Pembina Pipeline Reports Results for the Second Quarter of 2026

CALGARY, Alberta–(BUSINESS WIRE)–Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the second quarter of 2026.

Highlights

• Quarterly Results – reported second quarter earnings of $512 million, adjusted earnings of $415 million, adjusted EBITDA of $1,064 million, and adjusted cash flow from operating activities of $778 million ($1.34 per share).
• Strategy Execution Highlights Growth Visibility – during the second quarter, Pembina completed and progressed ongoing projects in the Pipelines and Facilities divisions, sanctioned two significant new growth projects totalling approximately $3 billion (net to Pembina) – the Greenlight Electricity Centre and the Heartland Extraction Plant, announced participation in a nation-building West Coast oil pipeline project, and further strengthened a key customer relationship through integrated ethane solutions backed by expanded long-term commercial agreements. These developments demonstrate tangible execution across each pillar of the Company’s 3Cs Strategy to Capture volumes, Connect them to markets, and Catalyze new hydrocarbon demand platforms, while providing additional visibility to the Company’s targeted 5-7 percent compound annual fee-based adjusted EBITDA per share growth through 2030.
• RFS IV – the RFS IV project was placed into service in late May on time and under budget. RFS IV adds 55,000 barrels per day (“bpd”) of propane-plus fractionation capacity at the Redwater Complex, further strengthening Pembina’s industry-leading NGL infrastructure platform.
• Common Share Dividend – the board of directors declared a common share cash dividend for the third quarter of 2026 of $0.735 per share to be paid, subject to applicable law, on September 29, 2026, to shareholders of record on September 15, 2026.

Financial and Operational Overview for the Three Months Ended June 30

Financial and Operational Overview by Division

For further details on the Company’s significant assets, including definitions for capitalized terms used herein that are not otherwise defined, refer to Pembina’s Annual Information Form for the year ended December 31, 2025, and Pembina’s Management’s Discussion and Analysis dated July 30, 2026 for the three and six months ended June 30, 2026, filed at www.sedarplus.ca (filed with the U.S. Securities and Exchange Commission at www.sec.gov under Form 40-F) and on Pembina’s website at www.pembina.com.

Executive Overview and Business Update

Executing the 3Cs Strategy and Highlighting Visibility to Growth

Since outlining our 3Cs Strategy and establishing a target of 5-7 percent compound annual fee-based adjusted EBITDA per share growth through 2030 at our April 7 Business Update, we have built significant momentum across our business. We have completed and progressed ongoing projects, sanctioned two new growth projects, announced participation in a nation building pipeline project, and further strengthened a key customer relationship through expanded long-term commercial agreements with Dow. Together, these developments demonstrate tangible execution across each pillar of the Company’s 3Cs Strategy to Capture volumes, Connect them to markets, and Catalyze new hydrocarbon demand platforms, while reinforcing visibility to long-term growth.

Capture: Strengthening Pembina’s Leading NGL Franchise

• The RFS IV project was placed into service in late May on time and under budget and further strengthens our industry-leading NGL infrastructure platform. The addition of 55,000 bpd of propane-plus fractionation capacity at the Redwater Complex increases total fractionation capacity to approximately 256,000 bpd and positions Pembina to better serve its customers and support growing NGL production across Western Canada. Benefiting from existing infrastructure at the Redwater Complex, including storage caverns and extensive unit train capable rail facilities, Pembina was able to offer its customers incremental fractionation capacity in a timely manner and at a competitive cost.

