Q2 2026 Pembina Pipeline Corp Earnings Call

Speaker #1: Ladies and gentlemen, thank you for joining us, and welcome to PEMBINA PIPELINE CORPORATION Q2 2026 results. After today's prepared remarks, we will host a Q&A session.

Operator: Ladies and gentlemen, thank you for joining us and welcome to Pembina Pipeline Corporation Q2 2026 results. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Dan Tucunel, Vice President, Capital Markets. Dan, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Dan Tucunel, Vice President Capital Markets.

Speaker #1: Dan, please go ahead.

Speaker #2: Thank you, Matthew. Good morning, everyone. Welcome to PEMBINA's conference call and webcast to review highlights from the second quarter of 2026. On the call today, we have Scott Burrows, President and Chief Executive Officer, and Cameron Goldade, Chief Financial Officer.

Dan Tucunel: Thank you, Matthew. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the Q2 2026. On the call today, we have Scott Burrows, President and Chief Executive Officer, and Cameron Goldade, Chief Financial Officer, along with the other members of Pembina's leadership team. I would like to remind you that some of the comments made today could 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.

Speaker #2: Along with the 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.

Speaker #2: 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 #2: To learn more about these forward-looking statements and non-GAAP measures, please see the company's management discussion and analysis dated July 30, 2026. For the period ended June 30, 2026, as well as the press release PEMBINA issued yesterday, all of which are available online at pembina.com and on both Cedar Plus and Edgar.

Dan Tucunel: To learn more about these forward-looking statements and non-GAAP measures, please see the company's management discussion and analysis dated 30 July 2026, for the period ended 30 June 2026, as well as the press release Pembina issued yesterday, all of which are available online at pembina.com and on both SEDAR+ and EDGAR. I will now turn things over to Scott.

Speaker #2: I will now turn things over to Scott.

Speaker #3: Thanks, Dan. Yesterday, we reported second quarter results, which were highlighted by adjusted EBITDA of $1.064 billion. It was another solid quarter that reflects a constructive industry environment, coupled with strong underlying operational performance and new assets entering service.

Scott Burrows: Thanks, Dan. Yesterday we reported Q2 results, which were highlighted by adjusted EBITDA of CAD 1.064 billion. It was another solid quarter that reflects a constructive industry environment coupled with strong underlying operational performance and new assets entering service. As Cam will discuss in more detail, we have affirmed our 2026 adjusted EBITDA guidance range of CAD 4.35 to 4.55 billion, while noting we are trending to midpoint of the range. Since our business update in April, we've continued to build momentum across all three pillars of our 3Cs Strategy and have further strengthened our visibility to long-term growth. As a reminder, our strategy is built around three complementary pillars. First, we aim to capture growing volumes across the Western Canadian Sedimentary Basin by leveraging our integrated midstream footprint and deep customer relationships.

Speaker #3: As Camel discussed in more detail, we have affirmed our 2026 adjusted EBITDA guidance range of $4.35 billion to $4.55 billion, while noting we are trending to midpoint of the range.

Speaker #3: Since our business update in April, we've continued to build momentum across all three pillars of our 3C strategy and have further strengthened our visibility to long-term growth.

Speaker #3: As a reminder, our strategy is built around three complementary pillars: first, we aim to capture growing volumes across the Western Canadian sedimentary basin by leveraging our integrated midstream footprint and deep customer relationships; second, we strive to connect those volumes to the highest-value markets through our and others' transportation and export infrastructure; and third, we want to catalyze new sources of hydrocarbon demand that create growth in the WCSD and incremental opportunities across our value chain.

Scott Burrows: Second, we strive to connect those volumes to the highest value markets through our and others' transportation and export infrastructure. Third, we want to catalyze new sources of hydrocarbon demand that create growth in the WCSB and incremental opportunities across our value chain. Together, we expect these pillars will provide multiple avenues for growth and allow us to create value across changing market environments. Over the past quarter within Capture, we placed our RFS IV fractionator into service in late May on time and under budget, adding 55,000 barrels per day of propane plus fractionation capacity at Redwater Complex, further strengthening our industry-leading NGL franchise. Within Connect, Cedar LNG continues to make excellent progress toward first exports in late 2028.

Speaker #3: Together, we expect these pillars will provide multiple avenues for growth and allow us to create value across changing market environments. Over the past quarter, within CAPTURE, we placed RFS4 fractionator into service in late May, on time and under budget, adding $55,000 barrels per day of propane-plus fractionation capacity at the Redwater Complex, further strengthening our industry-leading NGL franchise.

Speaker #3: Within CONNECT, Cedar LNG continues to make excellent progress toward first exports in late 2028. During the quarter, we achieved key construction milestones, including mechanical completion of the pipeline that will supply the facility and successfully moving the floating LNG vessel hull from dry dock to wet dock in South Korea.

Scott Burrows: During the quarter, we achieved key construction milestones, including mechanical completion of the pipeline that will supply the facility and successfully moving the floating LNG vessel hull from dry dock to wet dock in South Korea. We also announced our participation in the proposed West Coast Oil Pipeline, where we can contribute our development and execution expertise to a project that has the potential to further expand market access for Canadian energy. We are participating in a purposeful and prudent way through a disciplined approach to capital allocation and risk management. Within Catalyze, we sanctioned the Heartland Extraction Plant, a highly capital efficient project that leverages existing infrastructure and monetizes our extraction rights on the Yellowhead Pipeline. Equally important, the project was accompanied by an expansion of our long-term commercial relationship with Dow, increasing contracted ethane supply volumes by 15% and reinforcing the strength of our integrated NGL platform.

Speaker #3: We also announced our participation in the proposed West Coast Oil Pipeline, where we can contribute our development and execution expertise to a project that has the potential to further expand market access for Canadian energy.

Speaker #3: We are participating in a purposeful and prudent way through disciplined approach to capital allocation and risk management. Within CATALYZE, we sanctioned the Heartland extraction plant, a highly capital-efficient project that leverages existing infrastructure and monetizes our extraction rights on the Yellowhead pipeline.

Speaker #3: Equally important, the project was accompanied by an expansion of our long-term commercial relationship with Dow, increasing contracted ethane supply volumes by 15% and reinforcing the strength of our integrated NGL platform.

Speaker #3: We also reached positive final investment decision on the Greenlight Electricity Centre, a 932-megawatt gas-fired generation facility that will provide dedicated power to a new Alberta data center being developed by Meta.

Scott Burrows: We also reached a positive Final Investment Decision on the Greenlight Electricity Centre, a 932-megawatt gas-fired generation facility that will provide dedicated power to a new Alberta data center being developed by Meta. Greenlight represents an exciting new growth platform for Pembina, creating stable long-term cash flows while also driving incremental demand for Western Canadian natural gas. Importantly, Greenlight has the potential to generate benefits across multiple parts of our existing business, and we continue to advance discussions around additional gas-to-power and data center related opportunities and recently acquired additional land proximal to the Greenlight Electricity Centre and the Redwater Complex to support future projects. Taken together, the projects and announcements this quarter demonstrate the breadth of opportunities available across Pembina's franchise and our ability to identify and then convert those opportunities into tangible growth.

Speaker #3: Greenlight represents an exciting new growth platform for Pembina, creating stable, long-term cash flows while also driving incremental demand for Western Canadian natural gas. Importantly, Greenlight has the potential to generate benefits across multiple parts of our existing business, and we continue to advance discussions around additional gas-to-power and data center-related opportunities. We also recently acquired additional land proximal to the Greenlight electricity center and the Redwater Complex to support future projects.

Speaker #3: Taken together, the projects and announcements this quarter demonstrate the breadth of opportunities available across Pembina's franchise and our ability to identify, and then convert, those opportunities into tangible growth.

Speaker #3: Whether it's expanding our NGL platform, connecting Canadian production to global markets, or creating entirely new demand pathways for natural gas, we're seeing strong execution across each pillar of our 3C strategy.

Scott Burrows: Whether it's expanding our NGL platform, connecting Canadian production to global markets or creating entirely new demand pathways for natural gas. We're seeing strong execution across each pillar of our 3Cs Strategy. As a result, we remain confident in our ability to deliver our targeted 5% to 7% compound annual fee-based adjusted EBITDA per share growth through 2030. We continue adding potential new opportunities such as the West Coast Oil Pipeline and are pursuing additional gas to power for data center projects that, if converted, will support extending our growth well into the next decade. I'll now turn things over to Cam.

Speaker #3: As a result, we remain confident in our ability to deliver our targeted 5% to 7% compound annual fee-based adjusted EBITDA per share growth through 2030, and we continue adding potential new opportunities such as the West Coast Oil Pipeline and our pursuing additional gas-to-power for data center projects that, if converted, will support extending our growth well into the next decade.

Speaker #3: I'll now turn things over to Cam.

Speaker #2: Thanks, Scott. As Scott noted, PEMBINA reported second quarter adjusted EBITDA of $1.064 billion. Compared to the second quarter of 2025, continued strong operational performance across the pipelines and facilities divisions, and higher results in the marketing business were offset by the impact of the new toll structure and revenue-sharing mechanism on the Alliance pipeline announced last year.

Cam Goldade: Thanks, Scott. As Scott noted, Pembina reported Q2 adjusted EBITDA of CAD 1.064 billion. Compared to Q2 2025, continued strong operational performance across the Pipelines and Facilities divisions and higher results in the Marketing business were offset by the impact of the new toll structure and revenue-sharing mechanism on the Alliance Pipeline announced last year. The net result in Q2 was a CAD 51 million or 5% increase in EBITDA over the same period in the prior year. Looking at quarter-over-quarter results by division, the major factors impacting the quarter in Pipelines included higher contracted volumes on the Nipisi Pipeline, higher revenue on the Goshen Pipeline due to prior period tariff adjustments, and a lower contribution from the Alliance Pipeline due to the negotiated settlement between Alliance and its shippers, partially offset by higher interruptible volumes and lower operating expenses.

Speaker #2: The net result in the second quarter was a $51,00,0 or 5% increase in EBITDA over the same period in the prior year. Looking at quarter-over-quarter results by division, the major factors impacting the quarter in pipelines included higher contracted volumes on the Niposee pipeline, higher revenue on the Koshin pipeline due to prior period tariff adjustments, and a lower contribution from the Alliance pipeline due to the negotiated settlement between Alliance and its shippers, partially offset by higher interruptible volumes and lower operating expenses.

Speaker #2: The Facilities segment benefited from the RFS4 fractionator entering service in May and the Wapadi expansion in PGI entering service at the end of March.

