Pembina Pipeline Corp. Ordinary Shares (Canada)

Good morning, ladies and gentlemen, and welcome to the Pamina Pipeline Corporation Q2 2023 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, August 4, 2023. I would now like to turn the conference over to Cameron Goldaid. Please go ahead.

Cameron Goldaid Thank you, Jenny, and good morning, everyone. Welcome to PEMMADIS conference call and webcast to review highlights from the second quarter of 2023. On the call today, we also have Scott Burrows, President and Chief Executive Officer, along with members of PEMMADIS senior officer team, including Jarrett Sprote, Janet LaDuca, Stu Taylor, and Chris Sherman. I would like to remind you that some of the comments made today may be forward looking in nature and are based on PIMNA'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 MD&A dated August 3rd, 2023, where the period ended June 30th, 2023, as well as the press release Pemina issued yesterday, which are available online at Pemina.com and on both CDAR and EDGAR. I will now turn things over to make some opening remarks.

Thanks, Cam. For the second quarter, Pemina reported earnings of $363 million and adjusted EBITDA of $823 million. While we face challenges in tandem with the broader industry, Pemina's business remains strong. Poorly results reflect Pemina's resilience. In the second quarter, continued to observe growth in volumes and higher tolls on certain systems and a solid contribution for our crude oil marketing business. These positive factors were offset most notably by the impact of the wildfires in Alberta and British Columbia on Pemina's and its customers' operations, the impact of third-party outages, and reduced operating pressure on the northern pipeline system until mid-May. Second quarter results also reflect the typical seasonality in Pemina's NGL marketing business and lower NGL prices. We're hopeful that the worst of the wildfire season is behind us and are extremely grateful for all of our employees, contractors and customers in the affected areas were kept safe. Further, we did not have to incur any material fire related damage to our assets. I would again like to thank our staff and emergency response teams, customers and industry partners, as well as all emergency personnel for their diligent responses to the wildfires. Notwithstanding the short term impacts the wildfires and the northern pipeline system outage on Pemina and the broader industry, the outlook for the western Canadian sedimentary basin remains promising. Pemina's operations have returned to normal and through the first month of the third quarter volumes have been strong, reflecting levels from earlier in the year prior to the northern pipeline system outage and the wildfires. We expect continued volume growth throughout the second half of 2023, including in the conventional pipeline business where full year volumes are expected to be 4% higher than the prior year. Further, volume growth is expected to continue through the rest of the decade based on certain industry-wide developments, including most notably additional egress through various West Coast LNG projects and the Trans Mountain Pipeline expansion, production growth in the Montney, Duvernay, and Clearwater, and the expansion of Alberta's petrochemical industry. In our existing asset base, integrated value chain, contractual agreements, and deep customer relationships, we are poised to capture new volumes and benefit from increasing asset utilization and growth projects. On the project front, we are progressing our Phase 8 Peace Pipeline expansion and our RFS4 expansion at the Redwater Complex. The Phase 8 project continues to trend on time and under budget, furthering Pemina's track record of strong project execution. In addition to Phase 8 and Redwater Ford, Pemina is actively progressing over $300 million of smaller projects, including over $200 million in other pipeline projects. These include the reactivation of the Nipiti pipeline, which is expected in the third quarter of 2023, and a Northeast BC infrastructure expansion. The Northeast BC expansion includes terminal upgrades, additional storage, and new midpoint pump stations. These are expected to be completed in the second half of 2024 and will support approximately 40,000 barrels per day of incremental capacity on the Northeast BC pipeline system. This capacity is needed to fulfill customer demand and given an expectation for growth from the Northeast BC Montney and PEMMET has previously announced long term midstream service agreements with three premier Northeast BC Montney producers for the transportation and fractionation of liquid. On our Cedar LNG project, we continue to make great progress. Subsequent to the quarter on July 6, Cedar LNG received its LNG facility permit from the BC Energy Regulator. This is another major regulatory milestone that follows the receipt of the Environmental Assessment Certificate from the BC Environmental Assessment Office, a positive decision statement from the Federal Minister of Environment and Climate Change, and a pipeline permit for the Cedar LNG pipeline connection to the Coastal GasLink pipeline. Collectively, these reflect the key permitting milestones for Cedar LNG. Cedar LNG also signed incremental non-binding MOUs with investment-grade counterparties for long-term liquid fraction services and are now fully subscribed in relation to the project's total capacity. Work towards the signing of definitive agreements is ongoing. Cedar LNG elected to progress a second feed process for the floating LNG vessel in late 2022, and it's been waiting for that work to progress to the same stage as the original feed. In conjunction with detailed commercial discussions and ongoing negotiations between LNG Canada and Coastal GasLink, this has resulted in the anticipated final investment decision being revised the fourth quarter of 2023. Finally, during the quarter, Pamela released its 2022 sustainability report, which provides updates on the advances made in the ESG focus areas of governance, energy transition and climate, employee well-being and culture, health and safety, responsible asset management and Indigenous and community engagement. The 2022 sustainability reports captures a continued progress on Pemina's ESG targets, including greenhouse gas emissions intensity reductions and equity diversity and inclusion. With respect to GHGs, Pemina remains on track to meet a 30 by 30 emission intensity reduction target. As well, in relation to Pemina's diversity targets, women now represent 45% of the independent members of our board and 35% of our executive team, exceeding the goals we set. We are proud of the progress we have made to date on Pemina's sustainability initiatives and look forward to continuing the journey. The latest report is available on our website. I will now turn things over to Cam to discuss in more detail the financial highlights of the second quarter of 2023. Thanks, Scott.