Q4 2025 Pembina Pipeline Corp Earnings Call

February 27, 2026

Operator: highlights from the Q4 of 2025. On the call today, we have Scott Burrows, President and CEO, and Cameron Goldade, Chief Financial Officer, along with other members of Pembina's leadership team. 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 discussion and analysis dated 26 February 2026, for the period ended 31 December 2025, as well as the press release Pembina issued yesterday, which are all available online at pembina.com and on both SEDAR+ and EDGAR.

Speaker #1: Highlights from the fourth quarter of 2025. On the call today, we have Scott Burrows, President and CEO, and Cameron Goldade, Chief Financial Officer, along with other members of Pembina's leadership team.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: To learn more about these forward-looking statements and non-GAAP measures, please see the company's Management Discussion and Analysis dated February 26, 2026, for the period ended December 31, 2025, as well as the press release Pembina issued yesterday, which are all available online at pembina.com and on both SEDAR+ and EDGAR.

Speaker #1: I will now turn things over to Scott.

Operator: I will now turn things over to Scott.

Speaker #2: Thanks, Dan. Yesterday, we reported our fourth quarter results, which included earnings of $489 million, adjusted EBITDA of approximately $1.075 billion, and adjusted cash flow from operating activities of $731 million, or $1.26 per share.

Scott Burrows: Thanks, Dan. Yesterday, we reported our Q4 results, which included earnings of CAD 489 million, Adjusted EBITDA of approximately CAD 1.075 billion, and adjusted cash flow from operating activities of CAD 731 million, or CAD 1.26 per share. For the full year, we delivered earnings of CAD 1.694 billion and Adjusted EBITDA of CAD 4.289 billion. We achieved record annual volumes across our pipelines and facilities divisions, which represented a 3% increase over 2024. Full year results also included adjusted cash flow from operating activities of CAD 2.854 billion, or CAD 4.91 per share. Each year, I'm always proud to look back and reflect on our team's many accomplishments. 2025 was no exception.

Speaker #2: For the full year, we delivered earnings of $1.694 billion and adjusted EBITDA of $4.289 billion. We achieved record annual volumes across our pipelines and facilities divisions, which represented a 3% increase over 2024.

Speaker #2: Full-year results also included adjusted cash flow from operating activities of $2.854 billion, or $4.91 per share. Each year, I am always proud to look back and reflect on our team's many accomplishments.

Speaker #2: 2025 was no exception. In addition to solid financial and operating results, we also advanced strategic projects and strengthened our long-term competitive positioning. I am particularly proud that Pembina continues to deliver on its promises, including providing safe and reliable operations, meeting its financial targets, constructing major projects on time and on budget, and continuing to execute its strategy with a prudent risk profile.

Scott Burrows: In addition to solid financial and operating results, we also advanced strategic projects and strengthened our long-term competitive positioning. I'm particularly proud that Pembina continues to deliver on its promises, including providing safe and reliable operations, meeting its financial targets, constructing major projects on time and on budget, and continuing to execute its strategy with an improved risk profile. Several notable achievements in 2025 and early 2026 stand out. Safety is a core value in the foundation of Pembina's operations and culture. While the journey never ends, I am pleased with our strong safety and environmental performance that exceeded our internal 2025 targets, highlighted by improved performance across key indicators relative to our 3-year averages. We advanced construction of several growth projects, including the RFS IV Propane Plus Fractionator at the Redwater Complex, the Wapiti Expansion, and the K3 Cogeneration Facility.

Speaker #2: Several notable achievements in 2025 and early 2026 stand out. Safety is a core value in the foundation of Pembina's operations and culture. While the journey never ends, I am pleased with our strong safety and environmental performance that exceeded our internal 2025 targets, highlighted by improved performance across key indicators relative to our three-year averages.

Speaker #2: We advanced construction of several growth projects, including the RFS4 propane-plus fractionator at the Redwater complex, the Wapadee natural gas processing expansion, and the K3 cogeneration facility.

Speaker #2: All three projects are tracking on time and on or under budget. The WAPADE expansion and K3 cogen are currently in the commissioning phase and are expected to be in service in the next few weeks, and we look forward to the RFS4 expansion coming online during the second quarter.

Scott Burrows: All three projects are trending on time and on or under budget. The Wapiti Expansion and K3 Cogen are currently in the commissioning phase and are expected to be in service in the next few weeks, and we look forward to the RFS IV Expansion coming online during Q2. Additionally, under previously announced funding agreements, PGI, in collaboration with certain producer customers, expecting CAD 725 million of new infrastructure into service throughout 2026, all supported by long-term take-or-pay agreements. We supported our long-term resilience through extensive recontracting across the business. These contracting successes support continued utilization of our assets, help ensure our stable cash flow stream, and create the foundation for future opportunities. In 2025, we renewed existing contracts and executed incremental new contracts totaling over 200,000 barrels per day of conventional pipeline transportation capacity.

Speaker #2: Additionally, under previously announced funding agreements, EGI, in collaboration with certain producer customers, expects nearly $725 million of new infrastructure to come into service throughout 2026—all supported by long-term take-or-pay agreements.

Speaker #2: We supported our long-term resilience through extensive re-contracting across the business. These contracting successes support continued utilization of our assets, help ensure our stable cash flow stream, and create the foundation for future opportunities.

Speaker #2: In 2025, we renewed existing contracts and executed incremental new contracts totaling over $200,000 per day of conventional pipeline transportation capacity. This includes successfully re-contracting substantially all available for renewal on the Peace Pipeline system under contracts expiring in 2025 and 2026.

Scott Burrows: This includes successfully recontracting substantially all available for renewal on the Peace Pipeline system under contracts expiring in 2025 and 2026. We look forward to providing further contracting updates throughout 2026. As part of the toll review at Alliance Pipeline, we significantly extended Alliance's long-term contractual profile as shippers elected a new 10-year toll option on approximately 96% of available capacity, and we contracted the remaining capacity available on the 100,000 barrels per day Nipisi Pipeline, which was reactivated in 2023 to serve the growing Clearwater heavy oil play. Having fully contracted Nipisi, we are now focused on opportunities to increase egress capacity to respond to strong customer demand for incremental services.

Speaker #2: We look forward to providing further contracting updates throughout 2026. As part of the toll review at Alliance Pipeline, we significantly extended Alliance's long-term contractual profile, as shippers elected a new 10-year toll option on approximately 96% of available capacity.

Speaker #2: And we contracted the remaining capacity available on the 100,000-barrel-per-day Nipissy pipeline, which was reactivated in 2023 to serve the growing Clearwater heavy oil play.

Speaker #2: Having fully contracted Nipissy, we are now focused on opportunities to increase egress capacity to respond to strong customer demand for incremental services. In response to growing demand for condensate and NGL transportation, we progressed development of conventional pipeline expansions to reliably and cost-effectively meet rising transportation demands from growing production in the Western Canadian Sedimentary Basin.

Scott Burrows: In response to growing demand for condensate and NGL transportation, we progressed development of conventional pipeline expansions to reliably and cost-effectively meet rising transportation demands from growing production in the Western Canadian Sedimentary Basin. In late 2025, Pembina announced that it is proceeding with its Fox Creek-to-Namao Expansion of the Peace Pipeline system, which will add approximately 70,000 barrels per day of market delivery capacity to the Peace Pipeline system. Yesterday, we announced two additional expansions of our Northeast BC pipelines, the Birch-to-Taylor Expansion and the Taylor-to-Gordondale Expansion. In total, these three expansions represent CAD 625 million of investment to ensure Pembina's continued ability to service growing volumes in Northeast British Columbia and Alberta.

Speaker #2: In late 2025, Pembina announced that it is proceeding with its Fox Creek to Namao expansion of the Peace Pipeline system, which will add approximately 70,000 barrels per day of market delivery capacity to the Peace Pipeline system.

Speaker #2: And yesterday, we announced two additional expansions of our Northeast BC pipelines: the Birch to Taylor expansion and the Taylor to Gordon Dale expansion. In total, these three expansions represent $625 million of investment to ensure Pembina’s continued ability to serve growing volumes in Northeast British Columbia and Alberta.

Speaker #2: We took steps to significantly enhance our propane export capabilities through a new 30,000-barrel-per-day LPG export agreement with AltaGas at its West Coast terminals and the sanctioning of the Prince Rupert Terminal Optimization Project.

Scott Burrows: We took steps to significantly enhance our propane export capabilities through a new 30,000 barrels per day LPG export agreement with AltaGas at its West Coast terminals and the sanctioning of the Prince Rupert Terminal Optimization Project. Through these two initiatives, Pembina ensured access to 50,000 barrels per day of highly competitive propane export capacity to premium price markets, including Asia, for Pembina and our customers' propane. On the Cedar LNG project, we advanced construction of a floating LNG vessel to over 35% complete and significantly progress the onshore construction activities. Further, Pembina met its commitment to investors by completing the remarketing of our 1.5 million tons of annual Cedar LNG capacity by signing long-term agreements with PETRONAS, a global LNG industry leader, and Ovintiv, one of the largest liquids-rich natural gas producers in Canada.

Speaker #2: Through these two initiatives, Pembina ensured access to 50,000 barrels per day of highly competitive propane export capacity to premium-priced markets, including Asia, for Pembina and our customers' propane.

Speaker #2: On the Cedar LNG project, we advanced construction of a floating LNG vessel to over 35% complete and significantly progressed the onshore construction activities. Further, Pembina met its commitment to investors by completing the remarketing of our $1.5 million of annual Cedar LNG capacity by signing long-term agreements with Petronas, a global LNG industry leader, and Ovintiv, one of the largest liquids-rich natural gas producers in Canada.

Speaker #2: In addition to increasing Pembina's expected financial contribution from the project, these agreements further validate the Cedar LNG project and highlight the strong demand for global export capacity, given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distance to Asian markets.

Scott Burrows: In addition to increasing Pembina's expected financial contribution from the project. These agreements further validate the Cedar LNG project and highlight the strong demand for global export capacity, given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantage shipping distance to Asia markets. Finally, Pembina and its partner, Kineticor, made significant progress in the development of the Greenlight Electricity Centre, securing the required power grid allocation for the proposed third-party innovation center, which was subsequently assigned to a potential customer of Greenlight, and completed a land sale agreement with the customer. We also ensured the availability and delivery timing of two turbines to support the approximately 700 or 900 MW first phase of Greenlight.

Speaker #2: Finally, Pembina and its partner Kineticor made significant progress in the development of the Greenlight electricity center, securing the required power grid allocation for the proposed third-party innovation center, which was subsequently assigned to a potential customer of Greenlight.

Speaker #2: And completed a land sale agreement with the customer. We also ensured the availability and delivery timing of two turbines to support the approximately 700- or 900-megawatt first phase of Greenlight.

Speaker #2: Greenlight represents an extension of Pembina’s existing value chain and an opportunity to enhance growth by investing in long-term contracted infrastructure with an investment-grade counterparty, while diversifying its customer base. It would create incremental demand for natural gas and associated liquids production within western Canada.

Scott Burrows: Greenlight represents an extension of Pembina's existing value chain and an opportunity to enhance growth by investing in long-term contracted infrastructure with an investment-grade counterparty, while diversifying its customer base and would create incremental demand for natural gas and associated liquids production within Western Canada. Pembina and Kineticor continue to progress the various work streams, including finalizing a commercial agreement with the customer, engineering, procurement, and regulatory activities, and expect to make a final investment decision in the first half of 2026. It was a busy and productive year for the Pembina team, and I look forward to building upon our momentum from 2025 as we strive for even greater success in 2026. We are planning to hold a webcast and conference call on 7 April, where Pembina's officer team will provide a general business update and long-term outlook.

Speaker #2: Pembina and Kineticor continue to progress on various work streams, including finalizing a commercial agreement with the customer, engineering, procurement, and regulatory activities, and expect to make a final investment decision in the first half of 2026.

Speaker #2: It was a busy and productive year for the Pembina team, and I look forward to building upon our momentum from 2025 as we strive for even greater success in 2026.

Speaker #2: We are planning to hold a webcast and conference call on April 7th, where PEMBINA's officer team will provide a general business update and long-term outlook.

Speaker #2: Additional details will be communicated in the coming weeks. I will now turn things over to Cam to discuss in more detail the financial highlights for the fourth quarter and full year.

Scott Burrows: Additional details will be communicated in the coming weeks. I will now turn things over to Cam to discuss in more detail the financial highlights for Q4 and full year.

Speaker #1: Thanks, Scott. As Scott noted, Pembina reported fourth quarter adjusted EBITDA of $1.075 billion. This was a $179 million, or 14%, decrease over the same period in the prior year, which primarily reflects a $118 million lower contribution from Marketing and New Ventures, the impact of a new toll structure and revenue-sharing mechanism on the Alliance pipeline, and a $37 million period-specific capital recovery that impacted 2024 with no similar impact in 2025.

Cameron Goldade: Thanks, Scott. As Scott noted, Pembina reported Q4 adjusted EBITDA of CAD 1.075 billion. This was CAD 179 million, or a 14% decrease over the same period in the prior year, which primarily reflects a CAD 118 million lower contribution from marketing and new ventures, the impact of a new toll structure and revenue-sharing mechanism on the Alliance Pipeline, and a CAD 37 million period-specific capital recovery that impacted 2024, with no similar impact in 2025. These factors were partially offset by volume growth and solid performance across the pipelines and facilities divisions.

Speaker #1: These factors were partially offset by volume growth and solid performance across the Pipelines and Facilities divisions. Looking at quarter-over-quarter results by division, the major factors impacting the quarter in Pipelines included higher volumes on the Peace pipeline system, lower operating expense on the Koshin pipeline, lower revenue on the Canadian portion of the Alliance pipeline as a result of reduced long-term firm tolls and impacts from the new revenue-sharing mechanism under the previously announced settlement, offset by higher demand on seasonal contracts, lower revenue on certain pipeline assets due to period-specific impacts of capital recoveries recognized in the fourth quarter of 2024, and lower interruptible volumes on the Koshin pipeline due to narrower condensate price differentials.