Cam Goldade: The Facilities segment benefited from the RFS IV fractionator entering service in May and the Wapiti expansion in Pembina Gas Infrastructure entering service at the end of March, both on time and at or below budget, further extending Pembina's track record of delivering solutions for our customers in a timely and capital-efficient manner. In addition, the quarter was positively impacted by higher contributions from Pembina Gas Infrastructure due to stronger performance at the Dawson assets, fewer unplanned outages, and higher recoveries from an asset upgrade, and no comparable planned outage at Redwater as occurred in Q2 2025. In Marketing and New Ventures, Q2 results reflected the impact of wider WCSB and US NGL frac spreads resulting from higher NGL prices, including the benefits of Pembina's exposure to premium propane markets through West Coast exports, as well as benefits from higher crude oil prices and higher sales volumes.

Speaker #2: Both on time and at or below budget. Further extending PEMBINA's track record of delivering solutions for our customers in a timely, capital-efficient manner. In addition, the quarter was positively impacted by higher contributions from PGI due to stronger performance at the Dawson assets; fewer unplanned outages; and higher recoveries from an asset upgrade; and no comparable planned outage at Redwater as occurred in the second quarter of 2025.

Speaker #2: In marketing and new ventures, second quarter results reflected the impact of wider WCSB and US NGL frac spreads resulting from higher NGL prices including the benefits of PEMBINA's exposure to premium propane markets through West Coast exports, as well as benefits from higher crude oil prices and higher sales volumes.

Speaker #2: In addition, the quarter was impacted by higher realized losses on NGL-based derivatives and lower realized gains on crude oil-based derivatives. Finally, in the corporate segment, second quarter results were lower than the prior period, primarily due to higher long-term incentive costs driven by an increase in PEMBINA's share price and incentive multiplier during the quarter, compared to a decrease in PEMBINA's share price and incentive multipliers during the prior period.

Cam Goldade: In addition, the quarter was impacted by higher realized losses on NGL-based derivatives and lower realized gains on crude oil-based derivatives. Finally, in the Corporate segment, Q2 results were lower than the prior period, primarily due to higher long-term incentive costs, driven by an increase in Pembina's share price and incentive multiplier during the quarter, compared to a decrease in Pembina's share price and incentive multipliers during the prior period. Earnings in Q2 were CAD 512 million, which represents a 23% increase over the same period in the prior year. In addition to the factors impacting adjusted EBITDA, the change in earnings in Q2 was due to higher unrealized gains on NGL-based and crude oil-based derivatives, and unrealized losses from the Cedar LNG compared to unrealized gains in Q2 2025.

Speaker #2: Earnings in the second quarter were $512 million, which represents a 23% increase over the same period in the prior year. In addition to the factors impacting adjusted EBITDA, the change in earnings in the second quarter was due to higher unrealized gains on NGL-based and crude oil-based derivatives, and unrealized losses from the Cedar LNG compared to unrealized gains in the second quarter of 2025.

Speaker #2: Adjusted earnings were $415 million, or a 10% increase over the same period in the prior year. Compared to the factors related to earnings, the change in adjusted earnings excludes the impact of the unrealized gains on NGL-based and crude oil-based derivatives, and the unrealized losses in Cedar LNG.

Cam Goldade: Adjusted earnings were CAD 415 million, or a 10% increase over the same period in the prior year. Compared to the factors related to earnings, the change in adjusted earnings excludes the impact of the unrealized gains on NGL-based and crude oil-based derivatives and the unrealized losses in Cedar LNG. Total volumes in the Pipelines and Facilities divisions were 3.7 million barrels of oil equivalent per day in Q2. This represents an increase of 3% over the same period in the prior year. Higher Q2 Pipelines volumes were driven primarily by higher volumes on the Alliance Pipeline, primarily driven by stronger operational performance and higher contracted volumes on the Nipisi Pipeline serving the Clearwater Formation. Higher Q2 Facilities volumes were driven primarily by the impact of RFS IV entering service in May and higher volumes from certain Pembina Gas Infrastructure assets, primarily from the Wapiti expansion and at the Dawson assets.

Speaker #2: Total volumes in the pipelines and facilities divisions were $3.7 million barrels of oil equivalent per day in the second quarter. This represents an increase of 3% over the same period in the prior year.

Speaker #2: Higher second quarter pipeline volumes were driven primarily by higher volumes on the Alliance Pipeline, primarily due to stronger operational performance, and higher contracted volumes on the Nipisi Pipeline, serving the Clearwater formation.

Speaker #2: Higher second-quarter facilities volumes were driven primarily by the impact of RFS4 entering service in May and higher volumes from certain PGI assets, primarily from the Wapadi expansion and at the Dawson assets.

Speaker #2: Yesterday, Pembina reaffirmed its 2026 adjusted EBITDA guidance of $4.35 billion to $4.55 billion, and we are currently trending towards the midpoint of that range.

Cam Goldade: Yesterday, Pembina reaffirmed its 2026 adjusted EBITDA guidance of CAD 4.35 billion to 4.55 billion, and we are currently trending towards the midpoint of that range. At the midpoint, due to seasonal factors, timing of spending, and certain one-time items, Pembina anticipates that the adjusted EBITDA contribution in Q3 will be lower than Q2, with a strong seasonal contribution expected in Q4. It is worth noting that over the past 5 years, Q3 has contributed between 23% and 27% of the full-year adjusted EBITDA. Our current outlook for 2026 has Q3 contributing at the low end of that range. A few specific factors that are expected to impact H2 are worth noting.

Speaker #2: At the midpoint, due to seasonal factors, timing of spending, and certain one-time items, Pembina anticipates that the adjusted EBITDA contribution in the third quarter will be lower than the second quarter.

Speaker #2: With a strong seasonal contribution expected in the fourth quarter, it is worth noting that, over the past five years, the third quarter has contributed between 23% and 27% of full-year adjusted EBITDA.

Speaker #2: Our current outlook for 2026 has the third quarter contributing at the low end of that range. A few specific factors that are expected to impact the second half of the year are worth noting.

Speaker #2: First, seasonality in the WCSB NGL frac spread business, resulting in a lower contribution in the third quarter and a higher contribution in the fourth quarter.

Cam Goldade: First, seasonality in the WCSB NGL frac spread business resulting in a lower contribution in Q3 and a higher contribution in Q4. On a quarterly basis, for the remainder of the year, Pembina has hedged approximately 90% of its NGL frac spread exposure in Q3 and 40% in Q4. As a reminder, for the period from 2025 to 2026, our US and Canadian frac spread businesses combined are expected to account for approximately two-thirds of our marketing. Secondly, higher integrity and maintenance spend in H2 compared to H1. Due to strong 2026 results and operational efficiencies, we have chosen to fast-track a portion of normal course integrity work. I want to remind listeners that Q3 is typically our highest quarter for operating expenses.

Speaker #2: On a quarterly basis, for the remainder of the year, PEMBINA has hedged approximately 90% of its NGL frac spread exposure in the third quarter and 40% in the fourth quarter.

Speaker #2: As a reminder, for the period from 2025 to 2026, our US and Canadian frac spread businesses combined are expected to account for approximately two-thirds of our marketing costs.

Speaker #2: Secondly, higher integrity and maintenance spend in the second half of the year compared to the first half of the year. Due to strong 2026 results and operational efficiencies, we have chosen to fast-track a portion of normal course integrity work.

Speaker #2: I want to remind listeners that the third quarter is typically our highest quarter for operating expenses. In 2025, the third quarter accounted for 27% of the full-year operating expenses and this year is looking to follow a similar trend.

Cam Goldade: In 2025, Q3 accounted for 27% of the full-year operating expenses, and this year is looking to follow a similar trend. Thirdly, lower contribution from Cochin Pipeline in H2 compared to H1 is expected, reflecting strong H1 throughput as certain firm shippers advanced a greater portion of their annual take-or-pay commitments into the earlier part of the year. As a result, throughput above the remaining annual commitments for H2 is expected to be highly correlated with condensate prices. In 2025, approximately 60% of the full-year adjusted EBITDA on Cochin was generated in H1, and 2026 appears to be following a similar pattern.

Speaker #2: Thirdly, lower contribution from Koshin Pipeline in the second half of the year compared to the first half of the year is expected, reflecting strong first-half throughput as certain firm shippers advanced a greater portion of their annual take or pay commitments into the earlier part of the year.

Speaker #2: As a result, throughput above the remaining annual commitments for the second half of the year is expected to be highly correlated with condensate prices.

Speaker #2: In 2025, approximately 60% of the full-year adjusted EBITDA on Koshin was generated in the first half, and 2026 appears to be following a similar pattern.

Speaker #2: Fourthly, sequentially lower contribution in the third quarter and higher contribution in the fourth quarter on Alliance Pipeline due to seasonality and the ability to transport higher volumes during colder periods.

Cam Goldade: Fourthly, sequentially lower contribution in Q3 and higher contribution in Q4 on Alliance Pipeline due to seasonality and the ability to transport higher volumes during colder periods. Finally, a higher contribution from PGI in Q4 due to new assets entering service and non-recurring revenue recognition. In aggregate, the lower and upper ends of the 2026 guidance are framed primarily as a function of commodity prices and the resulting contribution from the marketing business, interruptible volumes on key systems, the US Canadian dollar exchange rate, and Pembina's share price performance and its impact on incentive compensation costs. I'll now turn things back to Scott.

Speaker #2: And finally, a higher contribution from PGI in the fourth quarter due to new assets entering service and non-recurring revenue recognition. In aggregate, the lower and upper ends of the 2026 guidance are framed primarily as a function of commodity prices and the resulting contribution from the marketing business, interruptible volumes on key systems, the U.S./Canadian dollar exchange rate, and Pembina’s share price performance and its impact on incentive compensation costs.

Speaker #2: I'll now turn things back to Scott.

Speaker #3: Thanks, Cam. In closing, I would offer once again that recent developments reflect tangible execution of our three key strategies and highlight the breadth of opportunities available within Pembina's integrated business.

Scott Burrows: Thanks, Cam. In closing, I would offer once again that recent developments reflect tangible execution of our 3Cs strategy and highlight the breadth of opportunities available within Pembina's integrated business. The accomplishments over the past quarter reflect a continued focus on disciplined capital allocation, long-term contracted cash flows, and creating value for our shareholders. Operator, please go ahead and open up the line for questions.

