Pembina Pipeline Corporation Reports Results for the Fourth Quarter of 2025 and Provides Business Update

All financial figures are in Canadian dollars unless otherwise noted. This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles (“GAAP”), including net revenue; adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted cash flow from operating activities; and adjusted cash flow from operating activities per common share. For more information see “Non-GAAP and Other Financial Measures” herein. CALGARY, Alberta–(BUSINESS WIRE)–Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the fourth quarter and full year of 2025. Highlights Strong Financial Results – reported 2025 full year earnings of $1,694 million, adjusted EBITDA of $4,289 million, and adjusted cash flow from operating activities of $2,854 million ($4.91 per share). Reported fourth quarter earnings of $489 million, adjusted EBITDA of $1,075 million, and adjusted cash flow from operating activities of $731 million ($1.26 per share). Record Volumes – achieved record annual Pipelines and Facilities volumes of 3.7 million barrels of oil equivalent per day, representing a three percent increase over 2024. Pipeline Expansions Sanctioned – Pembina is proceeding with two conventional pipeline expansion projects totalling $425 million to service growing volumes in northeast British Columbia and Alberta. The Birch-to-Taylor Expansion includes a new 95-kilometre pipeline and facility upgrades that will add approximately 120,000 barrels per day (“bpd”) of capacity in that corridor. The initial scope of the Taylor-to-Gordondale Expansion includes new and upgraded pump stations downstream of Taylor, British Columbia and a new 16-kilometre pipeline connecting production in Alberta to the Gordondale pump station. Cedar LNG – as previously disclosed, during the quarter, Pembina entered into long-term agreements with a subsidiary of Petroliam Nasional Berhad (“PETRONAS”) and Ovintiv Inc. (“Ovintiv”) for 1.0 and 0.5 million tonnes per annum (“mtpa”), respectively to complete the remarketing of Pembina’s 1.5 mtpa of capacity at the Cedar LNG facility. These agreements further validate the Cedar LNG project and highlight the strong demand for global export capacity given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distances to Asian markets. New Commercial Agreements – Pembina and PGI have entered into long-term, take-or-pay agreements with Tourmaline Oil (“Tourmaline”) that include 270 million cubic feet per day (“mmcf/d”) of gas processing at PGI, as well as transportation on the Peace Pipeline, and fractionation at the Redwater Complex. Financial and Operational Overview 3 Months Ended December 31 12 Months Ended December 31 ($ millions, except where noted) 2025 2024 Change 2025 2024 Change Revenue 1,913 2,145 (232) 7,778 7,384 394 Net revenue(1) 1,139 1,383 (244) 4,877 4,776 101 Operating expenses 241 270 (29) 961 976 (15) Gross profit 827 1,024 (197) 3,193 3,316 (123) Adjusted EBITDA(1) 1,075 1,254 (179) 4,289 4,408 (119) Earnings 489 572 (83) 1,694 1,874 (180) Earnings per common share – basic (dollars) 0.78 0.92 (0.14) 2.67 3.00 (0.33) Earnings per common share – diluted (dollars) 0.78 0.92 (0.14) 2.66 3.00 (0.34) Cash flow from operating activities 861 902 (41) 3,301 3,214 87 Cash flow from operating activities per common share – basic (dollars) 1.48 1.55 (0.07) 5.68 5.61 0.07 Adjusted cash flow from operating activities(1) 731 922 (191) 2,854 3,265 (411) Adjusted cash flow from operating activities per common share – basic (dollars) (1) 1.26 1.59 (0.33) 4.91 5.70 (0.79) Capital expenditures 235 242 (7) 784 955 (171) (1) Refer to “Non-GAAP and Other Financial Measures”. Financial and Operational Overview by Division 3 Months Ended December 31 12 Months Ended December 31 2025 2024 2025 2024 ($ millions, except where noted) Volumes (1) Earnings (loss) Adjusted EBITDA (2) Volumes(1) Earnings (loss) Adjusted EBITDA(2) Volumes (1) Earnings (loss) Adjusted EBITDA (2) Volumes(1) Earnings (Loss) Adjusted EBITDA(2) Pipelines 2,815 470 643 2,790 534 686 2,786 1,938 2,596 2,711 1,907 2,533 Facilities 898 178 366 877 177 373 871 562 1,396 837 666 1,347 Marketing & New Ventures 337 115 116 349 245 234 339 457 499 327 569 724 Corporate — (126) (50) — (212) (39) — (750) (202) — (1,422) (196) Income tax (expense) recovery — (148) — — (172) — — (513) — — 154 — Total 489 1,075 572 1,254 1,694 4,289 1,874 4,408 (1) Volumes for the Pipelines and Facilities divisions are revenue volumes, which are physical volumes plus volumes recognized from take-or-pay commitments. Volumes are stated in mboe/d, with natural gas volumes converted to mboe/d from mmcf/d at a 6:1 ratio. Volumes for Marketing & New Ventures are marketed crude and natural gas liquids (“NGL”) volumes. (2) Refer to “Non-GAAP and Other Financial Measures”. For further details on the Company’s significant assets, including definitions for capitalized terms used herein that are not otherwise defined, refer to Pembina’s Annual Information Form for the year ended December 31, 2025, and Pembina’s Management’s Discussion and Analysis dated February 26, 2026 for the three and twelve months ended December 31, 2025, filed at www.sedarplus.ca (filed with the U.S. Securities and Exchange Commission at www.sec.gov under Form 40-F) and on Pembina’s website at www.pembina.com . Executive Overview and Business Update Over the past year, Pembina delivered strong financial and operational results, advanced major strategic projects, and strengthened its long‑term competitive position in a rapidly evolving North American energy landscape. Reliable, cost‑effective, and responsibly developed and operated infrastructure that supports access to high value markets has never been more essential. Pembina is meeting this need with an integrated value chain that continues to demonstrate resilience, efficiency, and the ability to convert Western Canada’s resource strength into durable value for its customers, employees, communities, and investors. The Western Canadian Sedimentary Basin (“WCSB”) is one of the world’s most prolific hydrocarbon regions and continues to experience production growth driven by dynamic new catalysts. The development of LNG export facilities, including Pembina and the Haisla Nation’s Cedar LNG Project, continues to unlock new global markets for Canadian natural gas, creating long-term demand and incentivizing production growth. New pipeline capacity improves crude oil egress and drives the need for incremental condensate production. Expanding petrochemical facilities in Alberta are increasing demand for ethane, while Alberta’s developing new data centre industry may emerge as a significant new source of natural gas-powered electricity demand. Supporting this growth outlook, Pembina has observed a shift in tone from government policy makers that could positively impact how the Canadian energy industry evolves. At both the federal and provincial level, there is momentum building towards reshaping Canada’s energy strategy in a way that could unlock its abundant and diverse energy resources. Recent policy signals and regulatory initiatives demonstrate a renewed commitment to supporting responsible energy infrastructure development, recognizing the vital role Canadian energy plays in global supply security and economic prosperity. Pembina stands at the heart of the WCSB and is responding to growing production and an evolving energy landscape with a clear and focused strategy – to provide safe, reliable, responsible, and cost-effective energy infrastructure solutions that connect producers to high value global markets. Pembina is the only Canadian energy infrastructure company with an integrated value chain providing a full suite of midstream and transportation services across all commodities – natural gas, NGL (ethane, propane and butane), condensate, and crude oil. Pembina’s scope, scale, and access to premium North American and global markets, differentiate the Company and uniquely position it to capture incremental new volumes in the WCSB, while unlocking new avenues for sustainable growth beyond its strong legacy businesses. Further, Pembina’s approach to capital allocation remains disciplined, targeting investments that enhance long‑term fee‑based cash flow per share growth and support a sustainable and growing dividend. The Company is focused on ensuring the long-term resilience of the business and providing investors with visibility to attractive long‑term fee‑based EBITDA per share growth through the end of the decade and beyond. 2025 Accomplishments Strong Financial and Operational Results: adjusted EBITDA of $4.3 billion, within the Company’s original 2025 guidance range; achieved record Pipelines and Facilities volumes of 3.7 million barrels of oil equivalent per day. Safety & Environment: strong execution with Pembina exceeding its internal 2025 targets, highlighted by improved performance across key safety and environmental indicators relative to 3-year averages. Pipeline Contracting Success Supports Long-Term Resilience: renewed existing contracts, and executed incremental new contracts, totaling over 200,000 bpd of conventional pipeline transportation capacity; significantly strengthened Alliance’s long-term contractual profile as shippers elected a new 10-year toll option on approximately 96 percent of available capacity; and contracted the