Pembina Pipeline Corporation Reports Record Results for the Fourth Quarter of 2024 and Provides Business Update

Press Release

February 27, 2025

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; adjusted cash flow from operating activities per common share; and proportionately consolidated debt-to-adjusted EBITDA. For more information see “Non-GAAP and Other Financial Measures” herein.

CALGARY, Alberta– 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 2024.

Highlights

• Record Results- reported 2024 full year earnings of $1,874 million, record full year adjusted EBITDA of $4,408 million, and record full year adjusted cash flow from operating activities of $3,265 million ($5.70 per share). Reported fourth quarter earnings of $572 million, record quarterly adjusted EBITDA of $1,254 million, and record quarterly adjusted cash flow from operating activities of $922 million ($1.59 per share).
• Business Updates – developments during and following the fourth quarter included:
  • Pembina Gas Infrastructure (“PGI”) closed separate transactions with Whitecap Resources Inc. (“Whitecap”) and Veren Inc. (“Veren”) that included asset acquisitions and funding of up to a total of $700 million ($420 million net to Pembina) for new infrastructure development.
  • In November 2024, the northeast British Columbia (“NEBC”) MPS Expansion was placed into service on time and under budget, adding to Pembina’s record of strong project execution.
  • Pembina continues to successfully contract the Nipisi Pipeline to serve growing volumes from the Clearwater area and recently contracted an additional 25,000 bbl/d of capacity on a long-term basis.
  • Pembina continues to advance a process with multiple parties to remarket its contracted Cedar LNG Project capacity and has received non-binding proposals covering well in excess of its contracted capacity.
  • Pembina is advancing development work on various capital efficient projects to meet its ethane supply commitments below the low end of the capital range previously communicated, and respond to growing demand for services, including the de-ethanizer expansion at RFS III, the Taylor-to-Gordondale pipeline expansion, and the Fox-to-Namao pipeline expansion.
  • Pembina has entered into agreements for a 50 percent interest in the Greenlight Electricity Centre Limited Partnership, which is developing a power generation facility to serve data centre customers.
  • Pembina has secured the sole natural gas liquids (“NGL”) extraction rights from the Yellowhead Mainline natural gas pipeline and is advancing engineering of an up to 500 MMcf/d straddle facility.
• Common Share Dividend Declared – the board of directors declared a common share cash dividend for the first quarter of 2025 of $0.69 per share to be paid, subject to applicable law, on March 31, 2025, to shareholders of record on March 17, 2025.

Financial and Operational Overview

	3 Months Ended December 31		12 Months Ended December 31
($ millions, except where noted)	2024	2023	2024	2023
Revenue(1)	2,145	1,836	7,384	6,331
Net revenue(1)(2)	1,383	1,142	4,776	3,973
Gross profit	1,024	850	3,316	2,840
Adjusted EBITDA(2)	1,254	1,033	4,408	3,824
Earnings	572	698	1,874	1,776
Earnings per common share – basic (dollars)	0.92	1.21	3.00	3.00
Earnings per common share – diluted (dollars)	0.92	1.21	3.00	2.99
Cash flow from operating activities	902	880	3,214	2,635
Cash flow from operating activities per common share – basic (dollars)	1.55	1.60	5.61	4.79
Adjusted cash flow from operating activities(2)	922	747	3,265	2,646
Adjusted cash flow from operating activities per common share – basic (dollars)(2)	1.59	1.36	5.70	4.81
Capital expenditures	242	177	955	606

(1)		Comparative 2023 period has been adjusted. See “Accounting Policies & Estimates – Change in Accounting Policies” in Pembina’s Management’s Discussion and Analysis dated February 27, 2025 for the three and twelve months ended December 31, 2024 and Note 4 to the Consolidated Financial Statements for the year ended December 31, 2024.
(2)		Refer to “Non-GAAP and Other Financial Measures”.

Financial and Operational Overview by Division

	3 Months Ended December 31						12 Months Ended December 31
	2024			2023			2024			2023
($ 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	2,790	534	686	2,652	677	617	2,711	1,907	2,533	2,538	1,840	2,234
Facilities	877	177	373	801	143	324	837	666	1,347	768	610	1,213
Marketing & New Ventures	349	245	234	299	204	173	327	569	724	271	435	597
Corporate	—	(212)	(39)	—	(209)	(81)	—	(1,422)	(196)	—	(696)	(220)
Income tax expense/recovery	—	(172)	—	—	(117)	—	—	154	—	—	(413)	—
Total		572	1,254		698	1,033		1,874	4,408		1,776	3,824

(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 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, 2024, and Pembina’s Management’s Discussion and Analysis dated February 27, 2025 for the three and twelve months ended December 31, 2024, 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.

Financial & Operational Highlights

Adjusted EBITDA

Pembina reported record quarterly adjusted EBITDA of $1,254 million in the fourth quarter and record full year adjusted EBITDA of $4,408 million. This represents a $221 million or 21 percent increase, and a $584 million or 15 percent increase, respectively, over the same periods in the prior year. For both the fourth quarter and full year, reported adjusted EBITDA compared to the prior periods is largely due to the positive net impacts of increased ownership in Alliance and Aux Sable (the “Alliance/Aux Sable Acquisition”), higher NGL margins, and volume growth across the business, partially offset by lower net revenue on the Cochin Pipeline. Additional factors impacting fourth quarter and full year results in each division are discussed below.