Speaker #3: The accomplishments over the past quarter reflect a continued focus on disciplined capital allocation, long-term contracted cash flows, and creating value for our shareholders. Operator, please go ahead and open up the line for questions.

Speaker #4: 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 to raise your hand.

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 to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset closer to your mouth when asking a question to allow for optimum sound quality. 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 the line of Jeremy Tonet with J.P. Morgan Securities LLC. Jeremy, your line is open. Please go ahead.

Speaker #4: To withdraw your question, press star one again. We ask that you pick up your handset and hold it closer to your mouth when asking a question to allow for optimum sound quality.

Speaker #4: 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 the line of Jeremy Taunett, with JPMorgan Securities LLC.

Speaker #4: Jeremy, your line is open. Please go ahead.

Speaker #2: Hi, good morning.

Jeremy Tonet: Hi. Good morning.

Speaker #3: Morning.

Scott Burrows: Morning.

Speaker #2: There's a lot of talk in the industry regarding incremental WCSB oil egress. PEMBINA is one of the projects being proposed, but I was just wondering if you could help me think a bit about the picture as a whole and how it impacts PEMBINA as it relates to condensate.

Jeremy Tonet: There's a lot of talk in the industry with regards to incremental WCSB oil egress, Pembina, one of the projects being proposed. I was just wondering if you could help me think a bit about the picture as a whole and how it impacts Pembina as it relates to condensate. It seems if there's sizable egress that's going to come on, that means there's sizable condensate needs, and I was just wondering how that gets solved. Is Cochin expandable in any sense? Is in-basin production going to really tick up? Is it going to be a combination? If it seems like in-basin is going to be part of the solution, that's a lot of volumes, a lot of growth to hit Pembina's system. Am I thinking about that the right way?

Speaker #2: It seems if there’s sizable egress that’s going to come on, that means there’s sizable condensate needs. I was just wondering how that gets solved.

Speaker #2: Is this coaching expandable in any sense? Is base production going to really tick up? Is it going to be a combination? I mean, if it seems like base is going to be part of the solution, that's a lot of volume, a lot of growth to hit Pembina's system.

Speaker #2: Am I thinking about that the right way?

Speaker #3: Yeah, Jeremy, I'll give you our high-level macro view, and I'll let my colleagues pitch in as well. I mean, that's one of our key fundamental tenets from our April strategy session.

Scott Burrows: Jeremy. I'll give you our high-level macro view, and I'll let my colleagues pitch in as well. That's one of our key fundamental tenets from our April strategy session. We talk about the flywheel. We always start with oil sands growth. There are ranges out there between 600,000 to 2 million barrels of incremental oil. Let's just pick 1 million barrels for ease. If the West Coast Oil Pipeline goes ahead 1 million barrels a day, that's going to require somewhere in the neighborhood of 300,000 barrels a day of incremental condensate. I think we have a firm view that the vast majority of that condensate needs to come from the WCSB. We know we have the resource here in the Montney and the Duvernay.

Speaker #3: We talk about the flywheel, and we always start with oil sands growth. There are ranges out there between 600,000 to 2 million barrels of incremental oil.

Speaker #3: So let's just pick a million barrels for ease. If the West Coast oil pipeline goes ahead a million barrels a day, that's going to require somewhere in the neighborhood of 300,000 barrels a day of incremental condensate.

Speaker #3: I think we have a firm view that the vast majority of that condensate needs to come from the WCSB, and we know we have the resource here in Montney and the Duvernay.

Speaker #3: And so, just condensate alone has fairly significant running room, which is some of the reason we were getting ahead of some of our expansions in Northeast BC—debottlenecking the system in advance of what we anticipate to be strong condensate growth across the system.

Scott Burrows: Just condensate alone has fairly significant running room, which is some of the reason we were getting ahead of some of our expansions in Northeast BC, debottlenecking the system in advance of what we anticipate to be strong condensate growth across the system. Now, of course, you don't drill for condensate alone. You drill for natural gas that condensate comes along with. We are going to need to find incremental home for natural gas, whether that's LNG Canada phase II, potential pushing incremental throughput through Cedar, Woodfibre, et cetera, as well as incremental data center demand. Of course, the oil sands are going to need incremental gas in order to grow their production from the oil sands as well.

Speaker #3: Now, of course, you don't drill for condensate alone. You drill for natural gas that condensate comes along with. So we are going to need to find incremental homes for natural gas—whether that's LNG Canada Phase Two, or potentially pushing incremental throughput through Cedar, Woodfibre, etc.

Speaker #3: As well as incremental data center demand. And, of course, the oil sands are going to need incremental gas in order to grow their production from the oil sands as well.

Speaker #3: And then lastly, of course, there's associated C2+ and C3+ that comes along with that natural gas, which should drive growth through PGI and fractionation and export as well.

Scott Burrows: Lastly, of course, there's associated C2+ and C3+ that comes along with that natural gas, which should drive growth through PGI and fractionation and export as well. Just backing up a step.

Speaker #3: So just backing up a step, it's that kind of general linking of all those projects and all that growth that really leads us to be extremely optimistic about the WCSB 0 to 2035.

Jeremy Tonet: It's that kind of general linking of all those projects and all that growth that really leads us to be extremely optimistic about the WCSB out to 2035.

Speaker #2: And I think, Jeremy, it's Cam here. I would just pitch in. You referenced Koshin. I think, on top of what Scott said, I mean, a reminder that when we acquired Koshin, that asset was running at about 85,000 to 90,000 barrels a day. Through some great operational work by our team in the field and in Calgary here...

Cam Goldade: I think Jeremy, it's Cam here, I would just pitch in. You referenced Cochin. I think on top of what Scott said, reminder that when we acquired Cochin, that asset was running at about 85,000 to 90,000 barrels a day. Through some great operational work by our team in the field and in Calgary here, we've managed to increase the capacity of that system to about 120,000 barrels a day, and it's running very firmly, very strongly, and I think will continue to be in high demand, especially as oil sands volumes continue to grow in the coming years. That said, I think the opportunity for more imported condensate is also a potential solution and clearly, with our franchise, we'd be looking at the best way to serve customers across the board.

Speaker #2: We've managed to increase the capacity of that system to about 120,000 barrels a day. And it's running very firmly, very strongly. And I think we'll continue to be in high demand, especially as oil sands volumes continue to grow in the coming years.

Speaker #2: That said, I think the opportunity for more imported condensate is also a potential solution. And clearly, with our franchise, we'd be looking at the best way to serve customers across the board.

Speaker #2: Got it. That's very helpful there. And then I just wanted to move towards Greenlight. I realize I'm getting well ahead of myself here, but I'll try nonetheless.

Jeremy Tonet: Got it. That's very helpful there. Then just wanted to go, I guess, towards Greenlight and I realize I'm getting well ahead of myself here, but I'll try nonetheless. We've seen in other areas where data centers have developed, there's been a tendency to cluster, where initial toeholds have led to bigger developments over time. Just wondering, now that this project is in motion, thoughts about the potential for that way down the road?

Speaker #2: We've seen in other areas where data centers have developed, there's been a tendency to cluster, where initial toeholds have led to bigger developments over time.

Speaker #2: Just wondering, now that this project is in motion, what are your thoughts about the potential for that, way down the road?

Speaker #5: Hey, Jeremy, it's Chris. Yeah, I mean, the FID earlier this month really supported our thesis about gas to power as a business serving data centers in Alberta.

Chris Scherman: Jeremy, it's Chris. The FID earlier this month really supported our thesis about gas-to-power as a business serving data centers in Alberta. We think it's a scalable project. We think Alberta remains one of the best jurisdictions to build in. We've got a very supportive government, continue to have a first-mover advantage across land, our adjacent businesses, expertise. Then to what you're referencing, the customer demand and interest remains high, including around the concept of clustering. We certainly saw that happening elsewhere and have a view around the potential for that to happen in this area. The team's already hard at work developing the next stage of the project. That includes acquiring some incremental strategic lands proximate to our lands. We had an opportunity to consolidate some contiguous lands right around our existing Greenlight site.

Speaker #5: We think it's a scalable project. We believe Alberta remains one of the best jurisdictions to build in. We've got a very supportive government and continue to have a first-mover advantage across land or adjacent business expertise.

Speaker #5: And then, to what you're referencing, the customer demand and interest remain high, including around the concept of clustering. We certainly saw that happening elsewhere and have a view around the potential for that to happen in this area.

Speaker #5: The team is already hard at work developing the next phase of the project, which includes acquiring some incremental strategic lands proximate to our lands. We had an opportunity to consolidate some contiguous lands right around our existing Greenlight site.

Chris Scherman: They're also progressing customer discussions and all of that is really centered around some of what you're referencing, both from the initial customer perspective, the probability or likelihood of the clustering. Then also how these facilities tend to group across a variety of customers in strategic areas like the Heartland.

Speaker #5: And they're also progressing customer discussions. All of that is really centered around some of what you're referencing—both from the initial customer perspective, the probability or likelihood of the clustering, but then also how these facilities tend to group across a variety of customers in strategic areas like the Heartland.

Speaker #2: Got it. Thank you for that.

Jeremy Tonet: Got it. Thank you for that.

Speaker #1: Your next question comes from the line of Theresa Chen with Barclays. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Theresa Chen with Barclays. Your line is open. Please go ahead.

Speaker #4: Good morning. Following up on the Greenlight side of things—with Phase One underway, and as you have already consolidated the contiguous lands and are in the process of commercializing Phase Two and maybe beyond—would you expect the timeline for further phases to be a little quicker?

Theresa Chen: Morning. Following up on the Greenlight side of things. With phase one underway and as you have already consolidated contiguous lands and in the process of commercializing phase two and maybe beyond, would you expect the timeline for further phases to be a little quicker? Anything to say on size and scope at this point?

Speaker #4: And anything to say on size and scope at this point?

Speaker #2: Yeah, Theresa, it's Chris again. I don't think we can get into timing a lot. I think there are a few things happening in the market that you can look to for a little bit of guidance.

Chris Scherman: Theresa, it's Chris again. I don't think we can get into timing a lot. I think there's a few things happening in the market that you can look to for a little bit of guidance. The AESO phase two large load allocation that's underway and the continuation of the bring your own power strategy is I think a bit of a guide to think about timing. I think we've got a relatively proven model on how to progress these projects. We're really focused now on getting those front-end strategic sort of first-mover components in place. We're working with customers to de-risk them much like we did on phase one. I can't really give a guide on exact timing, but I can sort of tell you we're moving quickly and with pace.