Connect: Expanding Market Access for Canadian Energy

• Cedar LNG will connect Canadian natural gas to global markets and continues to make significant progress toward first exports expected in late 2028 with the recent achievement of two key milestones. In British Columbia, crews completed the final weld and achieved mechanical completion of the pipeline that will supply natural gas to the Cedar LNG facility. Overseas, Cedar LNG team members joined our partners at the Samsung-Heavy-Industries shipyard in Geoje, South Korea, to celebrate the launching of the hull of the floating LNG vessel, moving from dry dock to wet dock. Construction of the vessel is now more than 70 percent complete and remains on track for delivery to Kitimat in the first half of 2028.
• Pembina announced a non-binding agreement to participate in a proposed nation-building energy infrastructure initiative that would connect Western Canadian crude oil production to global markets through a new approximately one million barrel per day export pipeline and marine terminal on Canada’s West Coast (the “West Coast Oil Pipeline” or “WCOP”).Pembina’s economic interest through construction will be 10 percent with the opportunity for up to an additional 10 percent once the project enters commercial operation. Trans Mountain Corporation will serve as the lead project proponent, responsible for construction, the regulatory process, stakeholder and Indigenous engagement, and subsequent operation of the asset. Pembina will participate as an experienced industry operator able to provide an independent perspective on cost, schedule, and execution – complementing, rather than replacing, the lead project proponent.Consistent with our long-standing approach to capital allocation, we will evaluate participation in the WCOP through a disciplined and rigorous investment framework and have ensured key protections related to matters such as cost overruns and returns. Pembina has full discretion over any final investment decision for its interest and shall have no at-risk development capital prior to that decision.

  We are proud to bring our development and execution expertise to a project of national significance and intend to provide updates at appropriate milestones as the evaluation of the WCOP progresses.

Catalyze: Creating New Sources of Demand

• Pembina sanctioned the Heartland Extraction Plant (“HEP”), a $570 million project that exemplifies the Company’s ability to create additional value from its existing infrastructure footprint. HEP is a capital efficient, low-risk monetization of Pembina’s liquids extraction rights on the Yellowhead Pipeline, with future growth potential from additional straddle opportunities. In addition to supplying Dow with 22,500 bpd of ethane under a long-term agreement at HEP, Pembina will retain the associated propane-plus production related to the project and will benefit from downstream fractionation and marketing of up to 9,500 bpd of propane-plus natural gas liquids.Importantly, the sanctioning of HEP was accompanied by amendments to an existing ethane supply agreement with Dow that increased total contracted volumes to 57,500 bpd, a 15 percent increase from the original agreement.By leveraging our integrated value chain, including gas processing, extraction, transportation, fractionation and marketing, we were able to develop a mutually beneficial solution that supports Dow’s Path2Zero project while enhancing the value of Pembina’s NGL franchise. The announcement demonstrates Pembina’s ability to deepen strategic customer relationships, secure long-term demand for its services and create capital-efficient growth opportunities.

• Pembina and its partners reached a positive final investment decision on the Greenlight Electricity Centre (“GLEC”), a $4.6 billion (gross), 932-megawatt gas-fired power generation facility that will provide dedicated power to a major Alberta-based data centre being developed by Meta.Pembina will benefit directly from its investment in GLEC through a new long-term, low-risk, stable cash flow stream and increased business and customer diversification. Additionally, GLEC will Catalyze intra-basin natural gas demand and provide a valuable new egress option to support Canadian natural gas production growth. This growth is expected to benefit Pembina’s existing businesses, including natural gas processing and transportation, and NGL transportation, fractionation and marketing.Greenlight establishes an entirely new growth platform at the intersection of energy infrastructure, artificial intelligence, and data centre development and together with our Greenlight partners we are working to advance potential additional gas-to-power for data centre projects. Future opportunities include a second phase of GLEC as well as additional power-to-data centre developments, creating a potentially meaningful new source of growth extending beyond 2030.

  Pembina has recently acquired additional land proximal to the Greenlight Electricity Centre and the Redwater Complex to support future gas-to-power for data centre projects.

Increasing Momentum Towards Our Growth Plan to 2030 and Beyond

Recent developments highlight the breadth of opportunities available within Pembina’s integrated business and demonstrate our ability to identify, originate, and advance high-quality growth projects across Pembina’s franchise. The Heartland Extraction Plant, Greenlight Electricity Centre, and the proposed West Coast Oil Pipeline project advance Pembina’s 3Cs Strategy while further underpinning our confidence in achieving the growth targets to 2030 and into the next decade. Together, they reflect a continued focus on disciplined capital allocation, long-term contracted cash flows, and creating value for shareholders.

2026 Guidance

Pembina is reiterating its 2026 adjusted EBITDA guidance range of $4.35 billion to $4.55 billion while noting that it is currently trending to the midpoint of the range. At the midpoint of the range, due to seasonal factors, timing of spending, and certain one time items, Pembina anticipates that the adjusted EBITDA contribution in the third quarter is expected to be below the second quarter, with a higher contribution expected in the fourth quarter.