Cameron Goldade: Looking at quarter-over-quarter results by division, the major factors impacting the quarter in pipelines included: higher volumes on the Peace Pipeline system, lower operating expense on the Goshen Pipeline, lower revenue on the Canadian portion of the Alliance Pipeline as a result of reduced long-term firm tolls and impacts from the new revenue-sharing mechanism under previously announced settlement, offset by higher demand on seasonal contracts, lower revenue on certain pipeline assets due to period-specific impacts of capital recoveries recognized in the Q4 2024, and lower interruptible volumes on the Goshen Pipeline due to narrower condensate price differentials.

Speaker #1: In Facilities, factors impacting the fourth quarter included lower revenue related to period-specific impacts of capital recoveries recognized in the fourth quarter of 2024 on certain PGI assets, and higher operating expenses, as well as higher contribution for PGI assets primarily due to higher volumes and the impact of the acquisition of a 50% working interest in Whitecap's KBOB complex during the fourth quarter of 2024.

Cameron Goldade: In facilities, factors impacting the Q4 included lower revenue related to period-specific impacts of capital recoveries recognized in the Q4 2024 on certain PGI assets and higher operating expenses, as well as higher contribution for PGI assets, primarily due to higher volumes and the impact of the acquisition of a 50% working interest in Whitecap's Kaybob complex during the Q4 2024. In marketing and new ventures, Q4 results reflected the net impact of narrower NGL frac spreads, partially offset by realized gains on NGL-based derivatives and lower realized gains on crude oil-based derivatives due to lower volumes and narrower price spreads. Finally, in the corporate segment, Q4 results were lower than prior period due to higher long-term incentive costs, partially offset by lower non-compensation-related expenses. Earnings in the Q4 were CAD 489 million.

Speaker #1: In Marketing and New Ventures, fourth quarter results reflected the net impact of narrower NGL frac spreads, partially offset by realized gains on NGL-based derivatives, and lower realized gains on crude oil-based derivatives due to lower volumes and narrower price spreads.

Speaker #1: Finally, in the corporate segment, fourth quarter results were lower than the prior period due to costs, partially offset by lower non-compensation-related expenses. Earnings in the fourth quarter were $489 million.

Speaker #1: This represents a 15% decrease over the same period in the prior year. In addition to the factors impacting adjusted EBITDA, the decrease in earnings in the fourth quarter was primarily due to the net impact of higher depreciation and amortization expense in pipelines; lower other expenses recognized in the share of profit from PGI, as 2024 included costs related to asset disposals; higher share of profit from Greenlight due to a gain on sale of land to a third-party potential customer and various unrealized gains and losses on derivatives; a gain recognized by Pembina on a sale of land to a third-party potential customer of Greenlight, combined with lower net finance costs and lower acquisition and integration costs; offset by higher restructuring costs.

Cameron Goldade: This represents a 15% decrease over the same period in the prior year. In addition to the factors impacting Adjusted EBITDA, the decrease in earnings in the Q4 was primarily due to the net impact of higher depreciation and amortization expense in pipelines, lower other expenses recognized in the share of profit from PGI, as 2024 included costs related to asset disposals, higher share of profit from Greenlight due to a gain on sale of land to a third-party potential customer and various unrealized gains and losses on derivatives, a gain recognized by Pembina on a sale of land to a third-party potential customer of Greenlight, combined with lower net finance costs and lower acquisition and integration costs, offset by higher restructuring costs, and finally, lower income tax expense.

Speaker #1: And finally, lower income tax expense. Total volumes in the Pipelines and Facilities divisions were 3.7 million barrels of oil equivalent per day in the fourth quarter.

Cameron Goldade: Total volumes in the pipelines and facilities divisions were 3.7 million barrels of oil equivalent per day in Q4. This represents an increase of 1% over the same period in the prior year. Higher Q4 pipeline volumes were driven primarily by higher interruptible and contracted volumes on the Peace Pipeline system, an increase in volumes on AEGS as Q4 2024 was impacted by third-party outages, an increase in contracted volumes on the Nipisi Pipeline, lower interruptible volumes on the Goshen Pipeline due to narrower condensate price differentials, and the sale of the north segment of the Western Pipeline in Q3 2025.

Speaker #1: This represents an increase of 1% over the same period in the prior year. Higher fourth quarter pipeline volumes were driven primarily by higher interruptible and contracted volumes on the Peace pipeline system, an increase in volumes on EGGS as the fourth quarter in 2024 was impacted by third-party outages, an increase in contracted volumes on the Nipissy pipeline, lower interruptible volumes on the Koshin pipeline due to narrower condensate price differentials, and the sale of the north segment of the Western pipeline in the third quarter of 2025.

Speaker #1: Higher fourth quarter facilities volumes were driven primarily by the acquisition of White Cap's KBOB complex in the fourth quarter of 2024, higher volumes at the Dawson assets due to higher natural gas prices, higher volumes at the Duvernay complex, and a decrease in Oxable volumes due to lower ethane extraction.

Cameron Goldade: Higher Q4 facilities volumes were driven primarily by the acquisition of Whitecap's Kaybob complex in Q4 2024, higher volumes at the Dawson assets due to higher natural gas prices, higher volumes at the Duvernay complex, and a decrease in Oxbow volumes due to lower ethane extraction.

Speaker #1: The fourth quarter contributed to solid full-year results that included earnings of $1.694 billion, adjusted EBITDA of $4.289 billion, cash flow from operating activities of $3.301 billion, or $5.68 per share, and adjusted cash flow from operating activities of $2.854 billion, or $4.91 per share.

[Company Representative] (Pembina Pipeline Corp): The Q4 contributed to solid full year results that included earnings of CAD 1.694 billion, adjusted EBITDA of CAD 4.289 billion, cash flow from operating activities of CAD 3.301 billion or CAD 5.68 per share, and adjusted cash flow from operating activities of CAD 2.854 billion or CAD 4.91 per share. During the Q4, Pembina announced a 2026 adjusted EBITDA guidance range of CAD 4.125 to 4.425 billion. The midpoint of the 2026 guidance range represents 2023 to 2026 fee-based adjusted EBITDA per share, compound annual growth of approximately 5%, positioning Pembina to deliver on the target we originally provided at our 2024 investor date.

Cameron Goldade: The Q4 contributed to solid full year results that included earnings of CAD 1.694 billion, adjusted EBITDA of CAD 4.289 billion, cash flow from operating activities of CAD 3.301 billion or CAD 5.68 per share, and adjusted cash flow from operating activities of CAD 2.854 billion or CAD 4.91 per share. During the Q4, Pembina announced a 2026 adjusted EBITDA guidance range of CAD 4.125 to 4.425 billion. The midpoint of the 2026 guidance range represents 2023 to 2026 fee-based adjusted EBITDA per share, compound annual growth of approximately 5%, positioning Pembina to deliver on the target we originally provided at our 2024 investor date.

Speaker #1: During the fourth quarter, Pembina announced a 2026 adjusted EBITDA guidance range of $4.125 to $4.425 billion. The midpoint of the 2026 guidance range represents 2023 to 2026 fee-based adjusted EBITDA per share compound annual growth of approximately 5%.

Speaker #1: Positioning Pembina to deliver on the target we originally provided at our 2024 Investor Day. Based on Pembina's existing strong financial position, the 2026 year-end proportionally consolidated debt-to-adjusted EBITDA ratio is expected to be approximately 3.7 to 4.0 times.

[Company Representative] (Pembina Pipeline Corp): Based on Pembina's existing strong financial position, the 2026 year-end proportionally consolidated debt to adjusted EBITDA ratio is expected to be approximately 3.7 to 4.0x. Excluding debt related to the construction of the Cedar LNG facility, which is expected to enter service in late 2028, this ratio would be approximately 3.4 to 3.7x. With 2026 serving as the peak investment year for Cedar LNG, 2026 is also expected to represent the peak year for Pembina's proportionally consolidated debt to adjusted EBITDA ratio. With incremental cash flow from projects entering service and a significant ramp down in Cedar LNG spending for 2026, Pembina's leverage is expected to return to the lower end of its target range of 3.5 to 4.25x. I'll now turn things back to Scott.

Cameron Goldade: Based on Pembina's existing strong financial position, the 2026 year-end proportionally consolidated debt to adjusted EBITDA ratio is expected to be approximately 3.7 to 4.0x. Excluding debt related to the construction of the Cedar LNG facility, which is expected to enter service in late 2028, this ratio would be approximately 3.4 to 3.7x. With 2026 serving as the peak investment year for Cedar LNG, 2026 is also expected to represent the peak year for Pembina's proportionally consolidated debt to adjusted EBITDA ratio. With incremental cash flow from projects entering service and a significant ramp down in Cedar LNG spending for 2026, Pembina's leverage is expected to return to the lower end of its target range of 3.5 to 4.25x. I'll now turn things back to Scott.

Speaker #1: Excluding debt related to the construction of the Cedar LNG facility, which is expected to enter service in late 2028, this ratio would be approximately 3.4 to 3.7 times.

Speaker #1: With 2026 serving as the peak investment year for Cedar LNG, 2026 is also expected to represent the peak year for Pembina's proportionally consolidated debt-to-adjusted EBITDA ratio.

Speaker #1: With incremental cash flow from projects entering service, and a significant ramp-down in Cedar LNG spending post-2026, Pembina's leverage is expected to return to the lower end of its target range of 3.5 to 4.25 times.

Speaker #1: I'll now turn things back to Scott.

Speaker #2: Thanks, Cam. Doing what we said we would do is core to PEMBINA's leadership team, and I believe our 2025 accomplishments and our longer track record as a company speak to that.

Scott Burrows: Thanks, Cam. Doing what we said we would do is core to Pembina's leadership team, and I believe our 2025 accomplishments and our longer track record as a company speak to that. We continue to focus on providing safe, reliable, responsible, and cost-effective energy infrastructure solutions. I believe we are uniquely positioned to capture incremental new volumes in the growing Western Canadian Sedimentary Basin and connect our customers to high-value global markets while unlocking new opportunities beyond our strong legacy business. Our entire organization is focused on ensuring the long-term resilience of our business and providing investors with visibility to attractive growth throughout the end of the decade and beyond. Thank you for joining us this morning. Please go ahead and open up the line for questions.

Speaker #2: We continue to focus on providing safe, reliable, responsible, and cost-effective energy infrastructure solutions. I believe we are uniquely positioned to capture incremental new volumes in the growing Western Canadian Sedimentary Basin and connect our customers to high-value global markets, while unlocking new opportunities beyond our strong legacy business.

Speaker #2: Our entire organization is focused on ensuring the long-term resilience of our business and providing investors with visibility to attractive growth throughout the end of the decade and beyond.

Speaker #2: Thank you for joining us this morning. Please go ahead and open up the line for questions.

Speaker #3: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad.

Operator: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Arun Saini of TD Cowen. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device.

Speaker #3: Please stand by while we compile the Q&A roster. Your first question comes from Aaron McNeil of TD Cohen. Your line is open. Please go ahead.

Speaker #4: Hey, good morning, all. Thanks for taking my questions. I'm hoping you can sort of give a bit more detail on the decision not to pursue the full Taylor to Gordon Dale expansion, and I realize this could very well be my own misinterpretation, but my impression was that this would likely go ahead once the permits were in place.

Arun Saini: Hey, good morning, all. Thanks for taking my questions. I'm hoping you can sort of give a bit more detail on the decision not to pursue the full Taylor to Gordondale Expansion. I realize this could very well be my own misinterpretation, but my impression was that this would likely go ahead once the permits were in place. Either way, I guess I'm just wondering, has anything in terms of your outlook changed? Are you opting for a lower risk approach? Has ARC's decision to remove the second phase of Attachie sort of caused you to pause this a bit, or is it the commodity outlook? You know, maybe I'm just overthinking it, and this was always the strategy. Just any insights there would be helpful.

Speaker #4: So either way, I guess I'm just wondering, has anything in terms of your outlook changed, or are you opting for maybe a lower-risk approach? Has ARC's decision to remove the second phase of Hitachi sort of caused you to pause this a bit, or is it the commodity outlook? Or maybe I'm just overthinking it and this was always the strategy?

Speaker #4: So just any insights there would be helpful.

[Company Representative] (Pembina Pipeline Corp): Yeah. Hey, good morning, Arun. It's Jared. Thanks for the question, and I think it's a really good one. You know, like we said in our press release, we've got three projects on the go on the pipeline, conventional pipeline side, our Fox Creek-to-Namao, which we talked about there a few quarters ago, or our Birch to Taylor, and then our Taylor to Gordondale, kind of like, we'll call it phase one. All of this capital, 100%, is being driven by, you know, really Canada unlocking our egress constraints. We have our oil constraints being alleviated, which is driving more demand for condensate. You know, our condensate import pipelines are fairly tapped, ours and a third party, that's gonna drive a lot of condensate domestic growth.

Jared Bordoley: Yeah. Hey, good morning, Arun. It's Jared. Thanks for the question, and I think it's a really good one. You know, like we said in our press release, we've got three projects on the go on the pipeline, conventional pipeline side, our Fox Creek-to-Namao, which we talked about there a few quarters ago, or our Birch to Taylor, and then our Taylor to Gordondale, kind of like, we'll call it phase one. All of this capital, 100%, is being driven by, you know, really Canada unlocking our egress constraints. We have our oil constraints being alleviated, which is driving more demand for condensate. You know, our condensate import pipelines are fairly tapped, ours and a third party, that's gonna drive a lot of condensate domestic growth.

Speaker #5: And good morning, Aaron. It's Jared. Thanks for the question, and I think it's a really good one. So, like we said in our press release, we've got three projects on the go on the pipeline—conventional pipeline—side.

Speaker #5: Our Foxhead and Mayo, which we talked about there a few quarters ago, our Birch to Taylor, and then our Taylor to Gordon Dale, kind of like—we'll call it phase one.

