedar.com. Pembina's entire quarterly report for the
period ended March 31, 2015 is also
available at Pembina's website or
on SEDAR.
CALGARY, May 5, 2015 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today its financial and operating results for the first
quarter of 2015.
Financial Overview
|
|
|
($ millions,
except where noted)
|
|
3 Months
Ended March
31 (unaudited)
|
|
|
2015
|
2014
|
Revenue
|
|
1,154
|
1,759
|
Net
revenue(1)
|
|
375
|
447
|
Operating
margin(1)
|
|
284
|
350
|
Gross
profit
|
|
228
|
302
|
Earnings
|
|
120
|
147
|
Earnings per common
share – basic (dollars)
|
|
0.32
|
0.44
|
Earnings per common
share – diluted (dollars)
|
|
0.32
|
0.41
|
EBITDA(1)
|
|
240
|
316
|
Cash flow from
operating activities
|
|
120
|
261
|
Cash flow from
operating activities per common share – basic
(dollars)(1)
|
|
0.35
|
0.82
|
Adjusted cash flow
from operating activities(1)
|
|
213
|
264
|
Adjusted cash flow
from operating activities per common share – basic
(dollars)(1)
|
|
0.63
|
0.83
|
Common share
dividends declared
|
|
148
|
134
|
Preferred share
dividends declared
|
|
10
|
6
|
Dividends per common
share (dollars)
|
|
0.44
|
0.42
|
Capital
expenditures
|
|
498
|
287
|
|
|
(1)
|
Refer to "Non-GAAP
and Additional GAAP Measures."
|
Q1 2015 Highlights
"During the first quarter of 2015, Pembina achieved solid operational results and
continued to showcase financial resiliency," said Scott Burrows, Pembina's Vice President, Finance and Chief
Financial Officer. "Our diversified asset base and fee-for-service
business model provide Pembina
with financial endurance during a low commodity price environment.
These results, combined with our growing fee-for-service-based cash
flows over the next few years, which will add further stability and
resiliency, led to the Board of Directors approving a 5.2 percent
common share dividend increase today. This increase reflects our
ongoing commitment to enhancing shareholder value."
Dividends on Pembina's common
shares will increase from $0.145 per
common share per month (or $1.74
annualized) to $0.1525 per common
share per month (or $1.83 annualized)
effective as of the May 25, 2015
record date, payable June 15,
2015.
One of the highlights during the quarter was the growth in
volumes on Pembina's Conventional
Pipelines and in its Gas Services business, which increased 14 and
29 percent, respectively, compared to the first quarter of 2014.
"In fact, we achieved record throughput on our Conventional
Pipelines in the month of February
2015, with an average monthly volume of 652,000 barrels per
day," said Mr. Burrows. "These historically high volume levels,
even in this suppressed commodity price environment, demonstrate
the strength of the resource supply in the Western Canadian
Sedimentary Basin that our expansion plans will support."
The Company also continued to make significant progress on its
capital projects during the first three months of the year, having
commissioned the crude oil and condensate portion of its Phase II
Peace Pipeline expansion, which was subsequently placed into
service on April 24, 2015.
Mick Dilger, Pembina's President and Chief Executive
Officer commented: "I am happy to report that this expansion was
completed on budget with an impressive safety record and is
operating as designed. Employees worked over 350,000 hours on this
project and drove over 1.9 million kilometres with no lost-time
injuries, yet another example of Pembina's commitment to executing our growth
projects safely and responsibly."
Pembina's exceptional safety
performance from 2014 continued into the first quarter of 2015.
Employees worked 22 percent more hours than in the first quarter of
2014 and continued to have no lost-time or recordable injuries.
Since the beginning of 2014, employees have worked over 3 million
hours without any employee lost-time or recordable injuries.