The specific factors expected to impact the second half of the year include:

• Seasonality in the Western Canadian Sedimentary Basin (“WCSB”) NGL frac spread business resulting in a lower contribution in the third quarter and higher contribution in the fourth quarter. On a quarterly basis, for the remainder of the year, Pembina has hedged approximately 90 percent of its NGL frac spread exposure in the third quarter and 40 percent in the fourth quarter. For the period 2025-2026 the frac spread businesses is expected to account for approximately two-thirds of Pembina’s marketing business;

• Higher integrity and maintenance spend in Pipelines in the second half of the year compared to the first half of the year;
• 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;
• Lower contribution from Cochin Pipeline in the second half of the year compared to the first half of the year, reflecting stronger 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. As a result, throughput above the remaining annual commitments for the second half of the year is expected to be highly correlated with condensate price spreads; and
• A higher contribution from PGI in the fourth quarter due to new assets entering service and non-recurring revenue recognition.

The lower and upper ends of the 2026 guidance range are framed primarily as a function of (1) commodity prices and the resulting contribution from the marketing business; (2) interruptible volumes on key systems; (3) the U.S./Canadian dollar exchange rate; and (4) Pembina’s share price performance and its impact on incentive compensation costs.

Financial & Operational Highlights

Adjusted EBITDA

Pembina reported adjusted EBITDA of $1,064 million in the second quarter. This represents a $51 million or five percent increase over the same period in the prior year. The variance over the prior period primarily reflects wider NGL frac spreads, mainly as a result of rising NGL prices, combined with strong underlying operational performance and volumes across the Pipelines and Facilities divisions, offset by the impact of the new toll structure and revenue-sharing mechanism on the Alliance Pipeline effective November 1, 2025 (“Alliance New Toll Structure”).

Pipelines reported adjusted EBITDA of $626 million for the second quarter, representing a $20 million or three percent decrease compared to the same period in the prior year, reflecting the net impact of the following factors:

• lower net revenue on Alliance Pipeline as a result of the Alliance New Toll Structure, partially offset by higher interruptible revenue and lower operating expenses;
• higher contracted volumes on Nipisi Pipeline; and
• higher revenue on the Cochin Pipeline due to prior period tariff adjustments.

Facilities reported adjusted EBITDA of $386 million for the second quarter, representing a $55 million or 17 percent increase over the same period in the prior year, reflecting the net impact of the following factors:

• higher revenue from the Redwater Complex as a result of RFS IV entering service in May 2026 and no comparable planned outage as occurred in the second quarter of 2025; and
• higher contributions from certain PGI assets due to higher volumes from the Wapiti Expansion entering service in March 2026, stronger performance at the Dawson assets, fewer planned outages compared to the prior period, and higher recoveries driven by an asset upgrade.

Marketing & New Ventures reported adjusted EBITDA of $111 million for the second quarter, representing a $37 million or 50 percent increase compared to the same period in the prior year, reflecting the net impact of the following factors:

• wider WCSB and U.S. NGL frac spreads resulting from higher NGL prices, including the benefits from exposure to premium propane prices in Asian markets through West Coast exports;
• higher crude oil prices and sales volumes; and
• higher realized losses on NGL-based derivatives and lower realized gains on crude oil-based derivatives.

Corporate reported adjusted EBITDA of negative $59 million for the second quarter, representing a $21 million or 55 percent decrease compared to the same period in the prior year, reflecting higher long-term incentive costs driven by Pembina’s relative performance compared to peers and the change in Pembina’s share price in the second quarter of 2026.

Earnings

Pembina reported second quarter earnings of $512 million, representing a $95 million or 23 percent increase over the same period in the prior year.

Pipelines had earnings in the second quarter of $458 million, representing a $15 million or three percent decrease over the prior period. The factors impacting second quarter earnings are the same factors as noted above for Pipelines adjusted EBITDA.

Facilities had earnings in the second quarter of $203 million representing a $61 million or 43 percent increase over the prior year. The factors impacting second quarter earnings are the same factors as noted above for Facilities adjusted EBITDA.