Speaker #5: All of this capital, 100%, is being driven by really Canada unlocking our egress constraints. We have our oil constraints being alleviated, which is driving more demand for condensate.

Speaker #5: Our condensate import pipelines are fairly tapped—ours and third party. So that's going to drive a lot of condensate domestic growth. And then, obviously, with that condensate comes natural gas.

[Company Representative] (Pembina Pipeline Corp): Obviously, you know, with that condensate comes natural gas, and that egress constraint is also being lifted with LNG Canada being ramped up, Cedar coming online, other projects, et cetera. That's really driving the need for condensate and NGLs, and I know you know that, but I think it's important to ground ourselves that a lot of that growth is coming from obviously the Montney, but specifically up in that neighborhood of, I'll call it north of Taylor, BC, up into that, you know, north of Fort St. John, Fort Nelson geographic area. A lot of it's coming from there. That really drives to the Birch to Taylor project, if you think about it that way.

Jared Bordoley: Obviously, you know, with that condensate comes natural gas, and that egress constraint is also being lifted with LNG Canada being ramped up, Cedar coming online, other projects, et cetera. That's really driving the need for condensate and NGLs, and I know you know that, but I think it's important to ground ourselves that a lot of that growth is coming from obviously the Montney, but specifically up in that neighborhood of, I'll call it north of Taylor, BC, up into that, you know, north of Fort St. John, Fort Nelson geographic area. A lot of it's coming from there. That really drives to the Birch to Taylor project, if you think about it that way.

Speaker #5: And that egress constraint is also being lifted with LNG Canada being ramped up, Cedar coming online, other projects, etc. So that's really driving the need for condensate and NGLs.

Speaker #5: And I know you know that, but I think it's important to ground ourselves that a lot of that growth is coming from, obviously, the Montney, but specifically up in that neighborhood of, I'll call it, north of Taylor, B.C., up into that north of Fort St.

Speaker #5: John, Fort Nelson geographic area—a lot of it's coming from there. That really drives to the Birch to Taylor project, if you think about it that way.

Speaker #5: So first off, I want to say that that project—the collaboration and the consolidation of industry, the Indigenous communities, and our partners, the BC government and the BC regulator—that was a tremendous outcome for us, getting all of our hurdles in place and behind us collectively.

[Company Representative] (Pembina Pipeline Corp): First off, I want to say that the project, the collaboration and the consolidation of industry, the indigenous communities and our partners, the BC government and the BC regulator, that was a tremendous outcome for us, getting all of our hurdles in place and behind us collectively. That project really is allowing us, number one, it's gonna grow our condensate and natural gas liquids, specifically C3+ capacity. It's really to meet their needs, the growth demand that I talked about for all those other reasons. I think also, Arun, sanctioning that project now and bringing that online, you know, kind of the end of 2027 into 2028, it really, it shows, you know, we've been really good at project execution. We pride ourselves on our safety record.

Jared Bordoley: First off, I want to say that the project, the collaboration and the consolidation of industry, the indigenous communities and our partners, the BC government and the BC regulator, that was a tremendous outcome for us, getting all of our hurdles in place and behind us collectively. That project really is allowing us, number one, it's gonna grow our condensate and natural gas liquids, specifically C3+ capacity. It's really to meet their needs, the growth demand that I talked about for all those other reasons. I think also, Arun, sanctioning that project now and bringing that online, you know, kind of the end of 2027 into 2028, it really, it shows, you know, we've been really good at project execution. We pride ourselves on our safety record.

Speaker #5: That project really is allowing us—number one, it's going to grow our condensate and natural gas liquids, specifically C3+ capacity. It's really to meet their needs, the growth demand that I talked about, for all those other reasons.

Speaker #5: I think also, Aaron, sanctioning that project now and bringing that online, kind of the end of '27, into '28, it really shows that we've been really good at project execution.

Speaker #5: We pride ourselves on our safety record. We pride ourselves on working with local communities and subcontractors, etc. And I think really getting focused on making this project a cost-focused and a safety-focused project versus a schedule-driven project, because we all know our customers can drill significantly faster than we can build long linear assets.

[Company Representative] (Pembina Pipeline Corp): We pride ourselves on working with local communities and subcontractors, et cetera. I think really getting focused on making this project a cost-focused and a safety-focused project versus a schedule-driven project, because we all know our customers can drill significantly faster than we can build long linear assets. That's kind of, you know, Birch to Taylor. Now I'll get into actually your question. Like you said, 10 February, we did receive our federal permit for Taylor to Gordondale. I really think about Taylor to Gordondale as growth in the Montney, in two other specific regions, geographically. I'm gonna call it the Dawson Creek area, so, you know, southeast of Taylor. We're seeing a lot of growth in the Montney in that neighborhood. You're seeing, you know, it's the condensate and the C3+ once again.

Jared Bordoley: We pride ourselves on working with local communities and subcontractors, et cetera. I think really getting focused on making this project a cost-focused and a safety-focused project versus a schedule-driven project, because we all know our customers can drill significantly faster than we can build long linear assets. That's kind of, you know, Birch to Taylor. Now I'll get into actually your question. Like you said, 10 February, we did receive our federal permit for Taylor to Gordondale. I really think about Taylor to Gordondale as growth in the Montney, in two other specific regions, geographically. I'm gonna call it the Dawson Creek area, so, you know, southeast of Taylor. We're seeing a lot of growth in the Montney in that neighborhood. You're seeing, you know, it's the condensate and the C3+ once again.

Speaker #5: So, that's kind of Birch to Taylor. Now, I'll get into actually your question. So, like you said, February 10th, we did receive our federal permit for Taylor to Gordon Dale.

Speaker #5: And I really think about Taylor to Gordon Dale as growth in the Montney in two other specific regions, geographically. I'm going to call it the Dawson Creek area, so southeast of Taylor.

Speaker #5: We're seeing a lot of growth in the Montney in that neighborhood, and you're seeing it's the condensate and the C3+ once again. And then, on the Alberta side of the border, you're seeing a lot of growth in the Montney in what some refer to as the Peace River Arch, in and around that Gordondale and up to the western side of the Alberta border.

[Company Representative] (Pembina Pipeline Corp): On the Alberta side of the border, you're seeing a lot of growth in the Montney, in what some refer to as the Peace River Arch, in around that Gordondale and up to the western side of the Alberta border. Ultimately, you know, getting that permit was also a tremendous amount of work. We did have some, you know, I would say, objectors, commercial objectors, I think our team persevered and got that. We will need that project full stop, one day. The condensate, and it's in the near future, due to all the exact same demand. The condensate is growing in that area. The C3+ is growing in that area.

Jared Bordoley: On the Alberta side of the border, you're seeing a lot of growth in the Montney, in what some refer to as the Peace River Arch, in around that Gordondale and up to the western side of the Alberta border. Ultimately, you know, getting that permit was also a tremendous amount of work. We did have some, you know, I would say, objectors, commercial objectors, I think our team persevered and got that. We will need that project full stop, one day. The condensate, and it's in the near future, due to all the exact same demand. The condensate is growing in that area. The C3+ is growing in that area.

Speaker #5: Ultimately, getting that permit was also a tremendous amount of work. We did have some, I would say, objectors—commercial objectors—but I think our team persevered and got that.

Speaker #5: We will need that project, full stop. One day. The condensate—and it's in the near future due to all the exact same demand. The condensate is growing in that area, the C3+ is growing in that area.

Speaker #5: But what I will say is, one of the things about Pembina is not only our ability to build projects on time and on budget, we also have flexibility in our infrastructure and our people.

[Company Representative] (Pembina Pipeline Corp): What I will say is one of the things about Pembina is not only our ability to build projects on time and our budget, our flexibility of our infrastructure and our people. Our people really took a step back and worked collaboratively with operations, our engineering hydraulics teams, and they came up with a little bit more of a capital light solution. All of this capital will be required for the full build-out, but a capital light solution, which really is a prudent deployment of capital, which Cam gives me a high five for all the time, it still allows us to meet our customer needs and meet their egress demand. Almost, like, as they grow, it's almost on demand, we can go out and build this. Hopefully, that provides you a little bit of color.

Jared Bordoley: What I will say is one of the things about Pembina is not only our ability to build projects on time and our budget, our flexibility of our infrastructure and our people. Our people really took a step back and worked collaboratively with operations, our engineering hydraulics teams, and they came up with a little bit more of a capital light solution. All of this capital will be required for the full build-out, but a capital light solution, which really is a prudent deployment of capital, which Cam gives me a high five for all the time, it still allows us to meet our customer needs and meet their egress demand. Almost, like, as they grow, it's almost on demand, we can go out and build this. Hopefully, that provides you a little bit of color.

Speaker #5: Our people really took a step back and worked collaboratively with Operations, our Engineering, Hydraulics teams, and they came up with a little bit more of a capital-light solution.

Speaker #5: All of this capital we required for the full build-out, but a capital-light solution, which really is a prudent deployment of capital—which CAM gives me a high five for all the time.

Speaker #5: And it still allows us to meet our customer needs and meet their egress demand—almost like, as they grow, it's almost on demand we can go out and build this.

Speaker #5: So hopefully that provides you a little bit of color. We don't see this due to overall certain customers talking about production profiles and condensate's growing—natural gas is going to come with it. Pembina's ability to grow with our customers is, I think, better than anyone else in the basin.

[Company Representative] (Pembina Pipeline Corp): We don't see this due to overall certain customers talking about production profiles and condensates growing, natural gas is gonna come with it. Pembina's ability to grow with our customers is, I think, better than anyone else in the basin.

Jared Bordoley: We don't see this due to overall certain customers talking about production profiles and condensates growing, natural gas is gonna come with it. Pembina's ability to grow with our customers is, I think, better than anyone else in the basin.

Speaker #4: That's a lot more detail than I was expecting. Thank you so much for that. I can maybe ask a second question. I can appreciate that marketing fundamentals have been challenging year to date, but we've seen Canadian gas prices decrease.

Arun Saini: That's a lot more detail than I was expecting. Thank you so much for that. Maybe second question: I can appreciate that, you know, marketing fundamentals have been challenging year to date, but we've seen, you know, Canadian gas prices decrease in the last few weeks. Liquids pricing is, you know, on balance up since you released the guidance, which should sort of improve the frac spread and other marketing strategies. I guess I'm just wondering if you'd characterize your previously disclosed marketing outlook as maybe a bit better on the margin now than you'd previously thought as we get sort of closer to that annual recontracting window?

Speaker #4: In the last few weeks, liquids pricing is, on balance, up. Since you released the guidance, that should sort of improve the frac spread and other marketing strategies.

Speaker #4: So I guess I'm just wondering if you'd characterize your previously disclosed marketing outlook as maybe a bit better on the margin now than you'd previously thought, as we get sort of closer to that annual recontracting window?

Speaker #3: Yeah, Aaron, thanks. It's Chris Sherman. I think we've all seen significant volatility to start the year. Obviously, we're only 60 days in. And you just referenced it—we're happy to see the price outlook for the remainder of the year improve, especially sort of over the last week.

Chris Scherman: Yeah, Aaron, thanks. It's Chris Scherman. You know, I think we've all, we've all seen significant volatility to start the year. Obviously, we're only 60 days in, and you just referenced it, we're happy to see the price outlook for the remainder of the year improve, especially sort of over the last week. I think all in all, things are actually looking positive for us for the remainder of the year. I'd highlight the first 45 days of the year. We definitely saw some headwinds on US frac spread, primarily as a result of US weather, which drove up Chicago gas prices.

Speaker #3: And I think, all in all, things are actually looking positive for us for the remainder of the year. I'd highlight the first 45 days of the year.

Speaker #3: We definitely saw some headwinds on U.S. frac spread, primarily as a result of U.S. weather, which drove up Chicago gas prices. But given those U.S. frac spread headwinds to start the year, combined with the improved outlook for the remainder of the year, right now we're still looking to be slightly ahead of the midpoint on our marketing guidance for the full year.

Chris Scherman: Given those US frac spread headwinds to start the year, combined with the improved outlook for the remainder of the year, right now, we're still looking to be slightly ahead of the midpoint on our marketing guidance for the full year. You know, I'd highlight there's still a lot of year left to go. I'd also highlight that given those headwinds earlier in the year, we can probably expect a little bit of a reshaping of the profile through the full year, but we're optimistic and sort of remain on plan for the full year.

Speaker #3: I'd highlight there's still a lot of year left to go. I'd also highlight that, given those headwinds earlier in the year, we can probably expect a little bit of a reshaping of the profile through the full year.

Speaker #3: But we're optimistic and sort of remain on plan for the full year. Aaron, I'll just—maybe it's Jared here. Just on the flip side of that, obviously with really high Chicago gas prices, that puts pressure on our frac spread business. But also, the AECO to Chicago spread drives fee-based business to offset some of that noise. And then obviously—I think Cam might talk to it—but we're seeing some fairly strong fluctuations in FX just over the last 60 days, etc.

Arun Saini: I hear you.

[Company Representative] (Pembina Pipeline Corp): Arun, I'll maybe it's Jared here. Just on the flip side of that, obviously, with really high Chicago gas prices, that puts pressure on our frac spread business. It also, you know, the AECO to Chicago spread drives fee-based business to offset some of that noise. Then, obviously, you know, I think Cam might talk to it, but we're seeing some fairly strong fluctuations in FX, you know, just over the last, you know, 60 days, et cetera.

Jared Bordoley: Arun, I'll maybe it's Jared here. Just on the flip side of that, obviously, with really high Chicago gas prices, that puts pressure on our frac spread business. It also, you know, the AECO to Chicago spread drives fee-based business to offset some of that noise. Then, obviously, you know, I think Cam might talk to it, but we're seeing some fairly strong fluctuations in FX, you know, just over the last, you know, 60 days, et cetera.

Speaker #4: Okay. Fair enough. Thanks, everyone. I'll turn it back.