remaining capacity available on the 100,000 bpd Nipisi Pipeline, which was reactivated in 2023 to serve the growing Clearwater heavy oil play. Responding to Growing Demand for Condensate and NGL Transportation: progressed development of a multi-year plan that includes up to approximately $1 billion of potential conventional pipeline expansions to reliably and cost-effectively meet rising transportation demands from growing production in the WCSB. Enhanced Propane Exports: Through a new 30,000 bpd LPG export agreement with AltaGas at its West Coast terminals, and the sanctioning of the Prince Rupert Terminal Optimization project, Pembina ensured access to 50,000 bpd of highly competitive propane export capacity to premium price markets, including in Asia, for Pembina’s own and customers’ propane. Cedar LNG Construction and Commercial Execution: advanced construction of the floating LNG vessel to over 35 percent complete; significantly progressed onshore construction activities; and completed remarketing of Pembina’s 1.5 mtpa of Cedar LNG capacity with PETRONAS, an LNG industry leader, and Ovintiv, one of the largest, liquids-rich natural gas producers in Canada’s Montney play. The Cedar LNG contracting resulted in a 10 percent increase in Pembina’s expected base adjusted EBITDA contribution from the Cedar LNG project, providing a higher base level of secured cash flow and incremental upside participation without commodity downside risk. Greenlight Electricity Centre: Pembina and its partner, Kineticor, made significant progress in the development of the Greenlight Electricity Centre (“Greenlight”), including securing a 907 MW power grid allocation, which was subsequently assigned to a potential customer of Greenlight, completing a land sale agreement with the potential customer, and ensuring the availability and delivery timing of two turbines to support the approximately 900 MW first phase of Greenlight. Greenlight represents an extension of Pembina’s existing value chain and an opportunity to enhance growth by investing in long-term contracted infrastructure with an investment grade counterparty, while diversifying its customer base, and would create incremental demand for natural gas and associated liquids production within western Canada. Business Updates In service of growing condensate and NGL volumes from northeast British Columbia and Alberta, that are anticipated to ramp up through the end of the decade, Pembina and its subsidiaries1 are proceeding with two conventional pipeline expansions totalling $425 million. The Birch-to-Taylor Expansion includes a new 95-kilometre pipeline and facility upgrades that will add approximately 120,000 bpd of propane-plus and condensate capacity in that corridor. Pembina2 has obtained all necessary permits to begin preliminary construction activities. The project has an estimated cost of approximately $310 million, and an anticipated in-service date in the fourth quarter of 2027. The expansion will be supported by a cost-of-service commercial structure. “This milestone reflects strong collaboration with both Indigenous and local communities built on trust and open engagement,” said Scott Burrows, President and Chief Executive Officer. “It also reflects strong engagement with the Government of British Columbia and the BC Energy Regulator, whose guidance and regulatory oversight have helped establish a clear and responsible path forward for this project and for sustainable development in the region in the future.” Pembina is also proceeding with a phased approach to the Taylor-to-Gordondale Expansion, which is being optimized to meet customers’ near-term transportation needs while maintaining Pembina’s track record of disciplined capital investment. Pembina3 has sanctioned the initial scope of the Taylor-to-Gordondale Expansion, which includes new and upgraded pump stations downstream of Taylor, British Columbia and a new 16-kilometre pipeline connecting production in Alberta to the Gordondale pump station. The initial scope of the project has an estimated cost of approximately $115 million, with an anticipated in-service date in the first quarter of 2027, subject to regulatory approval. The expansion will be supported by long-term take-or-pay and other commercial agreements. The remaining scope of the Taylor-to-Gordondale Expansion includes a new approximately 89 kilometer, 16-inch pipeline being proposed by Pembina4 to connect mostly condensate volumes from Taylor, British Columbia to the Gordondale, Alberta area. On February 10, 2026, the Canada Energy Regulator (“CER”) issued a Certificate of Public Convenience and Necessity for the CER regulated Taylor-to-Gordondale Pipeline Project. This