Pembina Pipeline (PBA) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 4, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen, and welcome to the Pembina Pipeline Corporation's 2022 Third Quarter Results Conference Call. [Operator Instructions] This call is being recorded on Friday, November 4, 2022.

I would now like to turn the conference over to Cameron Goldade, Chief Financial Officer. Please go ahead.

Cameron Goldade

Thank you, Colin, and good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the third quarter of 2022.

On the call today, we also have Scott Burrows, President and Chief Executive Officer; Jaret Sprott, Senior Vice President and Chief Operating Officer; and Janet Loduca, Senior Vice President, External Affairs and Chief Legal and Sustainability 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 and Analysis dated November 3, 2022, for the period ended September 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. In the third quarter, Pembina delivered strong financial results, highlighted by adjusted EBITDA of nearly $1 billion. As with the prior two quarters of this year, the third quarter benefited primarily from rising volumes on key systems and strong performance within the marketing business. We benefited this quarter from a wider Chicago-AECO gas price differential and a wider condensate price differential between Western Canada and the U.S. Gulf Coast. However, while commodity prices and differential certainly works in our favor, overall, the quarter was a great combination of volume-driven results in the base business and tailwinds in the marketing business.

We are pleased that stronger-than-expected year-to-date results have allowed us to raise our 2022 guidance again with full year adjusted EBITDA now expected to be in the range of $3.625 billion to $3.725 billion. Along with strong financial results, the quarter was punctuated by the closing of the transaction to create Pembina Gas Infrastructure or PGI, with our partner, KKR, and the 3.6% increase to Pembina's common share monthly dividend. The integration of PGI is going well, and we look forward to realizing the benefits of this transaction. We see tremendous opportunity to enhance utilization across PGI's asset base and look forward to working with KKR to pursue future growth opportunities through this premier Western Canadian gas processing entity.