Arun Saini: Okay, fair enough. Thanks, everyone. I'll turn it back.

Speaker #1: Your next question comes from Jeremy Tonay from JPMorgan Securities. Please go ahead.

Operator: Your next question comes from Jeremy Tonet, from J.P. Morgan Securities. Please go ahead.

Speaker #6: Hi. Good morning.

Jeremy Tonet: Hi, good morning.

Speaker #4: Morning, Jeremy.

[Company Representative] (Pembina Pipeline Corp): Morning, Jeremy.

Jared Bordoley: Morning, Jeremy.

Jeremy Tonet: Just wanted to go to the Tourmaline contract extension, if I could, and just wondering, you know, how that looks, how that shakes out economics versus prior. Just wondering, you know, with the market right now, how it's developing, does it look similar on a same store basis there, or how are things evolving?

Speaker #6: Just wanted to go to the Tourmaline contract extension if I could. And just wondering how that looks, how that shakes out economics versus prior.

Speaker #6: Just wondering, with the market right now and how it's developing, does it look similar on a same-store basis there, or how are things evolving?

[Company Representative] (Pembina Pipeline Corp): Hi, Jeremy, it's Jared. First off, really pleased, you know, to extend our partnership with Tourmaline Oil Corp. They're obviously one of our largest customers and one of the largest producers in Western Canada. You know, it warms my heart to see that the Cutbank complex, which is Pembina's original acquisition into gas processing back in 2009, that we're continuing to see, you know, flat production, you know, growing production in and around that area. You know, with respect to tolls, we won't get into the details on that, but obviously, I'll break it down into a couple. Pipe and frac tolls, you'll see those consistent with the rest of our business. It wouldn't be specific to this customer in this area.

Speaker #3: Yeah. Hi, Jeremy. It's Jared. So, first off, really pleased to extend our partnership with Tourmaline. They're obviously one of our largest customers and one of the largest producers in Western Canada.

Jared Bordoley: Hi, Jeremy, it's Jared. First off, really pleased, you know, to extend our partnership with Tourmaline Oil Corp. They're obviously one of our largest customers and one of the largest producers in Western Canada. You know, it warms my heart to see that the Cutbank complex, which is Pembina's original acquisition into gas processing back in 2009, that we're continuing to see, you know, flat production, you know, growing production in and around that area. You know, with respect to tolls, we won't get into the details on that, but obviously, I'll break it down into a couple. Pipe and frac tolls, you'll see those consistent with the rest of our business. It wouldn't be specific to this customer in this area.

Speaker #3: And it always kind of warms my heart to see that the Cutbank Complex, which was Pembina's original acquisition into gas processing back in '09, that we're continuing to see flat production and growing production in and around that area.

Speaker #3: So, with respect to tolls, we won't get into the details on that, but obviously, I'll break it down into a couple: pipe and frac tolls.

Speaker #3: You'll see those consistent with the rest of our business. It wouldn't be specific to this customer in this area. And then, on the PGI side of our business, the gas economics and the overall netbacks in and around this area—they are strong because of the liquids production that comes out of it, which supports the overall netback for our customers.

[Company Representative] (Pembina Pipeline Corp): On the PGI side of our business, you know, the gas economics and the overall netbacks in and around this area, they are strong because of the liquids production that comes out of it that supports the overall netback for our customers. In this area, you don't have to see a lot of toll erosion in order to, you know, meet the customer's needs on the processing side. You know, with that said, you know, although we're extremely excited to extend this partnership, you recall in Q3, we recorded a small write-down with respect to one of our processing contracts that didn't get extended in a different geographical area of the Deep Basin, you know.

Jared Bordoley: On the PGI side of our business, you know, the gas economics and the overall netbacks in and around this area, they are strong because of the liquids production that comes out of it that supports the overall netback for our customers. In this area, you don't have to see a lot of toll erosion in order to, you know, meet the customer's needs on the processing side. You know, with that said, you know, although we're extremely excited to extend this partnership, you recall in Q3, we recorded a small write-down with respect to one of our processing contracts that didn't get extended in a different geographical area of the Deep Basin, you know.

Speaker #3: So, in this area, you don't have to see a lot of toll erosion in order to meet the customer's needs on the processing side.

Speaker #3: With that said, although we're extremely excited to extend this partnership, you recall in Q3 we recorded a small write-down with respect to one of our processing contracts that didn't get extended.

Speaker #3: And it differed geographically across the area of the Deep Basin. But with that said, since the date of that press release and talking about that expiry, our teams—who are focused on filling our assets every day—have essentially recovered 60% of that value, and will continue to backfill that portion of the business.

[Company Representative] (Pembina Pipeline Corp): With that said, since that date of that press release and talking about that expiry, our teams who are focused on, you know, filling our assets every day, have essentially recovered 60% of that value and will continue to backfill that portion of the business. Also, Jeremy, that has been fully baked into, you know, the recontracting and, you know, the Q3 announcement, that has fully been baked into our 2026 guidance and our overall long-range plan.

Jared Bordoley: With that said, since that date of that press release and talking about that expiry, our teams who are focused on, you know, filling our assets every day, have essentially recovered 60% of that value and will continue to backfill that portion of the business. Also, Jeremy, that has been fully baked into, you know, the recontracting and, you know, the Q3 announcement, that has fully been baked into our 2026 guidance and our overall long-range plan.

Speaker #3: Also, Jeremy, that has been fully baked into the recontracting and the Q3 announcement. That has fully been baked into our 2026 guidance and our overall long-range plan.

Speaker #6: Okay, great. Thanks. Great to hear about that recovery there. I was just wondering if we could step back a little bit, take a higher view of the basin, kind of picking up with the current commodity price outlook and how that, I guess, impacts the driller activity expectations for your customers?

Jeremy Tonet: Okay, great. Thanks. Great to hear on that recovery there. I was just wondering if we could step back a little bit, take a higher view of the basin, kind of picking up with, you know, current commodity price outlook and how that, I guess, impacts the driller activity expectations for your customers. We've seen volatility out there. Just wondering, what's the latest conversations you're having with customers, ARC and others, and how you expect, I guess, activity to change over time?

Speaker #6: We've seen volatility out there. Just wondering, what's the latest conversations you're having with customers, ARC and others, and how you expect activity to change over time?

Speaker #4: Yeah, Jeremy, it's Scott here. I would just caution that, like Chris said, the increase in commodity price has happened pretty rapidly here. And let's break that down.

Scott Burrows: Yeah, Jeremy, it's Scott here. I would just caution that, like Chris said, it's the increase in commodity price has happened pretty rapidly here. Let's break that down. I mean, it's really been on the crude oil price. I mean, we still have seen a ton of volatility in AECO, and AECO and Station 2 today are kind of where we started the year, if not slightly below. Propane's kind of remained flattish. It's very commodity specific, and the crude oil run-up here has just happened very shortly. I would say that this short-term run-up, I don't know that it's been sustained enough to say that producers have changed their activity from the start of the year. You know, there's also been a fair bit of M&A to end last year.

Speaker #4: I mean, it’s really been on the crude oil price. I mean, we still have seen a ton of volatility in ACO, and ACO in Station 2 today are kind of where we started the year, if not slightly below.

Speaker #4: Propane's kind of remained flattish, so it's very commodity-specific. And the crude oil run-up here has just happened very shortly. So I would say that this short-term run-up—I don't know that it's been sustained enough to say that producers have changed their activity from the start of the year.

Speaker #4: There's also been a fair bit of M&A to end last year. And I think as people work through closing those transactions, hopefully over the next couple of weeks or months here, we'll see kind of revised drilling plans.

Scott Burrows: I think as people work through closing those transactions, you know, hopefully over the next couple of weeks or months here, we'll see kind of revised drilling plans. You know, this comment is not specific to the recent M&A because, you know, obviously, you can't talk about that. Historically, what I would say over the last two years, as we've seen, some of the consolidation happen, we've actually seen an acceleration of volumes. You know, most people don't buy, you know, another company to keep production flat or decline it. Typically, we've seen growth, so we're excited to see what could come out of some of the consolidation, but can't speak specifically to that just yet.

Speaker #4: This comment is not specific to the recent M&A, because, obviously, you can't talk about that. But historically, what I would say, over the last two years as we've seen some of the consolidation happen, we've actually seen an acceleration of volumes. Most people don't buy another company to keep production flat or decline it.

Speaker #4: Typically, we've seen growth, so we're excited to see what could come out of some of the consolidation. But can't speak specifically to that just yet.

Speaker #3: And maybe just further to that, when I break it down into the different geological formations, I'll start with in the old-school Drayton Valley area. We're also seeing these prices—even at $60—we're seeing a tremendous amount of drilling. And even as you talk about the South Duvernay, etc., our system out in that area obviously is seeing strong volumes.

[Company Representative] (Pembina Pipeline Corp): Maybe just further to that, you know, when I break it down into the different geological formations, I'll start with, like, in that old school Drayton Valley area, we're also seeing, you know, these prices, even at CAD 60, we're seeing a tremendous amount of drilling. Even as you talk about the, you know, the South Duvernay, et cetera, our system out in that area obviously is seeing strong volumes. If you move up into kind of that Peace River Arch area, again, that I talked about, you are seeing a lot of companies talk about Charlie Lake Oil. That's continuing to grow. Pembina has, you know, oil assets in the area to capture those volumes into the Edmonton market.

Jared Bordoley: Maybe just further to that, you know, when I break it down into the different geological formations, I'll start with, like, in that old school Drayton Valley area, we're also seeing, you know, these prices, even at CAD 60, we're seeing a tremendous amount of drilling. Even as you talk about the, you know, the South Duvernay, et cetera, our system out in that area obviously is seeing strong volumes. If you move up into kind of that Peace River Arch area, again, that I talked about, you are seeing a lot of companies talk about Charlie Lake Oil. That's continuing to grow. Pembina has, you know, oil assets in the area to capture those volumes into the Edmonton market.

Speaker #3: If you move up into kind of that Peace River Arch area, again, that I talked about, you are seeing a lot of companies talk about Charlie Lake oil.

Speaker #3: That's continuing to grow. And Pembina has oil assets in the area to capture those volumes into the Edmonton market. If you go kind of north, back up our Clearwater area, the Nipissie Pipeline, based on all of the connections we have today and the pumps we have in place, you're seeing the upstream customers really talk about the recovery factors increasing, the drilling results, how economic they are. You can continue to see Nipissie capture more and more of those volumes.

[Company Representative] (Pembina Pipeline Corp): If you go kind of north, back up, you know, our Clearwater area, the Nipisi Pipeline, you know, based on all of the connections we have today and the pumps we have in place, you're seeing the upstream customers really talk about the recovery factors increasing, the drilling results, how economic they are. You know, you can continue to see Nipisi capture more and more of those volumes, and we're working on, I talked about the optimization we did at Taylor-to-Gordondale. Our teams are driving some really cool, cheap expansions on the Clearwater, for the Clearwater customers on the Nipisi Pipeline. When you think about the Montney, I think I touched on it, but, you know, our customers, they have so much land across so many geographical areas, and Pembina's system obviously expands a significant geographical area.

Jared Bordoley: If you go kind of north, back up, you know, our Clearwater area, the Nipisi Pipeline, you know, based on all of the connections we have today and the pumps we have in place, you're seeing the upstream customers really talk about the recovery factors increasing, the drilling results, how economic they are. You know, you can continue to see Nipisi capture more and more of those volumes, and we're working on, I talked about the optimization we did at Taylor-to-Gordondale. Our teams are driving some really cool, cheap expansions on the Clearwater, for the Clearwater customers on the Nipisi Pipeline. When you think about the Montney, I think I touched on it, but, you know, our customers, they have so much land across so many geographical areas, and Pembina's system obviously expands a significant geographical area.

Speaker #3: And we're working on—I talked about the optimization we did at Taylor to Gordon Dale. Our teams are driving some really cool, cheap expansions on the Clearwater for the Clearwater customers on the Nipissie Pipeline.

Speaker #3: And then, when you think about the Montney—I think I touched on it—but our customers, they have so much land across so many geographical areas.

Speaker #3: And Pembina’s system obviously expands a significant geographical area. Our customers, if they’re having some challenges or they’re maxed out on capacity in one area, or constrained by natural gas egress in an area, they can always redeploy capital.

[Company Representative] (Pembina Pipeline Corp): Our customers, if they're, you know, if they're having some challenges or they're maxed out on capacity in one area or are constrained by natural gas egress in an area, they can always redeploy capital. Like I said, the oil sands needs condensate. The import pipelines are fairly full. It has to come from somewhere, and our customers, the Alberta Innovation or the Western Canadian Energy Innovation, it will unlock this condensate, and I think our system is pretty primed to capture it, so things are in good shape.

Jared Bordoley: Our customers, if they're, you know, if they're having some challenges or they're maxed out on capacity in one area or are constrained by natural gas egress in an area, they can always redeploy capital. Like I said, the oil sands needs condensate. The import pipelines are fairly full. It has to come from somewhere, and our customers, the Alberta Innovation or the Western Canadian Energy Innovation, it will unlock this condensate, and I think our system is pretty primed to capture it, so things are in good shape.

Speaker #3: Like I said, the oil sands need condensate. The import pipelines are fairly full. It has to come from somewhere. And our customers—the Alberta Innovation or the Western Canadian Energy Innovation—it will unlock this condensate.

Speaker #3: And I think our system is pretty primed to capture it, so things are in good shape.

Speaker #6: Got it. Great. Thank you for that.

Jeremy Tonet: Got it. Great. Thank you for that.

Speaker #1: Your next call comes from Teresa Chen from Barclays. Please go ahead.

Operator: Your next call comes from Theresa Chen from Barclays. Please go ahead.

Speaker #7: Morning. Now that Dell has provided a revised timeline for path to zero, with phase one expected by year-end '29 and phase two by year-end '30, could you provide an update on the different options you're evaluating at this point?