Mr. Dilger added: "We remain confident in the long-term growth
of our cash flows as we continue to build out and place into
service our $5.9 billion roster of
new projects. We expect these will translate into reaching our goal
of adding $700 million to $1 billion
of incremental EBITDA in 2018, depending on asset utilization
rates. Although our entire industry has faced a difficult time due
to weakened commodity prices, which have impacted our first quarter
2015 results compared to the first quarter of 2014, I believe that
these headwinds will not interfere with this goal. Pembina is steadfastly focused on operating
our assets safely and reliably, de-risking our business and
positioning ourselves to continue to generate long-term shareholder
value."
Q1 2015 Financial Review
Revenue in the first quarter of 2015 was $1,154 million compared to $1,759 million for the same period in 2014, while
net revenue for the first quarter of 2015 was $375 million compared to $447 million in the first quarter of 2014.
Despite strong performance within the Company's Conventional
Pipelines and Gas Services business, where revenue increased 32
percent and 29 percent, respectively, in the first quarter of 2015
compared to the first quarter of 2014, the decrease in consolidated
revenue and net revenue was largely due to the impact of
significantly lower commodity prices on the Company's Midstream
business in the first three months of 2015 compared to the same
period of the prior year. Compared to the three months ended
March 31, 2014, the average market
price in the first quarter of 2015 for propane declined by over 50
percent and crude oil, butane and condensate prices were also
significantly lower.
Operating expenses were $109
million for the first quarter of 2015 compared to
$95 million during the same period of
2014. The increase in operating expenses for the quarter ended
March 31, 2015 was primarily related
to new in-service assets, offset by a reduction in operating
expenses in the Company's Midstream business resulting from
Pembina's disposition of its
non-core trucking-related assets that was recognized in the second
quarter of 2014.
During the first quarter of 2015, operating margin decreased 19
percent to $284 million compared to
$350 million in the first quarter of
2014. The decrease was primarily due to the impact of significantly
lower commodity prices on the Company's Midstream business, as
noted above. This decrease was partially offset by stronger
performance in the Conventional Pipelines and Gas Services
businesses largely resulting from higher volumes and new assets
being placed into service as well as an $18
million realized gain from commodity-related derivative
financial instruments (2014: $2
million loss).
Depreciation and amortization included in operations during the
first quarter of 2015 was $54 million
compared to $52 million for the same
period in 2014. This increase was due to the year-over-year growth
in Pembina's asset base associated
with the Company's pipeline expansion projects as well as the
Vantage pipeline acquisition, which was completed in the fourth
quarter of 2014.
Gross profit for the first quarter of 2015 was $228 million compared to $302 million during the same period of 2014. This
25 percent decrease was mainly related to lower operating margin,
as previously mentioned.
For the first quarter of 2015, Pembina incurred general and administrative
expenses (excluding corporate depreciation and amortization) of
$46 million compared to $35 million during the comparable period of 2014.
The increase was largely due to increased rent, salaries (related
to the addition of new employees and consultants to support
Pembina's growth) and share-based
payment expense. Every $1 change in
share price is expected to change Pembina's annual share-based payment expense
by approximately $1 million.
Pembina generated EBITDA of
$240 million during the first quarter
of 2015, 24 percent lower than EBITDA of $316 million during the first quarter of 2014.
The decrease was due to lower gross profit combined with higher
general and administrative expenses.
Net finance costs during the first quarter of 2015 were
$13 million compared to $61 million for the same period in 2014. Net
finance costs were lower in 2015 primarily due to fluctuations in
the fair value of the conversion feature on the series E and F
convertible debentures associated with a reduction in the number of
instruments outstanding as well as a decrease in share price. In
the first quarter of 2015, Pembina
recognized a gain on revaluation of the conversion feature of
$11 million compared to a loss of
$34 million recognized in the first
quarter of 2014. Also contributing to lower net finance costs was a
$3 million decrease in interest
expense on the convertible debentures as a result of convertible
debenture conversions during the year.
Income tax expense for the first quarter of 2015 totalled
$45 million, including current tax of
$22 million and deferred tax of
$23 million, compared to income tax
expense of $56 million in 2014,
including current tax of $34 million
and deferred tax of $22 million.
