Q2 2026 Pembina Pipeline Corp Earnings Call Transcript
Key Points
- Adjusted EBITDA of $1.064 billion in Q2 2026, a 5% increase year-over-year, driven by strong operational performance and new assets like RFS IV and Wapiti expansion.
- RFS IV fractionator and Wapiti expansion entered service on time and under budget, enhancing NGL and PGI capabilities.
- Sanctioned Heartland Extraction Plant and expanded ethane supply agreement with Dow by 15%, strengthening the integrated NGL platform.
- Positive FID on Greenlight Electricity Center, a 932-MW gas-fired facility for Meta, creating a new growth platform with stable cash flows and incremental natural gas demand.
- Cedar LNG project on track for late 2028 first exports, with key milestones achieved including pipeline mechanical completion and vessel hull transfer.
- Participation in the proposed West Coast oil pipeline positions Pembina to benefit from expanded market access and condensate demand, with disciplined capital allocation.
- Reaffirmed 2026 adjusted EBITDA guidance of $4.35-$4.55 billion, trending toward midpoint, with confidence in 5%-7% fee-based adjusted EBITDA per share growth through 2030.
- Lower contribution from Alliance Pipeline due to new toll structure and revenue sharing mechanism, partially offsetting gains.
- Higher long-term incentive costs in Q2 due to share price increase, negatively impacting corporate segment results.
- Third quarter 2026 expected to be seasonally weaker, with lower NGL frac spread contribution and higher integrity and maintenance spend.
- Cochin Pipeline expected to have lower contribution in H2 2026 due to advanced take-or-pay commitments and price correlation.
- Hedged only 40% of Q4 NGL frac spread exposure, leaving potential volatility in marketing results.
- West Coast oil pipeline remains pre-FID with regulatory, cost, and volume uncertainties, requiring 18 months of development.
- Greenlight Phase 2 and other gas-to-power opportunities are still in early stages, with no clear timeline or size guidance.
Thank you for joining us, and welcome to Pembina Pipeline Corporation Quarter 2 2026 results. (Operator Instructions)
I will now hand the conference over to Dan Tucunel, Vice President, Capital Markets. Dan, please go ahead.
Thank you, Matthew. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the second quarter of 2026. On the call today, we have Scott Burrows, President and Chief Executive Officer; and Cameron Goldade, Chief Financial Officer, along with the other members of Pembina's leadership team.
I would like to remind you that some of the comments made today will 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. Further, some of the information provided refers to non-GAAP measures. To
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