Q1 2025 Pembina Pipeline Corp Earnings Call Transcript
Key Points
- Pembina Pipeline Corp (PBA) reported a strong start to 2025 with a quarterly adjusted EBITDA of $1.167 billion, a 12% increase over the same period in the prior year.
- The company announced a $0.02 per share or 3% increase in the quarterly common share dividend, reflecting confidence in its sustainable and growing dividend strategy.
- Pembina entered into significant new and extended long-term take-or-pay volume commitments with a leading Montney producer, covering its full value chain.
- The company is progressing well with the remarketing of its capacity on the Cedar LNG Project, having shortlisted preferred counterparties and entered definitive agreement negotiations.
- Pembina is advancing several in-flight construction projects and has a strong competitive advantage in delivering projects safely, on time, and on budget, with superior capital efficiency compared to industry peers.
- The delay in Dow's Path2Zero project has impacted Pembina's timeline for developing potential infrastructure to meet its ethane supply commitments, although no material capital has been spent yet.
- There is ongoing uncertainty regarding the Canadian energy regulator review process for the Alliance Pipeline, with potential impacts on future tolls and risk-sharing arrangements.
- Pembina's revenue volume growth within conventional pipelines and gas processing assets is expected to be slightly lower than physical volume growth due to customers expanding into their contractual take-or-pay commitments.
- The company faces potential challenges from lower commodity prices due to global economic uncertainty, which could impact its marketing and new ventures division.
- Planned maintenance and third-party natural gas egress restrictions are expected to affect second-quarter results, with higher integrity and geotechnical costs anticipated in the third and fourth quarters.
Good morning, ladies and gentlemen, and welcome to the Pembina Pipeline Corporation Q1 2025 Results Conference Call. (Operator Instructions)
This call is being recorded on Friday, May 9, 2025. I would now like to turn the conference over to Dan Tucunel, VP, Capital Markets. Please go ahead.
Thank you, Joelle. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the first quarter of 2025. On the call today, we have Scott Burrows, President and Chief Executive Officer; and Cameron Goldade, Senior Vice President and Chief Financial Officer; along with other members of Pembina's officer team.
I would like to remind you that some of the comments made today may be forward-looking in nature and are based on Pembina's current expectations, estimates, judgments and projections. Forward-looking statements we may express or imply today are subject to risks and uncertainties, which could cause actual results to differ materially from expectations.
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