Pembina (PBA) Q3 2026 Earnings Call Transcript

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DATE

Friday, Nov. 6, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer – Scott Burrows
• Chief Financial Officer – Cameron Goldade
• Vice President, Capital Markets – Dan Tucunel

TAKEAWAYS

• Adjusted EBITDA — CAD 1.128 billion, representing a 9% increase driven by strong operational performance and a constructive commodity environment.
• Earnings — CAD 570 million, an increase of 99% reflecting higher NGL margins and a higher share of profit from PGI.
• 2026 Adjusted EBITDA Guidance — CAD 4.45 billion to CAD 4.55 billion, updated from the previous range of CAD 4.35 billion to CAD 4.55 billion.
• Pipelines Adjusted EBITDA — CAD 606 million, a 4% decrease primarily due to the impact of the new toll structure on the Alliance Pipeline.
• Facilities Adjusted EBITDA — CAD 400 million, a 13% increase supported by higher revenue from the Redwater Complex following RFS IV entering service in May 2026.
• Marketing & New Ventures Adjusted EBITDA — CAD 167 million, a 69% increase reflecting higher NGL margins and premium propane prices in Asian markets.
• Total Midstream Volumes — 3.7 million barrels of oil equivalent per day, an increase of 1% driven by higher interruptible volumes and new assets entering service.
• Revenue — CAD 2.179 billion, representing a 22% increase compared to CAD 1.791 billion in the prior year period.
• Project Sanctions — nearly CAD 3 billion, committed since April 2026 to support growth targets through 2030.
• 2027 Hedging — 55% of 2027 volumes, increased from 15% to 20% previously to manage market uncertainty and crystallize gains.
• Cedar LNG Progress — 80% completion, with management focusing on operational readiness for the 2028 target.
• Greenlight Electricity Centre Capacity — 932 MW, serving as a sanctioned natural gas-fired facility to support data center development.
• Pacific Link Capacity — approximately 1 million barrels per day, for a proposed crude oil pipeline system connecting Alberta to Canada’s West Coast.
• Non-GAAP Adjusted Earnings — CAD 479 million, an 11% increase driven by improved operational results across the core business segments.
• Adjusted Cash Flow from Operating Activities — CAD 751 million, an increase from CAD 648 million reflecting higher cash distributions from equity accounted investees.
• Capital Expenditures — CAD 203 million, focused on capacity expansion and the execution of the Greenlight Electricity Centre.
• Alliance Pipeline Contribution — Management expects higher fourth-quarter performance due to the ability to transport higher volumes during colder seasonal periods.
• PGI Adjusted EBITDA — CAD 212 million, reflecting higher volumes from the Wapiti expansion and fewer planned outages compared to the prior year.
• Lator Infrastructure — completed on time and entered service in early Oct. 2026 to support long-term plant utilization at the Musreau facility.
• Cochin Pipeline Revenue — increased due to higher interruptible volumes and favorable commodity price differentials.

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RISKS

• Goldade stated that the 2026 guidance range is framed 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,” which impacts incentive compensation costs.
• Goldade stated that higher realized losses on “NGL-based derivatives” partially offset the increase in marketing margins during the third quarter.

SUMMARY

Pembina Pipeline Corporation (PBA +0.92%) is executing a growth strategy focused on its 3Cs framework of capturing production, connecting products to global markets, and catalyzing new demand. Management reported that the Western Canadian Sedimentary Basin is entering a growth cycle, termed the energy flywheel, where infrastructure investment and market access reinforce production across all hydrocarbons. The company is prioritizing large-scale projects like Cedar LNG and the Greenlight Electricity Centre to diversify revenue streams into global exports and data center power demand. Management stated that the current market environment is supported by improving policy and expanding market access, which has allowed for nearly CAD 3 billion in new project sanctions since April 2026.

• Scott Burrows stated, “Contracted power for data centers is a significant and scalable growth opportunity, and this first project has proven the commercial model to support future expansions.”
• Management reported that the company has reached 80% completion on the Cedar LNG facility and is focused on operational readiness for 2028.
• Cameron Goldade noted that the company increased its 2027 hedging to 55% to manage future market uncertainty following record levels of market access differentials.
• The company indicated that the Greenlight site is licensed for up to 1.8 GW of capacity, providing potential for future development phases beyond the initial 932 MW facility.
• Scott Burrows described the energy flywheel as a cycle where greater crude egress supports oil sands production, driving demand for condensate and liquids-rich natural gas.
• The company reported that the Lator infrastructure was completed on time and began flowing gas volumes to PGI’s Musreau facility in early Oct. 2026.

INDUSTRY GLOSSARY

• 3Cs Strategy: A corporate framework focused on Capture, Connect, and Catalyze initiatives to grow the energy value chain.
• Arb: Arbitrage, the practice of profiting from price differences for the same commodity in different markets.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization.
• Mboe/d: Thousand barrels of oil equivalent per day.
• NGL: Natural gas liquids, such as ethane, propane, and butane.
• PGI: Pembina Gas Infrastructure, a joint venture entity managing natural gas processing assets.
• RFS IV: Redwater Fractionation Site IV, a specific midstream infrastructure asset used for NGL processing.
• WCSB: Western Canadian Sedimentary Basin, a major hydrocarbon-producing region in Canada.

Full Conference Call Transcript

Operator: Ladies and gentlemen, thank you for joining us, and welcome to Pembina Pipeline Corporation Q3 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.

Dan Tucunel: Thank you, Leah. Good morning, everyone. Welcome to Pembina’s conference call and webcast to review highlights from the third quarter of 2026. On the call today, we have Scott Burrows, President and Chief Executive Officer, and Cameron Goldade, Chief Financial Offic

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