Pembina Pipeline Corporation Reports Results for the Second Quarter of 2025 and Provides Business Update

All financial figures are in Canadian dollars unless otherwise noted. This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles (“GAAP”), including net revenue; adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted cash flow from operating activities; and adjusted cash flow from operating activities per common share. For more information see “Non-GAAP and Other Financial Measures” herein.

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 2025.

Highlights

• Quarterly Results – Reported second quarter earnings of $417 million, adjusted EBITDA of $1,013 million, and adjusted cash flow from operating activities of $698 million ($1.20 per share).
• Adjusted EBITDA Guidance – Pembina has updated its 2025 adjusted EBITDA guidance range to $4.225 billion to $4.425 billion.
• Enhanced Propane Exports – Through a new commercial agreement and a newly sanctioned project, Pembina will have access to 50,000 barrels per day (“bpd”) of highly competitive propane export capacity. Pembina has approved a $145 million optimization of its 20,000 bpd Prince Rupert Terminal (“PRT”) that will expand market access and significantly reduce shipping costs per unit, thereby improving netbacks for Pembina and its customers. In addition, Pembina has entered into a long-term tolling agreement with AltaGas Ltd. (“AltaGas”) for 30,000 bpd of liquified petroleum gases (“LPG”) export capacity at AltaGas’ current Ridley Island Propane Export Terminal (“RIPET”) and future Ridley Island Energy Export Facility (“REEF”).
• PGI Duvernay Acquisition and New Commercial Agreements – Pembina Gas Infrastructure (“PGI”) has acquired the remaining 8.33 percent interest in three gas processing trains and related infrastructure at PGI’s Duvernay Complex from Whitecap Resources Inc. (“Whitecap”) for $55 million ($33 million net to Pembina) and concurrently entered into new and extended long-term take-or-pay agreements at the Duvernay Complex and KA Plant. In addition, PGI has entered into an agreement with a Montney producer to fund and acquire an under-construction battery and additional infrastructure for a capital commitment up to $150 million ($90 million net to Pembina), which will be supported by a new long-term take-or-pay agreement.
• Advancing NGL and Condensate Pipeline Expansions – Pembina continues to advance more than $1 billion of proposed conventional pipeline expansions to reliably and cost-effectively meet rising transportation demands from growing production in the Western Canadian Sedimentary Basin (“WCSB”). These expansions are secured by long-term contracts underpinned by take-or-pay agreements, areas of dedication across the Montney and Duvernay formations, and other long-term agreements that ensure a strong base of committed volumes. Final investment decisions (“FID”) on the Fox Creek-to-Namao Expansion and the Taylor-to-Gordondale Project are now expected by the end of 2025 and the first quarter of 2026, respectively.
• Cedar LNG Project Milestone – Pembina and its partner, the Haisla Nation, recently celebrated the achievement of a major milestone for the project as construction of the floating LNG vessel began with steel cutting on both the top side facilities and the vessel hull.
• RFS IV – Furthering Pembina’s track record of industry-leading project execution, RFS IV is trending under budget with an anticipated cost of $500 million, approximately five percent below the previous cost estimate.
• Capital Guidance – Pembina has revised its outlook for its 2025 capital investment program to $1.3 billion, reflecting continued progression of proposed conventional pipeline expansions to serve growing customer demand, approval of new projects, and acquisitions at PGI.

Financial and Operational Overview

	3 Months Ended June 30			6 Months Ended June 30
($ millions, except where noted)	2025	2024	Change	2025	2024	Change
Revenue	1,792	1,855	(63)	4,074	3,395	679
Net revenue(1)	1,184	1,222	(38)	2,527	2,134	393
Operating expenses	235	240	(5)	461	429	32
Gross profit	780	815	(35)	1,708	1,545	163
Adjusted EBITDA(1)	1,013	1,091	(78)	2,180	2,135	45
Earnings	417	479	(62)	919	917	2
Earnings per common share – basic (dollars)	0.65	0.75	(0.10)	1.45	1.49	(0.04)
Earnings per common share – diluted (dollars)	0.65	0.75	(0.10)	1.45	1.48	(0.03)
Cash flow from operating activities	790	954	(164)	1,630	1,390	240
Cash flow from operating activities per common share – basic (dollars)	1.36	1.64	(0.28)	2.81	2.46	0.35
Adjusted cash flow from operating activities(1)	698	837	(139)	1,475	1,619	(144)
Adjusted cash flow from operating activities per common share – basic (dollars)(1)	1.20	1.44	(0.24)	2.54	2.87	(0.33)
Capital expenditures	197	265	(68)	371	451	(80)