Marketing & New Ventures had earnings in the second quarter of $204 million representing a $90 million or 79 percent increase over the prior year. In addition to the factors impacting Marketing & New Ventures adjusted EBITDA, as noted above, 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 Cedar LNG compared to unrealized gains in the second quarter of 2025.

In addition to the changes in earnings for each division discussed above, the change in Corporate second quarter earnings compared to the prior period was due to the same factors impacting Corporate adjusted EBITDA, as noted above.

Quarterly Common Share Dividend

Pembina’s board of directors has declared a common share cash dividend for the third quarter of 2026 of $0.735 per share to be paid, subject to applicable law, on September 29, 2026, to shareholders of record on September 15, 2026. The common share dividends are designated as “eligible dividends” for Canadian income tax purposes. For non-resident shareholders, Pembina’s common share dividends should be considered “qualified dividends” and may be subject to Canadian withholding tax.

For shareholders receiving their common share dividends in U.S. dollars, the cash dividend is expected to be approximately U.S.$0.5219 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7101. The actual U.S. dollar dividend will depend on the Canadian/U.S. dollar exchange rate on the payment date and will be subject to applicable withholding taxes.

Quarterly dividend payments are expected to be made on the last business day of March, June, September and December to shareholders of record on the 15th day of the corresponding month, if, as and when declared by the board of directors. Should the record date fall on a weekend or on a statutory holiday, the record date will be the next succeeding business day following the weekend or statutory holiday.

Second Quarter 2026 Conference Call & Webcast

Pembina will host a conference call on Friday, July 31, 2026, at 8:00 a.m. MT (10:00 a.m. ET) for interested investors, analysts, brokers, and media representatives to discuss results for the second quarter of 2026.

The live webcast can be accessed on Pembina’s website at Pembina – Presentations & Events or via the following URL: https://events.q4inc.com/attendee/472444185. After the event concludes and is archived, the same URL will be converted into the replay link for the webcast.

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 70 years. Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.

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 Statements and Information

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 “continue”, “anticipate”, “schedule”, “will”, “expects”, “estimate”, “potential”, “planned”, “future”, “outlook”, “strategy”, “project”, “plan”, “commit”, “maintain”, “focus”, “ongoing”, “believe” and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements, including certain financial outlooks, pertaining to, without limitation, the following: Pembina’s 2026 adjusted EBITDA guidance, as well as the factors which may impact such guidance; Pembina’s growth outlook to 2030, including expectations and outlooks regarding compound annual fee-based adjusted EBITDA per share growth; future pipeline, processing, fractionation and storage facility and system operations and throughput levels; treatment under existing and potential governmental policies and regulations, including expectations regarding their impact on Pembina; Pembina’s strategy and the development of new business initiatives and growth opportunities, including the anticipated benefits therefrom and the expected timing thereof; expectations about current and future market conditions, industry activities and development opportunities, as well as the anticipated impacts thereof, including general market conditions outlooks and industry developments; expectations about future demand for Pembina’s infrastructure and services, including expectations in respect of customer contracts, future volume growth in the WCSB and the drivers thereof, increased utilization and future tolls and volumes; expectations relating to the development of Pembina’s new projects and developments, including, Cedar LNG, the Greenlight Electricity Centre, the Heartland Extraction Plant, and Pembina’s non-binding agreement to participate in the West Coast Oil Pipeline, including the outcomes, timing, expected costs and anticipated benefits thereof; the anticipated benefits of Pembina’s recently completed projects, including RFS IV and PGI’s K3 Cogeneration Facility; Pembina’s future common share dividends, including the timing, amount and expected tax treatment thereof; planning, construction, locations, capital expenditure and funding estimates, schedules, regulatory and environmental applications and anticipated approvals, expected capacity, incremental volumes, contractual arrangements, completion and in-service dates, sources of product, activities, benefits and operations with respect to new construction of, or expansions on existing pipelines, systems, gas services facilities, processing and fractionation facilities, terminalling, storage and hub facilities and other facilities or energy infrastructure, as well as the impact of Pembina’s new projects on its future financial performance; and expectations regarding existing and future commercial agreements, including the expected timing and benefit thereof.

Contacts

For further information:
Investor Relations
(403) 231-3156
1-855-880-7404
[email protected]
www.pembina.com

Read full story here