Pembina Pipeline Corporation

Pembina reported second-quarter 2026 adjusted EBITDA of $1.064 billion, up $51 million or 5% versus Q2 2025. Earnings were $512 million, up 23% year over year, and adjusted earnings were $415 million, up 10% year over year. Total volumes in the Pipelines and Facilities divisions were 3.7 million barrels of oil equivalent per day, up 3% year over year. The company reaffirmed full-year 2026 adjusted EBITDA guidance of $4.35 billion to $4.55 billion and said it is trending toward the midpoint. Management said third-quarter adjusted EBITDA should be lower than Q2 due to seasonality, spending timing and one-time items, with a stronger fourth quarter expected; it also said 2026 guidance is mainly framed by commodity prices, marketing results, interruptible volumes, FX, and share-price-driven incentive costs.

Scott Burrows framed the quarter as evidence that Pembina’s 3C strategy is working across all three pillars: capture, connect, and catalyze. He highlighted RFS IV, Cedar LNG progress, the West Coast oil pipeline participation, Heartland Extraction Plant sanctioning, and Greenlight FID as examples of converting opportunities into growth. His tone was upbeat and confident, repeatedly emphasizing long-term visibility, disciplined capital allocation, and an ability to extend growth beyond 2030.

Cameron Goldade walked through the drivers of the quarter, pointing to stronger Pipelines and Facilities performance and improved Marketing results, partly offset by Alliance’s new toll/revenue-sharing structure. He cited the 5% EBITDA increase, $512 million of earnings, $415 million of adjusted earnings, and 3.7 million boe/d of total volumes. He also guided to a softer third quarter, a stronger fourth quarter, about 90% hedging of NGL frac spread exposure in Q3 and 40% in Q4, higher second-half integrity and maintenance spending, and lower Cochin contribution in the back half of the year. On leverage and capital allocation, he reiterated a long-standing target leverage range of 3.5x to 4.25x and said Pembina is still favoring self-funded growth, with flexibility only if risk is substantially mitigated and the return profile is compelling.

Analysts focused heavily on the West Coast oil pipeline, asking how condensate demand would be solved if new oil egress is built, what milestones remain before FID, and why Pembina is involved at all given it benefits from WCSB growth regardless of egress route. Management said most incremental condensate would need to come from the WCSB, noted Cochin has been expanded from about 85,000-90,000 barrels per day to about 120,000 barrels per day, and said imported condensate could also help. On the West Coast pipeline, management said the key steps are regulatory approval, a competitive cost estimate, and enough volume support over the next roughly 18 months. Questions on Greenlight centered on future phases, clustering, ownership structure, and whether the model could expand into merchant power; management said future phases would aim to look similar to Phase 1, remain long-term fixed-fee low-risk arrangements, and would be pursued with Kineticor rather than as an IPP/merchant power business.