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December 2019 Corporate Update – Pembina Pipeline Corp

Pembina Pipeline Corp · Dec 3, 2019 · 54 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 2019 Corporate Update – Pembina Pipeline Corp – slide 1
    Pembina Pipeline Corporation TSX: PPL NYSE: PBA Corporate Update December 2019
  2. December 2019 Corporate Update – Pembina Pipeline Corp – slide 2
    Presentation outline Introduction Purpose of Pembina We have built a strong foundation Dedicated to our financial guardrails New projects driving growth Value chain extension: Accessing premium markets Strong financial…
  3. December 2019 Corporate Update – Pembina Pipeline Corp – slide 3
    Introduction
  4. December 2019 Corporate Update – Pembina Pipeline Corp – slide 4
    6
  5. December 2019 Corporate Update – Pembina Pipeline Corp – slide 5
    Purpose of Pembina 7
  6. December 2019 Corporate Update – Pembina Pipeline Corp – slide 6
    Purpose of Pembina Customers choose us first Investors receive sustainable for reliable and value-added industry-leading total returns services Employees say we are the Communities welcome us and employer of choice and…
  7. December 2019 Corporate Update – Pembina Pipeline Corp – slide 7
    Employees Communities 9
  8. December 2019 Corporate Update – Pembina Pipeline Corp – slide 8
    Employees say we are the 'employer of choice' and value our safe, respectful, collaborative and fair work culture Employee summary(1) Recognized for being a top employer Total employees Location 2018 2010 430 46% 54% Field…
  9. December 2019 Corporate Update – Pembina Pipeline Corp – slide 9
    Communities welcome us and recognize the net positive impact of our social and environmental commitment We invest in: Community Building 7,500,000 5,500 4,000,000 Playgrounds, community halls, recreation facilities Invested in 2018…
  10. December 2019 Corporate Update – Pembina Pipeline Corp – slide 10
    Sustainability at Pembina Pembina's Carbon Stand - we are committed to reducing the greenhouse gas (GHG) emission intensity in each of our businesses. Pembina's Diversity & Inclusion Stand - we are committed to diversity, equal…
  11. December 2019 Corporate Update – Pembina Pipeline Corp – slide 11
    Customers Investors
  12. December 2019 Corporate Update – Pembina Pipeline Corp – slide 12
    We have built a strong foundation
  13. December 2019 Corporate Update – Pembina Pipeline Corp – slide 13
    Proposed Acquisition of Kinder Morgan Canada and Cochin U.S. Highly strategic acquisition of the Cochin mainline, a fully contracted, cross-border pipeline system connecting Pembinas Channahon, Bakken and Edmonton assets High…
  14. December 2019 Corporate Update – Pembina Pipeline Corp – slide 14
    Strategically located and highly integrated assets Cochin Pipeline System One of two cross-border condensate import pipelines, underpinned by take-or-pay contracts with investment grade customers Cross-border pipeline currently in…
  15. December 2019 Corporate Update – Pembina Pipeline Corp – slide 15
    The Pembina Store with KML and Cochin Gas & NGL (HVP) Gas Consumers Mainline Extraction NGL and Fractionation (Younger, Empress, NGL Alliance (proposed) Gathering, 3rd Party Aux Sable) Pipeline Processing, Pipelines…
  16. December 2019 Corporate Update – Pembina Pipeline Corp – slide 16
    EDMONTON TERMINALS VANCOUVER WHARVES COCHIN WINDSOR MAX BASS TERMINAL RIGA COCHIN KANKAKEE KANKAKEE TERMINAL (1 mmbbl storage)
  17. December 2019 Corporate Update – Pembina Pipeline Corp – slide 17
    Pipeline transportation Net pipeline capacity through time 3,500 3.2 In-service mmboe/d(3) 110 65 3,000 Project under development 245 180 KML acquisition (pending) 125 133 2,500 330 2,000 625 mboe/d 133 1,500…
  18. December 2019 Corporate Update – Pembina Pipeline Corp – slide 18
    Largest third-party gas processor serving the WCSB Net processing capacity Pembina 7,000 Provident acquisition 6.1 Veresen acquisition 200 bcf/d(1) 6,000 Project under development 897 57 5,000 75 682 60 250 4,000…
  19. December 2019 Corporate Update – Pembina Pipeline Corp – slide 19
    Growing condensate stabilization capacity Net field based condensate stabilization Pembina 128 140 Veresen acquisition mbpd(1) 120 Project under development 100 50 10 80 mbpd 10 60 15 12 40 24 20 17 0 Gas…
  20. December 2019 Corporate Update – Pembina Pipeline Corp – slide 20
    Largest fractionation capacity serving the WCSB Net fractionation capacity 400 356 350 Pembina mbpd(1) Provident acquisition 30 Veresen acquisition (2) 39 300 Project under development 56 250 mbpd 200 55 150…