Current tax expense was lower over the comparable period due to a
decrease in taxable income.
The Company's earnings decreased to $120
million ($0.32 per common
share – basic) during the first quarter of 2015 compared to
$147 million ($0.44 per common share – basic) in the same
period of 2014. This was largely due to lower gross profit in the
Midstream business and increased general and administrative
expenses, partially offset by higher gross profit in the
Conventional Pipelines, Gas Services and Oil Sands & Heavy Oil
businesses, lower net finance costs and decreased income tax
expenses. Earnings attributable to common shareholders is
$109 million (2014: $139 million) net of dividends attributable to
preferred shareholders.
Cash flow from operating activities for the quarter ended
March 31, 2015 was $120 million ($0.35
per common share – basic) compared to $261
million ($0.82 per common
share – basic) during the first quarter of 2014. The decrease was
mainly due to lower earnings, higher taxes paid as well as an
increased change in non-cash working capital in the 2015 period
compared to the respective period in 2014.
Adjusted cash flow from operating activities for the first
quarter of 2015 was $213 million
($0.63 per common share – basic)
compared to $264 million
($0.83 per common share – basic)
during the first quarter of 2014. The decrease was largely related
to lower operating margin and higher preferred share dividends
declared offset by decreased current taxes.
Operating Results
|
|
|
|
|
3 Months
Ended
March
31
(unaudited)
|
(mbpd, except
where noted)(1)
|
|
|
2015
|
2014
|
Conventional
Pipelines throughput
|
|
|
633
|
553
|
Oil Sands & Heavy
Oil contracted capacity
|
|
|
880
|
880
|
Gas Services average
volume processed (mboe/d) net to
Pembina(2)
|
|
|
113
|
88
|
Midstream NGL sales
volume(3)
|
|
|
129
|
133
|
Total
volume
|
|
|
1,755
|
1,654
|
(1)
|
mbpd is thousands of
barrels per day.
|
(2)
|
Gas Services average
volume processed converted to mboe/d (thousands of barrels of oil
equivalent per day) from million cubic feet per day ("MMcf/d") at
6:1 ratio.
|
(3)
|
NGL is natural gas
liquids.
|
|
|
|
|
|
3 Months
Ended
March
31
(unaudited)
|
|
|
|
2015
|
2014
|
($
millions)
|
|
|
|
|
Net Revenue(1)
|
Operating Margin(1)
|
Net Revenue(1)
|
Operating Margin(1)
|
Conventional
Pipelines
|
|
|
|
|
154
|
98
|
117
|
77
|
Oil Sands & Heavy
Oil
|
|
|
|
|
55
|
35
|
52
|
34
|
Gas
Services
|
|
|
|
|
54
|
37
|
42
|
29
|
Midstream
|
|
|
|
|
113
|
113
|
236
|
209
|
Corporate
|
|
|
|
|
(1)
|
1
|
|
1
|
Total
|
|
|
|
|
375
|
284
|
447
|
350
|
(1)
|
Refer to "Non-GAAP
and Additional GAAP Measures."
|
|
|
|
|
- For the three months ended March 31,
2015, financial and operating results in the Conventional
Pipelines business were higher than the comparable period of 2014
primarily due to the Phase I Expansions being placed into service
in December 2013, which allowed for
the receipt of higher volumes at Pembina's existing connections and truck
terminals. While additional capacity was available on the Company's
Peace and Northern pipeline systems resulting from the Phase I
Expansions, volumes increased over time during the first quarter of
2014, with even higher utilization of the capacity realized in the
first quarter of 2015. New connections which were placed into
service throughout 2014 and new volumes from the acquisition of the
Vantage pipeline beginning in late-2014 also contributed to
improved first quarter results during 2015 compared to the same
period of the prior year.
