All financial figures are approximate and in Canadian dollars
unless otherwise noted.
CALGARY, AB, Aug. 15, 2022 /PRNewswire/ -- Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL) (NYSE: PBA) is
pleased to announce that it has completed its previously announced
joint venture transaction with KKR to combine their respective
western Canadian natural gas processing assets into a single, new
joint venture entity, Pembina Gas Infrastructure Inc. ("PGI").
"We are excited to officially announce the creation of PGI, a
premier gas processing entity in Western
Canada that will provide incredible value for Pembina, our
partner KKR, and our customers. Pembina has enjoyed a strong
relationship with KKR at Veresen Midstream over the past four years
and the creation of PGI is a natural next step that will unlock
growth and provide increased service offerings to customers
throughout the Montney and
Duverney formations, from central Alberta to northeast British Columbia," said Scott Burrows, Pembina's President, and Chief
Executive Officer.
Timing of Common Share Dividend
Increase
As previously announced, Pembina's Board of Directors declared a
common share cash dividend for August
2022 of $0.21 per share to be
paid, subject to applicable law, on September 15, 2022, to shareholders of record on
August 25, 2022.
Pembina's Board of Directors previously approved a $0.0075 per common share increase to its monthly
common share dividend rate, to $0.2175 per common share per month
(representing an increase of 3.6 percent), subject to closing of
the joint venture transaction with KKR. The first dividend under
which the increase will take effect is expected to be declared in
early September 2022, and payable on
or about October 14, 2022.
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.
- 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.
About PGI
Pembina Gas Infrastructure ("PGI") is a premier gas processing
entity in Western Canada with a
combined capacity of 5 billion cubic feet per day. A partnership
between Pembina and KKR, PGI is strategically positioned to serve
customers throughout the Montney
and Duverney trends from central Alberta to northeast British Columbia. Pembina owns 60% of PGI and
operates and manages PGI facilities while KKR's global
infrastructure funds own the remaining 40%. For more information,
visit www.PGIMidstream.com.
Forward-Looking Information and
Statements
This news release contains certain forward-looking statements
and forward-looking information (collectively, "forward-looking
statements"), including 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
"expects", "estimates", "anticipates", "projects", "plans", "will",
"would", "could", "potential", "continue", "commit" and similar
expressions suggesting future events or future performance.
In particular, this news release contains forward-looking
statements pertaining to, without limitation, the following: the
joint venture transaction between Pembina and KKR, including the
anticipated benefits thereof to Pembina; and Pembina's future
common share dividends, including the expected timing at which the
increase will be declared and payable.
The forward-looking statements are based on certain
assumptions that Pembina has made in respect thereof as at the date
of this news release regarding, among other things: that favourable
circumstances continue to exist in respect of the operation of the
assets contributed to PGI; that PGI's future results of operations
will be consistent with management expectations in relation
thereto; oil and gas industry exploration and development activity
levels and the geographic region of such activity; prevailing
regulatory, tax and environmental laws and regulations; the ability
of PGI to maintain an investment grade rating; future cash flows;
prevailing commodity prices, interest rates, carbon prices, tax
rates and exchange rates; the availability of capital to fund PGI's
future capital requirements; future operating costs; that
counterparties will comply with contracts in a timely manner; that
there are no unforeseen events preventing the performance of
contracts; that there are no unforeseen material costs relating to
the relevant facilities which are not recoverable from customers;
and maintenance of operating margins.
Although Pembina believes the expectations and material
factors and assumptions reflected in these forward-looking
statements are reasonable as of the date hereof, there can be no
assurance that these expectations, factors and assumptions will
prove to be correct. These forward-looking statements are not
guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties that could cause actual
events or results to differ materially, including, but not limited
to: the failure to realize the anticipated benefits and/or
synergies of the joint venture transaction due to integration
issues or otherwise; expectations and assumptions concerning, among
other things: customer demand for PGI's assets and services;
commodity prices, interest rates and foreign exchange rates;
planned synergies, operating and capital efficiencies and
cost-savings; applicable tax laws; future production rates; the
sufficiency of budgeted capital expenditures in carrying out
planned activities; labour and material shortages; non-performance
or default by counterparties to agreements entered into in respect
of PGI's business; the impact of competitive entities and pricing;
reliance on key relationships and agreements; reliance on third
parties to successfully operate and maintain certain assets; the
regulatory environment and decisions and Indigenous and landowner
consultation requirements; actions by governmental or regulatory
authorities, including changes in tax laws and treatment, changes
in royalty rates, climate change initiatives or policies or
increased environmental regulation; fluctuations in operating
results; adverse general economic and market conditions in
Canada, North America and worldwide, including
changes, or prolonged weaknesses, as applicable, in interest rates,
foreign exchange rates, commodity prices, supply/demand trends and
overall industry activity levels; risks relating to the current and
potential adverse impacts of the COVID-19 pandemic; lower than
anticipated results of operations and cash flow accretion to
Pembina from PGI; the ability to access various sources of debt and
equity capital; changes in credit ratings; counterparty credit
risk; technology and cyber security risks; natural catastrophes;
and certain other risks and uncertainties detailed in Pembina's
Annual Information Form and Management's Discussion and Analysis
("MD&A"), each dated February 24,
2022 for the year ended December 31,
2021, Pembina's MD&A dated August
4, 2022 for the three and six months ended June 30, 2022 and from time to time in Pembina's
public disclosure documents available at www.sedar.com, www.sec.gov
and through Pembina's website at www.pembina.com.
In respect of the forward-looking statements concerning the
anticipated increase in Pembina's common share dividend following
completion of the joint venture transaction, Pembina has made such
forward-looking statements in reliance on certain assumptions that
it believes are reasonable at this time, including assumptions in
respect of: prevailing commodity prices, interest rates, margins
and exchange rates; that future results of operations will be
consistent with past performance, as applicable, and management
expectations in relation thereto, including in respect of PGI's
future results of operations; the continued availability of capital
at attractive prices to fund future capital requirements relating
to existing assets and projects, including but not limited to
future capital expenditures relating to expansion, upgrades and
maintenance shutdowns; future cash flows and operating costs; that
counterparties to material agreements will continue to perform in a
timely manner; that there are no unforeseen events preventing the
performance of contracts; that there are no unforeseen material
construction or other costs related to current growth projects or
current operations; and that there are no unforeseen material
construction or other costs related to current growth projects or
current operations. Pembina will also be subject to requirements
under applicable corporate laws in respect of declaring dividends
at such time.
This list of risk factors should not be construed as
exhaustive. Readers are cautioned that events or circumstances
could cause actual results to differ materially from those
predicted, forecasted, or projected. The forward-looking statements
contained in this news release speak only as of the date hereof.
Pembina does not undertake any obligation to publicly update or
revise any forward-looking statements contained herein, except as
required by applicable laws. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
www.pembina.com
Investor Relations, (403)
231-3156, 1-855-880-7404, e-mail:
investor-relations@pembina.com