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December 2015 Investor Presentation – Pembina Pipeline Corp

Pembina Pipeline Corp · Dec 21, 2015 · 111 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 1
    PEMBINA PIPELINE CORPORATION 2015 INVESTOR DAY DOING THE IMPORTANT THINGS RIGHT TSX: PPL; NYSE: PBA
  2. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 2
    Our team presenting today AGENDA PRESENTER Mick Dilger Overview & Value Proposition Mick Dilger President & Chief Executive Officer Market Dynamics Scott Burrows Scott Burrows Crude Oil Value Chain Focus Paul Murphy Vice President,…
  3. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 3
    OVERVIEW & VALUE PROPOSITION Mick Dilger
  4. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 4
    Pembina: a unique investment opportunity Pure play energy infrastructure company that allows TSX: PPLNYSE: PBA investors to participate in the oil and natural gas Common shares outstanding(1) 339 million liquids industry across Canada…
  5. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 5
    Our assets and businesses at a glance Gas Processing Plant Conventional Pipelines Redwater Fractionator 8,800 km network transports hydrocarbon Midstream Storage Facility products and extends across much of Alberta Truck Terminal…
  6. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 6
    Our assets and businesses operate in prolific geology ATHABASCA OIL SANDS MONTNEY TAYLOR SEAL PELICAN LAKE SWAN HILLS Gas Processing Plants DEEP BASIN Redwater Fractionator EDMONTON Pembina Conventional Pipelines DUVERNAY…
  7. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 7
    We remain confident in our strategy OBJECTIVE: To provide highly competitive and reliable returns to investors through monthly dividends while enhancing the long-term value of our shares. STRATEGY: Preserve value by providing safe,…
  8. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 8
    Doing the important things right: 2014 review The situation: What Pembina is doing right: Overall, 2014 was a very strong year Secured 1.4 billion in new capital opportunities Many opportunities for business Expanded risked and…
  9. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 9
    Weathering the storm Large degree of business is fee-for-service 64 percent in 2014 and expected to increase to greater than 80 percent in 2018 Many take-or-pay agreements customers are responsible for toll/fee payment regardless of…
  10. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 10
    Strategic short-term and long-term strategies Short-term strategy Long-term strategy EXECUTE EXTEND Target: capital cost savings of 5 Seek value chain extension percent = 250 million of savings opportunities, new emerging growth…
  11. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 11
    We have had great success securing unrisked projects 12,000 1.9 billion of capital expenditures planned for 2015 Cumulative Capital Expenditures(1) (MM) 10,000 Announced 1.4 billion of new 8,000 committed capital in 2014…
  12. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 12
    We are pursuing a fee-for-service growth portfolio Projects (all fee-for-service) Capital (CMM) Relative Growth Project Portfolio Conventional Pipelines Phase II NGL/Crude Expansions 695 Phase III Pipeline Expansions (1) 2,440…
  13. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 13
    Project timelines & in-service dates Committed Capital Expected In-Service Date* Expected Project Timelines* Musreau III 1.7 4,000 billion of capital 3,660 MM Saturn II 3,500 expected to be put SEEP into service in 2015…
  14. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 14
    Growing incremental operating margin 1,400 Potential Incremental Operating Margin (MM) 1,200 1,000 Full utilization upside 800 600 400 200 0 2015 2016 2017 2018 2018+ Uncommitted Phase I & II Pipeline Phase III…
  15. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 15
    We are continuing to de-risk our business 700-1,000 4% 14% 14% million of potential incremental EBITDA 22% generated per year on a run-rate basis once 64% 82% Pembina's committed projects are all in-service* 2014 2018…
  16. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 16
    Evolution of Pembinas acquisitions EV/NOI multiple at acquisition date Current EV/NOI multiple 11.6X 11.6X 11.3X 10.0X 10.0X 9.8X 8.6X 8.4X 6.8X 7.1X Cutbank Edmonton Provident Vantage Weighted Cutbank Edmonton Provident…
  17. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 17
