Pembina Pipeline Corp. Ordinary Shares (Canada)

Good day and welcome to the Pembina Pipeline Corporation 2021 Third Quarter Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Cameron Goldaid, Vice President of Capital Markets. Please go ahead.

Thank you, Christina, and good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the third quarter of 2021. On the call with me today, we have Mick Dilger, President and Chief Executive Officer, Scott Burrows, Senior Vice President and Chief Financial Officer. Janet LaDuca, Senior Vice President, External Affairs and Chief Legal and Sustainability Officer. Jared Sprote, Senior Vice President and Chief Operating Officer for Facilities. Harry Anderson, Senior Vice President and Chief Operating Officer for Pipelines. And Stu Taylor, Senior Vice President, Marketing and New Ventures and Corporate Development Officer. I'd like to remind you that some of the comments made today may be forward-looking in nature and are based on PEMMA'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 November 4th, 2021 for the period ended September 30th, 2021, which is available online at Pemina.com and on both CDAR and EDGAR. With that, I'll now turn things over to Mick.

Hey, thanks, Cam. Good morning, everyone. I'm very pleased with the strong results we delivered in the third quarter, reflecting continued robust pricing across all commodities in Pemina's value chain, including crude, condensate, natural gas and natural gas liquids. The current commodity environment is supportive of our outlook for 2021 and 2022, including an opportunity for Pemina to maintain an above-average contribution from our marketing business next year. As well, strong pricing has positive implications for volumes on our existing assets and the longer-term prospect for business, including our backlog of currently deferred and potential new growth projects totaling more than $5 billion with attractive returns. Since the onset of the pandemic, producers have maintained discipline with a focus on productivity improvements, debt reduction, cash generation, and returning capital to shareholders. We remain of the view that the robust commodity pricing environment driven by the post-pandemic economic outlook, rising energy demand, with a tight supply curve, set the stage for supply growth into 2022 and beyond. With services across the hydrocarbon value chain, Pemina is poised to benefit from the growing sector activity. Coupled with strong financial performance in the third quarter, Pemina achieved another important strategic milestone with the announcement of our target to reduce the company's greenhouse gas emissions intensity by 30% by 2030 relative to 2019 baseline emissions. The GHG reduction target will help guide business decisions and improve overall emissions intensity performance while increasing Pemina's long-term value and ensuring Canadian energy is developed and delivered responsibly. To meet the target, Pemina will focus initially on operational opportunities, greater use of renewable and lower emission energies, and investments in a lower carbon economy. In addition to the GHG target, Pemina expects to make further ESG progress with the announcement of an equity, inclusion, and diversity target by the end of 2021. As we noted in the release of our materials yesterday, there have been a few other exciting developments recently which support our growing enthusiasm. First, we are encouraged to see a significant announcement from Dow Chemical highlighting plans to build a new world-scale polyethylene cracker in Fort Saskatchewan, Alberta. We estimate over 100,000 barrels per day of new ethane feedstock supply could be required for this project. which should have positive implications for third-party service providers, as new infrastructure will be required for ethane extraction and transportation. Second, we are seeing positive tailwinds on the Alliance pipeline. The recent open seasons for short-term capacity was nearly three times oversubscribed, resulting in Alliance being essentially fully contracted through 2022, and the current outlook also supports contracting of capacity beyond 2022. We look forward to providing further updates by the end of the year. Finally, the completion of Line 3 replacement project represents a major milestone for the industry and meaningful advances in Western Canadian oil egress. In conjunction with the Trans Mountain pipeline expansion currently under construction, we expect the Western Canadian sedimentary basin will soon have up to 750,000 barrels per day of excess takeaway capacity, providing ample opportunity for supply growth meaningfully to fill the gap, with the potential for related benefits to accrue to Pemina also over the long term. I'll now pass this call over to Scott to discuss the financial highlights for the third quarter.