Pembina Pipeline (PBA) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 5, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the Pembina Pipeline Corporation 2022 Second Quarter Results Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Cameron Goldade, Pembina Interim Chief Financial Officer. Please go ahead.

Cameron Goldade

Thank you, Keith, and good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the second quarter of 2022. On the call today, we have Scott Burrows, President and Chief Executive Officer; Jaret Sprott, Senior Vice President and Chief Operating Officer; Janet Loduca, Senior Vice President, External Affairs and Chief Legal and Sustainability Officer; and Stu Taylor, Senior Vice President, Marketing and New Ventures and Corporate Development Officer.

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.

Further, some of the information provided refers to non-GAAP measures. To learn more about these forward-looking statements and non-GAAP measures, please see the company's Management's Discussion & Analysis, dated August 4, 2022 for the period ended June 30, 2022, as well as the press release Pembina issued yesterday, which are available online at pembina.com and on both SEDAR and EDGAR.

I will now turn things over to Scott to make some opening remarks.

Scott Burrows

Thanks, Cam. As detailed with our release yesterday, Pembina delivered another strong quarter with adjusted EBITDA of $849 million, which was a record for a second quarter. While we typically see a sequential lower contribution in the second quarter from Pembina's NGL marketing business, our results benefited from continued growth in volumes across many of Pembina's systems, higher NGL margins and a strong contribution from the crude oil marketing business.

As Cam will detail in a moment, with strong year-to-date results and a positive outlook for the rest of the year, we have raised our 2022 adjusted EBITDA guidance to $3.575 billion to $3.675 billion. Throughout the second quarter, we continued to progress our portfolio of growth projects, notably by bringing Phase 7 piece pipeline expansion into service in June, ahead of schedule and $150 million under budget by reactivating the Phase 8 expansion. Likewise, construction on the Phase 9 expansion is ongoing, and we continue to look forward to bringing that project into service later this year. These expansions deliver a multitude of benefits, including full product segregation across the peace system and creating additional egress capacity to enhance Pembina's customer service offering and accommodate future growth.