Speaker #2: The AESO’s phase two large load allocation that’s underway, and the continuation of the Bring Your Own Power strategy is, I think, a bit of a guide to think about timing. I think we’ve got a relatively proven model on how to progress these projects.

Speaker #2: We're really focused now on getting those front-end and strategic, sort of first-mover components in place. And we're working with customers to de-risk them, much like we did on Phase One.

Speaker #2: So I can't really give a guide on exact timing, but I can sort of tell you we're moving quickly and with pace, very much in a similar vein to how we've done it on the last go-round.

Chris Scherman: Very much in a similar vein to how we've done it on the last go around.

Speaker #4: Understood. And on the diluent side of things, can you just lay out the economics of in-basin production versus importing incremental barrels of condensate?

Theresa Chen: Understood. On the diluent side of things, can you just lay out the economics of in-basin production versus importing incremental barrels of condensate? What do you think is the marginal relative cost to the customer at this point? If you move forward with the next phase of expansion for Cochin beyond the 120,000 barrels per day, what kind of size or economics should we think about related to that?

Speaker #4: What do you think is the marginal relative cost to the customer at this point? And if you move forward with the next phase of expansion for Koshin beyond the 120,000 barrels per day, what kind of size or economics should we think about related to that?

Speaker #2: Hi, Theresa. It's Cam here. I think what I'll first say is that we see the economics of the condensate barrel as being market-driven, meaning that the price gets set based on the availability of the supply.

Cam Goldade: Hi, Theresa, it's Cam here. I think what I'll first say is that we see the economics of the condensate barrel as being market-driven, meaning that the price gets set based on the availability of the supply. Clearly, as Scott said, the vast majority of that supply gets filled domestically today. Obviously those economics in the basin for domestic condensate production are some of the most competitive available. In terms of your specific question around the marginal economics of bringing condensate up, I think it's a bit preliminary. We're not at a stage yet where we can share something to that degree. I think what we recognize is that both the scale and the economics have to have commercial support from the customers. With that, we've made some positive first steps in terms of the MOU with the government.

Speaker #2: And clearly, as Scott said, the vast majority of that supply gets filled domestically today. And obviously, those economics in the basin for domestic condensate production are some of the most competitive available.

Speaker #2: In terms of your specific question around the marginal economics of bringing condensate up, I mean, I think it's a bit preliminary. We're not at a stage yet where we can share something to that degree.

Speaker #2: I think what we recognize is that both the scale and the economics have to have commercial support from the customers. And I think with that, we've made some positive first steps in terms of the MOU with the government. The Pathways group has secured some signals that there is a desire to grow, but the timeline of that ultimately remains subject to their decisions and their capital allocation decisions.

Cam Goldade: Pathways Alliance has secured some signals that there is a desire to grow. The timeline of that ultimately remains subject to their decisions and their capital allocation decisions. So, as we always do, we look forward to working with customers closely to provide a value-added solution. Probably a bit preliminary to start sharing math at this point.

Speaker #2: And so, as we always do, we look forward to working closely with customers to provide a value-added solution. But it's probably a bit preliminary to start sharing math at this point.

Speaker #4: Thank you.

[Analyst]: Thank you.

Speaker #1: Your next question comes from the line of Spiro Duni with Citi. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Spiro Dounis with Citi. Your line is open. Please go ahead.

Speaker #5: Thanks, operator. Good morning, team. I wanted to revisit the 2030 growth outlook. I guess since you provided that update, you've now sanctioned another $3 billion of projects, which I believe underwrites about 6% of that 5% CAGR range.

Spiro Dounis: Thanks, operator. Morning, team. Wanted to revisit the 2030 growth outlook. I guess since you provided that update, you've now sanctioned another CAD 3 billion of projects, which I believe underwrites about 6% of that 5% CAGR range. First, sort of thinking about that, and as you think about that sort of remaining CAD 2 billion bucket still left to sanction, how do you think about the ability to grow that opportunity set beyond CAD 2 billion, but still be within that 2030 timeframe that could maybe even take you above that 7% high end?

Speaker #5: So first, let me sort of think about that, right? And as you think about that sort of remaining $2 billion bucket still left to sanction, how do you think about the ability to grow that opportunity set beyond $2 billion, but still be within that 2030 timeframe? Could that maybe even take you above that 7% high end?

Speaker #2: Hey, Spiro. It's Cam here. Thanks for the question. First of all, I think we would look at it similarly to you, meaning that we've crystallized or de-risked a material portion of what was in that growth outlook from 2026 through 2030.

Cam Goldade: Hey, Spiro, it's Cam here. Thanks for the question. First off, I think we would look at it similarly to you, meaning that we've crystallized or de-risked a material portion of what was in that growth outlook from 2026 through 2030. As a reminder, that was somewhere between a CAD 1.50 to CAD 2.15 of fee-based adjusted EBITDA per share growth between 2026 and 2030. We've obviously de-risked a material portion of that. What remains in that is a combination of some core volume growth within our business and some core capital investment opportunities.

Speaker #2: As a reminder, that was somewhere between $1.50 to $2.15 of adjusted EBITDA, fee-based adjusted EBITDA per share, growth between 2026 and 2030.

Speaker #2: And we've obviously de-risked a material portion of that. What remains in that is a combination of some core volume growth within our business and some core capital investment opportunities.

Speaker #2: And I think the positive thing I would say about that is that, one, much of that—or effectively all of it—is within our core franchise, our core business, and very much only gets better and more compelling with continued volume growth, which I think we have even more confidence around based on what we've seen more recently.

Cam Goldade: I think the positive thing I would say about that is that one, much of that or effectively all of it is within our core franchise, our core business, and very much only gets better and more compelling with continued volume growth, which I think we have even more confidence around based on what we've seen more recently. I think as we've said since 7 April, probably the biggest near-term lever for us on that 5% to 7% within the timeframe is overall industry activity. I guess I would couple that by saying and reminding everyone that the level of organic volume growth that was really embedded in our 5% to 7% was more historical looking. I think I've said before in the sort of 2% to 3% range for liquids.

Speaker #2: And I think, as we've said since April 7, probably the biggest near-term lever for us on that 5 to 7% within the timeframe is overall industry activity.

Speaker #2: And I guess I would couple that by saying, and reminding everyone, that the level of organic volume growth that was really embedded in our 5 to 7% was more historical looking.

Speaker #2: I think I've said before in the sort of 2% to 3% range for liquids. And I think what we take positive signals from is some of the large customers in the basin and some of our large customers talking about multi-year volume growth in excess of that number through 2030.

Cam Goldade: I think what we take positive signals from is some of the large customers in the basin and some of our large customers talking about multi-year volume growth in excess of that number through 2030. Some customers talking about volume growth up to the likes of 5% even. That would be obviously very capital efficient for us and very quick turnaround. I think that's probably the biggest opportunity for us. As Scott signaled in his prepared remarks, what we're really getting excited about, whether it's future phases of Greenlight, whether it's the West Coast Oil Pipeline opportunity, is the ability to extend that growth that we've signaled through 2030 into the next decade.

Speaker #2: Some customers are talking about volume growth of up to 5%, even, and that would obviously be very capital efficient for us and offer a very quick turnaround.

Speaker #2: So I think that's probably the biggest opportunity for us. And as Scott signaled in his prepared remarks, what we're really getting excited about—whether it's future phases of Green Light, whether it's the West Coast pipeline opportunity—is the ability to extend that growth that we've signaled through 2030 into the next decade.

Speaker #2: And I think, based on some of those opportunities, based on the condensate opportunity that we talked about earlier, and the breadth and integration of our value chain—which we truly believe is unmatched—we stand very well positioned to continue to grow at that rate into the next decade.

Cam Goldade: I think based on some of those opportunities, based on the condensate opportunity that we talked about earlier and the breadth and the integration of our value chain, which we truly believe is unmatched, we stand very well positioned to continue to grow at that rate into the next decade.

Speaker #5: That's helpful. Cal or Cam, thank you for that. Second one—maybe just going to the West Coast, or the pipeline, actually. So, Scott, you had mentioned sort of taking a prudent approach here, and I wanted to dig into that a little bit further.

Spiro Dounis: That's helpful color, Cam. Thank you for that. Second one, we were just going to the West Coast Oil Pipeline, actually. Scott, you had mentioned sort of taking a prudent approach here and wanted to dig into that a little bit further. Just curious how you're thinking about the need to sort of protect your capital and preserve your return if this project does go forward. Maybe perhaps more broadly, can you just talk about your overall decision to get involved here? I think as has been highlighted on this call, you really benefit from WCSB growth almost regardless of the egress method. Curious maybe what some of the rationale was here.

Speaker #5: I'm just curious how you're thinking about the need to sort of protect your capital and preserve your return if this project does go forward. And maybe, perhaps more broadly, can you just talk about your overall decision to get involved here?

Speaker #5: I think, as has been highlighted on this call, you really benefit from WCSB growth almost regardless of the egress method. So, I'm curious what some of the rationale was here.

Speaker #2: Sure. I think from a PEMINA perspective, I mean, there was discussions over time of our involvement in PMX. And so I think that the Southern route and that idea of getting our Canadian depressed prices higher through egress has always been a strategy and clearly is highlighted in our 3C strategy.

Scott Burrows: Sure. I think from a Pembina perspective, there was discussions over time of our involvement in TMX. I think that the southern route and that idea of getting our Canadian depressed prices higher through egress has always been a strategy and clearly is highlighted in our 3Cs Strategy. When I think about the strategy, this fits clearly in the connect bucket. Anything we can do in a basin, whether it is natural gas, LPGs, crude oil, to increase the production and the net back for our customers has that knock-on effect throughout the business.

Speaker #2: So, when I think about the strategy, this fits clearly in the Connect bucket. Anything we can do in the basin—whether it's natural gas, LPGs, or crude oil—to increase the production and the netback for our customers has that knock-on effect throughout the business.

Speaker #2: So, just from a core strategic perspective, it fits directly with what we're talking about. I think we see an opportunity here, as we talked about previously, to be part of a consortium where we're able to really complement and not replace the project proponent.

Scott Burrows: Just from a core strategic perspective, it fits directly in what we are talking about. I think we see an opportunity here, as we talked about previously, to be part of a consortium where we are able to lend our experience and really complement and not replace the project proponent and build and bring our skilled project execution discipline to it. We are pretty excited about our role. I would say that we approach this no different than how we approach many of our projects. We look at the risk-return trade-off. We have our long track record of financial guardrails. We are willing to put some money at risk, but it comes back to the risk-reward.