    Our business in 2018 Now In 2018. Conventional Pipelines Largest conventional crude oil and NGL feeder system in Canada 8,800 km network 13% increase in km (adding 1,120+ km with Phase III and laterals) Fox Creek to Namao capacity at…
  18. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 18
    MARKET DYNAMICS Scott Burrows
  19. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 19
    Doing the important things right: reducing exposure The situation: What Pembina is doing right: Markets over the past several Growing fee-for-service portion of business months have been dramatically Developing market egress…
  20. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 20
    Transition of North American propane markets to export focus US & Canadian propane inventories remain at all time highs US propane production is continuing to grow 100,000 90 1,100,000 90,000 1,000,000 80 Production (bpd)…
  21. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 21
    Paradigm shift in global propane markets The US has become the world's largest propane exporter Asia-Pacific propane long-term fundamentals remain strong 1,200 2,500 US Propane Exports 1,000 2,000 800 1,500 mbpd mbpd…
  22. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 22
    Ethane market dynamics support Albertas petrochemical industry 400 Supply from oil sands off-gas Import from Vantage pipeline Pembina is one of the WCSBs largest Alberta Ethane Supply & Demand (mbpd) Supply from conventional…
  23. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 23
    Butane supply continues to grow while demand remains tepid 800 700 600 500 mbpd 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(E) 2015(E) 2016(E) US Butane Demand US Butane Supply…
  24. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 24
    Condensate supply shortfall driven by demand from oil sands Western Canada condensate supply and demand forecast Top 8 oil sands condensate usage ranked by operating production 700 900 Reduction Due to Rail Cenovus (Conoco) Demand…
  25. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 25
    CRUDE OIL VALUE CHAIN Paul Murphy
  26. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 26
    Doing the important things right: crude oil value chain The situation: What Pembina is doing right: Record volumes and significant Highly reliable pipeline operations expansion in conventional pipelines Pipelines are 100%…
  27. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 27
    Crude oil value chain Pembina's integrated service offering PRODUCTION CONSUMPTION CONVENTIONAL & MIDSTREAM OIL SANDS PIPELINES MIDSTREAM Production Field Terminalling &Treatment LVP Feeder Terminalling Logistics & Spec…
  28. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 28
    Important crude oil resource plays remain economic at current prices Canadian crude oil plays break-even price (half-cycle) US crude oil plays break-even price (half-cycle) 70 72 60 70 68 50 66 CAD / bbl 40 US / bbl…
  29. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 29
    Conventional Pipelines overview Pipelines operational excellence: 99% reliable ALBERTA Proximal to prolific geology FORT TAYLOR DUNVEGAN MCMURRAY Q4 2014 throughput: 612 mbpd (22% increase from Q4 2013) FORT ST JOHN 2014…
  30. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 30
    Solid business platform: contract overview 100% of revenue is fee-for-service No direct commodity exposure Re-contracting: majority of base volumes under long-term contract Flexible commercial framework, standard terms: Longer-term,…
  31. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 31
    We are investing to drive growth Capital Expenditures Capital Spending Details 4,500 2014 (actual): 628 million 4,000 Spent to progress Phase II HVP and LVP, complete 3,500 Simonette to Kakwa expansion and on other expansion…
  32. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 32
    Our throughput continues to grow Solid industry performance and strategically located assets have led to strength in Pembina's throughput profile January 2015: reached a weekly all-time high peak throughput of over 662,000 bpd 575 mbpd…
  33. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 33
    Expansions could bring Alberta capacity to 1.5 million bpd 1,600 1,508 mbpd 1,400 1,200 420 1,000 (mbpd) 800 55 53 52 40 600 175 400 200 453 Pre-Expansion Phase I Phase II Phase III Phase III (Ultimate…
  34. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 34
    Increasing Peace and Northern volumes under long-term contract 692,000 Phase II LVP & HVP Standalone & contracts Phase III contracts Phase I contracts 170,000 bpd bpd of crude oil, 160,000 bpd 362,000 bpd condensate and NGL…