(1)

Refer to “Non-GAAP and Other Financial Measures”.

Financial and Operational Overview by Division

	3 Months Ended June 30						6 Months Ended June 30
	2025			2024			2025			2024
($ millions, except where noted)	Volumes(1)	Earnings (Loss)	Adjusted EBITDA(2)	Volumes(1)	Earnings (Loss)	Adjusted EBITDA(2)	Volumes(1)	Earnings (Loss)	Adjusted EBITDA(2)	Volumes(1)	Earnings (Loss)	Adjusted EBITDA(2)
Pipelines	2,768	473	646	2,716	485	655	2,789	991	1,323	2,657	940	1,254
Facilities	826	142	331	855	181	340	861	326	676	830	358	650
Marketing & New Ventures	302	114	74	319	135	143	335	274	284	307	199	331
Corporate	—	(196)	(38)	—	(828)	(47)	—	(419)	(103)	—	(995)	(100)
Income tax (recovery) expense	—	(116)	—	—	506	—	—	(253)	—	—	415	—
Total		417	1,013		479	1,091		919	2,180		917	2,135

(1)		Volumes for the Pipelines and Facilities divisions are revenue volumes, which are physical volumes plus volumes recognized from take-or-pay commitments. Volumes are stated in mboe/d, with natural gas volumes converted to mboe/d from MMcf/d at a 6:1 ratio. Volumes for Marketing & New Ventures are marketed crude and NGL volumes.
(2)		Refer to “Non-GAAP and Other Financial Measures”.

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, 2024, and Pembina’s Management’s Discussion and Analysis dated August 7, 2025 for the three and six months ended June 30, 2025, 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

2025 Guidance

Based on results through the first half of 2025 and the outlook for the remainder of the year, Pembina has updated its 2025 adjusted EBITDA guidance range to $4.225 billion to $4.425 billion (previously $4.2 billion to $4.5 billion). Further, due to seasonal and asset specific factors, Pembina expects third quarter results to be largely consistent with second quarter results, with stronger results expected in the fourth quarter.

In addition to the year-to-date results, the 2025 guidance range reflects the following:

• Pembina continues to benefit from rising utilization throughout its conventional pipeline and gas processing assets that aligns with volume growth across the WCSB. However, in 2025, revenue volume growth at these assets is expected to be lower than physical volume growth as customers expand into their contractual take-or-pay commitments;

• typical seasonality positively impacting Alliance in the fourth quarter due to the ability to transport higher volumes during colder periods, offset by the impact of the previously announced settlement agreement with shippers;

• higher integrity and geotechnical costs on the conventional pipeline assets in the third and fourth quarters, relative to the first half of the year;

• a higher contribution from PGI in the second half of 2025, compared to the first half of the year, including at the Dawson Assets, due to third-party restrictions impacting the first half of the year and the start-up of LNG Canada benefiting the second half of the year, and at the Duvernay Complex due to higher second half volumes; and

• stronger fourth quarter contribution from the natural gas liquids (“NGL”) marketing business, relative to the second and third quarters, due to typical seasonality of the WCSB frac spread business.

Business Fundamentals Remain Strong

Given the relative strength of the WCSB plays, combined with other recent and emerging developments, Pembina maintains its outlook for low to mid-single digit annual volume growth through the end of the decade across all WCSB products.