Speaker #2: And bring our skilled project execution discipline to it. So we're pretty excited about our role, and I would say that we approach this no differently than how we approach many of our projects.

Speaker #2: We look at the risk-return trade-offs. We have our long track record of financial guardrails. We're willing to put some money at risk, but it comes back to the risk-reward.

Speaker #2: And when we stacked up all the key aspects of this project, we felt like it was something that we wanted to be involved in and are very excited about it, not just for Pembina, but what it can do for the basin as well.

Scott Burrows: When we stacked up all the key aspects of this project, we felt like it was something that we wanted to be involved in and are very excited about it, not just for Pembina, but what it can do for the basin as well.

Speaker #5: Great. Appreciate going there, Scott. I'll leave it there. Thanks, everyone.

Aaron MacNeil: Great. Appreciate it, Scott. I will leave it there. Thanks, everyone.

Speaker #1: Your next question comes from the line of Praneeth Satish with Wells Fargo. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Praneeth Satish with Wells Fargo. Your line is now open. Please go ahead.

Speaker #4: Thanks. Good morning, everyone. Maybe just staying on green light here. I guess just broadly speaking, I know it's still early, but when you think about phase two or when you think about another potential site, should we expect the economics and commercial structure and risk profile broadly to look like phase one now that you've got that out there?

Praneeth Satish: Thanks. Good morning, everyone. Maybe just staying on Greenlight here. I guess, just broadly speaking, I know it's still early, but when you think about phase 2 or when you think about another potential site, should we expect the economics and commercial structure and risk profile broadly to look like phase 1 now that you've got that out there? Is that kind of like the blueprint or the rough template for how you're pursuing some of these other projects? Or do you think they're all kind of a little bit different?

Speaker #4: Is that kind of like the blueprint or the rough template for how your pursuing some of these other projects? Or do you think they're all kind of a little bit different?

Speaker #3: Yeah, it's Chris here. As I was saying earlier, I think we really feel like we've proved out our sort of thesis on gas-to-power as a midstream business.

Chris Scherman: Yeah. It's Chris here. As I was saying earlier, I think we really feel like we've proved out our sort of thesis on gas to power as a midstream business in Alberta, and part of that is certainly the commercial construct and how we've thought about the risk profile and the fit of the project with how we think about our broader business. It is still in motion, certainly, and still underway, but future phases, we're targeting to structure them in a similar way to phase 1. They're going to be long-term. They're going to be fixed fee, low risk arrangements that align with Pembina's business model.

Speaker #3: And in Alberta, part of that is certainly the commercial construct and how we've thought about the risk profile and the fit of the project with how we think about our broader business.

Speaker #3: And so, still in motion, certainly, and still underway, but for future phases, we're targeting to structure them in a similar way to Phase One. They're going to be long-term.

Speaker #3: They're going to be fixed-fee, low-risk arrangements that align with PEMINA's business model. I think as you get out into expansions, not necessarily everything always looks the same out into time, but we've been really effective across all of our businesses of keeping that risk profile and keeping that structure in line with our business model.

Chris Scherman: I think as you get out into expansions, not necessarily everything always looks the same out into time, but we've been really effective across all of our businesses of keeping that risk profile and keeping that structure in line with our business model, and this will be no different.

Speaker #3: And this will be no different.

Speaker #4: Got it. That makes sense. And then maybe just switching gears. So there are a number of pipeline projects being proposed in the US to serve growing low demand in the Midwest.

Praneeth Satish: Got it. That makes sense. Maybe just switching gears, there are a number of pipeline projects being proposed in the US to serve growing load demand in the Midwest, and Alliance and Aux Sable kind of sit right in the middle of that demand corridor. I'm just wondering if you see an opportunity to expand and extend south of Aux Sable and participate in some of that growth.

Speaker #4: And Alliance and Oxable kind of sit right in the middle of that demand corridor. So I'm just wondering if you see an opportunity to expand and extend south of Oxable and participate in some of that growth.

Jaret Sprott: Good morning. Jaret here. With respect to expanding downstream of the terminus of Alliance, past the Channahon extraction facility, I would say we're probably more focused in getting incremental gas egress unlocked out of Western Canada so our customers can produce more condensate, like Scott talked about and Cam talked about. That entire flywheel needs to find egress for all of those products as oil sands grows. I would say we're probably more inclined to look at getting more gas down into the Midwest versus just extending the existing gas volume further down the value chain.

Speaker #2: Good morning, Jared here. With respect to expanding downstream of the terminus of Alliance, past the Shamahon extraction facility, I would say we're probably more focused on getting incremental gas egress unlocked out of Western Canada so our customers can produce more condensate, like Scott talked about and Cam talked about.

Speaker #2: That entire flywheel needs to find egress for all of those products as oil sands grows. So I would say we're probably more inclined to look at getting more gas down into the Midwest versus just extending the existing gas volume further down the value chain.

Speaker #4: Got it. Okay. Yeah, no, that's kind of what I was suggesting here—to bring some of that gas down and serve the demand load.

Praneeth Satish: Got it. Okay. That's kind of what I was suggesting here to kind of bring some of that gas down and serve the demand load, understood. Thank you.

Speaker #4: But understood. Thank you.

Speaker #1: Your next question comes from the line of Aaron McNeil with TD Cowen. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Aaron MacNeil with TD Cowen. Your line is now open. Please go ahead.

Speaker #5: Hey, morning all. Thanks for taking my questions. Cam, you sort of touched on this a bit already, but I wanted to put a finer point on it.

Aaron MacNeil: Hey, morning, all. Thanks for taking my questions. Cam, you sort of touched on this a bit already, but wanted to put a finer point on it. Can you remind us of the basin growth assumptions that underpin your sort of 7 April business update guidance and how you might take a crack at sensitizing the guidance in the event that production growth exceeds your assumption? Maybe as a follow on, are there projects that were not referenced in that update that would be required, like a new fractionator or incremental pipeline expansions? Would they be required to sort of realize that higher production driven growth rate?

Speaker #5: Can you remind us of the basin growth assumptions that underpin your April business update guidance, and how you might think about sensitizing the guidance in the event that production growth exceeds your assumption?

Speaker #5: And maybe as a follow-on, are there projects that were not referenced in that update that would be required, like a new fractionator or incremental pipeline expansions?

Speaker #5: Would they be required to sort of realize that higher production-driven growth rate?

Speaker #3: Sure. Yeah. So, as I mentioned earlier, the volume growth that was embedded in our April 7th update and our 2026 to 2030 outlook was, again, in a bit of a historical sense.

Cam Goldade: Sure, Aaron. Yeah. As I mentioned earlier, the volume growth that was embedded in our 7 April update and our 2026 to 2030 outlook was, again, in a bit of a historical sense. We've seen liquids volume growth over the past 4 to 5 years in that 2% to 3% range, and that's effectively what we embedded in our outlook. I think, as I mentioned earlier, if you see that escalate beyond that, our math is that there's a very direct relationship in terms of our growth and the basin growth stepping up. Kind of percentage point for a percentage point. Obviously, depending on timing and when that comes, but if you're going to try and distill it to the highest level, that's the way I would think about it.

Speaker #3: And we've seen liquids volume growth over the past four to five years in that 2 to 3 percent range, and that's effectively what we embedded in our outlook.

Speaker #3: I think, as I mentioned earlier, if you see that escalate beyond that, our math is that there's a very direct relationship in terms of our growth and the basin growth stepping up.

Speaker #3: So, kind of percentage point for percentage point. Obviously, depending on timing and when that comes, but if you want to try and distill it to the highest level, that's the way I would think about it.

Speaker #3: In terms of the investment there, I think that one of the values of our franchise is the breadth and the integration. And as you know, we have debottlenecked various points of that franchise along the way. Certainly on the pipeline side, we have debottlenecked upstream of Fox Creek significantly over the past five years.

Chris Scherman: In terms of the investment there, I think that one of the values of our franchise is the breadth and the integration. As you know, we have de-bottlenecked various points of that franchise along the way. Certainly, on the pipeline side, we've de-bottlenecked upstream of Fox Creek significantly over the past 5 years. We made the investment close to 10 years ago to create the corridor from Fox Creek in, and we continue to have space there. I will say, if we see activity, and we do start to see

Speaker #3: We made the investment close to 10 years ago to create the corridor from Fox Creek in, and we continue to have space there. I will say, if we see activity and we do start to see a million barrels or more of new crude egress come to fruition, and the requirements for condensate and the associated NGLs that come along with that, I think it's no surprise that we will be looking for additional fractionation capacity in the basin.

Cam Goldade: A million barrels or more of new crude egress come to fruition and the requirements for condensate and the associated NGLs that come along with that, I think it's no surprise that we will be looking for additional fractionation capacity in the basin. There may be devolvement investment depending on where that supply comes from. We certainly do have some running room in the near term here, and the ability to respond quickly and capital efficiently where there isn't.

Speaker #3: There may be debottlenecking investment depending on where that supply comes from. But we certainly do have some running room in the near term here.

Speaker #3: And the ability to respond quickly and capital efficiently where there isn't.

Speaker #5: Nope, makes sense. And that's a helpful rule of thumb. I can appreciate you're committed to self-funding growth today. So, maybe just a hypothetical for now, but what market conditions would have to occur to incentivize you to deviate from that?

Aaron MacNeil: Nope. Makes sense, that's a helpful rule of thumb. I can appreciate you're committed to self-funding growth today, maybe just a hypothetical for now, what market conditions would have to occur to incentivize you to deviate from that? What might the funding plan look like in that scenario?

Speaker #5: And what might the funding plan look like in that scenario?

Speaker #3: Yeah, I'll remind everyone that our target leverage range or our leverage guardrail has been three and a half times to four point two five times senior debt proportionally consolidated senior debt to EBITDA for a very long time now.

Cam Goldade: Yeah. I'll remind everyone that our target leverage range or our leverage guardrail has been 3.5 times to 4.25 times senior debt, proportionally consolidated senior debt to EBITDA, for a very long time now. Clearly we've been well below that because, as you mentioned, we've been very much executing within free cash flow for the balance of the past 5 years. I think we look at that, when you look at whether or not we would go, say, beyond 4 times, which we haven't done, whether we would do that, you sort of have to look at the overall risk profile of the business and the opportunity. Where we've significantly mitigated all other risks in the business, I think that gives you some confidence to be able to accept risk in other areas of the business. Those are the conditions.

Speaker #3: And clearly, we've been well below that because, as you mentioned, we've been very much executing within free cash flow for the balance of the past five years.

