Pembina Pipeline Corp. Ordinary Shares (Canada)

to Pembina Pipeline Corporation Q4 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 the star zero for the operator. This call is being recorded on Friday, February 23, 2024. I would now like to turn the conference over to Cameron Goldie, Chief Financial Officer of Pembina Pipeline. Please go ahead.

Thank you, Ludi. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the fourth quarter and full year of 2023. On the call today, we also have Scott Burrows, President and Chief Executive Officer, along with other members of Pembina's leadership 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 PEMNA's current expectations, estimates, judgments, and projections. Forward-looking statements 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 To learn more about these forward-looking statements and non-GAAP measures, please see the company's management discussion and analysis dated February 22, 2024, for the period ended December 31, 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 Scott to make some opening remarks.

Thanks, Cam. We were pleased yesterday to report our fourth quarter results, which included quarterly earnings of $698 million and record quarterly adjusted EBITDA of just over $1 billion. We also delivered record annual adjusted EBITDA of $3.82 billion, which exceeded the high end of the original 2023 guidance range and reflects the strength, predictability, and resilience of Pemina's business. In 2023, we saw growing volumes across many systems, supplemented by the value enhancement from another strong year from Pemina's marketing business. Positive momentum in the Western Canadian Sedimentary Basin could be seen by more than 4% year-over-year increase in second-half volumes in the conventional pipeline business. In 2023, Pemina progressed its strategy by sustaining and enhancing our business through various accomplishments we shared throughout the past year, including signing new contracts from the Peace Pipeline System, signing new and or extending existing contracts to the Redwater Complex, reactivating the Nipissi pipeline, and approving new projects such as the 55,000-barrel-per-day RFS4 expansion, the expansion of the Northeast BC pipeline, and a cogeneration facility at PGI's KBOB III plant. In the fourth quarter, positive developments continued, including the announcement of a $3.1 billion acquisition of Enbridge's interest in Alliance and Oxable. Pemina's business is built around integrated, difficult-to-replicate assets that provide an enduring competitive advantage and unequaled market access for customers. Alliance Pipeline and Oxable are world-class energy infrastructure assets, and increasing our existing ownership of them will further enhance our growing franchise. We continue to expect the acquisition to close in the first half of 2024, subject to the satisfaction or waiver of customary closing conditions. On the commercial front, we announced yesterday that in support of Dow's Path to Zero project, Pemina has entered into long-term agreements to supply up to 50,000 barrels per day of ethane and for the associated transportation on the Alberta ethane gathering system. The Path to Zero project is an important development for the WCSB, representing a significant increase to the current ethane market in Alberta. Given Pemina's existing leading ethane supply and transportation business and integrated value chain, there are multiple opportunities for the company to benefit from this new development through both the existing asset base and new investment opportunities. During the fourth quarter, we also closed open seasons on the Cochin Pipeline for a total of 90,000 barrels per day and signed an incremental contract with an anchor customer for service on the Nipissi Pipeline, which is now contracted for more than half the capacity on a long-term basis, with line of sight to the asset being fully contracted by the end of 2024. On the major project front, we continue to progress our Phase 8 Peace Pipeline expansion and our RFS4 expansion of the Redwater Complex. On the Phase 8 project, the capital budget has been further revised lower to $430 million, which is $100 million under the original budget. The construction is expected to be completed in the first quarter of 2024, with pipeline and facility commissioning and startup expected in the second quarter of 2024. Our experience of Phase 8 is another example of supporting Pemina's track record of strong project execution. Additionally, Pemina Gas Infrastructure has approved an expansion at the Wapiti plant that will increase natural gas processing capacity by 115 million cubic feet per day and is expected to be in service in the first half of 2026. The Wapiti expansion is being driven by strong customer demand, supported by growing Montney production, and will be fully underpinned by long-term take-or-pay contracts. Finally, yesterday we provided an update on the Cedar LNG project. Cedar LNG has substantially completed several key project deliverables, including obtaining material regulatory approvals, advancing inter-project agreements with Coastal GasLink and LNG Canada, signing a heads-up agreement with Samsung Heavy Industries in Blackton Beach, and executing a lump-sum engineering procurement and construction agreement to provide Cedar LNG with the necessary services to construct the project. While a lot has been accomplished, there remain a number of schedule-driven interconnected elements that require resolution prior to making a final investment decision. These include binding commercial offtake, obtaining third-party consent, and project financing. On this basis, a final investment decision is now expected in the middle of 2024. I will now turn things over to Cam to discuss in more detail financial highlights for the 2023 fourth quarter and full year.