Theresa Chen: Morning. Now that Dow has provided a revised timeline for Path2Zero, with phase one expected by year-end 2029 and phase two by year-end 2030, could you provide an update on the different options you're evaluating at this point, and infrastructure investment necessary to supply the 58,000 barrel per day of ethane, for your commitment?

Speaker #7: And infrastructure investment necessary to supply the 50,000 barrels per day of ethane per your commitment?

Speaker #3: Patricia, thanks for the question. It's Chris. So, obviously, we're very pleased to see the project moving ahead in line with, really, our expectations. As we've touched on, Patricia, before—and you're referencing, excuse me—the minor delay in the project has allowed us to reevaluate how best to serve the customer here with the most efficient, capital-efficient infrastructure options to serve the customer's needs.

Chris Scherman: ... Hi, Joseph. Thanks, thanks for the question. It's Chris. Obviously, we're, you know, very pleased to see the project moving ahead in line with really our expectations. You know, as we've touched on Dow before, and you're referencing, excuse me, the minor delay in the project has allowed us to reevaluate, you know, how best to serve the customer here, what the most efficient, capital-efficient infrastructure options are to serve the customer's needs. We will be out this year clarifying that, and that work continues. We keep pointing down that path, so we look forward to making FID on these, this additional infrastructure this year, but we can't provide any more detail today on the call.

Speaker #3: We will be out this year clarifying that. That work continues. We keep pointing down that path. So we look forward to making FID on these additional infrastructure this year.

Speaker #3: But we can't provide any more detail today on the call. Obviously, Dow is a valued partner to us. Congratulate them on the progress they've made on the project.

Chris Scherman: Obviously, Dow, a valued partner to us, congratulate them on the progress they've made on the project, we look forward to getting more details out to the market and progressing.

Speaker #3: And we look forward to getting more details out to the market, and progressing.

Speaker #1: Understood. And turning to Greenlight, given the progress there—the grid allocation, land sale, and turbine availability—what are the key next steps and decision points from here?

Theresa Chen: Understood. Turning to Greenlight, given the progress there, the grid allocation, land sale, and turbine availability, what are the key next steps and decision points from here? What is the expected timeline for contracting FID, and in-service thereafter?

Speaker #1: What is the expected timeline for contracting FID and in-service thereafter?

Speaker #3: You bet. So Chris, again, obviously, we've made significant progress since forming that JV. You referenced it, right, in 2025. We secured the 907 megawatts of ASO allocation, which we subsequently assigned to our potential customer, entered into agreements on turbines, locked those up, got where we needed to be in the queue for those, and closed our land sale.

Chris Scherman: You bet. Chris, again, you know, obviously, we've made significant progress since forming that JV. You referenced it, right? In 2025, we secured the 907 megawatts of AC allocation, which we subsequently assigned to our potential customer, entered into agreements on turbines, locked those up, got where we needed to be in the queue for those. Closed our land sale to set our customer up for success, both on the base project as well as a bunch of growth. As we're looking forward now, we're targeting an FID in Q2. We're positive on, you know, on that timeline and really focused on three work streams between now and then. Number one, commercial.

Speaker #3: To set our customer up for success, both on the base project as well as a bunch of growth. So, as we're looking forward now, we're targeting an FID in Q2.

Speaker #3: We're positive on that timeline and really focused on three work streams between now and then. Number one, commercial. So, we continue to work through negotiations with our potential customer.

Chris Scherman: We continue to work through negotiations with our potential customer. We're in the middle of those negotiations, you know, obviously, limited details on that at this point, but I'd say they're going as expected. Timelines are going as expected, we have confidence, we're gonna reach a midstream-like long-term contract to underpin this commercially. Secondly, regulatory, we're making great progress. We don't view this as a high-risk work stream for the project. We're not part of the discussions between, you know, the customer and the government, we understand those are going really well. There's more information that's come out on the levy and the rest of it, which is, I think, positive and in line with expectations. Finally, third work stream, engineering.

Speaker #3: We're in the middle of those negotiations, so obviously, it can limit the details on that at this point. But I'd say they're going as expected.

Speaker #3: Timelines are going as expected, and we have confidence we're going to reach a midstream-like long-term contract to underpin this commercially. Secondly, regulatory—we're making great progress.

Speaker #3: We don't view this as a high-risk work stream for the project. And we're not part of the discussions between the customer and the government.

Speaker #3: But there's more information that's come out on the levy and the rest of it, which is, I think, positive and in line with expectations.

Speaker #3: And then, finally, third work stream: engineering. So we're working through our fees. We've got top-tier global engineering partners in that. That's progressing well, all pointed towards Q2 FID targets.

Chris Scherman: We're working through our FEED. We've got top-tier global engineering partners in that. That's progressing well, all pointed towards Q2 FID target. Scott spoke about it in his opening remarks, but I think things are going as we'd hoped on this. We think the project remains a tremendous on strategy extension of our business, and we're excited to get it to get it across the line here in Q2.

Speaker #3: So, Scott spoke about it in his opening remarks. But I think things are going as we'd hoped on this. We think the project remains tremendous on strategy—an extension of our business.

Speaker #3: And we're excited to get it across the line here in Q2.

Speaker #1: Thank you. Your next question comes from Sam Burwell from Jefferies. Please go ahead.

Theresa Chen: Thank you.

Operator: Your next question comes from Sam Burwell, from Jefferies. Please go ahead.

Speaker #3: Hey, good morning, guys. Wanted to see if you could give an update on the Alliance short haul extension project. I think back in Q3, you talked about running an open season.

Sam Burwell: Hey, good morning, guys. Wanted to see if you could give an update on the Alliance short-haul extension project. Back in Q3, you talked about running an open season during the Q1 of this year. Curious if there's any update on the progress you're making there?

Speaker #3: During the first quarter of this year. So, curious if there's any update on the progress you're making there.

Speaker #4: Yeah, good morning. Jared here. So, we continue to see strong demand in the Alberta Industrial Heartland area for natural gas to progress other industries.

Cameron Goldade: Yeah, good morning, Jared here. We continue to see strong demand in the Alberta industrial heartland area for natural gas to, you know, progress other industries. There's still a few days left in the quarter, and you should expect to see an announcement fairly shortly.

Speaker #4: There are still a few days left in the quarter, and you should expect to see an announcement fairly shortly.

Speaker #3: Okay, great. And I guess just one quick clarification on the Tourmaline deal. Was all of that renewals of existing business, effectively? Or is there anything incremental on the transport side or the frac side?

Sam Burwell: Okay, great. I guess just, like, one quick clarification on the Tourmaline deal. Was all of that renewals of existing business effectively, or is there anything incremental on the transport side or the frack side?

Speaker #4: No, it was essentially all of it was renewal. Same volumes.

Cameron Goldade: No, it was essentially, all of it was renewal, same volumes.

Speaker #3: All righty. Thank you, guys. Appreciate it.

Sam Burwell: All right. Thank you, guys. Appreciate it.

Speaker #4: Yep, thanks.

Cameron Goldade: Yep, thanks.

Speaker #1: Your next question comes from Robert Hope from Scotiabank. Please go ahead.

Operator: Your next question comes from Robert Hope, from Scotiabank. Please go ahead.

Chris Scherman: Morning, everyone. Just wanna maybe dive a little bit deeper into the timing of the 7 April presentation. Is anything specific deriving that, you know, well, do you think you'll have some incremental clarity on some of the projects that you're progressing, or is it, 7 April, just to kind of, you know, get a standalone event rather than giving, we'll call it longer-term guidance today?

Speaker #5: Morning, everyone. Just want to maybe dive a little bit deeper into the timing of the April 7th presentation. Is anything specific driving that? Do you think you'll have some incremental clarity on some of the projects that you're progressing?

Robert Hope: Morning, everyone. Just wanna maybe dive a little bit deeper into the timing of the 7 April presentation. Is anything specific deriving that, you know, well, do you think you'll have some incremental clarity on some of the projects that you're progressing, or is it, 7 April, just to kind of, you know, get a standalone event rather than giving, we'll call it longer-term guidance today?

Speaker #5: Or is it April 7th, just to kind of make it a standalone event rather than giving, we'll call it, longer-term guidance today?

Speaker #3: Hey, Robert. It's Cam here. Yeah, really, I mean, honestly, a couple of factors. One, we recognize there's a window here for market participants that works better or worse.

Cameron Goldade: Hey, Robert, it's Cam here. Yeah, really, I mean, honestly, a couple factors. One, you know, we recognize there's a window here for market participants that works better or worse. As we get into March, you know, we start to interfere with, you know, potentially other commitments. But I think probably more presently, you know, things are moving fast, obviously, with certain of our key growth opportunities. Our objective when we release a long-term guidance, is to give you and our investors as much granularity and as much concreteness to that buildup as possible. I think our objective this time around, you know, whereas in 2024, we generally gave, you know, a growth outlook, and some-...

Speaker #3: And so, as we get into March, we start to interfere with potentially other commitments. But I think, probably more presently, things are moving fast, obviously, with certain of our key growth opportunities.

Speaker #3: And so, our objective when we release long-term guidance is to give you and our investors as much granularity and as much concreteness to that buildup as possible.

Speaker #3: And so I think our objective this time around, whereas in 2024 we generally gave a growth outlook, and some pieces which would support that.

Cameron Goldade: some pieces which would support that. We're really trying to provide the market with a really robust build-up to that. We'd love to be in a position to have, obviously, the most certainty possible around that build-up, and that's the biggest factor that aligns with the sort of post Q1 timing.

Speaker #3: We're really trying to provide the market with a really robust buildup to that. And so we'd love to be in a position to have, obviously, the most certainty possible around that buildup.

Speaker #3: And that's the biggest factor that aligns with the sort of post-Q1 timing.

Praneeth Satish: Great, appreciate that. You've touched on most of the kind of, we'll call it the CAD 4 billion bucket of potential projects. You know, PGI infrastructure was one that was highlighted as an opportunity set that you're advancing. Can you maybe expand a little bit further, you know, what opportunities you could see as the next phase of growth for PGI?

Robert Hope: Great, appreciate that. You've touched on most of the kind of, we'll call it the CAD 4 billion bucket of potential projects. You know, PGI infrastructure was one that was highlighted as an opportunity set that you're advancing. Can you maybe expand a little bit further, you know, what opportunities you could see as the next phase of growth for PGI?

Speaker #5: All right. Appreciate that. And then you’ve touched on most of the, we’ll call it, the $4 billion bucket of potential projects, but PGI infrastructure was one that was highlighted as an opportunity set that you’re advancing.

Speaker #5: Can you maybe expand a little bit further on what opportunities you could see as the next phase of growth for PGI?

Speaker #3: Hey, Rob. Jared here. Yeah, you know what? PGI is going to continue to grow their business. Obviously, step one with respect to that business is filling white space.

[Company Representative] (Pembina Pipeline Corp): Hey, Rob, Jarrett here. Yeah, you know what? PGI is gonna continue to, you know, grow their business. You know, we obviously, step one with respect to that business is filling white space. You know, some of the announcements we made with the infrastructure build-out we're doing with Whitecap Resources in and around the Lator area, that's really, you know, all designed to one, is fill existing white space at some plants in and around that area, but also then to grow the liquids volumes onto Pembina's Peace Pipeline system and the NGLs into Fort Saskatchewan, Pembina's Redwater facilities. You know, after that, we're looking at continuing to build out organically. There are opportunities out there that we're evaluating, probably more to come on that. Lastly, you know, there's always the inorganic stuff.

Jared Bordoley: Hey, Rob, Jarrett here. Yeah, you know what? PGI is gonna continue to, you know, grow their business. You know, we obviously, step one with respect to that business is filling white space. You know, some of the announcements we made with the infrastructure build-out we're doing with Whitecap Resources in and around the Lator area, that's really, you know, all designed to one, is fill existing white space at some plants in and around that area, but also then to grow the liquids volumes onto Pembina's Peace Pipeline system and the NGLs into Fort Saskatchewan, Pembina's Redwater facilities. You know, after that, we're looking at continuing to build out organically. There are opportunities out there that we're evaluating, probably more to come on that. Lastly, you know, there's always the inorganic stuff.

Speaker #3: So, some of the announcements we made with the infrastructure buildout we're doing with Whitecap in and around the Latour area—that's really all designed to, one, fill existing white space at some plants in and around that area, but also then to grow the liquids volumes onto Pembina's pipeline system and the NGLs into Fort Saskatchewan, Pembina's Redwater facilities.

Speaker #3: After that, we're looking at continuing to build out organically. There are opportunities out there that we're evaluating, so probably more to come on that.

Speaker #3: And then, lastly, there’s always the inorganic stuff. I think PGI, out of any one of the gas processing businesses in Western Canada, has been ahead of its time with respect to creativity.

[Company Representative] (Pembina Pipeline Corp): I think PGI, out of any one of the gas processing businesses in Western Canada, has been ahead of its time with respect to creativity. You know, being on the board with KKR, we continue to encourage and press the team on to come back to us with more and more of those creative ideas. That's kind of how we see the business there.

Jared Bordoley: I think PGI, out of any one of the gas processing businesses in Western Canada, has been ahead of its time with respect to creativity. You know, being on the board with KKR, we continue to encourage and press the team on to come back to us with more and more of those creative ideas. That's kind of how we see the business there.

Speaker #3: And, being on the board with KKR, we continue to encourage and press the team to come back to us with more and more of those creative ideas.

Speaker #3: So that's kind of how we see the business there.

Speaker #5: Great. Thank you.

Praneeth Satish: Great. Thank you.

Robert Hope: Great. Thank you.

Speaker #1: Your next question comes from Spiro Denise from CT. Please go ahead.

Operator: Your next question comes from Spiro Dounis from Citi. Please go ahead.

Speaker #3: Thanks, operator. Morning, team. First, let me congratulate you all on your silver medal in hockey. Hard fought. Sorry if that's too soon. Going to the questions, I'll keep them above the belt here.