Speaker #3: I think we look at that, and when you look at whether or not we would go, say, beyond four times—which we haven't done—but whether we would do that, you sort of have to look at the overall risk profile of the business and the opportunity.

Speaker #3: Where we've significantly mitigated all other risks in the business, I think that gives you some confidence to be able to accept risk in other areas of the business.

Speaker #3: And so those are the conditions. And I think you need to see a very clear path to getting back towards the middle of your target range, which is where we prefer to operate.

Cam Goldade: I think you need to see a very clear path to getting back towards the middle of your target range, which is where we prefer to operate. I would say that clearly we are at a generational point in the industry at the moment and the type of investment opportunities that we're seeing, both in terms of ability, scale, and returns are very compelling. We really need to take a long-term perspective as we look at these investment opportunities to generate the most value.

Speaker #3: But I would say that, clearly, we are at a generational point in the industry at the moment. And the type of investment opportunities that we’re seeing, both in terms of ability to scale and returns, are very compelling.

Speaker #3: And so, we really need to take a long-term perspective as we look at these investment opportunities to generate the most value.

Speaker #5: Okay, great. Thanks. I'll turn it back.

Aaron MacNeil: Okay, great. Thanks. I'll turn it back.

Speaker #1: Your next question comes from the line of Maurice Choi with RBC Capital Markets. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Maurice Choy with RBC Capital Markets. Your line is now open. Please go ahead.

Speaker #5: Thank you, and good morning, everyone. I just want to start with the West Coast Oil Pipeline. I suspect it might be too early to talk about customer volumes in the coming years, but maybe you could give us a vision as to what needs to happen between now and FID, whether that be between the industry or the governments, before we do see the first customer volumes get contracted.

Maurice Choy: Thank you, and good morning, everyone. To start with the West Coast Oil Pipeline. I suspect it might be too early to talk about customer volumes in the coming years, maybe you could give us a vision as to what needs to happen between now and FID, whether that be between the industry, the governments, before we do see the first customer volumes get contracted.

Speaker #4: Sure. Maurice, it's Scott here. I don't think about this too differently than any other major project when it comes to FID. I mean, clearly, we'll need to have a regulatory approval with conditions under which we can construct, we need to have a competitive cost estimate, and then we'll need a certain level of volumes to underpin the investment.

Scott Burrows: Sure, Maurice, it's Scott here. I don't think about this too different than any other major project when it comes to FID. Clearly we'll need to have a regulatory approval with conditions under which we can construct. We need to have a competitive cost estimate, then we'll need a certain level of volumes to underpin the investment. All of that's going to happen over the next, call it 18 months, as we advance the project. I don't see it really any different than any other major project. Based on what we're seeing and hearing, we do think volumes are going to be there, so we're pretty optimistic.

Speaker #4: And so, all of that's going to happen over the next, call it, 18 months as we advance the project. But I don't see it really any different than any other major project.

Speaker #4: So, based on what we're seeing and hearing, we do think volumes are going to be there. So we're pretty optimistic.

Speaker #5: Gotcha. And if I could finish off with a question about power, or more broadly, about your growth platform. I think in your press release, you mentioned that Green Light establishes an entirely new growth platform.

Maurice Choy: Gotcha. If I could finish off with a question about power, or more just more broadly about your growth platform. I think in your press release you mentioned that Greenlight establishes an entirely new growth platform. I think, Chris, you mentioned earlier that this Greenlight project obviously proves out your gas to power thesis. I think in the past, you've mentioned that you're not looking to grow an IPP within the company. Sure, there is future phases of Greenlight on the same site, could you just talk to any plans to grow this platform beyond Greenlight?

Speaker #5: And I think, Chris, you mentioned earlier that this Greenlight project obviously proves out your gas-to-power thesis. I think in the past, you've mentioned that you're not looking to grow an IPP within the company.

Speaker #5: And sure, there's future phases of Greenlight on the same site, but could you just talk to any plans to grow this platform beyond Greenlight?

Chris Scherman: Hey, Maurice. Thanks for the question. Chris again. When we think about what was really attractive to us about this project and about this business, it really starts with the macro, right? The energy demand growth associated with data centers and AI, and all the rest of it, and that demand being served by natural gas-fired power generation is pretty attractive for us. It catalyzes demand in our basin for natural gas. That part all holds. It is really about can we build it into the type of business that we really like, and the midstream construct we really like. The nature of Greenlight fits that very well. At this time, merchant power does not fit into that, or being an independent power producer does not fit into that. We think there is lots of running room on the model.

Speaker #2: Of course. Thanks for the question, Chris—Chris again. So, when we think about what was really attractive to us about this project and about this business, I mean, it really starts with the macro.

Speaker #2: Right? The energy demand growth associated with data centers and AI. And all the rest of it. And that demand being served by natural gas-fired power generation is pretty attractive for us.

Speaker #2: It catalyzes demand. In our basin, for natural gas. So that part all holds. Then it's really about can we build it into the type of business that we really like?

Speaker #2: And the midstream construct, we really like. And the nature of Greenlight fits that very well. At this time, merchant power does not fit into that, or being an independent power producer does not fit into that.

Speaker #2: We think there's lots of running room on the model. We've proven out here with green light, and are not pointed down a path towards IPP or merchant power.

Cam Goldade: We have proved it out here with Greenlight, are not pointed down a path towards IPP or merchant power.

Speaker #5: Just to be clear, you're okay with going forward as a contracted IPP in Alberta?

Maurice Choy: Just to be clear, you are okay going down being a contracted IPP in Alberta?

Speaker #2: For contracted, going down the path of we're confident going down the path of deals that look similar to green light. In commercial structure and risk profile.

Chris Scherman: We are contracted going down the path of. We are confident going down the path of.

Chris Scherman: Deals that look similar to Greenlight in commercial structure and risk profile.

Speaker #5: Perfect. Thank you very much for that.

Maurice Choy: Perfect. Thank you very much for that.

Speaker #1: Your next question comes from the line of Sam Burwell with Jefferies. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Sam Burwell with Jefferies. Your line is now open. Please go ahead.

Speaker #6: Hey guys, good morning. Of all the projects that you called out in the April business update that are still pre-FID, which would you say are the nearest, and then maybe the furthest away, from a sanctioning?

Sam Burwell: Hey, guys. Good morning. Of all the projects that you called out in the April business update that are still pre-FID, which would you say are the nearest and then maybe the furthest away from sanctioning? I guess specifically on the Nipisi Pipeline, Clearwater's gotten a lot of momentum, but with a fairly concentrated crew of producers. I was just curious what the progress is on that one in particular.

Speaker #6: And I guess specifically on the Nipisee pipeline, Clearwater's gotten a lot of momentum, but with a fairly concentrated crew of producers. So I was curious what the progress is on that one in particular.

Speaker #2: Yeah, thanks for the questions, Chris. Obviously, we've seen tremendous growth out of the Clearwater Basin. The netbacks are phenomenal, and in this price environment, the growth has certainly reflected that.

Chris Scherman: Thanks for the questions, Chris. Obviously, we've seen tremendous growth out of the Clearwater basin. The net backs are phenomenal. In this price environment, the growth has certainly reflected that. The result of which is it's filling our existing pipe that's there. That's been a tremendous success if you recall the history on that. We're working with producers today and still to chart a path forward that works for both of us, and optimistic about the potential to expand that pipe in the not-too-distant future. At this stage, it's in commercial negotiations.

Speaker #2: The result of which is it's filling our existing pipe that's there. That's been a tremendous success, if you recall the history on that. We're working with producers today, and still to chart a path forward that works for both of us.

Speaker #2: And we're optimistic about the potential to expand that pipeline in the not-too-distant future. But at this stage, it's in commercial negotiations.

Cam Goldade: Sam, it is Cam here. I'll just chip in on some of those other opportunities. We've talked about the opportunity for butane value enhancement. I think we saw a length in the butane market in Western Canada for some time, and I think with what we're seeing as the opportunity in the future with greater crude egress and the flywheel effect of that is only growing from there. So we continue to investigate a solution that involves butane value enhancement. Likewise, on some of the incremental pipe egress, particularly towards Northeast BC. Again, I think we continue to work closely with customers around the timing of those needs, and as usual, people are very much into budgeting season here, for the next year and the following years, and I think it's a really a when, if not if, that occurs.

Speaker #3: And Sam, it's Cam here. I'll just chip in on some of those other opportunities. We've talked about the opportunity for butane value enhancement. I think we've seen a length in the butane market in Western Canada for some time.

Speaker #3: And I think with what we're seeing as the opportunity in the future, with greater crude egress and the flywheel effect of that, that is only growing from there.

Speaker #3: And so, we continue to investigate a solution that involves butane value enhancement. Likewise, on some of the incremental pipe egress, particularly towards Northeast B.C. Again, I think we continue to work closely with customers around the timing of those needs, and as usual, people are very much into budgeting season here for the next year.

Speaker #3: And the following years, and I think it's really a when, if not if, that occurs. And outside of that, it really comes down to just unlocking ratable core volume growth, as we see through existing capacity.

Cam Goldade: Outside of that, it really comes down to just unlocking ratable core volume growth as we see through existing capacity.

Speaker #6: Okay, great. And I'll try to sneak another one in on the West Coast pipeline. So, it seems like you guys have tremendous optionality and do have some protections on cost.

Sam Burwell: Okay, great. I'll try to sneak another one in on the West Coast Pipeline. It seems like you guys have tremendous optionality and do have some protections on cost, but you also stated in the April business update that the max build multiple you consider would be 10 times. I would assume that holds for your potential participation in the West Coast Oil Pipe. Curious if that contemplates the option to add the extra 10% after project completion or if your returns would be effectively met through just the initial 10%.

Speaker #6: But you also stated in the April business update that the max build multiple you would consider would be 10 times. So, I would assume that holds for your potential participation in the West Coast oil pipe.

Speaker #6: But I'm curious if that contemplates the option to add the extra 10% after project completion, or if your returns would be effectively met through just the initial 10%.

Cam Goldade: It's Cam here, Sam. I think what I would say is, when we talked on 7 April about our history in terms of capital deployment, it was very much historically speaking, and with our current development portfolio, in that six to eight times range historically for greenfield type opportunities. When you look at our model, a desire to grow in that mid-single digit range over the long term, really it sort of drives towards something that continues to need to be capital investment along those type of parameters with the right risk profile. Again, we're very focused on both the return and the risk profile of the investment opportunity, and the West Coast pipeline is no different. It's a bit preliminary to sort of get into bright lines at this point because we have a lot of work to do on all fronts there.