  35. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 35
    Phase III Expansion making a good thing better System Capacity (mbpd) Capital Expenditure (MM) Contracted Volumes (mbpd) 800 3,000 700 680 2,540 700 2,500 2,440 600 600 500 2,000 1,949 500 420 Installation 400 362…
  36. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 36
    Pipeline lateral and expansion program 210 MM NEBC Expansion 160 km, up to 12 HVP pipeline, underpinned by long-term, cost-of-service ALBERTA agreement Base capacity of up to 75 mbpd Parallels Pembinas existing BC pipelines Subject…
  37. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 37
    Vantage Pipeline acquisition & expansion Vantage Pipeline, SEEP and Vantage Expansion Acquisition cost: 730 million(1) 700 km ethane pipeline originates in Tioga, North EDMONTON Dakota and terminates near Empress, Alberta Fort…
  38. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 38
    Looking ahead Expect to have Phase III Expansion in-service by mid 2017 Additional lateral opportunities arising from increased mainline capacity Continue to focus on Bakken opportunities Continue to fill mainline and expand…
  39. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 39
    Oil Sands & Heavy Oil overview Syncrude Pipeline Operational excellence Horizon Pipeline Cheecham Lateral 99+% reliable over operating history Nipisi Pipeline Mitsue Pipeline Diverse connectivity to various industry hubs for crude…
  40. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 40
    Crude Oil Midstream overview ALBERTA Develop and provide terminal, hub & storage services to support the energy industry FORT MCMURRAY 630 mbbl of above ground crude oil and TAYLOR condensate storage capacity, with 540 mbbl under…
  41. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 41
    We are investing to drive growth Capital Expenditures Capital Spending Details 700 2014 (actual): 63 million 600 Spent to complete Cynthia full-service terminal Capital Expenditures (MM) and progress above ground storage at…
  42. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 42
    Our assets are well-positioned and interconnected CANADIAN DILUENT HUB Crude oil Dilbit Synthetic Crude Diluent Heavy Export Red indicates Pembina-owned existing and proposed pipelines and connections Dashed lines and/or…
  43. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 43
    Expanding above ground storage Edmonton North Terminal (PNT-E) Above Ground Storage Potential Complete tanks Hydrotest 2,000 1.8 By Q3 2015 Coat and paint MMbbls 1,600 Pipe rack construction 600 Complete pipe connections Q3…
  44. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 44
    Canadian Diluent Hub (CDH) is well-situated 350 million diluent receipt and delivery terminal Ideal site location for diluent terminal Site is in close proximity to: major oil sands pipeline rights-of-way Redwater Project details…
  45. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 45
    PROJECT EXECUTION OVERVIEW Michael Massecar
  46. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 46
    Doing the important things right: project execution The situation: What Pembina is doing right: Success in securing projects has resulted in We have significant in-house project execution expertise largest project execution program…
  47. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 47
    Well-established and proven project approach In-house project expertise Project development efficiencies Continue to improve all aspects of project life cycles Repeatability & standardized designs (leveraging design through growing…
  48. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 48
    Project track record Capital Project & Cost Date in-service Completed on time Completed on budget Safety Metric Business Unit (CMM) Mitsue: ahead of 1,152,065 man hours & 8,420,896 Nipisi & Mitsue Under budget by 40 400 August 2011…
  49. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 49
    PROJECTED CAPITAL SPEND PROFILE AND PROJECT STATUS Project UPDATE development status looking forward Projects (in construction/ Capital Regulatory Expected Tracking Project Status development) (CMM) Approval In-Service On…
  50. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 50
    Construction: Phase II, Phase III and lateral program ALBERTA Phase III Expansion Phase III Expansion (under construction) Completed Phase III Expansion segment Previously announced Phase II Expansion Pembina crude oil and condensate…
  51. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 51
