Pembina Pipeline Corporation (PBA)

Pembina Pipeline reported second-quarter 2026 adjusted EBITDA of $1,064 million on 30 July, up from $1,013 million a year earlier 1. Earnings were $512 million, up 23 percent 1. Adjusted EBITDA is the company's own measure of earnings before interest, taxes, depreciation and amortization, with adjustments 1.

Pembina said the gain mainly reflects wider margins on natural gas liquids, the propane and butane stripped from raw gas, and steady volumes on its pipelines and plants 1. A lower toll on its Alliance Pipeline offset part of it 1.

The company reiterated its 2026 adjusted EBITDA guidance of $4.35 billion to $4.55 billion 1. It said the third quarter should come in below the second, with a higher fourth quarter 1.

On 1 October Canada listed the West Coast Oil Pipeline, now called Pacific Link, as a project of national interest 6. Pembina's planned economic interest during construction is 10 percent, and it keeps full discretion over any final investment decision 6.

Pembina will release third-quarter 2026 results on 5 November after market close, with a webcast on 6 November 7.

Pembina says it has served North America's energy industry for more than 70 years 2. It works in the midstream, the middle of the oil and gas chain, where products are gathered, processed, transported and marketed to refiners and other end users 2.

The company took its present corporate form on 1 October 2010, when Pembina Pipeline Income Fund reorganized from an income trust into a corporation 2. On 2 October 2017 it completed the Veresen Acquisition, amalgamating with Veresen and continuing under the Pembina name 2.

In December 2023 Pembina agreed to acquire Enbridge's interests in the Alliance Pipeline, Aux Sable and NRGreen ventures for about $3.1 billion, including about $327 million of assumed debt 2. The deal closed on 1 April 2024 2. Alliance is a natural gas pipeline from western Canada to the Chicago area, and Aux Sable extracts liquids from that gas 2.

Pembina's gas-processing arm, PGI, acquired a 50 percent working interest in Whitecap's Kaybob Complex, a deal that closed on 31 December 2024 2. In June 2024 Pembina took a positive final investment decision on the Cedar LNG floating export plant at Kitimat 2.

Revenue was $7,778 million in 2025, up from $7,384 million in 2024 2. Adjusted EBITDA still fell by $119 million in 2025 3.

The company traced that fall to a smaller contribution from marketing, a new toll structure and revenue sharing mechanism on the Alliance Pipeline, and one-off capital recoveries that lifted 2024 3. Volume growth on pipelines and plants offset part of it 3.

The Alliance change followed a settlement the Canada Energy Regulator approved on 16 September 2025 2. Shippers elected the new 10-year toll on about 96 percent of the 1.325 billion cubic feet a day of firm capacity, effective 1 November 2025 2.

In August 2025 Pembina signed for 30,000 barrels a day of propane export capacity on Canada's west coast with AltaGas 2. In November and December 2025 it contracted Cedar LNG capacity to PETRONAS (1.0 million tonnes a year, 20 years) and Ovintiv (0.5 million tonnes, 12 years) 2.

At its 7 April 2026 business update the company outlined a three-part strategy to capture volumes, connect them to markets and catalyze new demand 1. It set a target of 5-7 percent yearly growth in fee-based adjusted EBITDA per share through 2030 1.

In the second quarter RFS IV, a fractionator at Redwater, entered service on time and under budget 1. Pembina also sanctioned the Heartland Extraction Plant and, with partners, the Greenlight Electricity Centre, a gas-fired power plant for a data centre 1.

How the business is organized

Pembina is structured into three divisions: Pipelines, Facilities, and Marketing & New Ventures 2. For 2025 adjusted EBITDA was $2,596 million in Pipelines, $1,396 million in Facilities and $499 million in Marketing & New Ventures 2.

Pipelines: moving oil, liquids and gas

The Pipelines Division moves crude oil, condensate, natural gas liquids and natural gas for customers 2. Its lines connect producers in western Alberta and northeast British Columbia to Edmonton and to markets in Illinois 2.

The Peace Pipeline system runs about 4,565 kilometres and carries ethane mix, propane mix, crude oil and condensate to Edmonton and Fort Saskatchewan 2. The Syncrude Pipeline has a capacity of 389 thousand barrels a day 2.

The Alliance Pipeline carries natural gas from western Canada and North Dakota to the Chicago area, and the Cochin Pipeline carries refined condensate, used as a thinner for heavy bitumen 2. Alliance averages 1.7 billion cubic feet a day, and Cochin spans about 2,500 kilometres 2.

In the second quarter Pipelines earned $626 million of adjusted EBITDA, $20 million less than a year before, because of the lower Alliance toll 1. Pembina expects Cochin to contribute less in the second half 1.

Facilities: plants that process gas and split liquids

The Facilities Division gathers and processes natural gas and splits mixed liquids into finished products such as propane 2. It holds a 60 percent operating interest in PGI, whose gas plants sit in British Columbia and Alberta 2.

Pembina reports gas processing capacity of about 6.7 billion cubic feet a day and about 430 thousand barrels a day of liquids fractionation 2. RFS IV, put in service in late May, takes Redwater to about 256,000 barrels a day 1.