was the final federal regulatory approval required for the pipeline. Pembina will continue to evaluate the incremental scope in conjunction with the timing of customers’ egress requirements. These two newly sanctioned expansions are in addition to the previously announced $200 million Fox Creek-to-Namao Expansion, which will add approximately 70,000 bpd of propane-plus market delivery capacity to the Fox Creek, Alberta to Namao, Alberta segment of the Peace Pipeline System. In total, Pembina has now recently sanctioned more than $600 million of conventional pipeline projects in response to anticipated volume growth in the WCSB. In the first quarter of 2026, Pembina and PGI entered into long-term, take-or-pay agreements with Tourmaline Oil (“Tourmaline”) that include renewals of 270 mmcf/d of gas processing at PGI’s Cutbank Complex and Resthaven Facility, as well as transportation on the Peace Pipeline, and fractionation at the Redwater Complex. PGI has begun commissioning the Wapiti Expansion and K3 Cogeneration Facility. Both projects are expected to be placed in service by the end of the first quarter of 2026. The Wapiti Expansion is on time and on budget, and will increases natural gas processing capacity at the Wapiti Plant by 115 mmcf/d (gross to PGI). The K3 Cogeneration Facility is on time and trending under budget, and will reduce overall operating costs by providing power and heat to the gas processing facility, while reducing customers’ exposure to power prices. On January 29, Dow Inc. (“Dow”) reaffirmed that it will proceed with its Path2Zero project, a new integrated ethylene cracker and derivatives facility in Fort Saskatchewan, which Dow stated is a unique opportunity and an advantaged, first-quartile global asset. Further, Dow provided a revised timeline that includes a Phase 1 start-up by year-end 2029, and a Phase 2 start-up by year-end 2030. As part of Dow’s broader portfolio of assets and ethane supply requirements, the Path2Zero project supports Pembina’s previously announced long-term agreement with Dow to supply up to 50,000 bpd of ethane. Pembina continues to evaluate its options to invest in new infrastructure required to meet its ethane supply commitments in the most capital efficient manner, given the revised Path2Zero timing. A final investment decision on new ethane supply infrastructure is expected in 2026. Path2Zero is a positive development for WCSB producers as it will catalyze significant new ethane demand, the extraction of which is expected to also increase the supply of other associated NGL – propane, butane and condensate. The resulting volume growth across the WCSB is expected to benefit Pembina by supporting higher utilization and potential expansions of its assets. [1] Pouce Coupé Pipe Line Ltd. and Plateau Pipe Line Ltd. [2] Plateau Pipe Line Ltd. [3] Plateau Pipe Line Ltd. and Pembina [4] Pouce Coupé Pipe Line Ltd. Priorities for the Year Ahead Operational & Project Execution Excellence Foremost priority of continued safe and reliable operations, focusing on employee and contractor safety, and high asset availability and reliability. Continued safe, on-time, and on-budget execution of inflight construction projects. Placing the RFS IV Expansion, Wapiti Expansion, and K3 Cogeneration Facility into service. Under previously announced funding agreements, PGI in collaboration with certain producer customers, expects to place approximately $725 million ($435 million net to Pembina) of new infrastructure into service throughout 2026; the new infrastructure is being constructed, and will be operated, by the customers, while PGI will own the assets, which are supported by long-term take-or-pay agreements. Commercial & Strategic Excellence Maintaining a long-term, durable cash flow stream through ongoing contracting of existing assets, including Pembina’s Peace Pipeline system and Redwater Complex, as well as PGI’s assets. Making a final investment decision on an ethane supply project to support growing market demand. Advancing development and making a final investment decision on the Greenlight Electricity Centre. Evaluating opportunities to increase egress capacity, including the optimization or expansion of the Nipisi Pipeline and the re-purposing of existing underutilized assets, to respond to growing volumes from the Clearwater area and strong customer demand for incremental service. Financial Excellence Achieving results within Pembina’s 2026 adjusted EBITDA guidance range of $4.125 billion to $4.425 billion; the midpoint of the 2026 guidance range represents 2023 to 2026 fee-based adjusted EBITDA per share compound annual growth of approximately five percent, positioning Pembina to deliver