Energia
Pembina Pipeline Corporation Reports Second Quarter 2018 Results
CALGARY , Alberta , Aug. 2, 2018 /PRNewswire/ -- Pembina Pipeline Corporation (" Pembina " or the "Company") (TSX: PPL; NYSE: PBA) announced today its financial and operating results for the second quarter of 2018.
Pembina continues to generate record results driven by new assets acquired or placed into service over the past 18 months.
"We are seeing strong customer demand for our services, leading to higher volumes and increased utilization in the Pipelines and Facilities Divisions, combined with rising commodity prices which drive solid performance in our Marketing business," said Mick Dilger , Pembina's President and Chief Executive Officer. "As well, the recent strengthening of crude oil and condensate prices is a welcome development for our customers," added Mr. Dilger.
At Pembina's 2018 Investor Day held on May 29 , we announced the next evolution in Pembina's corporate strategy, being the move towards accessing global markets. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend our service offering further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canada Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world. Our proposed Jordan Cove LNG project, the proposed PDH/PP facility, and the Prince Rupert LPG Export Terminal are examples of such developments.
Based on strong year-to-date results and the outlook for the remainder of the year, we reiterate our 2018 Adjusted EBITDA guidance range of $2,650 to $2,750 million .
"Our strong second quarter results have once again demonstrated the strength of the underlying business, our unwavering commitment to our financial guardrails and our strategic approach to growth," concluded Scott Burrows , Pembina's Senior Vice President and Chief Financial Officer.
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 Revenue from Contracts with Customers, effective January 1 , 2018. While this change is not expected to have a material impact on annual revenue recognition, it is expected to result in a change in timing for quarterly revenue recognition.
For the second quarter, $36 million of take-or-pay revenue in excess of physical deliveries has been collected and deferred and revenue of $47 million related to take-or-pay deferrals was recognized during the period.
For the six months ending June 30, 2018 , $70 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 $52 million related to take-or-pay deferral was recognized during the period, and the outstanding deferral as at June 30, 2018 was $26 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 Thursday, August 2, 2018 at 4:00 p.m. MT ( 6:00 p.m. ET ) for interested investors, analysts, brokers and media representatives to discuss details related to the second 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 August 8, 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 9759609. 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/1652758/9925786A5302A92CC937EC8D8E8C4D01 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 June 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