• Strong Economics and Long Inventory Lives – the Montney formation is expected to be one of the primary drivers of WCSB growth and has among the lowest supply costs in North America. Additionally, top tier oil sands producers demonstrate break-even costs that are in line with top performing U.S. shale plays, and are expected to continue pursuing debottleneck expansions that, in addition to increasing oil production, would drive increased demand for condensate. Further, these plays have some of the longest Tier 1 inventory lives in North America, at greater than 20 years assuming WTI oil prices of US$50.

• Producer Resilience – Canadian producers are proving resilient despite volatility in commodity prices and the broader economy and Pembina has observed that its customers’ development plans remain on track. Further, ongoing consolidation of upstream producers continues to support greater efficiency, more competitive platforms, and stronger counterparties, which Pembina believes leads to more sustainable production growth.

• New Egress – The recent start-up of LNG Canada, the future Cedar LNG Project and other currently approved LNG projects, are expected to contribute to natural gas production growth of approximately five billion cubic feet per day and NGL production growth of approximately 250,000 bpd by 2030. Growing Alberta regional gas demand, including to power potential data centres, as well as new petrochemical facilities and new or expanded NGL export facilities are all expected to further contribute to natural gas and NGL production growth. Finally, Pembina estimates that up to 600,000 bpd of new oil egress could come from brownfield expansions of existing oil pipelines by 2030, further supporting oil production growth and associated condensate demand.

• Supportive Policy Environment – Pembina has observed a shift in tone from policy makers which could positively impact how the Canadian energy industry evolves. At the federal level, in particular with support from Bill C-5 One Canadian Economy Act, there is momentum building towards reshaping Canada’s energy strategy in a way that could unlock Canada’s abundant and diverse energy resources. At the provincial level, the Alberta government continues to be supportive of conventional energy development, encourage federal regulatory reform, and create a constructive investment environment for energy-related industries, including petrochemicals and data centres.

Pembina’s Differentiated Business is Built to Lead

Pembina is the only Canadian energy infrastructure company with an integrated value chain providing a full suite of midstream and transportation services across all commodities – natural gas, NGL (ethane, propane and butane), condensate, and crude oil. Additionally, Pembina’s scope, scale, and access to premium North American and global markets, differentiate the Company and uniquely position it to capture incremental new volumes in the WCSB, while unlocking new avenues for sustainable growth beyond its strong legacy businesses.

Pembina believes it has captured significant future WCSB growth through recent recontracting successes and long-term dedications across high growth areas such as the northeast British Columbia and Alberta Montney, and Duvernay formations. Through strategic investments, long-term partnerships, and premier infrastructure, Pembina is demonstrating it is the clear choice for producers looking to process, move, fractionate, and export their products.

Supported by the following recent developments and current and proposed future projects, Pembina is confident in its ability to maintain and grow its position in the rapidly developing WCSB:

Strengthening Pembina’s Propane Export Capabilities

Through a new commercial agreement and a newly sanctioned project, Pembina will have access to 50,000 bpd of highly competitive export capacity to premium price markets, including in Asia, for its own and customers’ propane.

• Pembina has approved an optimization of the PRT facility (the “PRT Optimization”), primarily through increasing storage capacity, that will allow PRT to accommodate Medium Gas Carrier vessels. The PRT Optimization is expected to expand access to additional markets with higher realized propane prices, while significantly reducing shipping costs per unit, thereby improving netbacks for Pembina and its customers. This project strengthens Pembina’s position as a key propane exporter from Canada’s West Coast, ensures the long-term competitiveness of PRT through efficiencies and margin enhancement, and is an example of supporting incremental value creation for Canadian energy products without the need for a major capital expansion. The PRT Optimization is expected to cost $145 million with an in-service date in mid-2028.

• As previously disclosed, Pembina has also entered into a long-term tolling agreement with AltaGas for 30,000 bpd of LPG export capacity at AltaGas’ current RIPET and future REEF facilities. Under the agreement, Pembina will have export capacity of 20,000 bpd starting in April 2026, and an additional 10,000 bpd starting in April 2027. This agreement ensures a highly competitive export outlet that further enhances market diversification for Pembina and its customers.