- In the Oil Sands & Heavy Oil business, the increases in net
revenue and operating margin during the first quarter of 2015
compared to the same period of 2014 were primarily related to
higher interruptible volumes on the Nipisi Pipeline. Net revenue
also increased due to additional flow-through operating expenses in
this business during the first quarter of 2015 compared to the
three months ended March 31,
2014.
- In the Gas Services business, financial and operating results
were higher in the first quarter of 2015 compared to the same
period of 2014 primarily due to the addition of the Resthaven
Facility, which was placed into service in October 2014, and the Musreau II Facility, which
was placed into service in December
2014.
- In the Midstream business, first quarter 2015 net revenue and
operating margin were both $113
million compared to $236
million and $209 million,
respectively, during the first quarter of 2014. Net revenue and
operating margin were reduced in 2015 primarily because of
significantly lower commodity prices (particularly the weaker
period-over-period propane prices, where market prices declined by
over 50 percent) and tighter price differentials across all
commodities. Net revenue also decreased due the sale of the
Company's non-core trucking-related subsidiary in the second
quarter of 2014.
New Developments in 2015 and Growth Project Update
Conventional Pipelines
During the first quarter, Pembina made substantial progress on its Phase
II crude oil, condensate and NGL expansions ("Phase II
Expansions"). Subsequent to quarter end, on April 24, 2015, Pembina placed its Phase II crude oil and
condensate expansion ("Phase II LVP") into service, adding an
incremental 55 mbpd on the Company's Peace pipeline system and
bringing total capacity on this line to 250 mbpd.
For the high vapour pressure ("HVP"), or NGL, portion of the
Phase II Expansions ("Phase II HVP"), Pembina has received all regulatory and
environmental approvals and has secured 70 percent of the total
project costs pertaining to pump station equipment, line pipe and
construction services. The Phase II HVP project is continuing to
track on time and on budget and is expected to be in-service in the
third quarter of 2015. Once complete, the Phase II HVP expansion
will add 53 mbpd to the Company's Peace and Northern NGL pipeline
systems and bring total NGL capacity on these lines to 220
mbpd.
During the quarter, Pembina
completed construction of and brought into service a 35 km 16-inch
pipeline segment from Lator to Simonette, as part of the Phase III
pipeline expansion ("Phase III Expansion"). Construction is also
complete on a 35 km 16-inch pipeline segment from Kakwa to Lator,
which was placed into service in late April
2015. To date, the Company has completed over 15 percent of
the overall Phase III Expansion program.
The Phase III Expansion also includes two pipelines between
Fox Creek and Namao, Alberta (one 16-inch diameter and one
24-inch diameter) which would provide an initial combined capacity
of 420 mbpd and an ultimate capacity of over 680 mbpd with the
addition of midpoint pump stations. The Alberta Energy Regulator
("AER") announced that it has scheduled a hearing related to the
Fox Creek to Namao portion of the Phase III Expansion for
July 2015. According to AER
guidelines, Pembina expects to
receive a decision from the AER within 90 days after the hearing is
concluded. Subject to regulatory and environmental approvals,
Pembina expects to bring these two
pipelines into service between late-2016 and mid-2017.
The Company is also progressing its previously announced plans
to expand its gathering presence in Alberta and British
Columbia. Subsequent to the end of the first quarter,
Pembina completed its lateral in
the Willesden Green area of Alberta and expects to commission this
pipeline near the end of May, 2015. Also, subject to regulatory and
environmental approvals, Pembina
expects its pipeline lateral in the Edson, Alberta area to be in-service
mid-2016.
Further, Pembina is continuing
work on the previously announced $220
million expansion to its pipeline infrastructure in
northeast British Columbia
("B.C.") (the "NEBC Expansion"). The NEBC Expansion, which is
underpinned by a long-term, cost-of-service agreement with an
anchor tenant, will transport condensate and NGL for various
producers in the liquids-rich Montney resource play. Subject to regulatory
and environmental approvals, Pembina anticipates bringing the NEBC
Expansion on-stream in late-2017.
