Energia
Pembina Pipeline Corporation Reports Third Quarter 2018 Results
CALGARY, Alberta , Nov. 1, 2018 /PRNewswire/ -- Pembina Pipeline Corporation (" Pembina " or the "Company") (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the third quarter of 2018.
Pembina achieved another strong quarter with increasing volumes leading to robust earnings and Adjusted EBITDA. These results were largely driven by a $10 billion increase in assets year-over-year from the acquisition of Veresen Inc. ("Veresen") in 2017 ("Veresen Acquisition"), new assets placed into service following a large-scale capital program driving growing revenue volumes, widening NGL frac spreads and volatility across the crude oil complex. These factors contributed to:
Pembina's strategy and business model continue to prove out as once again we have achieved strong financial results. Resiliency in our business comes from a combination of serving long-lived, economic hydrocarbons and ensuring strong commercial frameworks. As well, the Company is realizing the strategic benefits of our marketing business which continues to experience solid results in the current environment.
The prospects for future growth, both within the base business and further extensions of our value chain, remain robust. "We are as rich in growth opportunities as we have ever been, which is a testament to both our customers and the underlying attractiveness of the WCSB," stated Mick Dilger , Pembina's President and Chief Executive Officer.
As previously announced, Pembina was pleased this quarter to update its 2018 Adjusted EBITDA guidance range to $2.75 to $2.85 billion, up from $2.65 to $2.75 billion. " Pembina's base business is performing extremely well. We are seeing increased throughput on our conventional pipelines and fractionators, strong results from the assets acquired previously from Veresen and higher marketing revenues due to strong NGL frac spreads and oil price volatility," said Scott Burrows, Senior Vice President and Chief Financial Officer.
Pembina's strategy of accessing global markets also continues to unfold. Early construction work is underway at the Company's Prince Rupert LPG Export Terminal; we received a United States Federal Energy Regulatory Commission ("FERC") Notice of Schedule and based on that notice, we anticipate a final FERC decision on the proposed Jordan Cove LNG project (" Jordan Cove ") in November of 2019; and we have made substantial progress on the proposed propane dehydrogenation plant and polypropylene upgrading facility ("PDH/PP facility"), with front end engineering design ("FEED") activities completed and a final investment decision expected by year end.
Mr. Dilger concluded, "We are operating a strong and growing base business while extending our value chain by pursuing three exciting projects to access global markets, and we are doing so within our financial guardrails. Our strong business performance has contributed to setting new operational and financial records in each quarter this year, and our future opportunities are numerous and exciting," concluded Mr. Dilger.
Given the enhanced scale and scope of Pembina's business and considering the future needs of both the Company and the energy industry, Pembina's management structure was reorganized, effective January 1, 2018 , into three Divisions: Pipelines, Facilities and Marketing & New Ventures ("Corporate Reorganization"). Accordingly, the Company's financial reporting format has changed to better align with the new structure.
Pembina also retrospectively adopted IFRS 15 ("IFRS 15"), effective January 1, 2018 . While this change is not expected to have a material impact on annual revenue recognition, it has resulted in a change in timing for quarterly revenue recognition.
For the third quarter, $37 million of take-or-pay revenue in excess of physical deliveries has been collected and deferred and revenue of $60 million related to take-or-pay deferral was recognized during the period.
For the nine months ending September 30, 2018, $107 million of take-or-pay revenue in excess of physical deliveries has been collected and deferred in addition to the $8 million that had been deferred at January 1, 2018 . Revenue of $112 million related to take-or-pay deferral was recognized during the period, and the outstanding deferral as at September 30, 2018 was $3 million .
Financial results reported for all 2017 periods have been restated to reflect the Corporate Reorganization and the retrospective adoption of IFRS 15.
Pembina will host a conference call on Friday, November 2, 2018 at 8:00 a.m. MT ( 10:00 a.m. ET ) for interested investors, analysts, brokers and media representatives to discuss details related to the third quarter 2018 results. The conference call dial-in numbers for Canada and the U.S. are 647-427-7450 or 888-231-8191. A recording of the conference call will be available for replay until November 9, 2018 at 11:59 p.m. ET . To access the replay, please dial either 416-849-0833 or 855-859-2056 and enter the password 7697531. A live webcast of the conference call can be accessed on Pembina's website at pembina.com under Investor Centre, Presentation & Events, or by entering: https://event.on24.com/wcc/r/1652776/3F954F3630A028629E570FDCB6625739 in your web browser. Shortly after the call, an audio archive will be posted on the website for a minimum of 90 days.
Three Months ending September 30, 2018
Financial results reported for all 2017 periods have been restated to reflect the Corporate Reorganization and the adoption of IFRS 15.
Investments in Equity Accounted Investees include:
Pipelines Division
Facilities Division
Marketing & New Ventures Division
For further information:
Investor Relations: Cameron Goldade , Vice President Capital Markets, (403) 231-3156, 1-855-880-7404, E-mail: investor-relations@pembina.com, www.pembina.com