Pembina Pipeline Corporation Announces Closing of Transaction and Creation of Pembina Gas Infrastructure

All financial figures are approximate and in Canadian dollars, unless otherwise stated.

CALGARY, Alta., August 15, 2022 /PRNewswire/ – Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL) (NYSE: PBA) is pleased to announce that it has completed its previously announced joint venture transaction with KKR to combine their natural resources respective western Canadian gas processing assets into a single new joint venture, Pembina Gas Infrastructure Inc. (“PGI”).

“We are delighted to officially announce the creation of PGI, a leading gas processing entity in Western Canada that will bring incredible value to Pembina, our partner KKR and our customers. Pembina has had a strong relationship with KKR at Veresen Midstream for the past four years and the creation of PGI is a natural next step that will unlock growth and provide increased service offerings to customers across the Montney and the Duverney Formations, central alberta to the northeast British Columbia,” said Scott BurrowsPresident and CEO of Pembina.

Timing of Common Share Dividend Increase

As previously announced, the Pembina Board of Directors has declared a common stock cash dividend for August 2022 of $0.21 per share payable, subject to applicable law, the September 15, 2022to shareholders of record on August 25, 2022.

Pembina’s Board of Directors has already approved a $0.0075 per common share to increase its monthly common stock dividend rate, to $00.2175 per common share per month (representing an increase of 3.6%), subject to the closing of the joint venture transaction with KKR. The first dividend under which the increase will take effect should be declared at the beginning September 2022and payable on or about October 14, 2022.

About Pembina

Pembina Pipeline Corporation is a leading provider of energy transmission and midstream services that has served North America energy sector for more than 65 years. Pembina has an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, as well as a business growing export terminals. Through our integrated value chain, we seek to provide safe and reliable infrastructure solutions that connect energy producers and consumers around the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit pembina.com.

Goal of Pembina:

To be the leader in providing integrated infrastructure solutions connecting global markets:

  • Clients choose us first for reliable, value-added services.
  • Investors receive industry-leading sustainable total returns.
  • Employees claim that we are “the employer of choice” and value our safe, respectful, collaborative and inclusive work culture.
  • Communities welcome us and recognize the net positive impact of our social and environmental commitment.

Pembina is structured into three divisions: the Pipelines Division, the Facilities Division, and the Marketing and New Ventures Division.

Pembina common stock trades at Toronto and New York scholarships under PPL and PBA, respectively.

About the PGI

Pembina Gas Infrastructure (“PGI”) is a leading gas processing entity in Western Canada with a combined capacity of 5 billion cubic feet per day. A partnership between Pembina and KKR, PGI is strategically positioned to serve customers across the Montney and Trends Duverney Downtown alberta to the northeast British Columbia. Pembina owns 60% of PGI and operates and manages PGI’s facilities, while KKR’s global infrastructure funds own the remaining 40%. For more information, visit www.PGIMidstream.com.

Forward-looking information and statements

This press release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”), including forward-looking statements within the meaning of the “safe harbor” provisions of applicable securities laws, that are based on expectations, current estimates, projections and assumptions in light of its experience and perception of historical trends. In some instances, forward-looking statements may be identified by words such as “expects”, “estimates”, “anticipates”, “projects”, “plans”, “will”, “would”, “could”, “potential”, “continue”, “commit” and similar expressions suggesting future events or future performance.

In particular, this press release contains forward-looking statements regarding, but not limited to, the following: the joint venture transaction between Pembina and KKR, including the anticipated benefits thereof to Pembina; and future Pembina common stock dividends, including the expected time at which the increase will be declared and payable.

Forward-looking statements are based upon certain assumptions Pembina has made with respect thereto as of the date of this press release regarding, among other things: that favorable circumstances continue to exist with respect to the operation of the assets contributed to PGI; that PGI’s future operating results will be consistent with management’s expectations in this regard; levels of exploration and development activity in the oil and gas industry and the geographic region of such activity; applicable regulatory, tax and environmental laws and regulations; PGI’s ability to maintain an investment grade rating; future cash flows; commodity prices, interest rates, carbon prices, tax rates and prevailing exchange rates; the availability of capital to fund PGI’s future capital requirements; future operating costs; that counterparties will honor contracts in a timely manner; that no unforeseen event prevents the execution of the contracts; that there are no unforeseen material costs associated with the relevant facilities that are not recoverable from customers; and maintaining operating margins.

Although Pembina believes that 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 such 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 that could cause actual events or results to differ materially, including, but not limited to : failure to realize the anticipated benefits and/or synergies of the joint venture due to integration or other issues; expectations and assumptions regarding, among other things: customer demand for PGI’s assets and services; commodity prices, interest rates and exchange rates; planned synergies, operating and capital efficiencies and cost savings; applicable tax laws; future production rates; the adequacy of budgeted capital expenditures for carrying out planned activities; labor and material shortages; the non-execution or default of the counterparties to the agreements concluded within the framework of the activities of PGI; the impact of competitive entities and pricing; reliance on key relationships and agreements; reliance on third parties to successfully operate and maintain certain assets; environmental and regulatory decisions and Aboriginal and landowner consultation requirements; actions of governmental or regulatory authorities, including changes in tax laws and treatment, changes in royalty rates, climate change initiatives or policies or increased environmental regulation; fluctuations in operating results; general unfavorable economic and market conditions in Canada, North America and worldwide, including changes or prolonged weakness, as the case may be, in interest rates, foreign exchange rates, commodity prices, supply/demand trends and credit levels. industry activity; risks related to current and potential adverse effects of the COVID-19 pandemic; lower than expected operating results and increased cash flow from Pembina; the ability to access various sources of debt and equity capital; changes in credit ratings; counterparty credit risk; technology and cybersecurity risks; natural disasters; and certain other risks and uncertainties detailed in Pembina’s Annual Information Form and MD&A, each dated February 24, 2022 for the year ended December 31, 2021Pembina’s MD&A dated August 4, 2022 for the three and six months ended June 30, 2022 and from time to time in Pembina’s public disclosure documents available at www.sedar.com, www.sec.gov and on Pembina’s website at www.pembina.com.

With respect to forward-looking statements regarding the anticipated increase in Pembina’s common stock dividend following the completion of the Joint Venture Transaction, Pembina has made such forward-looking statements based on certain assumptions that it believes to be reasonable at this time. , including assumptions with respect to: commodity prices, interest rates, margins and prevailing exchange rates; that future operating results will be consistent with past performance, if any, and management’s expectations with respect thereto, including with respect to PGI’s future operating results; the continued availability of attractively priced capital to fund future capital requirements related to existing assets and projects, including but not limited to future capital expenditures related to expansions, upgrades and shutdowns for maintenance; future cash flows and operating costs; that counterparties to material agreements will continue to perform in a timely manner; that no unforeseen event prevents the execution of the contracts; that there are no unforeseen physical construction or other costs related to ongoing growth projects or ongoing operations; and that there are no unforeseen physical construction or other costs related to ongoing growth projects or ongoing operations. Pembina will also be subject to applicable corporate law requirements with respect to the declaration of dividends at that time.

This list of risk factors should not be considered exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those anticipated, projected or projected. The forward-looking statements contained in this press release speak only as of the date hereof. Pembina undertakes no obligation to publicly update or revise any forward-looking statements contained herein, except as required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

www.pembina.com

SOURCE Pembina Pipeline Corporation

About Michael Murphy

Check Also

Benefits of Speed: Marble/Driver Technologies Integration

“For us, this is really one of our first steps towards more than just a …