  21. December 2019 Corporate Update – Pembina Pipeline Corp – slide 21
    Leading hydrocarbon storage position Net storage capacity Merchant Underground Storage Capacity Merchant Above Ground Storage Capacity 23.8 25 mmbbl(1) Pembina Provident acquisition 20 Veresen acquisition KML acquisition…
  22. December 2019 Corporate Update – Pembina Pipeline Corp – slide 22
    Transformational growth is generating record financial results Adjusted EBITDA and Adjusted EBITDA per share 2,950 MM to 3,050 MM 3,000 5.75 - 5.95 per share 6.00 5.61 Adjusted EBITDA Adjusted EBITDA per share 2,835 MM 2,500…
  23. December 2019 Corporate Update – Pembina Pipeline Corp – slide 23
    Dedicated to our financial guardrails
  24. December 2019 Corporate Update – Pembina Pipeline Corp – slide 24
    Financial guardrails 2015 2019E 1 Maintain target of 80% fee-based contribution 2015 to Adjusted EBITDA(1) 77% 85%…
  25. December 2019 Corporate Update – Pembina Pipeline Corp – slide 25
    Our business is highly contracted Adjusted EBITDA contribution by type(1) 77% fee-based 77% fee-based 80% fee-based 85% fee-based 85% fee-based 4 Take-or-pay/Cost-of-service Fee-for-service 8% 3 9% 7% Product margin 6% Frac…
  26. December 2019 Corporate Update – Pembina Pipeline Corp – slide 26
    Dividend strategy supported by fee-based adjusted EBITDA Illustrative fee-based distributable cash flow analysis(1) Considerations Dividend and all corporate costs are Fee-Based Payout underpinned 100% by fee-based adjusted EBITDA…
  27. December 2019 Corporate Update – Pembina Pipeline Corp – slide 27
    Credit considerations and counterparty credit stats 60-day credit exposure(1,3) Pembina assesses all counterparties during on-boarding Non Investment process and actively monitors credit limits and exposures AA- to AA+ Grade 22%…
  28. December 2019 Corporate Update – Pembina Pipeline Corp – slide 28
    Commitment to a strong BBB credit rating Debt/Adjusted EBITDA (2019 Forecast)(1) Leverage comparison across industry(4) x x 3.75x - 4.25x x Pembina continues to employ less leverage x 3.7x than its peer group average 10.0x x x 2019…
  29. December 2019 Corporate Update – Pembina Pipeline Corp – slide 29
    New projects driving growth
  30. December 2019 Corporate Update – Pembina Pipeline Corp – slide 30
    We are working on billions of dollars of new projects Peace pipeline expansions Jordan Cove LNG Duvernay development Processing facilities 6.5 BB+ Alliance expansion Laterals and connections Additional opportunities 4 BB 5.7…
  31. December 2019 Corporate Update – Pembina Pipeline Corp – slide 31
    We continue to secure new projects Capital Budget(1) Projects Recently Placed Into Service In-service (MM) Phase IV & V December 2018 460 Burstall Ethane Storage January 2019 190 Prince Rupert Export Redwater Infrastructure Various…
  32. December 2019 Corporate Update – Pembina Pipeline Corp – slide 32
    Demand supports continued Peace build out Following Phase VII, Pembina will have 1.1 million bpd of Edmonton area market delivery capacity on Peace and Northern pipelines Market delivery capacity can be further expanded to 1.3…
  33. December 2019 Corporate Update – Pembina Pipeline Corp – slide 33
    Competitive advantage in conventional pipelines The Pembina Store a suite of integrated services along the hydrocarbon value chain, maximizing netbacks to producers Aligned outages across the value chain Ability to transport any…
  34. December 2019 Corporate Update – Pembina Pipeline Corp – slide 34
    Advantage of connectivity Access Pipeline Redwater fractionation Pembinas conventional and storage I, II & III CDH Polaris Pipeline Norlite Pipeline pipeline system benefits Keyera FSCS from extensive connectivity to major…
  35. December 2019 Corporate Update – Pembina Pipeline Corp – slide 35
    Northeast BC fractionation opportunity Infrastructure NEBC Liquids Leverage expertise developed at Redwater Complex Pipeline Gathering Legend Replicate 55,000 bpd C3+ RFS III design Pipeline CN Rail Rail loading and product…
  36. December 2019 Corporate Update – Pembina Pipeline Corp – slide 36
    Potential expansion of Alliance Pipeline 1,750 100.0% 1,700 99.8% mmcf/d 1,650 99.6% 1,600 99.4% 1,550 99.2% 1,500 99.0% 2013 2014 2015 2016 2017 2018 Revenue Volumes Capacity Reliabiity Bakken only expansion:…
  37. December 2019 Corporate Update – Pembina Pipeline Corp – slide 37
    Value chain extension: Accessing premium markets
  38. December 2019 Corporate Update – Pembina Pipeline Corp – slide 38
