Pembina Pipeline Corp. Ordinary Shares (Canada)

At this time, all lines are in 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 February 28, 2025. I would now like to turn the conference over to Dan Tucanol, VP of Capital Markets. Please go ahead.

Thank you, Konstantin. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the fourth quarter of 2024. On the call today, we have Scott Burrows, President and Chief Executive Officer, and Cameron Goldate, Senior Vice President and Chief Financial Officer, along with other members of Pembina's leadership team, including Jared Sprout, Janet LaDuca, Stu Taylor, Ava Bishop, 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 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's discussion and analysis dated February 27, 2025, for the period ended December 31, 2024, as well as the press release Pemina issued yesterday, which are all available online at Pemina.com and on both Cedar Plus and EDGAR. I will now turn things over to Scott.

Thanks, Dan. We were pleased yesterday to report our fourth quarter results, which included quarterly earnings of $572 million, record quarterly adjusted EBITDA of $1.254 billion, and record quarterly adjusted cash flow from operating activities of $922 million or $1.59 per share. We also delivered 2024 full-year earnings of $1.874 billion, record annual adjusted EBITDA of $4.408 billion, and record full-year adjusted cash flow from operating activities of $3.265 million or $5.70 per share. A record financial year reflects the positive impact of recent acquisitions, growing volumes in Western Canadian sedimentary basin, and a strong contribution from the marketing business. In addition to strong financial and operational results, 2024 was marked by several accomplishments that highlighted the successful execution of Pemina's strategy and our focus on strengthening our existing franchise, increasing our exposure to lighter hydrocarbons and resilient end-use markets, and accessing global market pricing for Canadian energy products. Highlights included growing our presence in resilient Northeast U.S. natural gas and NGL markets by fully consolidating ownership of Alliance and Oxable, furthering global market access for Canadian natural gas producers by reaching a positive FID on the Cedar LNG project, adding capital efficient, timely, and certain capacity to accommodating growing Western Canadian sedimentary basin production through completion of the Phase 8 Peace Pipeline expansion, supporting growth-focused Montney and DuVernay area customers with tailored solutions through two PGI transactions that included an expected $700 million gross to PGI funding for further infrastructure development that will be underpinned by long-term contracts and capitalizing on long-term stable demand for ethane from Alberta's growing petrochemical industry by entering a 50,000 barrel per day ethane supply agreement with Dow. We also continued commercial successes across the business in 2024, including executing incremental contracts or renewing contracts for approximately 170,000 VOE per day of pipeline transportation, primarily on Alliance and Peace Pipeline, as well as 25,000 barrels per day on the Nipissi Pipeline. Over 6 million barrels of storage at the Edmonton terminals, approximately 200 million cubic feet per day of gas processing, primarily at Musroe, Patterson Creek and K3, and additional fractionation services across the Redwater complex. On the major project front, we continue to progress various in-flight construction projects expected to enter service in 2026, including the RFS-4 expansion, the Wapiti plant expansion, and the K-3 cogeneration facility. We are also looking forward to the start of construction of Cedar LNG's floating vessel in mid-2025. Further, we are continuing to progress infrastructure solutions to meet Pemina's commitment under the 50,000 barrel per day ethane supply agreement with Dow. Pemina is seeking to fulfill its commitment in the most capital efficient manner possible and is evaluating a portfolio of opportunities, including the addition of a de-ethanizer tower at RFS3 within the Redwater complex. By leveraging its existing assets and capabilities, Pemina now expects the total capital investment required to be less than $300 million below the low end of the range previously communicated, resulting in improved capital efficiency as there is no change in the forecasted adjusted EBITDA contribution associated with the Dow Supply Agreement. And we are actively developing additional expansion opportunities to support growing demand for services on our conventional pipelines. These include the Taylor to Gordondale project, which is currently in the phase of the Canada Energy Regulators process, an expansion of the East Pipeline system to add up to approximately 200,000 barrels per day of capacity to its market delivery pipeline from Fox Creek to the Mayo, and additional expansions to support volume growth in Northeast BC. Finally, we were excited to announce yesterday two new business updates. The first was that Pemina has entered into agreements for a 50% interest in the Greenlight Electricity Centre Limited Partnership, which is developing a gas-fired combined-cycle power generation facility to be located in Alberta's industrial heartland on land owned by Pemina, adjacent to its redwater complex. The Greenlight Electricity Centre has been, and will continue to be, developed by Connecticut Asset Management. Greenlight is in active discussions with data centre customers to commercially underpin the project and believes the lands within the Alberta industrial heartland are well-suited given their proximity to transmission and utility infrastructure. The government in Alberta has set an ambitious target of attracting $100 billion in data center investments by 2030, encouraging developers to bring their own power. Pemina and Kineticorps are committed to supporting this vision by delivering reliable and cost-effective power solutions at scale to data centers looking to locate in Alberta. Along with our direct investment in Greenlight, Pemina is well-positioned to leverage its existing and future value chain to further support the project. The proximity of Alliance Pipeline offers potential accretive expansion opportunity to provide natural gas supply into Greenlight's electricity center, and the potential future development of Alberta Carbon Grid may provide a future emissions reduction solution. This is a great example of a project we had envisioned when we first announced the development of the Alberta Carbon Grid and the Pemina Low Carbon Complex. We are excited to be partnering with KinetiCorps to extend our value chain even further to provide power to a promising new Alberta-based data center industry. The second announcement was that Pemina has secured the sole extraction rights from the Yellowhead Main Line, a 1 billion cubic feet per day natural gas delivery pipeline that is under construction by ATCO. Pemina is currently advancing engineering of an up to 500 million cubic feet per day straddle facility at which up to 200, or sorry, 25,000 barrels per day of NGL mix would be extracted from the natural gas stream and transported to Fort Saskatchewan, Alberta for fractionation and sale. The straddle facility would be located on Pemina's own land and complement her already significant experience building and operating liquid extraction facilities that include approximately 1.8 billion cubic feet per day of extraction capacity through our empress and younger facilities. The many successes of 2024 have been followed by continued momentum into early 2025. Together, they reflect Pemina's leading position in the heart of the WCSB and the many opportunities available to enhance and expand our services alongside a growing Canadian energy industry. I will now turn things over to Cam to discuss in more detail the financial highlights for the fourth quarter and full year.