Facilities earned $386 million of adjusted EBITDA in the second quarter, up $55 million, helped by RFS IV and the Wapiti Expansion that entered service in March 2026 1.

Marketing and New Ventures: moving and marketing the products

This division markets the commodities that flow through Pembina's system, including natural gas, ethane, propane, butane, condensate and crude oil, and optimizes storage and export capacity 2. Its results swing with the margin between NGL and gas prices, the frac spread 1.

In the second quarter it earned $111 million of adjusted EBITDA, up 50 percent from $74 million 1. For 2025 and 2026 Pembina expects the frac spread business to be about two-thirds of its marketing business 1.

Cedar LNG, Greenlight and other new ventures

Cedar LNG is a floating plant at Kitimat, British Columbia, that cools natural gas into liquid for ships, built with the Haisla Nation 2. It is designed for 3.3 million tonnes a year 2. Pembina said first exports are expected in late 2028 1.

The Greenlight Electricity Centre is a 932 megawatt gas-fired power plant in Sturgeon County, Alberta, to serve a major data centre, with a total cost of about $4.6 billion 4. Pembina owns 47.5 percent of Greenlight 4.

Pembina has not publicly named the customer, though Juno News reported it is Meta Platforms 12. The plant is paid for under a tolling agreement with capacity payments and usage-based payments 4.

The Heartland Extraction Plant is a $570 million project that pulls liquids from gas on the Yellowhead Pipeline and supplies Dow with ethane 1. Dow's total contracted ethane volumes rose to 57,500 barrels a day 1.

Plants, terminals and land

The Redwater Complex near Edmonton has fractionators and 12.1 million barrels of cavern storage 2. The Prince Rupert Terminal on Watson Island, British Columbia, exports 20 thousand barrels a day of propane 2.

Vancouver Wharves is a 118-acre bulk marine terminal in North Vancouver 2. Pembina said it recently acquired more land near the Greenlight site and Redwater for future gas-to-power projects for data centres 1.

People, rivals and problems

J Scott Burrows has been president and chief executive since February 2022, and Cameron J Goldade is chief financial officer 2. At the end of 2025 Pembina employed 2,974 people, 1,885 in the field and 1,089 in Calgary 2.

Pembina's annual information form says its gas plants face competition from other processors and producer-owned systems 2. It calls marketing a highly competitive, largely undifferentiated market 2.

Pembina names the lower Alliance toll as an offset to its second-quarter gains 1. The annual information form reports no legal proceedings or regulatory actions material to Pembina in its latest year 2.

The umbrella, in words

The annual report lists its material subsidiaries, each 100 percent owned, as Alliance Pipeline Limited Partnership, Pembina Empress NGL Partnership, Pembina Cochin LLC and Aux Sable Liquid Products LP 2.

It owns 60 percent of PGI as operator, 50 percent of the Base Line Terminal alongside Keyera, and 47.5 percent of Greenlight 24. It has a partnership with the Haisla Nation for Cedar LNG and one with TC Energy for the Alberta Carbon Grid 2.

Under a non-binding agreement Pembina's economic interest in the West Coast Oil Pipeline through construction would be 10 percent, with Trans Mountain Corporation as lead proponent 5.

The Canadian Press reported that ninety per cent of the proposal would sit with federal and provincial Crown corporations at the start, with Pembina a minority partner 9.

The annual information form reports that Pembina's directors and executive officers together own about 0.07 percent of the common shares 2.

Pembina is reiterating 2026 adjusted EBITDA guidance of $4.35 billion to $4.55 billion and said it is trending to the midpoint of the range 1. It will report third-quarter results on 5 November 2026 after market close 7.

The company targets 5-7 percent compound annual growth in fee-based adjusted EBITDA per share through 2030 1. Fee-based means earnings from contracted tolls and fees rather than commodity margins 1.

Cedar LNG's floating vessel is more than 70 percent complete, with delivery to Kitimat expected in the first half of 2028 and first exports in late 2028, Pembina said 1.

Pembina said the Greenlight plant is expected in service in the second half of 2030 and to add about $310 million of annual run-rate adjusted EBITDA, net to Pembina 4.

The Fox Creek-to-Namao expansion is expected to cost about $200 million, with service in the first quarter of 2027 2. The Birch-to-Taylor expansion is estimated at about $310 million, with service in the fourth quarter of 2027 2.

A Prince Rupert Terminal upgrade, expected in mid-2028 at about $145 million, is meant to let larger gas carrier vessels load propane 2.

On the West Coast Oil Pipeline, now Pacific Link, Pembina said in July that it was targeting definitive agreements for September 2026, and the record reviewed here does not show them signed 5. Oil and Gas Journal reported that listing advances work toward permissions to begin design and construction as early as 1 September 2027 10.

Chief executive Scott Burrows told analysts the pipeline fits the connect part of the strategy, and the company's legal chief said the first milestone was the 1 October designation 8. Pembina has full discretion over any final investment decision on its interest and no at-risk development capital before it, the company said 6. Canada's Gazette describes the pipeline as capable of one million barrels a day from Bruderheim, Alberta, to near Delta, British Columbia 11.

The board declared a third-quarter common dividend of $0.735 per share, paid on 29 September 2026 1.