Pembina Pipeline Corp. Ordinary Shares (Canada)

Ladies and gentlemen, thank you for joining us and welcome to Pembina Pipeline Corporation Q1 2026 results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Dan Tucanel, Vice President, Capital Markets. Dan, please go ahead.

Thank you, Jen. Good morning, everyone. Welcome to Pembina's conference call and webcast to review highlights from the first quarter of 2026. On the call today, we have Scott Burrows, President and Chief Executive Officer, and Cameron Golding, Chief Financial Officer, along with other members of Pembina's leadership team. I would like to remind you that some of the comments made today may be forward-looking in nature and are based on Pembina'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 Pembina Management's discussion and analysis, dated May 7, 2026, for the period ended March 31, 2026, as well as the press release we issued yesterday. all of which are available online at Pemina.com and on both CDAR Plus and EDGAR. I will now turn things over to Scott.

Thanks, Dan. Yesterday, we reported first quarter results, which were highlighted by adjusted EBITDA of $1.131 billion. It was a strong start to 2026, operationally, commercially, and financially. The fee-based business is tracking to plan, and overall results are outperforming budget given the spike in key commodity markets that began in March. Operationally, we saw volume strength across key systems, including alliance pipeline, quotient pipeline, and the conventional pipeline systems. First quarter results have kept us on track to realize our 2023 to 2026 fee-based adjusted EBITDA per share compound annual growth of approximately 5%. and within the target range provided at our 2024 Investor Day. As Cam will discuss in more detail, due primarily to the stronger marketing outlook, we have updated our 2026 adjusted EBITDA guidance range to $4.35 billion to $4.55 billion. At the midpoint, which is where we are currently tracking to, this is an increase of $175 million, or 4.1%. Supported by continued growth in our low-risk fee-based business, We were pleased yesterday to announce a 2.5 cents per share or 3.5% increase to the quarterly common share dividend, beginning with the dividend to be paid in June. In addition to strong financial results, Pemina continues to reliably execute its portfolio of projects under construction, realize continued commercial success, and advance projects under development in service of its growth strategy. Highlights of 2026 to date include placing the Wapiti expansion and K3 cogeneration facility into service on time and on budget. In addition, construction of RFS 4, a 55,000 barrel per day propane plus fractionator at the existing Redwater complex is nearing completion. The rail facility was placed into service in February and commissioning of the fractionator is underway. The project is trending under budget and the fractionator is expected to be placed into service by the end of May. And Cedar LNG continues to progress on time and on budget. The construction of the floating LNG vessel is now more than 50% complete, and with winter now behind us, the onshore construction teams have resumed activities with the focus of executing on an eventful 2026 construction season. With many of the onshore teams having only recently returned to site, it's already exciting to witness the progress being made. Commercially, in 2026 to date, Pemina has renewed existing contracts, and executed incremental new contracts totaling approximately 110,000 barrels per day of transportation capacity on the Peace Pipeline, demonstrating the value customers place on the reliable and value-enhancing service provided by our leading transportation network and integrated value chain. And we recently closed an open season for the proposed short-haul point-to-point transportation service of the Canadian segment of the Alliance Pipeline system. The proposed expansion would provide natural gas delivery to a new meter station in Port Saskatchewan with an anticipated in-service date in the fourth quarter of 2029. The successful proponents have been awarded capacity conditional on the project being sanctioned. The project continues to progress towards a final investment decision with ongoing work streams focused on regulatory and engineering activities. On the project development front, Pemina and Kineticor are progressing the Greenlight Electricity Center, a proposed multi-phase natural gas-fired combined cycle power generation facility. We are advancing various work streams related to the approximately 900 megawatts first phase. Ongoing activities include finalizing a lump sum EPC agreement, finalizing a commercial agreement with the customer, and project financing. A final investment decision is expected by the end of the second quarter of 2026. Finally, before turning the call over to Cam, I want to quickly recap our recent business update call held on April 7th. Amidst the backdrop of expanding market access and growing demand for Canadian energy, we were very excited to provide our thoughts where Pemina is positioned, why its business is advantaged, and how the company's strategy can create value through 2030 and beyond. Our update focused on three key themes. The first was reaffirming the company's longstanding commitment to disciplined execution, including strong performance against financial targets, placing billions of dollars of capital projects into service on time and on or under budget, adhering to its financial guardrails and delivering a reliable, growing dividend without interruption. The second was outlining the company's 3C strategy, capture, connect and catalyze, which is underpinned by energy fundamentals and the advantages of its differentiated platform. Pemina is poised to benefit from growing global energy demand, increasing strategic relevance of Canadian energy and emerging demand drivers such as LNG, petrochemicals, and data center power demand. The advantages of PEMIN is integration, scale, superior market access, and entrepreneurial approach, and track record of execution uniquely position it to further strengthen and extend its unmatched industry-leading value chain. The third was providing a financial outlook to the end of the decade, including 5% to 7% compound annual fee-based adjusted EBITDA per share growth through 2030. This outlook is underpinned by higher utilization across existing assets, contributions from sanctioned projects entering service, and a portfolio of development opportunities designed to extend the franchise. The recent announcement of Shell's proposed acquisition of ARC Resources is a compelling proof point that further validates our outlook for the WCSB, and the Transaction Benefits Shell has highlighted near some of the same themes we covered in our business update. Shell has identified the Montney Basin as a key growth platform within their global portfolio, given its long duration and advantage cost structure. Similarly, our market update highlighted the importance of capturing volumes from premier high growth areas and connecting them to the best global markets. There's also focus on the interrelationship between growing oil sands demand for condensate and growing demand for natural gas as being two ends of the energy flywheel. Shell's stated rationale for the ARC acquisition, driven by liquids first and supported by natural gas, is a proof point of this concept. As a global energy leader and the number one LNG operator in Canada, we see in Shell a customer whose model and outlook aligns well with ours, and we look forward to their growing presence in our basin. We encourage those that have not already done so to visit our website at pemina.com to access a replay of our business update call and the related presentation. It was a strong and eventful first quarter that sets us up very well for the remainder of the year and beyond. I'll now turn things over to Cam to discuss in more detail the financial highlights for the quarter.