Partner of Choice

Pembina and PGI continue to strengthen their relationships with leading WCSB producers and develop mutually beneficial solutions that support growing production while providing PGI with take-or-pay commitments that ensure the long-term utilization of its assets.

• Effective June 30, 2025, PGI acquired, from Whitecap, the remaining 8.33 percent interest in three gas processing trains and a sales gas pipeline (the “Duvernay Assets”) at PGI’s Duvernay Complex for a total purchase price of $55 million ($33 million net to Pembina). Concurrent with the purchase and sale of the Duvernay Assets, Whitecap has entered into a long-term take-or-pay commitment for firm service at the Duvernay Complex and extended long-term take-or-pay agreements previously in place at PGI’s KA Plant.

• PGI has entered into an agreement with a Montney producer to fund and acquire an under-construction battery and additional infrastructure (the “North Gold Creek Battery”) in the Wapiti/North Gold Creek Montney area for a capital commitment up to $150 million ($90 million net to Pembina). The project enhances PGI’s footprint in the Wapiti region, connecting directly into PGI’s existing Wapiti Gas Plant. The North Gold Creek Battery will be operated by the producer and highly contracted under a long-term, take-or-pay agreement. The expected in-service date of the North Gold Creek Battery is the second quarter of 2026.

Growing Demand for Transportation Service

Pembina continues to advance more than $1 billion of conventional NGL and condensate pipeline expansions to reliably and cost-effectively meet rising transportation demand from growing production in the WCSB. Pembina’s outlook for volume growth is secured by long-term contracts underpinned by take-or-pay agreements, areas of dedication across the Montney and Duvernay formations, and other long-term agreements that ensure a strong base of committed volumes.

• Taylor-to-Gordondale Project – a new approximately 89 kilometer, 16-inch pipeline proposed by Pouce Coupé Pipe Line Ltd. (a subsidiary of Pembina) connecting mostly condensate volumes from Taylor, British Columbia to the Gordondale, Alberta area. Engineering activities are continuing and subject to regulatory and board approval, Pembina expects to move forward with this expansion. A FID is anticipated in the first quarter of 2026.

• Fox Creek-to-Namao Expansion – an expansion of the Peace Pipeline system that through the addition of new pump stations would add approximately 70,000 bpd of propane-plus capacity to the market delivery pipelines from Fox Creek, Alberta to Namao, Alberta. Engineering and regulatory activities are progressing and subject to regulatory and board approval, Pembina expects to move forward with this expansion. A FID is expected by the end of 2025.

• Pembina is also evaluating and engineering further expansions to support volume growth in northeast British Columbia, including new pipelines and terminal upgrades.

Cedar LNG Milestone Reached

The US$4 billion (gross) Cedar LNG Project continues to progress according to plan and remains on budget and on time with an expected in-service date in late 2028.

• Pembina and its partner, the Haisla Nation, recently celebrated the achievement of a major milestone for the project as construction of the floating LNG vessel began with steel cutting on both the top side facilities and the vessel hull. Onshore activities are continuing and marine terminal clearing, drainage, and erosion and sediment control work have been completed. Additionally, pipeline right of way clearing and road upgrades have been completed, and pipeline access and grading construction are progressing as planned.

• Pembina continues to progress remarketing of its 1.5 million tonnes per annum of Cedar LNG Project capacity to third parties. The market for LNG supply on the West Coast of North America remains strong. Pembina is advancing definitive agreement negotiations with an expectation to finalize these efforts by the end of 2025.

Leading Ethane Supplier

Within Pembina’s fully integrated, all-commodity value chain, its ethane-plus NGL business stands out and ensures Pembina is well positioned to build upon its position as the leading supplier of ethane to a growing Alberta petrochemical industry.

• Pembina is working closely with Dow Chemicals Canada (“Dow”) following their recent announcement of a delay in construction of their Path2Zero petrochemical project and is evaluating the various options available to meet its commitment under the mutually binding 50,000 bpd ethane supply agreement with Dow. Pembina is seeking to fulfill its commitment in the most capital efficient manner possible and achieve maximum benefit for both parties. Engineering and commercial discussions are ongoing related to the addition of a de-ethanizer tower at RFS III within the Redwater Complex and a FID is anticipated by the end of 2025.