    Phase II LVP & HVP construction update 695 million expansion: near term in-service date Increase capacity by 55 mbpd on Peace and Northern NGL system Project Increase capacity by 53 mbpd on LVP system details Obtained all…
  52. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 52
    Phase III construction update 2.44 billion expansion: underway 880 km total of new pipeline (previously 540 km) Initial capacity of 420 mbpd between Fox Creek and Edmonton, with ability to Project increase capacity to over 680 mbpd by…
  53. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 53
    NGL VALUE CHAIN Stu Taylor
  54. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 54
    Doing the important things right: NGL value chain The situation: What Pembina is doing right: Large resource in place: Montney, Gas Services is in heavy execution phase (four projects to be completed by Deep Basin and Duvernay mid…
  55. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 55
    NGL value chain Pembina's integrated service offering PRODUCTION CONSUMPTION CONVENTIONAL GAS SERVICES PIPELINES MIDSTREAM Gathering, Propane Mainline Terminalling Logistics Consumption Production Processing, HVP Feeder…
  56. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 56
    Integrated value chain case study Gas Plant Case Study: Overview NOI Contribution by Value Chain (MM) 200 MMcf/d of ethane-plus extraction capacity 60 26 MM incremental NOI created on top of and up to 13,000 bpd of NGL with 70 km NGL…
  57. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 57
    58 Eagle Ford US American shale gas break-even price (half-cycle) Dry Gas Haynesville Shale - LA Important gas resource plays remain economic at current prices Haynesville Shale - TX Barnett Shale Diversity of…
  58. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 58
    Gas Services overview Operational excellence ALBERTA 96% reliable Positioned in active and emerging NGL rich plays FORT MCMURRAY Provide gas gathering, compression and shallow/deep cut processing services Seven facilities in…
  59. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 59
    Gas Services: contract overview 100% fee-for-service revenue Underpinned by long-term contracts 75% of 2014 revenue protected with take-or-pay commitments Flexible to offer commercial framework; standard terms include: Longer-term,…
  60. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 60
    We are investing to drive growth Capital Expenditures Capital Spending Details 1,200 2014 (actual): 295 million Spent to progress the multi-year construction Capital Expenditures (MM) 1,000 projects at Resthaven and Saturn II…
  61. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 61
    And to support growing volumes 700 673 MMcf/d Resthaven & Musreau II: in service Q4 2014 600 500 Saturn I: in service Q4 2013 400 MMcf/d 300 200 100 - 2009 2010 2011 2012 2013 2014 Jan-15 Gas processing…
  62. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 62
    Saskatchewan Ethane Extraction Plant (SEEP) construction update 110 million, 60 MMcf/d deep cut gas plant in Saskatchewan Bakken Acquired under-construction plant as part of Vantage acquisition Deliver ethane to the Vantage Pipeline…
  63. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 63
    Resthaven Expansion construction update 145(1) million, 100 MMcf/d (gross) expansion & pipeline lateral Bring total plant capacity to 300 MMcf/d(2) Project Constructing 28 km 12 gathering pipeline to deliver gas into facility…
  64. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 64
    Musreau III construction update 105 million, 100 MMcf/d shallow cut gas plant Liquids extraction capacity of 3,000 bpd Underpinned by long-term, take-or-pay service agreement Project Leverages engineering and design from Musreau I…
  65. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 65
    Saturn II construction update 170 Million, 200 MMcf/d deep cut gas plant Liquids extraction capacity of 13,000 bpd Project Leverage engineering work completed for Saturn I details 10-year firm-service contract for 130 MMcf/d (65% of…
  66. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 66
    Expanding to meet customer demand 1,600 1,463 80,000 MMcf/d 1,400 100 70,000 100 100 1,200 200 60,000 200 NGL and C5 Output (bpd) 1,000 60 60 60 60 50,000 100 MMcf/d 130 800 40,000 200 600 30,000 61% 50…
  67. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 67
    Looking ahead Majority of Pembina's Gas Services assets have been located within the same geology; plan to expand into/increase our presence in other areas including the Montney, Duvernay and Bakken Continue to assess acquisition…