Spiro Dounis: Thanks, operator. Morning, team. First, let me congratulate you all on your silver medal in hockey. Hard, hard-fought. Sorry if that's too soon. Going to the questions, I'll keep them above the belt here. Maybe just going to contract renewals. Scott, you mentioned over 200,000 barrels a day contracted last year, and more to come in 2026. Maybe could you provide a broader commercial update on what you're expecting this year? Is it similar to 2025? Any reason, we can expect different outcomes, either positive or negative.

Speaker #3: Maybe just going to contract renewals—Scott, you mentioned over 200,000 barrels a day contracted last year, and more to come in 2026. So, maybe could you provide a broader commercial update on what you're expecting this year?

Speaker #3: Is it similar to 2025? In any reason, can we expect different outcomes, either positive or negative?

Speaker #4: Yeah, yeah. Thanks for the question, and I'll ignore the comment. Maybe next quarter we can talk about it. But yeah, I think we did try to highlight it.

Scott Burrows: Thanks for the question, I'll ignore the comment. Maybe next quarter we can talk about it. Yeah, I, you know, I think we did try to highlight it, you know, obviously a very, very successful 2025. You know, we feel like we've started off the year strong, as Jarrett mentioned, both with the Tourmaline recontracting, as well as the success on Alliance and Nipisi. In terms of specifically to 2026, again, we're not gonna get into specific contract profiles. It's obviously a competitive dynamic, what I will say is that we would expect to have a little more granularity on this on our 7 April update, and talk a little bit about more where we're at year to date and what our expectations are.

Speaker #4: Obviously, a very, very successful 2025. We feel like we've started off the year strong, as Jared mentioned, both with the Tourmaline re-contracting, as well as the success on Alliance and Nipissing.

Speaker #4: And so, in terms of specifically to 2026, we're not going to get into specific contract profiles. It's obviously a competitive dynamic. But what I will say is that we would expect to have a little more granularity on this on our April 7th update and talk a little bit more about where we're at year to date and what our expectations are.

Speaker #4: That's a good question, but I don't want to front-run our April 7th update.

Scott Burrows: You know, good question, but I don't want to front run our 7 April update.

Speaker #3: Yep. No, I can totally respect that. Second question—maybe just going back to Taylor, to Gordon Dale—I’m just curious how you’re thinking about the cadence and the timing for the remaining expansion phases, how you think you’re going to break it up.

Spiro Dounis: Yep. No, can totally respect that. second question, maybe just going back to Taylor-to-Gordondale. just curious how you're thinking about the cadence and the timing for the remaining expansion phases, how you think you're gonna break it up. I ask because it looks like the CapEx guidance is unchanged here. Do the remaining phases FID in 2026? It sounds like it could be after that.

Speaker #3: And I ask because it looks like the CapEx guidance is unchanged here. And so do the remaining phases FID in '26? It sounds like it could be after that.

Speaker #5: Yeah, great question. I also put your comment behind me. Well, I answered your question. Yeah, so the short haul, or the phase one—pardon me—the short haul is Alliance.

[Company Representative] (Pembina Pipeline Corp): Yeah, great question. I also put your comment behind me while I answer your question. Yeah, so the short haul or the phase 1, pardon me, the short haul is Alliance. Phase 1, that's fully baked into our 2026 capital guidance right now. With respect to FID timing, you know, obviously, it will be shortly in the future. You'll probably hear a little bit more on April 7 with respect to that. It's really, we have some flexibility now to go and be very focused on project execution on this phase 1, and phase 2 will be coming really as we start to fill up these next phases.

Jared Bordoley: Yeah, great question. I also put your comment behind me while I answer your question. Yeah, so the short haul or the phase 1, pardon me, the short haul is Alliance. Phase 1, that's fully baked into our 2026 capital guidance right now. With respect to FID timing, you know, obviously, it will be shortly in the future. You'll probably hear a little bit more on April 7 with respect to that. It's really, we have some flexibility now to go and be very focused on project execution on this phase 1, and phase 2 will be coming really as we start to fill up these next phases.

Speaker #5: Phase one, that's fully baked into our 2026 capital guidance right now. And with respect to FID timing, obviously it will be shortly in the future.

Speaker #5: You'll probably hear a little bit more on April 7th with respect to that. But really, we have some flexibility now to go and be very focused on project execution on this phase one.

Speaker #5: And phase two will be coming, really, as we start to fill up these next phases. And like I said earlier, to my question to Aaron—or answer to Aaron—was really, it's almost like an on-demand ability for us to grow with our customers.

[Company Representative] (Pembina Pipeline Corp): Like I said earlier to my question to Arun, or answer to Arun, was, you know, really it's almost like an on-demand ability for us to grow with our customers. Also, we'll be. You know, we have ordered our pipe, and we have ordered, you know, obviously some of the aboveground equipment, like pumps and all that stuff. That's all part of the process and for the full build-out. We will just deploy that capital as required.

Jared Bordoley: Like I said earlier to my question to Arun, or answer to Arun, was, you know, really it's almost like an on-demand ability for us to grow with our customers. Also, we'll be. You know, we have ordered our pipe, and we have ordered, you know, obviously some of the aboveground equipment, like pumps and all that stuff. That's all part of the process and for the full build-out. We will just deploy that capital as required.

Speaker #5: And then also, we have ordered our pipe, and we have ordered, obviously, some of the above-ground equipment, like pumps and all that stuff.

Speaker #5: So that's all part of the process, and for the full buildout. So we will just deploy that capital as required.

Speaker #3: Great. Great. I appreciate the talk today, guys, and I'm sure I'll be eating crow in four years. Thanks.

Spiro Dounis: Great. Great. I appreciate the color today, guys, and I'm sure I'll be eating crow in four years. Thanks.

Speaker #1: Your next question comes from Praneeth Satish from Wells Fargo. Please go ahead.

Operator: Your next question comes from Praneeth Satish, from Wells Fargo. Please go ahead.

Speaker #5: Good morning. Thank you. Maybe just turning to Greenlight. So, I understand the commercial details are still being finalized, but can you provide any high-level guardrails on maybe the minimum IRR that you'd look to achieve here?

Praneeth Satish: Good morning. Thank you. Maybe just turning to Greenlight. I understand the commercial details. They're still being finalized, but can you provide any high-level guardrails on maybe the minimum IRR that you'd look to achieve here? Also whether this would be a take or pay or cost of service like contract. Then as a follow-up, I guess if you were to FID Greenlight, considering it's got an in-service date pushing into the next decade, would this influence your long-term EBITDA CAGR guidance that you plan to give in April? I guess, how far out do you think you could reasonably guide if you get this project?

Speaker #5: And also whether this would be a take or pay or cost of service like contract? And then as a follow-up, I guess if you were to FID green light, considering it's got an in-service state pushing into the next decade, would this influence your long-term EBITDA, CAGR guidance that you plan to give in April?

Speaker #5: And I guess, how far out do you think you could reasonably guide if you get this project? It's Chris. I'll take the first part on green light, and then maybe turn it over to Cam to talk about guidance.

Chris Scherman: Hey, Nick, it's Chris. I'll take the first part on Greenlight, then maybe turn it over to Cam to talk about guidance. You know, as I mentioned, we're in the middle of negotiations, unfortunately, can provide, you know, limited guidance. What I can say is, you know, it's a long-term contract. It's a long-term contract with, you know, midstream-like attributes. It looks a lot like our core business, and we're really pleased with the fact that we've been able to do that.

Speaker #5: As I mentioned, we're in the middle of negotiations. So, unfortunately, I can provide limited guidance. But what I can say is, it's a long-term contract.

Speaker #5: It's a long-term contract with midstream-like attributes. It looks a lot like our core business, and we're really pleased with the fact that we've been able to do that.

Chris Scherman: You know, I think when it comes down to it, if you think about it on a build multiple basis, you know, it's gonna look a lot like other Pembina greenfield projects that we've been doing under long-term contracts, with ancillary benefits down the road as we think about integrating, you know, gas supply and, and the other components into it. Looking to drive that down over time, consistent with how we've pursued other projects in our core business.

Speaker #5: I think when it comes down to it, if you think about it on a build-multiple basis, it's going to look a lot like other PEM and Greenfield projects that we've been doing under long-term contracts.

Speaker #5: With ancillary benefits down the road as we think about integrating gas supply and the other components into it, looking to drive that down over time consistent with how we've pursued other projects in our core business.

Speaker #4: Yeah, I just add a little bit of color. Obviously, we have a partner on the file, and therefore, a private equity partner. And therefore, would need to project finance the project, which—we need to stack those two things up.

Scott Burrows: Yeah, I'll just add a little bit of color. You know, obviously, we have a partner, a partner on the file, and therefore, you know, a private equity partner, and therefore would need to project finance the project, which, you know, when you stack those two things up, you can assume that there would be a low risk EBITDA profile in order to support a project finance.

Speaker #4: You can assume that there would be a low-risk EBITDA profile in order to support a project finance.

Cameron Goldade: Praneeth, it's Cam. I'll just pick up on one thing that Chris said around the structure, and that is, you know, wanna reiterate and make sure everyone understands that, you know, while the project in its own right is a really interesting project, one of the things that really sells it for us or really gets us excited about it is the integration with the rest of our business. You've heard us talk about it, and I think we'll be in a position to talk more about it, you know, or more succinctly about it, as we get to our 7 April presentation.

Speaker #5: And Praneeth, it's Cam. I'll just pick up on one thing that Chris said around the structure, and that is I want to reiterate and make sure everyone understands that while the project in its own right is a really interesting project, one of the things that really sells it for us, or really gets us excited about it, is the integration with the rest of our business.

Speaker #5: And so, you've heard us talk about it. And I think we'll be in a position to talk more about it, or more succinctly about it, as we get to our April 7th presentation.

Speaker #5: But in summary, I mean, there's a ton of integration potential around the Alberta Industrial Heartland. And I think the so what of that is it really starts to take a greenfield-like return profile and really turn it into a brownfield-like return profile, ultimately for Pembina.

Cameron Goldade: You know, in summary, I mean, there's a ton of integration potential around the Alberta industrial heartland, and I think the so what of that is it really starts to take a greenfield-like return profile and really turn it into a brownfield-like return profile ultimately for Pembina. That's what gets us really excited about that, and you couple that with a low risk contract structure and a growth outlook, obviously. As we've said before, once these types of opportunities get built, and certainly as has been the precedent on the southern side of the border, they tend to cluster. I think as we, you know, walked our board through yesterday, we have a ton of advantage in terms of our Alberta industrial heartland position, everything that comes along with that.

Speaker #5: And so that's what gets us really excited about that. And you couple that with a low-risk contract structure, and it grows outlook, obviously. As we said before, once these types of opportunities get built—and certainly that has been the precedent on the southern side of the border—they tend to cluster.

Speaker #5: And I think, as we walked our board through yesterday, we have a ton of advantage in terms of our Alberta Industrial Heartland position—everything that comes along with that.

Speaker #5: And so, getting the first one in the ground gives us a huge advantage in terms of building a business out of this.

Cameron Goldade: Getting the first one in the ground gives us a huge advantage in terms of building a business out of this.

Speaker #3: Gotcha. That's very helpful. And then you kind of touched on this, but I guess with the Nipisi pipeline running full, can you walk us through, I guess, some of the next phases of potential expansion, what that might look like?

Chris Scherman: Sure. That's very helpful. You kind of touched on this, but I guess with the Nipisi Pipeline running full, can you walk us through, I guess, some of the next phases of potential expansion, what that might look like? Is that... it sounds like you're adding incremental capacity through additional pump stations, if I heard correctly, so at a low CapEx cost. I guess, how much more of that can you do? Yeah, how should we think about the likely commercial structure here? Is this kind of fee-based or cost of service, some of the expansions that you're looking at?

Praneeth Satish: Sure. That's very helpful. You kind of touched on this, but I guess with the Nipisi Pipeline running full, can you walk us through, I guess, some of the next phases of potential expansion, what that might look like? Is that... it sounds like you're adding incremental capacity through additional pump stations, if I heard correctly, so at a low CapEx cost. I guess, how much more of that can you do? Yeah, how should we think about the likely commercial structure here? Is this kind of fee-based or cost of service, some of the expansions that you're looking at?

Speaker #3: It sounds like you're adding incremental capacity through additional pump stations, if I heard correctly. So, at a low capex cost. But I guess, how much more of that can you do?

Speaker #3: And yeah, how should we think about the likely commercial structure here— is this kind of fee-based or cost-of-service, for some of the expansions that you're looking at?

Scott Burrows: Thanks. So as Jared touched on, and he can provide a little bit more color, you know, we are going through some bottlenecks, which can add, as you pointed out, some very reasonable, both from a return and from a time to market, debottlenecks. I think the bigger picture here, longer term, is we have an opportunity to expand portions of that pipe to add significant capacity. We're right now doing the engineering and continuing to advance the engineering on what that might look like and are having commercial discussions. We kinda have a two-phased approach. We have the early debottlenecks, and then we have a larger potential winning of the pipe. Jared or Chris, anything you guys wanna add?

Speaker #4: Thanks. So, as Jared touched on—and he can provide a little bit more color—we are going through some debottlenecks, which can add, as you pointed out, some very reasonable, both from a return and from a time-to-market, debottlenecks.

Speaker #4: I think the bigger picture here, longer term, is we have an opportunity to expand portions of that pipe to add significant capacity. And so we're right now doing the engineering and continuing to advance the engineering on what that might look like.

Speaker #4: And are having commercial discussions. So we kind of have a two-faced approach. We have the early debottlenecks, and then we have a larger potential winning of the pipe.

Speaker #3: Jared or Chris, anything you guys want to add?

Speaker #2: I'll just add that when we say right now that, commercially, we're contractually full for the base asset. But we do have a third party that's going to be making a connection in the next few months that will get us to physically being full, on a physical basis.