2024 results exceeded Pembina’s most recent 2024 adjusted EBITDA guidance range of $4.225 billion to $4.325 billion. Relative to the midpoint of the guidance range, actual results reflect the following:

• the timing of capital recovery recognition on certain assets within Pipelines and at PGI, resulting in a recognition in the fourth quarter of previously deferred revenue ($37 million);
• lower general & administrative expense primarily due to lower long-term incentive costs during the fourth quarter ($30 million);
• stronger results from the marketing business due to a significant improvement in NGL frac spreads ($46 million); and
• stronger fourth quarter results in the Pipelines and Facilities divisions ($20 million).

Pipelines reported adjusted EBITDA of $686 million for the fourth quarter, representing a $69 million or 11 percent increase compared to the same period in the prior year, reflecting the net impact of the following factors:

• higher contribution from Alliance due to increased ownership following the Alliance/Aux Sable Acquisition and higher demand on seasonal contracts;
• higher revenue related to the timing of capital recovery recognition on certain Pipeline assets ($23 million);
• higher volumes on the Nipisi Pipeline;
• net revenues on the Peace Pipeline system were consistent as higher contracted volumes and contractual inflation adjustments on tolls were largely offset by earlier recognition of take-or-pay deferred revenue during the first half of 2024; and
• lower net revenue on the Cochin Pipeline, largely due to lower firm tolls and lower interruptible demand resulting from a narrower condensate price differential between western Canada and the U.S. Gulf Coast.

Pipelines reported adjusted EBITDA of $2,533 million for the full year, representing a $299 million or 13 percent increase compared to the same period in the prior year, reflecting the net impact of the following factors:

• higher contribution from Alliance due to increased ownership following the Alliance/Aux Sable Acquisition and higher demand on seasonal contracts;
• no impacts in 2024 from the Northern Pipeline system outage and the wildfires, which affected 2023;
• higher revenue and volumes, primarily on the Peace Pipeline system and on the Nipisi Pipeline;
• contractual inflation adjustments on tolls;
• higher net revenue related to the timing of capital recovery recognition on certain Pipelines assets ($23 million); and
• lower net revenue and volumes on the Cochin Pipeline.

Facilities reported adjusted EBITDA of $373 million for the fourth quarter, representing a $49 million or 15 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 the Alliance/Aux Sable Acquisition; and
• higher contribution from PGI assets, due to higher revenue associated with the oil batteries acquired in the fourth quarter of 2024, higher volumes at certain PGI assets, and the timing of capital recovery recognition ($14 million).

Facilities reported adjusted EBITDA of $1,347 million for the full year, representing a $134 million or 11 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 the Alliance/Aux Sable Acquisition;
• higher contribution from PGI assets, due to higher revenue associated with the oil batteries acquired in the fourth quarter of 2024, higher volumes at certain PGI assets, and the timing of capital recovery recognition ($14 million);
• no impacts in 2024 from the Northern Pipeline system outage and the wildfires, which affected volumes in 2023; and
• a gain on the recognition of a finance lease, which affected 2023 only.

Marketing & New Ventures reported adjusted EBITDA of $234 million for the fourth quarter, representing a $61 million or 35 percent increase compared to the same period in the prior year, reflecting the net impact of the following factors:

• higher net revenue from contracts with customers due to increased ownership interest in Aux Sable;
• higher NGL margins; and
• lower realized gains on commodity-related derivatives.

Marketing & New Ventures reported adjusted EBITDA of $724 million for the full year, representing a $127 million or 21 percent increase compared to the same period in the prior year, reflecting the net impact of the following factors:

• higher net revenue from contracts with customers due to increased ownership interest in Aux Sable following the Alliance/Aux Sable Acquisition;
• higher NGL margins;
• lower realized gains on commodity-related derivatives; and
• the nine-day unplanned outage at Aux Sable in July 2024.

Corporate reported adjusted EBITDA of negative $39 million for the fourth quarter, representing a $42 million or 52 percent increase compared to the same period in the prior year, reflecting lower incentive costs.

Corporate reported adjusted EBITDA of negative $196 million for the full year, representing a $24 million or 11 percent increase over the same period in the prior year, reflecting lower general and administrative expense, primarily due to lower consulting costs and lower incentive costs.

Earnings

Pembina reported fourth quarter earnings of $572 million and full year earnings of $1,874 million. This represents a $126 million or 18 percent decrease, and a $98 million or six percent increase, respectively, over the same periods in the prior year.

Pipelines had earnings in the fourth quarter of $534 million, representing a $143 million or 21 percent decrease over the prior period. Pipelines had earnings for the full year of $1,907 million, representing a $67 million or four percent increase over the prior year. In addition to the factors impacting adjusted EBITDA, as noted above, the change in earnings in both the fourth quarter and full year was due to the reversal of a previous impairment related to the Nipisi Pipeline, which impacted the fourth quarter of 2023.

Facilities had earnings in the fourth quarter of $177 million representing a $34 million or 24 percent increase over the prior year. Facilities had earnings for the full year of $666 million representing a $56 million or nine percent increase over the prior year. In addition to the factors impacting adjusted EBITDA, as noted above, the change in earnings in both the fourth quarter and full year was due to unrealized gains recognized by PGI on interest rate derivative financial instruments compared to unrealized losses in 2023.

Marketing & New Ventures had earnings in the fourth quarter of $245 million representing a $41 million or 20 percent increase over the prior year. In addition to the factors impacting adjusted EBITDA, as noted above, the change in earnings in the fourth quarter was due to unrealized losses on commodity-related derivatives, compared to unrealized gains in the prior period, and unrealized gains on interest rate derivative financial instruments, recognized by Cedar LNG.

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