  68. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 68
    NGL Midstream overview REDWATER WEST: Gas Processing Plant Redwater Fractionator 73 mbpd NGL fractionator and 7.9 MMbbls of finished product Midstream Storage Facility Truck Terminal cavern storage Rail Terminal Pembina Pipelines…
  69. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 69
    Solid business platform: contract overview Standard terms for NGL fractionation agreements include: Longer-term take-or-pay volume commitment (10 years) Payment of fixed capital fee on volume processed Payment of pro-rata share of…
  70. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 70
    We are investing to drive growth Capital Expenditures Capital Spending Details 2,000 2014 (actual): 327 million 1,800 Spent to progress RFS II as well as NGL storage Capital Expenditures (MM) 1,600 caverns and associated…
  71. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 71
    NGL fractionation growth 300 250 RFS II mbpd New 415 million 73 mbpd C2+ fractionator 250 Committed take-or-pay revenue streams for 10-year 55 term from in-service date, for 97% of the operating 200 capacity 9 Expected on-stream…
  72. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 72
    NGL salt cavern storage potential Substantial storage cavern 40 38 development potential MMbbls 35 30 Cavern development: (MMbbls) 25 At Redwater 20 2.6 15 13 caverns in-service 10 17.5 5 in development 5…
  73. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 73
    Progressing RFS II construction RFS II site in August 2013 RFS II & RFS III site in December 2014 RFS II site in May 2014 Redwater positioned to be Canada's largest fractionation site 74 See Forward-looking statements &…
  74. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 74
    RFS II construction update 415 million, 73 mbpd ethane-plus fractionator 10-year take-or-pay contracts for 100% of operating capacity Project Leverage engineering work completed for RFS I details Erected de-propanizer; completing…
  75. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 75
    RFS III construction update 400 million, 55 mbpd propane-plus fractionator 10-year, take-or-pay contracts for 100% of operating capacity Leverage engineering work completed for RFS I & II Project details De-ethanization tower can be…
  76. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 76
    Corunna facilities 45 million product handling capacity expansion Rail offload and cavern injection pumps to increase offloading capacity from 3,800 cars per year to 6,200 cars per year Adding rail track, new truck bay, brine pond,…
  77. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 77
    Looking ahead Potential expansion at Younger Expanding rail fleet Aim to exploit assets in Sarnia with possibility of recreating our western asset footprint in support of Marcellus and Utica development Bakken NGL egress strategy…
  78. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 78
    Propane export extending Pembina's value chain participation Global opportunity Growing North American production and robust Existing NGL Western Value Chain Asian demand Canada Decrease of traditional markets Eastern Canada and…
  79. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 79
    Proposed propane export terminal project timeline Potential US500 million export terminal Continue public consultation and engagement (throughout project) Prepare and submit regulatory applications Prepare detailed engineering 2015…
  80. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 80
    Opportunities for growth: North Dakota Bakken/Williston Basin NGL Production Forecast Drivers of growth opportunities 800 Robust current production 160 mbpd of NGL 700 Recent flaring regulation setup 600 significant future NGL…
  81. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 81
    Bakken NGL egress & opportunity Current Egress Alternatives Potential Opportunities Transported on Third Party pipelines Construction of straddle plant infrastructure Vantage Pipeline Further expansion of the Vantage Pipeline…
  82. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 82
    DEDICATED TO ASSET INTEGRITY & SAFETY Allan Charlesworth
  83. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 83
    Doing the important things right: asset integrity The situation: What Pembina is doing right: We continue to add new assets, expand Focus on maintaining safe and reliable operations existing assets, and renewed long- We have a…
  84. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 84
