Pembina Pipeline Corporation (NYSE:PBA) Q1 2024 Earnings Call Transcript

Pembina Pipeline Corporation (NYSE:PBA) Q1 2024 Earnings Call Transcript May 10, 2024

Pembina Pipeline Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good morning ladies and gentlemen and welcome to Pembina Pipeline Corporation First Quarter 2024 Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Friday, May 10th, 2024. I would now like to turn the conference over to Dan Tucunel, Vice President of Capital Markets. Please go ahead.

Dan Tucunel: Thank you, Alan. Good morning everyone. Welcome to Pembina's conference call and webcast to review highlights for the first quarter of 2024. On the call today we also have Scott Burrows, President and Chief Executive Officer; and Cameron Goldade, Senior Vice President and Chief Financial Officer; along with other members of Pembina's leadership team including Jaret Sprott, Janet Loduca, Stuart Taylor, and Chris Scherman. I would like to remind you that some of the comments made today may be forward-looking in nature and are based on Pembina's current expectations, estimates, judgments, and projections. Forward-looking statements we may express or imply today are subject to risks and uncertainties which could cause actual results to differ materially from expectations.

Aerial shot of an offshore oil platform, the orange hue of the ocean water and the steel structure representing the company’s extensive oil and gas production.

Further, some of the information provided refers to non-GAAP measures. To learn more about these forward-looking statements and non-GAAP measures, please see the company's management's discussion and analysis dated May 9, 2024, for the period ended March 31st, 2024, as well as the press release Pembina issued yesterday, which are available online at pembina.com and on both, SEDAR and EDGAR. I will now turn things over to Scott to make some opening remarks.

Scott Burrows: Thanks Dan. Our strong first quarter was highlighted by record adjusted EBITDA of $1.044 billion, which provided a great start to 2024 and built upon our great momentum from the second half of 2023. In addition, recent industry developments and company successes have further bolstered our enthusiasm for the future of Pembina. On April 1st, 2024, we announced the completion of the Alliance and Aux Sable acquisition. We are excited to further enhance our business by increasing our ownership in these unique and world-class assets. The Alliance and Aux Sable acquisition aligns with Pembina's strategy for growing and strengthening our existing franchise and providing greater exposure to resilient end-use markets and lighter hydrocarbons.

We executed this transaction with discipline and accretively to our financial guardrails. In conjunction with the acquisition closing, Pembina updated its 2024 adjusted EBITDA guidance range to $4.05 billion to $4.3 billion, which at the midpoint represents a $300 million increase over the previous range. The revised outlook for 2024 primarily reflects the incremental contribution from increased ownership of Alliance and Aux Sable as well as stronger outlook in the marketing business due to wider frac spreads. As previously announced, during the first quarter, Pembina entered into a long-term agreement with Dow Chemical to supply and transport up to 50,000 barrels per day of ethane to support the recently announced construction of a new integrated ethylene cracker derivatives facility at Fort Saskatchewan.

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