Pembina Pipeline Corporation

- Pembina expects free cash flow positivity in 2024 and 2025 but anticipates some free cash flow negativity in 2026 due to peak investment in the Cedar LNG project. - The company targets maintaining a balanced debt-to-EBITDA ratio in the mid-3x range exiting 2025, with a maximum of 4.25x. - There is no explicit mention of new debt or equity fundraising currently planned; however, the company is managing its balance sheet to accommodate Cedar LNG CapEx in 2026. - Pembina follows a philosophy of setting its balance sheet to handle peak capital requirements, aiming to return to comfortable leverage levels post-2026. - No specific announcements or plans for issuing new equity or debt were disclosed during the call.

- Greenlight Electricity Center: Up to 1.8 GW natural gas-fired power generation project; first phase 900 MW planned for 2030; advancing FEED and targeting FID in H1 2026. - Cedar LNG: Engineering and design ongoing for expansion from 3 MTPA to 3.3 MTPA capacity; capital incorporated in announced budget; expecting peak investment in 2026 with free cash flow negativity that year. - Approximately $850 million of capital projects near completion with service expected in H1 2026, including: - RFS IV fractionator (~75% complete), under budget, Q2 2026 in-service. - PGI's Wapiti Expansion and K3 cogeneration facility, trending on/under budget with Q1 2026 in-service. - Development of ~$1 billion conventional pipeline projects to support WCSB growth and new liquid transportation opportunities (Fox Creek-to-Namao, Taylor-to-Gordondale, Birch-to-Taylor expansions). - Ongoing evaluation of increased egress capacity on Nipisi Pipeline and potential Alliance Pipeline expansion (~350 MMcf/d capacity).

- Long-term volume growth is expected to continue at a single-digit level, supported by major producers demonstrating similar growth. - Near-term growth may be more producer-specific or timing-related due to producers optimizing longer-term profiles with a focus on returns and value rather than just volume. - Recent customer consolidations (e.g., Ovintiv/NuVista and CNRL/Chevron transactions) are expected to accelerate production and increase contracted gas processing capacity (e.g., an incremental 600 million cubic feet per day). - Demand growth is driven by expanding oil sands production and increasing condensate demand, with import pipelines nearing capacity, creating opportunities for domestic supply growth. - Overall confidence remains high for sustained single-digit growth longer term, with the company well-positioned to support customers’ increasing volumes and infrastructure needs.

- Pembina expects continued long-term volume growth in the single-digit percentage range, supported mainly by oil sands and condensate demand growth. - Producer consolidation (e.g., Ovintiv-NuVista, CNRL-Chevron) can accelerate production, boosting processing volumes and revenue. - For 2026, the company anticipates stable fee-based EBITDA within previously guided ranges, with confidence in achieving the upper end after factoring in operational efficiencies and bolt-on M&A. - Free cash flow is expected to remain positive in 2024 and 2025, with some free cash flow negativity in 2026 due to peak Cedar LNG CapEx, but this will normalize long term. - The Cedar LNG project capacity increases and the new PETRONAS contract enhance the export business and long-term earnings visibility. - The company remains focused on operational execution, margin preservation, and aligning with producer strategies to sustain profitability and growth.

- Cedar LNG project amendment increased feed gas capacity from 400 to 500 million cubic feet per day, with design and build currently underway for 3.3 MTPA capacity, reflecting minor capital spend with no scope change. - Project Greenlight is progressing with FEED work and commercial discussions aiming for FID in the first half of 2026; initial phase (900 MW of 1,800 MW total) planned for 2030. - Alliance Pipeline plans a binding open season in Q1 2026 following the Q4 2029 anticipated in-service date. - Pembina continues to manage contracted volumes well, with approximately 96% of firm capacity contracted on key pipelines like Alliance. - Ongoing focus on brownfield opportunities and infrastructure expansion, including sour gas and condensate services, aligned with single-digit volume growth expectations in conventional business segments.