    Comprehensive and continuous evaluation of all threats IN-LINE INSPECTION (ILI) FACILITY INTEGRITY Metal loss Governs operation, inspection, monitoring Crack detection and mitigation (if required) for all pressure vessels and tanks…
  85. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 85
    Rigorous in-line inspection program using latest technology Pembina has over 460 ILI capable Main tool technologies pipeline segments Magnetic flux leakage (MFL) Pembina completes an average of 60- Geometry (deformations) 80…
  86. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 86
    Robust geotechnical program INSPECTION PROGRAM 1,731 water crossings, 430 slopes Typically over 400 inspections/year MONITORING PROGRAM Depth-of-cover surveys: typically over 200/year Slope surveys and instrumentation: typically…
  87. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 87
    Innovative tube storage inspection Tool development and testing was completed in August 2014 Multi-diameter inspection tool, able to inspect 48-54-inch tubes Execution of inspection runs were successful, with quality data…
  88. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 88
    Focus on continuous risk reduction initiatives Continue to evaluate all threats to our pipelines and facilities (corrosion, geohazards, crack, geometry, etc.) Using (developing) new technologies to enhance detection and analysis of…
  89. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 89
    Our priority is on safety and reliability Employee Safety Safe Driving Employee near-miss reporting increased by 45% in 2014 Mandatory AMA Collision Avoidance program Over 1,100 employees worked more than 2.3 million hours Back-in…
  90. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 90
    STRONG FINANCIAL PLATFORM Scott Burrows
  91. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 91
    Doing the important things right: financing The situation: What Pembina is doing right: With our large portfolio of We continue to execute well-timed, well-priced financings secured capital, we have We are committed to our…
  92. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 92
    Financing objectives Finance growth 50/50 debt/equity Maintain BBB rating with conservative balance sheet metrics Manage through the investment cycle Ensure ample liquidity to fund capital program Ensure financing flexibility to…
  93. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 93
    Debt metrics Total Debt / EBITDA Funds from Operations / Total Debt 5.0x 35% 30% 4.0x 25% 3.0x 20% 2.0x 15% 10% 1.0x 5% 0.0x - (1) 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Total Debt / Total Book Capitalization…
  94. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 94
    Clean balance sheet 8.0x 7.0x 6.0x 2014 Debt / EBITDA(1) 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x BBB- A BBB BBB+ A- BBB A A- BBB+ BBB BB NR Pembina continues to employ significantly less leverage than its…
  95. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 95
    Conservative structuring Debt Cost of Capital / Tenor Optimization(1) 7.0% 6.5% Peer 7 BBB Weighted Average Coupon 6.0% BBB+ Peer 3 5.5% Peer 4 5.0% Peer 2 Peer 9 4.5% Peer 5 Baa2 4.0% Peer 6 Peer 8 3.5% Peer 1…
  96. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 96
    Access capital at attractive rates Medium term notes (2013-YTD) Preferred shares (2013-YTD) Common shares (2013-YTD) 700 700 700 600 600 600 600 600 500 500 500 400 400 400 345 MM MM MM 321 286 266 300 300 250 250…
  97. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 97
    Debt maturity profile Senior Debt Maturity Profile Majority Fixed Rate Debt 600 Amount outstanding (MM) 500 400 300 200 96% Fixed Rate 100 0 Weighted average cost of debt: 4.6%(1) 120 million drawn on the 1.5 billion…
  98. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 98
    Funding plan and capital structure is equipped for growth Funding Plan Prudent and flexible capital structure1 6,000 5 B 24% (2015 2018) 5,000 4,000 Debt 4% MM 3,000 8% 64% Capital Preferred Expenditures 2,000 DRIP…
  99. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 99
    Sensitivities Conventional Pipelines Key Variables 2015 EBITDA Impact for Uncontracted Volumes (MM) Volume 10,000 bpd 9 Gas Services Key Variables 2015 EBITDA Impact for Uncontracted Volumes (MM) Volume 10,000 boe/d 2 NGL…
  100. December 2015 Investor Presentation – Pembina Pipeline Corp – slide 100
    Dividend growth supported by growing cash flow 2.50 A- 2.00 BBB BBB+ 1.50 1.00 0.50 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dividends per share Adjusted Cash Flow from Operating activities per…

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