Pembina Pipeline Corp. Ordinary Shares (Canada)

Thank you for standing by and welcome to the Pemina Pipeline Corporation 2021 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Cameron Goldade, Vice President, Capital Markets. Thank you, sir. Please go ahead.

Good morning, everyone, and welcome to Pemina's conference call and webcast to review the highlights from the second quarter of 2021. On the call with me today are Mick Dilger, President and Chief Executive Officer, Scott Burrows, Senior Vice President and Chief Financial Officer, Harry Anderson, Senior Vice President and Chief Operating Officer, Pipelines, Jaret Sprott Senior Vice President Chief Operating Officer Facilities Stuart Taylor Senior Vice President Marketing and New Ventures and Corporate Development Officer Janet Loduca Senior Vice President External Affairs and Chief Legal and Sustainability Officer I'd like to remind you that some of the comments made today may be forward-looking in nature and are based on Pemina's current expectations, estimates, judgments and projections. Forward-looking statements we may express or imply today are subject to risks and uncertainties which could cause actual results to differ materially from expectations. Further, some of the information provided refers to non-GAAP measures. To learn more about these forward-looking statements and non-GAAP measures, please see the company's management discussion and analysis dated August 5, 2021 for the period ended June 30, 2021, which is available online at Pemina.com and on both CDAR and EDGAR. With that, I'll now turn things over to Mick.

Thanks, Cam. Good morning, everyone. We were pleased yesterday to announce that based on the year-to-date results and the outlook for the remainder of the year, Pemina has updated its 2021 adjusted EBITDA guidance by raising the low end of the range. Adjusted EBITDA is now expected to be $3.3 to $3.4 billion, effectively positioning us in the upper half of our original guidance range. Excuse me. Similar to what we have seen in our year-to-date results, growing confidence in our 2021 outlook reflects stronger-than-expected full-year marketing results, net of significant realized hedging losses, and modestly higher volumes across many of Pemina Pipeline systems and facilities. Relative to our original guidance range, these positive factors are being partially offset by stronger-than-expected Canadian dollar relative to the U.S. dollar, increased operating costs due to higher integrity spending and higher power costs in the conventional and oil sands pipeline businesses and lower contributions from certain assets. In addition, the revised outlook reflects higher general and administrative expense due to Pemina's rising share price and the resulting increase in the long-term incentive compensation costs. While supporting Pemina's 2021 guidance update, Stronger commodity prices and rising volumes also mean Pemina's customers are in ever better financial positions, generating significant free cash flow and improving their balance sheets, with many reaching their leverage targets earlier than expected. This sets the stage, we believe, for increased drilling activity and increased capital spending by producers into 2022, with positive implications for Pemina's business. Constructive outlook for the WCSB and customer demand for incremental service led to the reactivation of the PEACE Phase 9 pipeline expansion to supporting customers' long-term development plans while furthering product segregation on the PEACE pipeline system. Further decisions on the PEACE 8 pipeline expansion and the Prince Rupert terminal expansion are expected later this year. The same outlook also supports our confidence in the development of a portfolio of growth projects totaling more than $5 billion. This quarter, Pembina announced three significant and transformational and strategic partnerships with compelling ESG attributes. A partnership with the Haisla Nation to develop the Peter LNG project, a partnership with TC Energy Corporation, which envisions development of the Alberta Carbon Grid, and Chinook Pathways, a partnership with the Western Indigenous Pipeline Group to pursue ownership of the Trans Mountain Pipeline once that project is de-risked. Collectively, these partnerships support PEMNA's global market access strategy, allow for meaningful Indigenous participation in Canadian energy development, and provide important large-scale infrastructure platforms to assist Alberta-based industries to manage their greenhouse gas emissions and contribute to a lower carbon economy. We are proud of this work with communities and our role in creating meaningful solutions. Finally, in recent weeks, Pembina announced and ultimately terminated its proposed acquisition of InterPipeline. The industrial logic of a combined Pembina and InterPipeline remains unparalleled and the value creation between certain of our assets is impossible to replicate. While we are disappointed with this outcome, we will continue to seek opportunities for growth through focused acquisition. I say that not as a signal for any imminent or specific targets, but as a reminder that such acquisitions have been part of Pemina's success story over many years and will continue to be. The execution of Pemina's long-term strategy is never reliant on a single investment. The record continues to show that while acquisitions may be a tool to execute our strategy, we will remain disciplined, prioritizing shareholder returns and our financial guardrails, But for now, we are enjoying the receipt of a $350 million termination fee. We're studying the options available to best invest the termination fee, including business reinvestment, debt repayment, and share buybacks. With that, I'll pass it over to Scott to discuss the financial highlights.