Subsequent to the acquisition of the Vantage pipeline, which
transports ethane from the North Dakota Bakken play to a delivery
point near Empress, Alberta, the
Company announced on February 10,
2015 that it entered into agreements to expand the Vantage
pipeline system for an estimated capital cost of $85 million (the "Vantage Expansion"). Supported
by a long-term, fee-for-service agreement with a take-or-pay
component, the Vantage Expansion will increase the mainline
capacity from 40 mbpd to 68 mbpd through the addition of mainline
pump stations and the construction of a gathering lateral. Subject
to regulatory and environmental approvals, the Vantage Expansion is
expected to be in-service in early-2016.
Pembina has been successful in
its commercial efforts to secure the majority of its existing crude
oil and condensate volumes under long-term, firm-service contracts.
In aggregate and including contracted volumes on the Vantage
pipeline, Pembina has now secured
760 mbpd of crude oil, condensate and NGL through its recontracting
efforts, the addition of new assets and its Phase I, II and III
conventional pipeline expansions on its Peace and Northern Pipeline
systems.
Gas Services
During the first quarter of 2015, Pembina continued to advance its growth
projects within the Gas Services business.
With respect to construction of the Company's Saskatchewan
Ethane Extraction Plant ("SEEP"), located in the southeast
Saskatchewan Bakken region, Pembina has obtained all regulatory and
environmental approvals and has largely contracted all engineering,
fabrication and construction services. The project is currently on
budget and on schedule to be in-service in the third quarter of
2015 with plant site construction 50 percent complete.
Construction of Pembina's
Saturn II Facility (a 200 MMcf/d 'twin' of the Company's Saturn I
Facility), which is expected to be commissioned and placed into
service in the third quarter of 2015, is on schedule and
anticipated to be completed under budget. To-date, the Company has
completed 75 percent of site construction.
Pembina has ordered all major
equipment for the 100 MMcf/d expansion of its Resthaven Facility
(the "Resthaven Expansion") and construction is expected to begin
in the third quarter of 2015. The gathering pipeline associated
with the Resthaven Expansion is 50 percent installed with all major
river crossings completed. Pembina
expects the gathering pipeline, which is underpinned by a
cost-of-service agreement, to be in-service in mid-2015 and the
expansion of the Resthaven facility, which is underpinned by a
fee-for-service agreement, to be in-service in mid-2016.
The Company's 100 MMcf/d shallow cut facility, being built
adjacent to Pembina's existing
Musreau I and Musreau II facilities (the "Musreau III Facility"),
has now received regulatory and environmental approvals. All major
equipment has been ordered and 40 percent of project engineering is
currently complete. Pembina
anticipates bringing the Musreau III Facility, which is underpinned
by long-term, take-or-pay agreements, on-stream in mid-2016.
Once the facilities under development described above are
in-service, Pembina expects Gas
Services' processing capacity to reach 1.5 bcf/d (net to
Pembina), including ethane-plus
extraction capacity of 870 MMcf/d (net to Pembina). The volumes from Pembina's existing assets and those under
development will be processed largely on a contracted,
fee-for-service basis and could result in 70 mbpd of NGL, subject
to gas compositions, that can be transported for additional toll
revenue on Pembina's Conventional
Pipelines. Volumes from these projects support Pembina's pipeline expansion plans as
discussed under "Conventional Pipelines."
Midstream
Pembina continues to progress
construction of its second 73 mbpd ethane-plus fractionator at the
Company's Redwater site ("RFS
II"). All major equipment has been set on site, module fabrication
is complete and site construction is currently 70 percent complete.
The project is slightly behind schedule and Pembina anticipates it will be on-stream in
the first quarter of 2016.
Pembina is also progressing its
third fractionator at Redwater,
which will have propane-plus capacity of 55 mbpd ("RFS III").
Detailed engineering work is underway and over 60 percent of
long-lead equipment has been ordered. Pembina has received regulatory approval and
anticipates receiving environmental approval later this year.