Chris Scherman: I would just add that when we say right now that... Commercially, we're contractually full for the base asset, but we do have a third party that's gonna be making connection in the next few months that will get us to physically being full on a physical basis. The debottleneck projects I talked about will give us about 20% to 30% incremental torque on that asset, and that truly is through drag reducing agents that we use every day on our Cochin Pipeline. We're very familiar with how that works, and we'll try installing that, and then just some minor horsepower upgrades to get that capacity. Cameron?

Speaker #2: And then the debottleneck projects I talked about will give us about 20 to 30 percent incremental torque on that asset. And that truly is through drag-reducing agents that we use every day on our Koshin pipeline.

Speaker #2: We're very familiar with how that works, and we'll try to work on installing that, and then just some minor horsepower upgrades to get that capacity.

Speaker #3: Camera?

Speaker #4: Actually, it's Cam. I just want to—yeah, I just want to chime in one more piece here. And I think it's worth noting that the history on this asset is something that we're quite proud of.

Cameron Goldade: Actually, it's Cam. I just wanna chime in one more piece here. I think it's worth noting that the history on this asset is something that we're quite proud of and I think speaks to our business and our commercial aptitude overall, which is, you know, obviously, this asset was in a different form of service with a different customer pre-2021, it was underpinned by a long-term contract at this point. We obviously took out a service because we thought that was the right thing to do in light of the options. As we sit here today, you know, the EBITDA that this pipe will generate in 2026 is materially above what it did in the former service under the foundational contracts, like, to the tune of 50%.

Speaker #4: And I think it speaks to our business and our commercial aptitude overall, which is, obviously, this asset was in a different form of service with a different customer pre-2021.

Speaker #4: And it was underpinned by a long-term contract at this point. We obviously took a service because we thought that was the right thing to do in light of the options.

Speaker #4: And as we sit here today, the EBITDA that this pipe will generate in 2026 is materially above what it did in the former service under the foundational contracts—like, to the tune of 50%.

Speaker #4: So, and we see significant growth opportunity on top of that. So we're really pleased with our approach to that, and I think it speaks to both the diversity and the optionality in our business.

Cameron Goldade: We see, you know, significant growth opportunity on top of that. We're really pleased with our approach to that and think it speaks to both the diversity and the optionality in our business.

Speaker #3: Okay.

Scott Burrows: Thanks, guys.

Praneeth Satish: Thanks, guys.

Speaker #1: Your next question comes from Maurice Choi from RBC Capital Markets. Please go ahead.

Operator: Your next question comes from Maurice Choy from RBC Capital Markets. Please go ahead.

Speaker #5: Thank you. And good morning, everyone. Just wanted to start with your capacity to do these projects. You've sanctioned a few more projects today. Sounds like you've got at least a Dow and Greenlight projects to come later this year.

Maurice Choy: Thank you, and good morning, everyone. Just wanted to start with your capacity to do these projects. You sanctioned a few more projects today. Sounds like you've got at least a dial and Greenlight projects to come later this year. How would you characterize your remaining investment capacity for the remainder of, say, this decade, that you can actually sell fund before your debt to EBITDA perhaps moves meaningfully closer to your 4.25 limit?

Speaker #5: How would you characterize your remaining investment capacity for the remainder of, say, this decade that you can actually self-fund before your debt-to-EBITDA perhaps moves meaningfully closer to your 4.25 limit?

Speaker #2: Yeah, great. Great question, Maurice. It's Cam here. So I'd say I’d go back to some things we said in the past, which is our track record and our intention has been that we obviously seek to fund capital with cash flow after dividends.

Cameron Goldade: Yeah, great. Great question, Maurice. It's Cam here. I'd say I'd go back to some things we've said in the past, which is, you know, our track record and our intention has been that, you know, we obviously seek to fund capital with cash flow after dividends. You know, at our level that we're at today, you know, we can think about that as roughly, you know, plus or minus about a billion and a half dollars a year in any given year for round numbers. I would say obviously, this year, we've talked about how it's the peak year for Cedar. We are running a slight free cash flow deficit in 2026.

Speaker #2: And at our level that we're at today, we can think about that as roughly plus or minus about $1.5 billion a year in any given year.

Speaker #2: For round numbers—and I would say, obviously, this year we've talked about how it's the peak year for Cedar. We are running a slight free cash flow deficit in 2026.

Speaker #2: But as we look forward to 2027 and beyond, we begin to generate meaningful free cash flow again, based on our currently sanctioned project opportunity profile.

Cameron Goldade: As we look forward to 2027 and beyond, you know, we begin to generate meaningful free cash flow again, based on our currently sanctioned project opportunity profile. As we think about larger opportunities, and if you wanna think about what might come on top of it, like, let's dream for a moment around Greenlight and that becoming a reality and multiple opportunities on top of that, I think that's where we start to, you know, like the structure that we have today, which is obviously a partner, and we have that in other parts of our business. We like the opportunities within our business, and honestly, you know, look at various financing opportunities which will enable us.

Speaker #2: As we think about larger opportunities, and if you want to think about what might come on top of it—like, let's dream for a moment around Greenlight and that becoming a reality, and multiple opportunities on top of that—I think that's where we start to like the structure that we have today, which is obviously a partner, and we have that in other parts of our business.

Speaker #2: We like the opportunities within our business. And honestly, look at various financing opportunities, which will enable us. But when you do the really simple math around deploying $1.5 billion at historical return multiples that Pembina has done, you can pretty clearly get to a mid-single-digit growth number for Pembina into a very long term.

Cameron Goldade: You know, when you do the really simple math around deploying a billion and a half dollars at historical return multiples, that Pembina has done, you know, you can pretty clearly get to a mid-single-digit growth number for Pembina, you know, into a very long term. We like that. We have that investment capacity and not only just the financial capacity, I think we have the execution capacity. Clearly, we have a really solid track record of executing projects on time and on budget, and we're applying that to projects in our core business as well as some of these ones which are, you know, on the face of it, new for us, maybe, but realistically, very similar to what we've done in the past in many other ways and taking a similar strategy.

Speaker #2: And so we like that. We have that investment capacity. And not only just the financial capacity, I think we have the execution capacity, clearly.

Speaker #2: We have a really solid track record of executing projects on time and on budget. And we're applying that to projects in our core business as well as some of these ones which are, on the face of it, new for us maybe, but realistically very similar to what we've done in the past in many other ways and taking a similar strategy.

Speaker #2: So, we're managing the risk from that perspective.

Cameron Goldade: We're managing the risk from that perspective.

Maurice Choy: Understood. If I could just finish up by following up on the three streams you discussed on the Greenlight project. I accept that these things are complex, does involve a lot of work. Is there anything material here that is out of your control or your counterparty's control that you see may derail this FID or even the timing of it?

Speaker #3: Understood. And if I could just finish up by following up on a three-stream you discussed on the Greenlight project. I accept that these things are complex.

Speaker #3: It does involve a lot of work. But is there anything material here that is out of your control, or your counterparty's control, that you see may derail this FID, or even the timing of it?

Scott Burrows: Okay. I'll chime in, and Chris, feel free to add anything. But I think, to answer that question, I mean, we are obviously in control of our project, and the negotiations with our customer, but we don't control our customer's ultimate decision to FID their innovation center. There's two pieces to the puzzle, and I think that's potentially what you're getting at. There's obviously our piece, and then there's the innovation center piece, and that's, you know, that's not obviously within our control.

Speaker #3: I'll chime in. And Chris, feel free to add anything. But I think to answer that question—I mean, we are obviously in control of our project.

Speaker #3: And the negotiations with our customer, but we don't control our customer's ultimate decision to FID their innovation center. So there's two pieces to the puzzle.

Speaker #3: And I think that's potentially what you're getting at. So, there's obviously our piece, and then there's the Innovation Center piece. And that's not, obviously, within our control.

Speaker #5: Understood. Thank you very much.

Maurice Choy: Understood. Thank you very much.

Speaker #1: Your next call comes from Robert Cataleye from CIBC Capital Markets. Please go ahead.

Operator: Your next call comes from Robert Catellier from CIBC Capital Markets. Please go ahead.

Speaker #2: Hey, good morning, everyone. Just a quick one here on the new pipeline. I'm just curious on the commercial impetus to use a cost of service agreement on the Birch to Taylor expansion.

Robert Catellier: Hey, good morning, everyone. Just a quick one here on the new pipeline. I'm just curious on the commercial impetus to use a cost of service agreement on the Birch-to-Taylor Expansion.

Speaker #3: That's just the legacy of that pipeline. That's how that pipeline's been underpinned for 10 years, as soon as we put it into service. So that's just been the initial contracting.

Scott Burrows: That's just the legacy of that pipeline. That's how that pipeline's been underpinned for, you know, 10 years, since we put it into service. That's just been the initial contracting, and that's how that pipeline is structured.

Speaker #3: And that's how that pipeline's structured.

Speaker #2: Okay, and then I just wanted to turn to LNG and some maybe longer-dated questions here. As you're aware, there have been some media reports about the owners of LNG Canada potentially monetizing their stakes in Phase 1, or partially monetizing in order to fund a Phase 2.

Robert Catellier: Okay. I just wanted to turn to LNG and some maybe longer-dated questions here. As you're aware, there's been some media reports about the owners of LNG Canada potentially monetizing their stakes in phase one or partially monetizing in order to fund a phase two. Given companies had a history of developing export options, I'm just curious on your view or interest in, you know, participating in an existing operating LNG facility other than the one you're building. The second part of that is, you know, if you look ahead in the possibility of a Cedar LNG phase two, I'm wondering if there's enough pipeline capacity for Coastal GasLink as is, or if it expands to be able to support a Cedar LNG phase two down the road.

Speaker #2: And given Pembina's had a history of developing export options, I'm just curious on your view or interest in participating in an existing, operating LNG facility other than the one you're building.

Speaker #2: The second part of that is, if you look ahead at the possibility of a Cedar LNG Phase Two, I'm wondering if there's enough pipeline capacity from Coastal GasLink as is, or if it expands, to be able to support a Cedar LNG Phase Two down the road.

Speaker #3: Yeah, I think on your first question, our understanding from media reports is that it's simply a financing to help fund Phase Two. So that's not something that we're currently participating in.

Scott Burrows: Yeah. I think on your first question, you know, our understanding from media reports is that it's simply a financing to help fund phase two. You know, that's not something that we're currently participating in. You know, we don't wanna be a passive investor in something. Nothing to see from a Pembina perspective on the rumors of a sell-down. On the second part of the question, I mean, we have positioned, you know, Cedar to potentially take incremental gas, whether it's the Cedar Link pipeline, or a few of the other onshore facilities. We would love to do a Cedar two, but as you pointed out, it's solely dependent on gas supply.

Speaker #3: We don't want to be a passive investor in something, so nothing to see from a Pembina perspective on the rumors of the second part of the question. I mean, we have positioned Cedar to potentially take incremental gas, whether it's the Cedar Link Pipeline or a few of the other onshore facilities.

Speaker #3: And so, we would love to do a Cedar Two. But as you pointed out, it's solely dependent on gas supply. And what I would say is, right now, our partners at LNG Canada, I think, are pretty focused on getting Phase One up and running.

Scott Burrows: What I would say is, right now, our partners at LNG Canada, I think, are pretty focused on getting phase one up and running and engineering phase two. I think until they're through some of those decisions, we won't have a line of sight to that, but we stand ready, willing, and able, if that's a possibility.

Speaker #3: And engineering phase two. So I think until they're through some of those decisions, we won't have a line of sight to that. But we stand ready, willing, and able if that's a possibility.

Speaker #2: Okay. Thanks very much.

[Company Representative] (Pembina Pipeline Corp): Okay. Thanks very much.

Robert Catellier: Okay. Thanks very much.

Speaker #1: Your next question comes from Benjamin Pham from BMO. Please go ahead.

Operator: Your next question comes from Benjamin Pham from BMO. Please go ahead.

Speaker #5: All right. Thanks. Good morning. Just on the topic of the value chain extensions and opportunities, I mean, Pembina's been pretty good at that part of it.

Benjamin Pham: Hi, thanks. Good morning. Just on the topic of the value chain extensions and opportunities, I mean, Pembina's been pretty good at that part of it. You added gas, then LNG, and then now power. My question specifically on the power side is that from your vantage now, is that more getting your feet wet, get a Greenlight opportunity, do 2 cogens, or is there a much more broader, potentially power to grid growth allocation here that Pembina's looking at?

Speaker #5: You had a gas and an LNG, and then now power. My question specifically on the power side is, from your vantage now, is that more about getting your feet wet with the DC Greenlight opportunity, or is it to do a couple of COGENs?

Speaker #5: Or is there a much more broad, potentially power-scaled growth allocation that Pembina's looking at?

Cameron Goldade: It's Chris. Well, you know, here's what I'd say. I'd say we definitely see the potential for significant growth in the gas to power space, in particular to power data centers. We think that the Alberta market and Alberta is ripe for growth in that space, and we think we're really well-positioned with our current project with our partners. You know, for us, it is one of the growth pathways that we're, you know, pursuing, frankly, and see an opportunity to grow into. We're not looking to grow into the merchant power space. That's not a space we're gonna go to. You mentioned cogens.

Speaker #2: It's Chris. Well, here's what I'd say. I'd say we definitely see the potential for significant growth in the gas-to-power space, in particular to power data centers.

Speaker #2: We think that the Alberta market and Alberta's ripe for growth in that space. And we think we're really well positioned with our current project with our partners.

Speaker #2: And so, for us, it is one of the growth pathways that we're pursuing, frankly, and see an opportunity to grow into. We're not looking to grow into the merchant power space.

Speaker #2: That's not a space we're going to go to. You mentioned COGENs. I mean, COGENs—integrated COGENs associated with existing infrastructure and deals—are certainly in play.

Cameron Goldade: I mean, cogens, integrated cogens associated with existing infrastructure and deals are certainly in play, but as far as the meaningful growth pathway, it's really that behind the meter, gas to power to support innovation center growth, which we see a lot of potential in.

