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January 2020 Corporate Upate – Pembina Pipeline Corp

Pembina Pipeline Corp · Jan 13, 2020 · 52 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. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 1
    Pembina Pipeline Corporation TSX: PPL NYSE: PBA Corporate Update January 2020
  2. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 3
    Introduction
  4. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 4
  5. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 5
    Purpose of Pembina 7
  6. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 7
    Employees Communities 9
  8. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 11
    Customers Investors
  12. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 12
    We have built a strong foundation
  13. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 13
    Recent 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 Quality,…
  14. January 2020 Corporate Upate – 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. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 15
    The Pembina Store Gas & NGL (HVP) Gas Consumers Mainline Extraction NGL and Fractionation (Younger, Empress, NGL Alliance (proposed) Gathering, 3rd Party Aux Sable) Pipeline Processing, Pipelines Field Extraction…
  16. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 16
    Pipeline transportation Net pipeline capacity through time 3,500 3.2 In-service mmboe/d(3) 110 65 3,000 Project under development 180 Kinder acquisition 125 133 2,500 330 2,000 625 mboe/d 133 1,500 230 335…
  17. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 17
    Largest third-party gas processor serving the WCSB Net processing capacity Pembina 7,000 Provident acquisition 6.1 Veresen acquisition 100 bcf/d(1) 6,000 Project under development 100 897 5,000 57 682 75 60 250 4,000…
  18. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 18
    Growing condensate stabilization capacity Net field based condensate stabilization Pembina 128 140 Veresen acquisition mbpd(1) 120 Project under development 20 100 30 10 80 mbpd 10 60 15 12 40 78 24 53 20…
  19. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 19
    Largest fractionation capacity serving the WCSB Net fractionation capacity 400 356 Pembina mbpd(1) 350 Provident acquisition 30 Veresen acquisition (2) 39 300 Project under development 56 250 mbpd 200 55 150 73…
  20. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 20
    Leading hydrocarbon storage position Net storage capacity Merchant Underground Storage Capacity Merchant Above Ground Storage Capacity 23.8 25 mmbbl(1) Pembina Provident acquisition Veresen acquisition 20 Kinder acquisition…
  21. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 21
    Transformational growth is generating record financial results Adjusted EBITDA and Adjusted EBITDA per share 3,250 MM to 3,550 MM 5.95 - 6.50 per share 3,500 2,950 MM to 3,050 MM 6.50 Adjusted EBITDA 5.75 - 5.95 per share 5.61…
  22. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 22
    Dedicated to our financial guardrails
  23. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 23
    Financial guardrails 2015 2019E 1 Maintain target of 80% fee-based contribution 2015 to Adjusted EBITDA(1) 77% 85%…
  24. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 24
    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…
  25. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 25
    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…
  26. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 26
    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%…
  27. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 27
    New projects driving growth
  28. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 28
    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 5.6…
  29. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 29
    We continue to secure new projects Projects Recently Placed Into Service In-service Capital Budget(1) (MM) Phase IV & V December 2018 460 Burstall Ethane Storage January 2019 190 Prince Rupert Export Redwater Infrastructure Various…
  30. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 30
    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…
  31. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 31
    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…
  32. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 32
    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…
  33. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 33
    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…
  34. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 34
    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:…
  35. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 35
    Value chain extension: Accessing premium markets
  36. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 36
    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…
  37. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 37
    Prince Rupert Terminal Developing the Prince Rupert LPG Export Terminal with an initial export capacity of 25,000 bpd and an anticipated in-service date in the second half of 2020 The Expansion increases capacity to 40,000 bpd…
  38. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 38
    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…
  39. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 39
    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…
  40. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 40
    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…
  41. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 41
    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…
  42. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 42
    CKPC: a prudent approach to manage risk Detailed FEED completed with Class II capital cost estimate Capital cost Executed a lump sum EPC contract for PDH facility thus fixing 60% of the project cost Commercially proven PDH and PP…
  43. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 43
    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…
  44. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 44
    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…
  45. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 45
    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…
  46. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 46
    Strong financial position
  47. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 47
    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…
  48. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 48
    Dividend growth supported by growing cash flow 5.00 1,400 4.50 5.3% dividend increase announced May 2, 2019 5% dividend increase effective January 2020 1,200 4.00 ACFPS CAGR: 11.5% 1,000 3.50 Dividend per share CAGR:…
  49. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 49
    Value Proposition
  50. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 50
    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) 485% 500…
  51. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 51
    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…
  52. January 2020 Corporate Upate – Pembina Pipeline Corp – slide 52
    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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