Speaker #3: It's Cam here. Sam, I think what I would say is, when we talked on April 7th about our history in terms of capital deployment, it was very much, historically speaking, and with our current development portfolio, in that 6 to 8 times range historically for greenfield-type opportunities.

Speaker #3: And so when you look at our model, a desire to grow in that mid-single digit range over the long term, really it's sort of drives towards something that continues to need to be capital investment along those type of parameters with the right risk profile.

Speaker #3: So again, we're very focused on both the return and the risk profile of the investment opportunity, and the West Coast pipeline is no different.

Speaker #3: It's a bit preliminary to sort of get into bright lines at this point, because we have a lot of work to do on all fronts there.

Speaker #3: But suffice to say, as Scott said—and just to reinforce—the capital allocation decision for that opportunity will be no different than it is for our other portfolio investments.

Cam Goldade: Suffice to say, as Scott said, and just to reinforce, the capital allocation decision for that opportunity will be no different than it is for our other portfolio investments.

Speaker #6: Okay, got it. Thank you, Cam.

Sam Burwell: Okay. Got it. Thank you, Cam.

Speaker #1: Your next question comes from the line of Robert Catellier with CIBC Capital Markets. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Robert Catellier with CIBC Capital Markets. Your line is now open. Please go ahead.

Speaker #7: Hey, good morning, everyone. I just wanted to quickly go back to the NGL picture here. You continue to highlight the strong outlook for the basin and the strong NGL fundamentals.

Robert Catellier: Good morning, everyone. I just wanted to quickly go back to the NGL picture here. You continue to highlight the strong outlook for the basin and the strong NGL fundamentals. Of course, you have that exposure through your export facility and some contractual export exposure elsewhere. When you look at the evolution of the basin and what is possible if oil sands production does grow, as you mentioned, it is going to require more fractionation. I am just wondering about your views in terms of fractionation and extraction in the field closer to the West Coast export points compared to Redwater, where you have so much scale and so many tools already.

Speaker #7: And, of course, you have that exposure through your export facility and some contractual export exposure elsewhere. Just when you look at the evolution of the basin and what's possible, if all stands—production does grow, as you mentioned—it's going to require more fractionation.

Speaker #7: I'm just wondering about your views in terms of fractionation and extraction in the field, closer to the West Coast export points, compared to Redwater, where you have so much scale and so many tools already.

Speaker #3: Rob, Jared here. I think you're probably referencing a recent announcement of some incremental barrels going west from Northeast B.C. So maybe I'll just take a step back and talk about our fractionation complex.

Chris Scherman: Morning, Rob. Jaret here. I think you are probably referencing a recent announcement of some incremental barrels going west from Northeast BC. Maybe I will just take a step back and talk about our fractionation complex. We absolutely believe the size and scale of the Edmonton area does provide the customers with a significant amount of redundancy

Speaker #3: We absolutely believe the size and scale of the Edmonton area does provide the customers with a significant amount of redundancy, storage, and rail egress. You have multiple rail providers to go to different markets depending on if pricing or swings—you can go to Eastern Canada, you can go around the States, you can go to international, you can go into Mexico, etc.

Jaret Sprott: Storage, rail egress. You have multiple rail providers to go to different markets, depending on if pricing are swinging, you can go to Eastern Canada, you can go to the States, you can go internationally, you can go into Mexico, et cetera. We still believe the fundamental thesis is that NGLs coming into the Edmonton-Fort Saskatchewan area does provide customers with a lot of advantages. I will note that just the majority of the barrels that come into that region are Alberta based. With respect to some niche opportunities going directly to the coast, it is fairly relatively small. I think it works for certain customers in certain regions. Overall, it is anticipated in our five to seven CAGR that we put out on 7 April. You have to realize that those customers are making a choice long-term to dedicate those small barrels to Asia, essentially.

Speaker #3: So we still believe the fundamental thesis is that NGLs coming into the Edmonton, Port Saskatchewan area does provide customers with a lot of advantages.

Speaker #3: And I will note that just the majority of the barrels that come into that region are kind of Alberta-based. With respect to some niche opportunities going directly to the coast, it's relatively small.

Speaker #3: I think it I think it works for certain customers in certain regions. But overall, it doesn't it's kind of anticipated in our 5 to 7 CAGR that we put on out on April the 7th.

Speaker #3: And you have to realize that those customers are making a choice long-term to dedicate those small barrels to Asia, essentially. So it would be very hard for them to capture an Eastern Canada price spike, for example.

Jaret Sprott: It would be very hard for them to capture an Eastern Canada price spike, for example. Overall, we still think Fort Saskatchewan and Edmonton is extremely competitive and scalable.

Speaker #3: But overall, we still think Fort Saskatchewan and Edmonton is extremely competitive and scalable.

Speaker #7: Yeah, okay, great. And then I just wanted to move on to Cedar LNG here. It just looks like the construction is going on.

Robert Catellier: Yeah. Okay, great. Just wanted to move on to Cedar LNG here. It just looks like the construction's going incredibly well. At this point, what do you see as the remaining risk factor to be able to hit those first cargoes in 2028?

Speaker #7: Incredibly well. So, at this point, what do you see as the remaining risk factors to be able to hit those first cargoes in 2028?

Speaker #3: Yeah, I think, Rob, the big unknown—I don't say this as a negative—will just be the ultimate hookup and commissioning of the ship.

Scott Burrows: Yeah, I think, Rob, the big unknown, I don't say this as a negative, will just be the ultimate hook-up and commissioning of the ship. I think everything as of right now, the pipeline's done, as we talked about. The transmission line will be done early. Our third-party compressor station is wrapping up construction. BC Hydro is on track. The ship is tracking slightly early for arrival. When you stack all of it up, really the unknown and again, not because I'm worried about it just will be the ultimate commissioning of the ship, because everything that's in our control or a third party's control right now is tracking very well.

Speaker #3: I think everything, as of right now—the pipeline's done as we talked about. The transmission line will be done early. Our third-party compressor station is wrapping up construction. VC Hydro's on track.

Speaker #3: The ship is tracking slightly early for arrival. So, when you stack all of it up, really the unknown—and again, not because I'm worried about it—it just will be the ultimate commissioning of the ship, because everything that's in our control, or a third party's control right now, is tracking very well.

Speaker #7: Okay, thanks very much.

Robert Catellier: Okay. Thanks very much.

Speaker #1: Your next question comes from the line of Sumantra Banerjee with UBS. Your line is now open. Please go ahead.

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

Speaker #5: Hi, good morning. Thank you so much for taking the question. You mentioned that ATP would have—it was accompanied by amendments to an existing ethane supply agreement with Dow.

Sumantra Banerjee: Hi. Good morning. Thank you so much for taking the question. You mentioned that HEP was accompanied by amendments to an existing ethane supply agreement with Dow. Was just curious about if you had any higher level of commentary on what you're seeing in terms of global ethane demand.

Speaker #5: So, I was just curious if you had any higher-level commentary on what you're seeing in terms of global ethane demand.

Speaker #8: Oh, the questions around global ethane demand and the relationship to our existing arrangements—is that right?

Chris Scherman: Oh, the question's around global ethane demand and the relationship to our existing arrangements. Is that right?

Speaker #5: Yeah, that's right.

Sumantra Banerjee: Yes, that's right.

Speaker #8: Yeah, yeah, it's Chris. Happy to take that. I mean, obviously, we've seen a lot of growth in Western Canada on the ethane demand front with Dow's announcement.

Chris Scherman: Yeah. It's Chris. Happy to take that. Obviously we've seen a lot of growth in Western Canada, on the ethane demand front with Dow's announcement. There remains length in the basin, for sure, and others have been out talking about the potential opportunity to get that to Asian markets in particular. You can see why, if you pay attention to some of the pricing or watch closely some of the pricing that has been seen for ethane sold off the dock in the coast and landed in certain parts of Asia. It's a pretty compelling proposition. We've spent time understanding and continue to spend time understanding the cost structure and all the rest of it associated with getting that product to Asia.

Speaker #8: There remains length in the basin, for sure. Others have also been out talking about the potential opportunity to get that to Asian markets in particular.

Speaker #8: And you can see why if you pay attention to some of the pricing, or watch closely some of the pricing that we're seeing for ethane.

Speaker #8: Sold off the dock on the coast and landed in certain parts of Asia. It's a pretty compelling proposition. We've spent time understanding, and continue to spend time understanding, the cost structure and all the rest of it associated with getting that product to Asia.

Speaker #8: I think we've got great partners in the Basin and great partners in Western Canada in the ethane cracking business that we've got tremendous relationships with.

Chris Scherman: I think we've got great partners in the basin and great partners in Western Canada in the ethane cracking business that we've got tremendous relationships with, and we think there's even potential for more of that in the future. Certainly some of the global price dynamics are driving some different exploration by different participants.

Speaker #8: And we think there's even potential for more of that in the future. But certainly, some of the global price dynamics are driving some different exploration by different participants.

Speaker #5: Got it. That's very helpful. Also, just curious if you're noticing anything on the storage front as well, in terms of incremental opportunities?

Sumantra Banerjee: Got it. That's very helpful. Also, just curious if we're noticing anything on the storage front as well in terms of incremental opportunities.

Speaker #8: On the storage front?

Chris Scherman: On the storage front?

Sumantra Banerjee: That's right.

Chris Scherman: It certainly depends which products. Crude storage, in its backwardated state and at least a little bit of available capacity at the moment, has not seen a ton of opportunities associated with it, but there certainly are opportunities popping up there. We continue to take advantage of seasonal and different storage opportunities on the NGL side. We've got a pretty substantial position there. No real insights to provide on gas storage.

Speaker #5: That's right.

Speaker #8: It certainly depends on which products. For crude storage, its backwardated state and at least a little bit of available capacity at the moment have not seen a ton of opportunities associated with it, but there certainly are opportunities popping up there.

Speaker #8: We continue to take advantage of seasonal and different storage opportunities on the NGL side. We've got a pretty substantial position there, and then no real insights to provide.

Speaker #8: On gas storage.

Speaker #5: Got it. That makes sense. Thank you so much.

Sumantra Banerjee: Got it. That makes sense. Thank you so much.

Speaker #1: Your next question comes from the line of Benjamin Pham with BMO. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Ben Pham with BMO. Your line is now open. Please go ahead.

Speaker #2: All right, thanks. Good morning. I just want to go back to the Canadian West Coast pipeline opportunity. Can you flesh out some of the timelines that have been noted to be foreign in the press?

