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• Adjusted EBITDA: $1.167 billion for Q1 2025, a 12% increase over the same period in the prior year.

• Earnings: $502 million for Q1 2025, a 15% increase over the same period in the prior year.

• Total Volumes: 3.7 million barrels of oil equivalent per day in Q1 2025, a 9% increase over the same period in the prior year.

• Dividend Increase: $0.02 per share or 3% increase in the quarterly common share dividend.

• Debt to Adjusted EBITDA Ratio: 3.4 times as of March 31, 2025, with an expectation to exit 2025 at 3.4 to 3.7 times.

• 2025 Adjusted EBITDA Guidance Range: $4.2 billion to $4.5 billion.

• Warning! GuruFocus has detected 6 Warning Signs with PBA.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pembina Pipeline Corp (NYSE:PBA) reported a strong start to 2025 with a quarterly adjusted EBITDA of $1.167 billion, a 12% increase over the same period in the prior year.

• The company announced a $0.02 per share or 3% increase in the quarterly common share dividend, reflecting confidence in its sustainable and growing dividend strategy.

• Pembina entered into significant new and extended long-term take-or-pay volume commitments with a leading Montney producer, covering its full value chain.

• The company is progressing well with the remarketing of its capacity on the Cedar LNG Project, having shortlisted preferred counterparties and entered definitive agreement negotiations.

• Pembina is advancing several in-flight construction projects and has a strong competitive advantage in delivering projects safely, on time, and on budget, with superior capital efficiency compared to industry peers.

Negative Points

• The delay in Dow's Path2Zero project has impacted Pembina's timeline for developing potential infrastructure to meet its ethane supply commitments, although no material capital has been spent yet.

• There is ongoing uncertainty regarding the Canadian energy regulator review process for the Alliance Pipeline, with potential impacts on future tolls and risk-sharing arrangements.

• Pembina's revenue volume growth within conventional pipelines and gas processing assets is expected to be slightly lower than physical volume growth due to customers expanding into their contractual take-or-pay commitments.

• The company faces potential challenges from lower commodity prices due to global economic uncertainty, which could impact its marketing and new ventures division.

• Planned maintenance and third-party natural gas egress restrictions are expected to affect second-quarter results, with higher integrity and geotechnical costs anticipated in the third and fourth quarters.