Overall, the project is tracking on schedule and on budget. Subject
to the necessary approvals, Pembina expects RFS III to be in service in
the third quarter of 2017 and, once complete, Pembina's Redwater site will be the largest
fractionation facility in Canada
with a total of 210 mbpd of fractionation capacity.
Site preparation at the Company's proposed Canadian Diluent Hub
("CDH") is on-going. Subject to further regulatory and
environmental approvals, Pembina
anticipates phasing in additional connections to various condensate
delivery systems with a view to achieving full connectivity and
service offerings at CDH in mid-2017.
At its Edmonton North Terminal ("ENT") Pembina continues to advance construction of
three new above ground storage tanks with a total working capacity
of 550,000 barrels. Erecting of the three tanks is now complete and
the project is on schedule to be in-service in mid-2016.
At its storage and terminalling facilities in Corunna, Ontario, Pembina is progressing a number of initiatives
including the installation of a new brine pond, upgrades to its
rail rack and construction of a new propane truck rack to meet
increased demand for services. Detailed engineering and procurement
of long-lead items is 85 percent complete and work began in
April 2015 on the brine pond.
Subsequent to the end of the quarter, Pembina signed a long-term agreement with a
third party for one of its in-development underground hydrocarbon
storage caverns expected to be in service in early 2016.
During the first quarter, Pembina also continued to progress its
proposed 37 mbpd west coast propane export terminal under an
agreement to complete due diligence work at the Terminal 6 site of
the Port of Portland, Oregon.
Since the original project announcement in September 2014, Pembina's project team has conducted
consultation with community, regulatory and special interest
groups, has completed two public hearings and has also
significantly progressed detailed engineering design work to
support a number of permit applications the Company expects to
submit throughout 2015. Subsequent to the quarter end, Pembina received an affirmative vote from the
Portland Planning and Sustainability Commission to move the
approval process to the Portland City Council. Based on current
information with respect to timing, Pembina expects a decision from City Council
in mid-2015. Subject to receiving the necessary permits and
approvals, Pembina anticipates
bringing the project into service in 2018. The Company expects that
the proposed terminal will provide access to large, international
markets for a growing Canadian propane supply (which is derived
from natural gas produced in western Canada), while complementing Pembina's expanding integrated service
offerings for products derived from natural gas.
Financing Activity
On February 2, 2015, Pembina closed an offering of $600 million of senior unsecured medium-term
notes. The offering was conducted in two tranches: proceeds of
$450 million in senior unsecured
medium-term notes, Series 5, that have a fixed coupon of 3.54
percent per annum, paid semi-annually, and which mature on
February 3, 2025 and proceeds of
$150 million through the re-opening
of Pembina's Series 3, 4.75
percent medium-term notes, which mature April 30, 2043. Net proceeds were used to reduce
Pembina's short-term indebtedness
under its credit facilities, to fund Pembina's capital program and for other
general corporate purposes.
Subsequent to quarter end, Pembina received commitments from its bank
syndicate to increase the Company's unsecured revolving credit
facility (the "Facility") to $2
billion and to retain the accordion feature for an
additional $750 million at
Pembina's option. The Facility
maturity date was also extended to May 31,
2020. Pembina will use the
Facility for general corporate purposes and to execute the
Company's capital expenditure program.
Also subsequent to quarter end, Pembina closed a $225
million offering of 9,000,000 cumulative redeemable rate
reset class A preferred shares, series 9 (the "Series 9 Preferred
Shares") on April 10, 2015, at a
price of $25.00 per share. The Series
9 Preferred Shares began trading on the Toronto Stock Exchange on
April 10, 2015 under the symbol
PPL.PR.I. Proceeds from the Series 9 Preferred Shares were used to
reduce indebtedness under the Company's credit facilities, which
was incurred in connection with Pembina's 2015 capital expenditure
program.