Ben Pham: Thanks. Good morning. I just want to go back to the Canadian West Coast pipeline opportunity. Can you flesh out on, I noticed some timelines that have been noted before in the press. I'm just curious about as we look forward to the key milestones for this pipeline into FID, when your non-binding becomes binding, what that binding actually means, beyond that binding, what other key items to look for?

Speaker #2: I'm just curious, as we look forward to the key milestones for this pipeline into FID—when your non-binding becomes binding, what that binding actually means, and then beyond that binding, what other key items to look for?

Sarah Schwann: Yes, happy to. This is Sarah. Right now, obviously, it has been a very busy month since we made the announcement in June. We are working very closely with our government partners on the key work streams. The first one being, or a primary one being, obviously, the definitive agreement and working to support a major projects office on their projects national interest assessment. The first milestone as we look forward is really targeting that 1 October designation under the Building Canada Act. Around that same time, we are anticipating that definitive agreements will be finished, and we will then move into proceeding with the CER or other regulatory applications that are required, that Scott referenced, in order to get to an FID decision. These are the sort of core pieces as we look forward. Obviously, there is a lot of compressed timelines and optimism as we look at this.

Speaker #4: That's happy to. This is Sarah. Right now, obviously, it's been a very busy month since we made the announcement in June. We're working very closely with our government partners.

Speaker #4: On the key work streams, the first one being, or a primary one being, obviously the definitive agreements and working to support a major project office on their project national interest assessment.

Speaker #4: So the first milestone as we look forward is really targeting that October 1 designation under the Building Canada Act. Around that same time, we are anticipating that definitive agreements will be finished.

Speaker #4: And we will then move into proceeding with the CER or other regulatory applications that are required, that Scott referenced, in order to get to an FID decision.

Speaker #4: So, these are the sort of core pieces as we look forward. Obviously, there's a lot of compressed timelines and optimism as we look at this.

Speaker #4: But we will be pulling it together and targeting early commencement of operations next fall.

Chris Scherman: We will be pulling it together, and targeting early commencement of operations next fall.

Speaker #2: Okay, got it. And just maybe to take a step back, I know you're already on oil pipes, you have storage in the mix, and you had looked at Trans Mountain in the past.

Ben Pham: Okay. Got it. As you just maybe take a step back. I know you have oil pipes, you have storage in the mix. You had looked at Trans Mountain in the past, now taking West Coast Pipe. You mentioned that you are supporting oil pipes that benefit your business broadly and in the basin. Do you have appetite for anything beyond taking West Coast Pipe? Because there is also a number of other alternatives being proposed out there that may be looking for partners or investments.

Speaker #2: Now, the Canadian West Coast pipe you mentioned that you're supporting—oil pipes—that benefits your business broadly in the basin. Do you have appetite for anything beyond the Canadian West Coast pipe?

Speaker #2: Because there are also a number of other alternatives being proposed out there that maybe look for partners or investments.

Speaker #8: No, not right now. This is West Coast oil pipelines we're focused on.

Scott Burrows: No, not right now. West Coast oil pipelines are our focus.

Speaker #2: Okay, got it. And maybe just one quick one. It's really been night and day with your cost of capital over the last year, and that's creating a lot of value for organic growth, just given that returns have still been quite attractive.

Ben Pham: Okay. Got it. Maybe just one quick one. It's really been night and day with your cost of capital over the last year. That's creating a lot of value for organic growth, just given returns have been still quite attractive. How do you think about the M&A landscape today? Especially in the US side of things? Are there assets you can shake down, maybe build a new footprint there to build on?

Speaker #2: How do you think about the M&A landscape today? Especially on the US side of things, are there assets you can shake out and maybe build a new footprint there to build on?

Speaker #8: Hey Ben, it's Cam. I think it's probably pretty consistent with our comments in the past, which is, one, we're always looking at how we can enhance the business strategically and what fits within the 3C strategy.

Cam Goldade: Hey, Dan. It's Cam. I think it's probably pretty consistent with our comments in the past, which is, one, we're always looking at how we can enhance the business strategically and what fits within the 3Cs Strategy. Obviously, Capture, Connect, and Catalyze underpins all of that. I think our view continues to be as it's been for some time, that the opportunity that we see in front of us at the moment and for the near term is really probably more so with respect to tuck-in opportunities as they come and sort of have strong strategic fit with the rest of our business. I think it sort of speaks to the opportunity in front of us organically and what we have.

Speaker #8: Obviously, Capture, Connect, and Catalyze underpins all of that. I think our view continues to be, as it's been for some time, that the opportunity we see in front of us at the moment, and for the near term, is really probably more so with respect to tuck-in opportunities as they come and sort of have strong strategic fit with the rest of our business.

Speaker #8: I think it sort of speaks to the opportunity in front of us organically and what we have. And, as we said, we have a very strong growth profile through the end of the decade.

Cam Goldade: As we said, we have a very strong growth profile through the end of the decade and setting up to continue to have that into the next decade. So, our focus would be executing that, executing that well, appointing our company's resources towards doing a really strong execution job on those opportunities just like we have and sort of smaller tuck-in opportunities where they present themselves and fit strategically.

Speaker #8: And setting up to continue to have that into the next decade. And so, our focus would be executing that—executing that well—pointing our company's resources towards doing a really strong execution job on those opportunities, just like we have.

Speaker #8: And sort of smaller tuck-in opportunities, where they present themselves and fit strategically.

Speaker #2: Okay, got it. Thanks a lot.

Ben Pham: Okay. Got it. Thanks a lot.

Speaker #1: Your next and final question comes from the line of Robert Hope with Scotiabank. Your line is now open. Please go ahead.

Operator: Your next and final question comes from the line of Robert Hope with Scotiabank. Your line is now open. Please go ahead.

Speaker #7: Good morning, everyone. Maybe just going back to the potential for incremental...

Rob Hope: Morning, everyone. Maybe just going back to the potential for incremental gas-to-power opportunities. I acknowledge kind of your commentary on the commercial structure there. How should we think about the ownership structure? If Greenlight Light is expanded, would that be with Kineticor? If you are looking for other opportunities, could you be the lead developer and 100% owner of those opportunities?

Speaker #8: Gas-to-power opportunities: I acknowledge your commentary on the commercial structure there, but how should we think about the ownership structure if Greenlight is expanded?

Speaker #8: Would that be with Connecticut, or are you looking for other opportunities? Could you be the lead developer and 100% owner of those opportunities?

Speaker #7: Hey Robert, it's Chris. We're really happy with the Connecticut team as the team that's leading for us. We're also really happy with the partnership we have and the partner we have in place.

Chris Scherman: Hey, Robert. It's Chris. We're really happy with the Kineticor team as the team that's leading this for us. We're also really happy with the partnership we have and the partner we have in place. We're seeing lots of alignment across the partners and the execution team to really pursue what we're trying to pursue in this space. With all that, we think it really is in support of us maintaining that first-mover advantage. It's really in support of us having all the right expertise and capabilities and the financial wherewithal to keep investing in this space. Yeah, at this time, that's our team, that's our partnership. We like it, and that's going to be the vehicle we're pursuing these investments in.

Speaker #7: We're seeing lots of alignment across the partners and the execution team to really pursue what we're trying to pursue in this space. So, with all that, we think it really is in support of us having maintained that first-mover advantage.

Speaker #7: It's really in support of us having all the right expertise and capabilities, and financial wherewithal to keep investing in this space. And so, yeah, at this time, that's our team, that's our partnership.

Speaker #7: We like it, and that's going to be the vehicle we're pursuing these investments in.

Speaker #2: I appreciate that. And then maybe going over to the West Coast pipelines—so it is possible that the new West Coast pipeline could operate as kind of a common carrier, or a common system.

Rob Hope: I appreciate that. Maybe going over the West Coast Pipeline. It is possible that the new West Coast Pipeline could operate as a kind of a common carrier or a common system with the existing Trans Mountain system there, including moving ships in between the docks. When you think about that, could there be an opportunity or is there a way to kind of, we'll call it normalize your ownership interest in not only the West Coast Pipeline but in the broader overall system?

Speaker #2: With the existing Trans Mountain system there, including moving ships to in between the docks. When you think about that, could there be an opportunity or is there a way to kind of, we'll call it, normalize your ownership interests and not only the West Coast pipeline, but in the broader overall system?

Scott Burrows: Robert, I would say at this time and stage, you should think about them as two completely independent projects with independent owners and independent development. In this five minutes, that's not being contemplated.

Speaker #7: Robert, I would say at this time and stage, you should think about them as two completely independent projects, with independent owners and independent development.

Speaker #7: So, in this five minutes, that's not being contemplated.

Speaker #2: Thank you.

Rob Hope: Thank you.

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

Operator: There are no further questions at this time. I will now turn the call back to Scott Burrows for closing remarks.

Speaker #7: Thank you. It was an announcement-filled quarter at PEMBINA and our successes reflect very strong momentum within the Canadian energy industry. Our ability to capture opportunities both as a first mover through Greenlight and a trusted project development partner as showcased by the West Coast oil pipeline project continues to differentiate us among peers.

Scott Burrows: Thank you. It was an announcement-filled quarter at Pembina, and our successes reflect very strong momentum within the Canadian energy industry. Our ability to capture opportunities, both as a first mover through Greenlight and a trusted project development partner, as showcased by the West Coast Oil Pipeline Project, continues to differentiate us among peers. We are seeing new developments across all commodities within the WCSB, and Pembina's integrated value chain is uniquely positioned to capture this momentum. Our confidence in the growth outlook both to 2030, but also well into the next decade, is continuing to strengthen. We hope you share our excitement as we continue to execute our strategy to capture, connect, and catalyze in service of creating value for our shareholders. I'm incredibly proud of our amazing Pembina team and everything we have accomplished this quarter. Thanks for joining us today.

Speaker #7: We are seeing new developments across all commodities within the WCSB, and Pembina's integrated value chain is uniquely positioned to capture this momentum. Our confidence in the growth outlook extends both to 2030 and well into the next decade. We hope you share our excitement as we continue to execute our strategy to capture, connect, and catalyze in service of creating value for our shareholders.

Speaker #7: I'm incredibly proud of our amazing PEMBINA team and everything we have accomplished this quarter. Thanks for joining us today and enjoy the rest of summer and we look forward to speaking to you again soon.

Scott Burrows: Enjoy the rest of the summer, and we look forward to speaking to you again soon.

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