Supporting a Potential New Alberta-based Data Centre Industry

Pembina continues to advance opportunities to provide integrated solutions in support of an emerging Alberta-based data centre industry, while leveraging its existing and future value chain.

• Greenlight Electricity Centre Limited Partnership (“Greenlight”), a partnership between Pembina and Kineticor, an OPTrust portfolio company, is developing an up to 1,800 MW gas-fired combined cycle power generation facility (the “Greenlight Electricity Centre”). Greenlight is in active discussions with a data center customer to commercially underpin the project. Greenlight also successfully advanced through Phase 1 of the Alberta Electric System Operator allocation process and through subsequent commercial efforts has secured a sufficient megawatt allocation to achieve a viable scale for this project.

  In addition to the opportunity to invest in long-term contracted power infrastructure with investment grade counterparties, Pembina is well positioned to leverage its existing and future value chain to further support this project. The proximity of Alliance Pipeline offers a potential accretive expansion opportunity to provide significant natural gas supply to the Greenlight Electricity Centre, and the potential future development of the Alberta Carbon Grid may provide a future emissions reduction solution.

Industry-Leading Capital Execution

Pembina continues to demonstrate its ability to deliver capital projects that provide strong returns and a competitive service offering. Furthering its track record of industry-leading project execution, Pembina is pleased that the RFS IV project is trending approximately five percent under the previous cost estimate with a revised expected total cost of approximately $500 million. Engineering, procurement, and fabrication are substantially complete, while field construction has progressed to approximately 50 percent complete. Pembina continues to expect RFS IV to be in service on time in the first half of 2026. On a cost per barrel of capacity basis, Pembina is on track to deliver its expansion 15-20 percent lower than competing projects currently underway, highlighting Pembina’s advantaged service offering.

2025 Capital Investment

Based on progress on a number of key core business initiatives, as well as two tuck-in acquisitions at PGI, Pembina has revised its outlook for the Company’s 2025 capital investment program, including capital expenditures and contributions to equity accounted investees, to $1.3 billion (previously $1.1 billion). The revised 2025 capital program reflects continued progression of proposed conventional pipeline expansions, approval of the PRT Optimization, and higher contributions to PGI, primarily related to PGI’s acquisition of the remaining interest in the Duvernay Assets and funding of the North Gold Creek Battery.

Financial & Operational Highlights

Adjusted EBITDA

Pembina reported quarterly adjusted EBITDA of $1,013 million in the second quarter, representing a $78 million or seven percent decrease over the same period in the prior year.

Pipelines reported adjusted EBITDA of $646 million for the second quarter, representing a $9 million or one percent decrease compared to the same period in the prior year, reflecting the net impact of the following factors:

• lower firm tolls on the Cochin Pipeline, due to recontracting in July 2024;
• lower revenue at the Edmonton Terminals largely related to the decommissioning of the Edmonton South Rail Terminal in the second quarter of 2024;
• lower interruptible volumes and lower tolls on the Vantage Pipeline;
• higher volumes on Peace Pipeline system due to higher contracted volumes and fewer outages compared to the prior period, which was impacted by planned outages related to the Phase VIII Peace Pipeline Expansion;
• higher revenue on the Peace Pipeline system due to increased tolls mainly related to contractual inflation adjustments;
• higher demand on seasonal contracts on Alliance; and
• higher contracted volumes on the Nipisi Pipeline.

Facilities reported adjusted EBITDA of $331 million for the second quarter, representing a $9 million or three percent decrease over the same period in the prior year, reflecting the net impact of the following factors:

• lower volumes due to planned outages at certain PGI assets and on-going third-party restrictions impacting the Dawson assets; and
• higher contribution from PGI, primarily related to recent transactions with Whitecap.

Marketing & New Ventures reported adjusted EBITDA of $74 million for the second quarter, repr

Contacts

For further information:

Investor Relations

(403) 231-3156

1-855-880-7404

e-mail: investor-relations@pembina.com
www.pembina.com

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