First Quarter 2015 Conference Call & Webcast
Pembina will host a conference
call on Wednesday, May 6, 2015 at
9:00 a.m. MT (11:00 a.m. ET) for interested investors,
analysts, brokers and media representatives to discuss details
related to the first quarter of 2015. The conference call dial-in
numbers for Canada and the U.S.
are 647-427-7450 or 888-231-8191. A recording of the conference
call will be available for replay until May
13, 2015 at 11:59 p.m. ET. To
access the replay, please dial either 416-849-0833 or 855-859-2056
and enter the password 45391386.
A live webcast of the conference call can be accessed on
Pembina's website at
www.pembina.com under Investor Centre, Presentation & Events,
or by entering:
http://event.on24.com/r.htm?e=908217&s=1&k=3CBBA333217BC5D02A0E39F7BF79BF93
in your web browser. Shortly after the call, an audio archive will
be posted on the website for a minimum of 90 days.
Annual General Meeting of Shareholders
The Company will hold its annual general meeting of shareholders
("AGM") on Friday, May 8, 2015 at
2:00 p.m. MT (4:00 p.m. ET) at the Metropolitan Conference
Centre, 333 - 4th Avenue S.W., Calgary,
Alberta, Canada.
A live webcast of Pembina's AGM
presentation can be accessed on Pembina's website at www.pembina.com under
Investor Centre, Presentation & Events, or by entering:
http://event.on24.com/r.htm?e=973802&s=1&k=F65244C5582FECB9ED3AE59F517DA3AF.
Participants are recommended to register for the webcast at least
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About Pembina
Calgary-based Pembina Pipeline
Corporation is a leading transportation and midstream service
provider that has been serving North
America's energy industry for over 60 years. Pembina owns and operates an integrated system
of pipelines that transport various hydrocarbon liquids including
conventional and synthetic crude oil, heavy oil and oil sands
products, condensate (diluent) and NGL produced in western
Canada and ethane produced in
North Dakota. The Company also
owns and operates gas gathering and processing facilities and an
oil and NGL infrastructure and logistics business. With facilities
strategically located in western Canada and in NGL markets in eastern
Canada and the U.S., Pembina also offers a full spectrum of
midstream and marketing services that spans across its operations.
Pembina's integrated assets and
commercial operations enable it to offer services needed by the
energy sector along the hydrocarbon value chain.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements"), including
forward-looking statements within the meaning of the "safe harbor"
provisions of applicable securities legislation, that are based on
Pembina's current expectations,
estimates, projections and assumptions in light of its experience
and its perception of historical trends. In some cases,
forward-looking statements can be identified by terminology such as
"schedule", "will", "expects", "plans", "anticipates", "intends",
"should", "anticipates", "estimates" and similar expressions
suggesting future events or future performance.
In particular, this document contains forward-looking
statements, including certain financial outlooks, pertaining to,
without limitation, the following: Pembina's corporate strategy; future dividends
which may be declared on Pembina's
common shares and the dividend payment date; planning,
construction, capital expenditure estimates, schedules, expected
capacity, incremental volumes, in-service dates, rights, activities
and operations with respect to planned new construction of, or
expansions on existing, pipelines, gas services facilities,
fractionation facilities, terminalling, storage and hub facilities;
pipeline, processing, fractionation and storage facility and system
operations and throughput levels; Pembina's strategy and the development and
expected timing of new business initiatives and growth
opportunities and the impact thereof; anticipated synergies between
newly acquired assets, assets under development and existing assets
of the Company; processing, transportation, fractionation, storage
and services commitments and contracts; the impact of share price
on annual share-based incentive expense; the impact of the current
commodity price environment on Pembina; and, the anticipated use of proceeds
from financing.