on the target provided at its 2024 Investor Day. Enhancing Pembina’s long-term sustainability and competitiveness through a disciplined focus on costs and productivity. Financial & Operational Highlights Adjusted EBITDA Pembina reported quarterly adjusted EBITDA of $1,075 million in the fourth quarter and full year adjusted EBITDA of $4,289 million. This represents a $179 million or 14 percent decrease, and a $119 million or three percent decrease, respectively, over the same periods in the prior year. The variances over the prior periods primarily reflect a lower contribution from the Marketing & New Ventures Division, the impact of a new toll structure and revenue sharing mechanism on the Alliance Pipeline, and period specific capital recoveries that impacted 2024 with no similar impact in 2025. These factors were partially offset by volume growth and solid performance across the Pipelines and Facilities divisions. Pipelines reported adjusted EBITDA of $643 million for the fourth quarter, representing a $43 million or six percent decrease compared to the same period in the prior year, reflecting the net impact of the following factors: higher volumes on the Peace Pipeline system; lower operating expenses on the Cochin Pipeline; lower revenue on the Canadian portion of the Alliance Pipeline as a result of reduced long-term firm tolls and impacts from the new revenue-sharing mechanism under the previously announced settlement, effective November 1, 2025, with shippers and interested parties, offset by higher demand on seasonal contracts; lower revenue on certain Pipelines assets due to period-specific impacts of capital recoveries recognized in the fourth quarter of 2024; and lower interruptible volumes on the Cochin Pipeline due to narrower condensate price differentials. Pipelines reported adjusted EBITDA of $2,596 million for the full year, representing a $63 million or two percent increase compared to the same period in the prior year, reflecting the net impact of the following factors: higher contribution from the Alliance Pipeline due to a full year of consolidated ownership, and higher seasonal revenue, offset by reduced long-term firm tolls and impacts from the new revenue-sharing mechanism under the previously announced settlement with shippers and interested parties; higher revenue on the Peace Pipeline system, Nipisi Pipeline and the NEBC Pipelines; favourable foreign exchange rate impacts on certain assets; lower volumes and tolls on the Cochin Pipeline and Vantage Pipeline; lower revenue on certain Pipeline assets due to period-specific impacts of capital recoveries recognized in the fourth quarter of 2024; and lower revenue at the Edmonton Terminals. Facilities reported adjusted EBITDA of $366 million for the fourth quarter, representing a $7 million or two percent decrease over the same period in the prior year, reflecting the net impact of the following factors: lower revenue related to period-specific impacts of capital recoveries recognized in the fourth quarter of 2024 on certain assets at PGI, and higher operating expenses; and higher contribution from PGI assets, primarily due to higher volumes and the impact of the acquisition of a 50 percent working interest in Whitecap’s Kaybob Complex during the fourth quarter of 2024. Facilities reported adjusted EBITDA of $1,396 million for the full year, representing a $49 million or four percent increase over the same period in the prior year, reflecting the net impact of the following factors: the inclusion within Facilities of adjusted EBITDA from Aux Sable following Pembina fully consolidating ownership in Aux Sable on April 1, 2024; and higher contribution from PGI assets, due to the acquisitions from Whitecap, and higher volumes at the Duvernay Complex, partially offset by lower revenue driven by outages at certain assets and third-party downstream restrictions impacting the Dawson Assets. Marketing & New Ventures reported adjusted EBITDA of $116 million for the fourth quarter, representing a $118 million or 50 percent decrease compared to the same period in the prior year, reflecting the net impact of the following factors: narrower NGL frac spreads; and lower realized gains on crude oil-based derivatives due to lower volumes and narrower price spreads, partially offset by realized gains on NGL-based derivatives, compared to losses in the fourth quarter of 2024. Contacts For further information: Investor Relations (403) 231-3156 1-855-880-7404 investor-relations@pembina.com www.pembina.com Read full story here Der Beitrag Pembina Pipeline Corporation Reports Results for the Fourth Quarter of 2025 and Provides Business Update erschien zuerst auf subcablenews.com .