Pembina Pipeline Corporation (NYSE:PBA) Q3 2023 Earnings Conference Call November 3, 2023 10:00 AM ET

Company Participants

Cameron Goldade - SVP & CFO

Scott Burrows - President, CEO & Director

Chris Scherman – SVP, Marketing & Strategy Officer

Jaret Sprott - SVP & COO

Stuart Taylor - SVP & Corporate Development Officer

Conference Call Participants

Jeremy Tonet - JPMorgan Chase & Co.

Robert Kwan - RBC Capital Markets

Robert Hope - Scotiabank

Robert Catellier - CIBC

Linda Ezergailis - TD Securities

Patrick Kenny - National Bank Financial

Benjamin Pham - BMO Capital Markets

Operator

Good morning, ladies and gentlemen, and welcome to the Pembina Pipeline Corporation Q3 2023 Results Conference Call. [Operator Instructions].

This call is being recorded on Friday, November 3, 2023. I would now like to turn the conference over to Cameron Goldade, Chief Financial Officer. Please go ahead.

Cameron Goldade

Thank you, Julie, and good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the third quarter of 2023. On the call with me today are Scott Burrows, President and Chief Executive Officer along with other members of Pembina's senior leadership team including Jaret Sprott, Janet Loduca, Stuart Taylor, and Chris Scherman.

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 2, 2023, for the period ended September 30, 2023, as well as the press release Pembina issued yesterday which are available online at pembina.com and on both, SEDAR and EDGAR.

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

Scott Burrows

Thanks, Cam. We were pleased yesterday to report our third quarter results which included earnings of $346 million and record quarterly adjusted EBITDA of just over $1 billion. The record quarter reflects the strength of Pembina's business, including growing volumes and rising utilization across many systems, along with another strong contribution from Pembina's marketing business. Whereas first half results were impacted by wildfires in Northern Pipeline outage, we believe the third quarter more accurately reflects the underlying positive momentum in the Western Canadian Sedimentary Basin. This is demonstrated most notably by the nearly 6% year-over-year increase in third quarter volumes in the conventional pipeline business. Given year-to-date results and our outlook for the fourth quarter, we've raised our 2023 adjusted EBITDA guidance range to $3.75 billion to $3.85 billion. And Cam will address that more fully in a moment.