The forward-looking statements are based on certain
assumptions that Pembina has made
in respect thereof as at the date of this news release regarding,
among other things: oil and gas industry exploration and
development activity levels and the geographic region of such
activity; the success of Pembina's
operations and growth projects; prevailing commodity prices and
exchange rates and the ability of Pembina to maintain current credit ratings;
the availability of capital to fund future capital requirements
relating to existing assets and projects; expectations regarding
participation in Pembina's
dividend reinvestment plan; future operating costs; geotechnical
and integrity costs; that any third party projects relating to
Pembina's growth projects will be
sanctioned and completed as expected; that any required commercial
agreements can be reached; that all required regulatory and
environmental approvals can be obtained on the necessary terms in a
timely manner; that counterparties will comply with contracts in a
timely manner; that there are no unforeseen events preventing the
performance of contracts or the completion of the relevant
facilities; that there are no unforeseen material costs relating to
the facilities which are not recoverable from customers; interest
and tax rates; prevailing regulatory, tax and environmental laws
and regulations; maintenance of operating margins; the amount of
future liabilities relating to environmental incidents; and the
availability of coverage under Pembina's insurance policies (including in
respect of Pembina's business
interruption insurance policy).
Although Pembina believes
the expectations and material factors and assumptions reflected in
these forward-looking statements are reasonable as of the date
hereof, there can be no assurance that these expectations, factors
and assumptions will prove to be correct. These forward-looking
statements are not guarantees of future performance and are subject
to a number of known and unknown risks and uncertainties including,
but not limited to: the regulatory environment and decisions; the
impact of competitive entities and pricing; labour and material
shortages; reliance on key relationships and agreements; the
strength and operations of the oil and natural gas production
industry and related commodity prices; non-performance or default
by counterparties to agreements which Pembina or one or more of its affiliates has
entered into in respect of its business; actions by governmental or
regulatory authorities including changes in tax laws and treatment,
changes in royalty rates or increased environmental regulation;
fluctuations in operating results; adverse general economic and
market conditions in Canada,
North America and elsewhere,
including changes in interest rates, foreign currency exchange
rates and commodity prices; and certain other risks detailed from
time to time in Pembina's public
disclosure documents available at www.sedar.com. This list of risk
factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could
cause results to differ materially from those predicted, forecasted
or projected. The forward-looking statements contained in this
document speak only as of the date of this document. Pembina does not undertake any obligation to
publicly update or revise any forward-looking statements or
information contained herein, except as required by applicable
laws. The forward-looking statements contained in this document are
expressly qualified by this cautionary statement. The
purpose of the financial outlook contained herein is to give the
reader an indication of the expected impact of current growth
projects on Pembina's future
financial performance. Readers should be aware that the financial
outlook contained herein may not be appropriate for other
purposes.
Non-GAAP and Additional GAAP Measures
In this news release, Pembina has used the terms net revenue,
operating margin, earnings before interest, taxes, depreciation and
amortization (EBITDA), adjusted cash flow from operating
activities, cash flow from operating activities per common share
and adjusted cash flow from operating activities per common share.
Since Non-GAAP and Additional GAAP financial measures do not have a
standardized meaning prescribed by GAAP and are therefore unlikely
to be comparable to similar measures presented by other companies,
securities regulations require that Non-GAAP and Additional GAAP
financial measures are clearly defined, qualified and reconciled to
their nearest GAAP measure. Except as otherwise indicated, these
Non-GAAP and Additional GAAP measures are calculated and disclosed
on a consistent basis from period to period. Specific adjusting
items may only be relevant in certain periods. The intent of
Non-GAAP and Additional GAAP measures is to provide additional
useful information to investors and analysts and the measures do
not have any standardized meaning under IFRS. The measures should
not, therefore, be considered in isolation or used in substitute
for measures of performance prepared in accordance with IFRS. Other
issuers may calculate the Non-GAAP and Additional GAAP measures
differently. Investors should be cautioned that these measures
should not be construed as alternatives to net earnings, cash flow
from operating activities or other measures of financial results
determined in accordance with GAAP as an indicator of Pembina's performance. For additional
information regarding non-GAAP and additional GAAP measures,
including reconciliations to measures recognized by GAAP,
please refer to the MD&A, which is available on SEDAR at
www.sedar.com.
SOURCE Pembina Pipeline Corporation