    Pembina's advantage in accessing global markets Natural next step in Pembina's value chain extension model Strategically located assets supporting leading geology in North America Critical mass of products to meet global needs and…
  39. December 2019 Corporate Update – Pembina Pipeline Corp – slide 39
    Prince Rupert Terminal Developing the 25,000 bpd Prince Rupert LPG Export Terminal Constructed on private land owned by the City of Prince Rupert Site features sheltered berth, existing dock infrastructure and well-established…
  40. December 2019 Corporate Update – Pembina Pipeline Corp – slide 40
    PDH/PP Project Project overview Canada Kuwait Petrochemical Corporation (CKPC) is constructing a world-scale integrated propane dehydrogenation plant and polypropylene upgrading facility Joint venture of Pembina and Petrochemical…
  41. December 2019 Corporate Update – Pembina Pipeline Corp – slide 41
    Structural surplus of Western Canadian propane PDH/PP Project Representative WCSB propane supply & demand(1) 350 Western Canada contains an abundant and 300 highly economic natural gas liquids resources Resource life of Western…
  42. December 2019 Corporate Update – Pembina Pipeline Corp – slide 42
    Polypropylene is a value-added product PDH/PP Project North American PP to Edmonton propane price spread(1) 2,500 2,000 1,500 US/MT 1,000 500 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 Propane to PP…
  43. December 2019 Corporate Update – Pembina Pipeline Corp – slide 43
    CKPC: stronger than the sum of its parts Pembina RFS Complex Canada Propane Propylene PP (23,000 bpd) (550,000 MT) (550,000 MT) United States Asia Third Party South America PDH Facility PP Facility Fractionation Shipping…
  44. December 2019 Corporate Update – Pembina Pipeline Corp – slide 44
    CKPC: a prudent approach to manage risk Detailed FEED completed with Class II capital cost estimate Capital cost Securing EPC lump sum contracting to ensure cost certainty for key portions of the project's scope Commercially proven…
  45. December 2019 Corporate Update – Pembina Pipeline Corp – slide 45
    Jordan Cove LNG project Situated on 240 acres on the North Spit of Coos Bay, Oregon Liquefaction and export facility with an LNG production capacity of 7.8 mmtpa(1) (1.3 bcf/d) Five 1.5 mmtpa liquefaction trains Two…
  46. December 2019 Corporate Update – Pembina Pipeline Corp – slide 46
    LNG demand is expected to almost double by 2030 Jordan Cove LNG Project Global LNG supply and demand balance(1) Demand considerations 700 65% of global gas demand growth will come from Asia Chinese imports in Q1 2018 have increased…
  47. December 2019 Corporate Update – Pembina Pipeline Corp – slide 47
    West coast shipping advantage Jordan Cove LNG Project Shipping cost: 1.00 Shipping cost: 2.00 Shipping cost: 3.00 Shipping cost: 3.00 Shipping cost: 3.00 U.S. west coast holds significant shipping cost advantage to…
  48. December 2019 Corporate Update – Pembina Pipeline Corp – slide 48
    Strong financial position
  49. December 2019 Corporate Update – Pembina Pipeline Corp – slide 49
    Financing history and objectives Historical funding (2012 2018)(1) Ongoing financing objectives Cash flow after dividends Finance growth 50/50 debt/equity over the long term DRIP 12% 8% Maintain strong BBB rating with conservative…
  50. December 2019 Corporate Update – Pembina Pipeline Corp – slide 50
    Dividend growth supported by growing cash flow 5.00 1,400 4.50 5.3% dividend increase announced May 2, 2019 ACFPS CAGR: 11.5% 1,200 4.00 Dividend per share CAGR: 4.5% 1,000 3.50 Cash flow after dividends (MM) (2) 3.00…
  51. December 2019 Corporate Update – Pembina Pipeline Corp – slide 51
    Value Proposition
  52. December 2019 Corporate Update – Pembina Pipeline Corp – slide 52
    Investors receive sustainable industry-leading total returns Total Return: Pembina vs. S&P/TSX Energy Infrastructure(1) Key Metrics 700 Relative Total Return (100 = January 1, 2009) 600 4.5% dividend growth rate(2) 475% 500…
  53. December 2019 Corporate Update – Pembina Pipeline Corp – slide 53
    Pembina's value proposition Diverse and integrated assets, strategically located to serve world-class geology Visible growth while remaining dedicated to our financial guardrails Large scale growth and value chain extension…
  54. December 2019 Corporate Update – Pembina Pipeline Corp – slide 54
    CONTACT US Pembina Pipeline Corporation Suite 4000 585 8th Avenue S.W. Calgary, Alberta T2P 1G1 www.pembina.com investor-relationspembina.com Toll free: 1.855.880.7404 Phone: 403.231.3156

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