CALGARY,
AB, Nov. 18, 2022 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL) (NYSE: PBA)
announced today that Pembina and certain of its wholly-owned
affiliates have entered into a settlement agreement (the
"Settlement Agreement") with Ruby Pipeline LLC ("Ruby").
The terms of the Settlement Agreement provide for, upon approval
of the United States Bankruptcy Court for the District of
Delaware and the payment of all
amounts contemplated by such agreement, the release of Pembina from
any causes of action arising in connection with, among other
things, prepetition distributions and the bankruptcy case. In
consideration, the Settlement Agreement provides for the payment
from Pembina to Ruby of US$102
million (the "Settlement Payment"). The United States
Bankruptcy Court for the District of Delaware is expected to consider the terms of
the Settlement Agreement at a hearing for Ruby's Chapter 11 plan
("the Plan") proposed for January 23,
2023.
The Plan provides for the potential sale by auction of Ruby's
assets with a distribution of the value of the Ruby estate to its
creditors following confirmation of the Plan. In the event the Plan
is approved as currently contemplated, Pembina's affiliates retain
all rights to recovery under the 2026 Subordinated Notes (the "Sub
Notes") as a creditor, subject to the terms of the Plan and the Sub
Notes, after accounting for any rights of subordination in favour
of other creditors.
About Pembina
Pembina Pipeline Corporation is a leading energy transportation
and midstream service provider that has served North America's energy industry for more than
65 years. Pembina owns an integrated network of hydrocarbon liquids
and natural gas pipelines, gas gathering and processing facilities,
oil and natural gas liquids infrastructure and logistics services,
and a growing export terminals business. Through our integrated
value chain, we seek to provide safe and reliable infrastructure
solutions which connect producers and consumers of energy across
the world, support a more sustainable future and benefit our
customers, investors, employees and communities. For more
information, please visit pembina.com.
Pembina is structured into three Divisions: Pipelines Division,
Facilities Division and Marketing & New Ventures Division.
Pembina's common shares trade on the Toronto and New
York stock exchanges under PPL and PBA, respectively. For
more information, visit www.pembina.com.
Forward-Looking Information and
Statements
This news release contains certain forward-looking statements
and information (collectively, "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 "should", "may", "intend", "will", "continue", "if", "to
be", "expects", and similar expressions suggesting future events or
future performance.
In particular, this news release contains forward-looking
statements relating to, without limitation, the approval by the
United States Bankruptcy Court for the District of Delaware of the Plan and the Settlement
Agreement, including the terms of the Plan and the Settlement
Agreement and the expected timing for such approval; and the rights
of certain affiliates of Pembina to retain rights to recovery under
the subordinated notes as a creditor.
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: that the Plan
and/or the Settlement Agreement will be approved on terms similar
to those currently contemplated; the success of Pembina's
operations; the availability of capital to fund future capital
requirements relating to existing assets and projects; future
operating costs; prevailing regulatory, tax and environmental laws
and regulations; maintenance of operating margins; and certain
other assumptions in respect of Pembina's forward-looking
statements detailed in Pembina's Management's Discussion and
Analysis and Annual Information Form for the year ended
December 31, 2021 and from time to
time in Pembina's public disclosure documents available at
www.sedar.com, www.sec.gov and through Pembina's website at
www.pembina.com.
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: that the Plan may not be approved on terms currently
contemplated or at all; that the United States Bankruptcy Court for
the District of Delaware may not
approve the terms of the Settlement Agreement as currently
contemplated or at all; 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; fluctuations in operating results; the ability to
access various sources of debt and equity capital; and certain
other risks and uncertainties detailed in Pembina's Management's
Discussion and Analysis and Annual Information Form for the year
ended December 31, 2021 and from time
to time in Pembina's public disclosure documents available at
www.sedar.com, www.sec.gov and through Pembina's website at
www.pembina.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 news release speak only as of the date hereof. 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 news release are expressly qualified by this
cautionary statement.
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SOURCE Pembina Pipeline Corporation