Speaker #2: But as far as the meaningful growth pathway, it's really that behind-the-meter gas-to-power to support innovation center growth, which we see a lot of potential in.

Speaker #3: And I'll just add to that, Ben. If you think about it, I mentioned earlier in the call that gas egress is obviously one of the biggest constraints for Canadians to produce condensate and get it up to the oil sands.

[Company Representative] (Pembina Pipeline Corp): I'll just add to that, Ben. If you think about, you know, I mentioned earlier in the call that gas egress is obviously one of the biggest constraints for Canadians to produce condensate and get it up to the oil sands. Pardon me, a full build-out of Greenlight is roughly 75% of the same gas consumption that Cedar would be. you know, obviously driving that for our customers, allowing them to fill our value chain in other areas is pretty key for Pembina.

Jared Bordoley: I'll just add to that, Ben. If you think about, you know, I mentioned earlier in the call that gas egress is obviously one of the biggest constraints for Canadians to produce condensate and get it up to the oil sands. Pardon me, a full build-out of Greenlight is roughly 75% of the same gas consumption that Cedar would be. you know, obviously driving that for our customers, allowing them to fill our value chain in other areas is pretty key for Pembina.

Speaker #3: A full buildout of Cedar is roughly—pardon me. A full buildout of Greenlight is roughly 75% of the same gas consumption that Cedar would be.

Speaker #3: So obviously, driving that for our customers, allowing them to fill our value chain in other areas, is pretty key for Pembina.

Speaker #5: Okay, I got it. Thanks for the context. And I missed it with the value chain side of things. What's Pembina's current view on the oil side of things?

Benjamin Pham: Okay, I got it. Thanks for the context. Sticking with the value chain side of things, what's Pembina's current view on the oil side of things, whether it's organic or inorganic?

Speaker #5: Whether it's organic or inorganic?

Scott Burrows: Well, you know, I think from our perspective, we remain bullish on oil growth. As Jared mentioned a few times in his comments, we're excited about all the potential debottlenecks on the Enbridge system and on TMX for a couple of reasons. That's obviously to drive growth in the oil sands, which should have a pull on condensate, which should be good for our overall system. In terms of Pembina's specific investments as it relates to oil, right now, our, I'd say, our two main focuses would be on the Nipisi pipeline, which we've talked to at length today. As Jared also mentioned earlier, the Charlie Lake oil play on our conventional system.

Speaker #3: Well, I think from our perspective, we remain bullish on oil growth. As Jared mentioned a few times in his comments, we're excited about all the potential debottlenecks on the Enbridge system and on TMX for a couple of reasons.

Speaker #3: That's obviously going to drive growth in the oil sands, which should have a pull on condensate, which should be good for our overall system.

Speaker #3: In terms of Pembina's specific investments as it relates to oil, right now, I'd say our two main focuses would be on the Nipisi pipeline, which we've talked about at length today, and then, as Jared also mentioned earlier, the Charlie Lake oil play on our conventional system.

Speaker #3: So that's really where we're focused from a direct oil exposure. But we are excited and bullish on oil growth in the oil sands and, therefore, condensate.

Scott Burrows: That's really where we're focused from a direct oil exposure, but we are excited and bullish on oil growth in the oil sands and therefore condensate.

Speaker #5: Okay. Got it. Thank you.

Benjamin Pham: Okay, got it. Thank you.

Speaker #1: Your next question comes from the line of Samantha Banerjee from UBS. Please go ahead.

Operator: Your next question comes from the line of Sumantra Banerjee from UBS. Please go ahead.

Speaker #6: Hi. Thank you so much for taking the question. Just a quick general one on capital allocation. I know you discussed your comments on leverage in the previous question on investment capacity before.

Sumantra Banerjee: Hi, thank you so much for taking the question. Just a quick general one on capital allocation. I know you discussed your comments on leverage and the previous question on investment capacity before, but just wanted to ask if you had any more color you could add on 2026 capital allocation priorities.

Shneur Z. Gershuni: Hi, thank you so much for taking the question. Just a quick general one on capital allocation. I know you discussed your comments on leverage and the previous question on investment capacity before, but just wanted to ask if you had any more color you could add on 2026 capital allocation priorities.

Speaker #6: But I just wanted to ask if you had any more color you could add on 2026 capital allocation priorities.

Cameron Goldade: Yeah, it's Cam here. I guess I'll just reiterate that for 2026, you know, we're really focused on project execution. Obviously, you know, we are sustaining a free cash flow deficit in 2026. You know, barring a material change in our business performance, free cash flow is gonna be directed towards capital execution in 2026. Outside of that, you know, we expect to continue. We've had a long track record of a growing dividend, you know, anticipate to continue to deliver that in line with our historical trend in 2026 and beyond that. Outside of that, you know, it continues to be just execution all around.

Speaker #2: Yeah, it's Cam here. I guess I'll just reiterate that for 2026, we're really focused on project execution. And so, obviously, we are sustaining a free cash flow deficit in 2026.

Speaker #2: So barring a material change in our business performance, free cash flow is going to be directed towards capital execution in 2026. Outside of that, we expect to continue.

Speaker #2: We've had a long track record of a growing dividend, and so anticipate continuing to deliver that in line with our historical trend in 2026 and beyond that.

Speaker #2: And outside of that, it continues to be just execution all around. Obviously, we continue to reassess things should markets fundamentals change drastically. But as we see the world right now, it's sort of steady as she goes in the way we've laid it out in our guidance.

Cameron Goldade: Obviously, you know, we continue to reassess things should markets fundamentals change drastically, but, you know, as we see the world right now, it's sort of steady as she goes, in the way we've laid it out in our guidance.

[Company Representative] (Pembina Pipeline Corp): ... Great. Thank you so much. I'll turn it over.

Shneur Z. Gershuni: ... Great. Thank you so much. I'll turn it over.

Speaker #6: Great. Thank you so much. I'll turn it over.

Speaker #1: Your next question comes from Patrick Kenney from NBCM. Please go ahead.

Operator: Your next question comes from Patrick Kenny from NBCM. Please go ahead.

Speaker #4: Thank you. Good morning, guys. I was just wondering if we can get an update on the Yellowhead extraction opportunity. Assuming that the pipeline starts construction here in a few months, I'm curious what the timing could look like for your extraction opportunity. And then you talked about how tight the condensate market is.

Patrick Kenny: Thank you. Good morning, guys. I was just wondering if we can get an update on the Yellowhead extraction opportunity, you know, assuming that the pipeline starts construction here in a few months. Curious what the timing could look like for your extraction opportunity? You know, then you talked about how tight the condensate market is, but, I guess with Redwater Four coming online soon, just wanted to get an update on how you're thinking about a Redwater Five based on C3 plus fundamentals?

Speaker #4: But I guess with Redwater 4 coming online soon, just wanted to get an update on how you're thinking about a Redwater 5 based on C3+ fundamentals.

Scott Burrows: Hey, Pat, it's Chris. I'll take the Yellowhead question and then turn over to Jared. Continue to progress Yellowhead, remain excited about that project. Expect something this year, frankly, as far as an announcement, if we can keep everything on track and get it to where we want to get it.

Speaker #2: Hey, Pat. It's Chris. I'll take the yellowhead question and then turn over to Jared. So continue to progress yellowhead remain excited about that project.

Speaker #2: Expect something this year frankly as far as an announcement if we can keep everything on track. And get to where we want to get it.

[Company Representative] (Pembina Pipeline Corp): Pat, with respect to RFS V, I'll just point out, RFS IV is not on yet. I'm just kidding. You know, it really will come down to incremental frac capacity, either be it regional or in the Fort Saskatchewan area. Pembina, obviously, we believe we have a great product for our customers today. We have unit train capacity, we have ample storage, you know, we have high reliability and availability. RFS IV is being executed at a, you know, on a dollar per barrel basis significantly better than any other frac expansions in Western Canada right now. With all that said, NGL frac capacity is really going to grow with new gas egress.

Speaker #3: And Pat, with respect to RFS 5, I'll just point out RFS 4 is not on yet. But I'm just kidding. It really will come down to incremental frac capacity, either be it regional or in the Fort Saskatchewan area.

Jared Bordoley: Pat, with respect to RFS V, I'll just point out, RFS IV is not on yet. I'm just kidding. You know, it really will come down to incremental frac capacity, either be it regional or in the Fort Saskatchewan area. Pembina, obviously, we believe we have a great product for our customers today. We have unit train capacity, we have ample storage, you know, we have high reliability and availability. RFS IV is being executed at a, you know, on a dollar per barrel basis significantly better than any other frac expansions in Western Canada right now. With all that said, NGL frac capacity is really going to grow with new gas egress.

Speaker #3: Pembina, obviously we believe we have a great product for our customers today. We have unit train capacity. We have ample storage. We have high reliability and availability.

Speaker #3: And we do RFS 4 is being executed at a on a dollar per barrel basis. Significantly better than any other fract expansions in Western Canada right now.

Speaker #3: With all that said, NGL fract capacity is really going to grow with new gas egress. So, as we get more and more light and see that LNG Canada Phase 2 or other projects becoming real and in service, that's really because that gas demand has to find a home; then the NGLs will get extracted.

[Company Representative] (Pembina Pipeline Corp): As we get more and more, you know, light and see that LNG Canada Phase 2 or other projects becoming real and in service, because that gas demand has to find a home, then the NGLs will get extracted. I kind of always think of it as frack capacity will continue to grow with gas egress constraints getting unlocked. We're in a tremendous position to be building five.

Jared Bordoley: As we get more and more, you know, light and see that LNG Canada Phase 2 or other projects becoming real and in service, because that gas demand has to find a home, then the NGLs will get extracted. I kind of always think of it as frack capacity will continue to grow with gas egress constraints getting unlocked. We're in a tremendous position to be building five.

Speaker #3: So, I kind of always think of it as frac capacity will continue to grow with gas egress constraints getting unlocked. But we're in a tremendous position to be building five.

Speaker #4: Okay, great. Thanks for that. And then maybe for Scott, just high level here—obviously, we’re waiting for clarity on carbon policy this spring. I was just curious your thoughts on what industry would need to see in order to support projects like Pathways, or even your Alberta Carbon Grid.

Patrick Kenny: Okay, great. Thanks for that. Maybe if we got just high level here, as you know, relates to the Grand Bargain MOU. Obviously, we're waiting for clarity on carbon policy this spring. I was just curious, your thoughts on what industry would need to see in order to, you know, support projects like Pathways or even your Alberta Carbon Grid. Just overall, what needs to happen to support that next major wave of oil sands growth?

Speaker #4: Just overall, what needs to happen to support that next major wave of oil sands growth?

Speaker #3: Yeah. Well, I think, as we just highlighted a couple of times today, we have what I'll say are some very economic and fast-to-market expansions up to 700,000 barrels.

Scott Burrows: Well, you know, I think when we just highlighted a couple of times today, we have, you know, what I'll say is some very economic and fast-to-market expansions, up to 700,000 barrels. I mean, those numbers have been floating around slightly higher, slightly lower on TMX and Enbridge. To me, that feels like the first wave that's going to be unlocked, and we're pretty excited about that. You know, it's great to see the governments coming together and working in a more constructive manner. You know, I think we're pretty optimistic about what could come out of that.

Speaker #3: I mean, those numbers have been floating around slightly higher, slightly lower on TMX and amber. And to me, that feels like the first wave that's going to be unlocked.

Speaker #3: And we're pretty excited about that. It's great to see the government's coming together and working in a more constructive manner. I think we're pretty optimistic about what could come out of that.

Scott Burrows: You know, specifically as it relates to carbon price, I think just as we've highlighted over the last several years, certainty and regulatory certainty will be a huge impact on whether some of these carbon activities go ahead or not. You know, one of the things that we've talked a lot about, you know, we haven't talked about our ACG project for a while, but that's not because we haven't been working on it in the background, and we continue to progress it, but it's hard to contract it when you don't know what the carbon price is. I think, you know, as we get more clarity on long-term carbon price, that will allow companies to make the decisions that they are going to make around capturing carbon or not.

Speaker #3: Specifically, as it relates to carbon price, I think just as we highlighted over the last several years, certainty and regulatory certainty will be a huge impact on whether some of these carbon activities go ahead or not.

Speaker #3: One of the things that we've talked a lot about, we haven't talked about our ACG project. For a while, but that's not because we haven't been working on it in the background.

Speaker #3: We continue to progress it. But it's hard to contract it when you don't know what the carbon price is. And I think as we get more clarity on long-term carbon price, that will allow companies to make the decisions that they are going to make around capturing carbon or not.

Speaker #3: So, I'm pleased to see that we're making some progress, and optimistic as we move towards April that the governments are going to come together and come up with a plan that works for everybody.

Scott Burrows: I'm pleased to see that we're making some progress, and optimistic as we move towards April, that the governments are going to come together, and come up with a plan that works for everybody.

Speaker #4: Okay. That's perfect. I'll leave it there. Thanks, guys.

Patrick Kenny: Okay, that's perfect. I'll leave it there. Thanks, guys.

Operator: At this time, there are no further questions. I will now turn the call back to Scott Burrows, CEO, for closing remarks.

Speaker #1: At this time, there are no further questions. I will now turn the call back to Scott Burrows, CEO, for closing remarks.

Speaker #3: Thank you for all the questions today, and the interest in Pembina. I'd be remiss, after talking about all the accomplishments in 2025, if I didn't thank all of our hardworking staff and contractors and the communities that we work with.

Scott Burrows: Thank you for all the questions today and the interest in Pembina. I'd be remiss after talking about all the accomplishments in 2025, if I didn't thank all of our hardworking staff and contractors and communities that we work with. Thank you, everyone, I think you heard on the call today, we're pretty excited and optimistic about 2026 and beyond. Have a good rest of your day.

Speaker #3: So thank you, everyone. And I think you heard on the call today, we're pretty excited and optimistic about 2026 and beyond. Have a good rest of your day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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