CALGARY, AB, March 8, 2022 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL) (NYSE: PBA)
announced today that the Toronto Stock Exchange (the "TSX") has
approved the renewal of Pembina's normal course issuer bid (the
"NCIB") to purchase up to five percent of its outstanding common
shares.
Under the NCIB, purchases of common shares may be made through
the facilities of the TSX, the New York Stock Exchange and/or
alternative Canadian trading systems, commencing on March 10, 2022, and expiring on the earlier of
March 9, 2023, and the date on which
Pembina has acquired the maximum number of common shares allowable
under the NCIB or the date on which Pembina otherwise decides not
to make any further repurchases under the NCIB. As of February 28, 2022, Pembina had 550,362,005 common
shares outstanding and is, therefore, permitted to repurchase up to
27,518,100 common shares, being five percent of its outstanding
common shares, pursuant to the NCIB. Common shares purchased under
the NCIB will be cancelled.
Pembina believes that, from time to time, the market price of
its common shares trade at prices that may not adequately reflect
their underlying value and the repurchase of common shares for
cancellation may represent an attractive use of the Company's
financial resources. The actual number of common shares that may be
purchased, if any, the timing of any such purchases, and the price
at which the common shares are acquired will be determined based on
a number of factors, including Pembina's financial performance and
flexibility in the context of its financial guardrails, the
availability of discretionary cash flow in excess of dividend and
capital funding requirements, and the risk-adjusted returns of
repurchasing common shares compared to other uses of cash including
accretive capital investment opportunities and debt reduction.
The NCIB will be effected in accordance with the TSX's normal
course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of
1934, as amended, which contain restrictions on the number of
common shares that may be purchased on a single day, subject to
certain exceptions for block purchases, based on the average daily
trading volumes of Pembina's common shares on the applicable
exchange. Subject to exceptions for block purchases, Pembina will
limit daily purchases of common shares on the TSX in connection
with the NCIB to no more than 25 percent (520,137 common shares) of
the six-month average daily trading volume of the common shares on
the TSX (2,080,550 common shares) during any trading day.
Purchases under the NCIB will be made through open market
purchases at market price, as well as by other means as may be
permitted under applicable securities laws, including private
agreements. Any purchases made by private agreement under an issuer
bid exemption order issued by a securities regulatory authority
will be at a discount to the prevailing market price as provided in
any such exemption order.
Pembina has entered into an automatic purchase plan with a
broker, which will enable Pembina to provide standard instructions
and purchase common shares on the open market during self-imposed
blackout periods. Outside of these blackout periods, common shares
may be purchased in accordance with management's discretion.
Pembina's prior NCIB for the purchase of up to 27,497,469 common
shares expired on March 1, 2022.
Pembina repurchased an aggregate of 450,000 common shares at a
weighted-average price of $37.77 per
common share, excluding brokerage fees, under its prior NCIB.
Purchases were made on the open market.
About Pembina
Pembina Pipeline Corporation is a leading energy transportation
and midstream service provider that has served North America's energy industry for more than
65 years. Pembina owns an integrated network of hydrocarbon liquids
and natural gas pipelines, gas gathering and processing facilities,
oil and natural gas liquids infrastructure and logistics services,
and a growing export terminals business. Through our integrated
value chain, we seek to provide safe and reliable infrastructure
solutions which connect producers and consumers of energy across
the world, support a more sustainable future and benefit our
customers, investors, employees and communities. For more
information, please visit pembina.com.
Purpose of Pembina:
To be the leader in delivering integrated infrastructure
solutions connecting global markets:
- Customers choose us first for reliable and value-added
services;
- Investors receive sustainable industry-leading total
returns;
- Employees say we are the 'employer of choice' and value
our safe, respectful, collaborative and inclusive work culture;
and
- Communities welcome us and recognize the net positive
impact of our social and environmental commitment.
Pembina is structured into three Divisions: Pipelines Division,
Facilities Division and Marketing & New Ventures Division.
Pembina's common shares trade on the Toronto and New
York stock exchanges under PPL and PBA, respectively. For
more information, visit www.pembina.com.
Forward-Looking Information and Statements
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation that are based on Pembina's current expectations,
estimates, projections and assumptions in light of its experience
and its perception of historical trends. In some cases,
forward-looking statements can be identified by terminology such as
"intend", "will", "shall", and similar expressions suggesting
future events or future performance.
In particular, this news release contains forward-looking
statements relating to Pembina's intention to commence the NCIB and
the timing, methods and quantity of any purchases of common shares
under the NCIB. These forward-looking statements are based on
certain assumptions that Pembina has made in respect thereof as at
the date of this news release, including: prevailing commodity
prices, margins and exchange rates, that Pembina's businesses will
continue to achieve sustainable financial results and that future
results of operations will be consistent with past performance and
management expectations in relation thereto, the availability and
sources of capital, operating costs, ongoing utilization and future
expansions, the ability to reach required commercial agreements,
and the ability to obtain required regulatory approvals. These
forward-looking statements are not guarantees of future performance
and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: non-performance of
agreements in accordance with their terms; the impact of
competitive entities and pricing; reliance on key industry
partners, alliances and agreements; the strength and operations of
the oil and natural gas production industry and related commodity
prices; the continuation or completion of third-party projects;
regulatory environment and inability to obtain required regulatory
approvals; tax laws and treatment; fluctuations in operating
results; the ability of Pembina to raise sufficient capital to
complete future projects and satisfy future commitments;
construction delays; labour and material shortages; risks relating
to widespread epidemics or pandemic outbreaks, including the
COVID-19 pandemic; general economic, market and business
conditions; and the behaviour of financial markets, including
fluctuations in interest and exchange rates, the pricing of
comparable securities and Pembina's credit ratings; and certain
other risks detailed from time to time in Pembina's public
disclosure documents including, among others, those detailed under
the heading "Risk Factors" in Pembina's management's discussion and
analysis and annual information form, each for the year ended
December 31, 2021, each which can be
found at www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov and available on Pembina's website at
www.pembina.com.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking statements
are expressly qualified by the above statements. Pembina does not
undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except
as required by applicable laws.
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SOURCE Pembina Pipeline Corporation
