Pembina Pipeline (PPL) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EBITDA was CAD 1.167 billion (up 12% year-over-year), with earnings of CAD 502 million (up 15%), reflecting strong operational performance, the Alliance/Aux Sable Acquisition, and higher volumes.

• Revenue for Q1 2025 reached $2,282 million, up $742 million year-over-year, driven by acquisitions and segment growth.

• Announced a 3% increase in the quarterly dividend to $0.71 per share, effective June 2025.

• Entered significant new and extended long-term commercial agreements with a leading Montney producer, supporting higher utilization and future expansions.

• Cash flow from operating activities was $840 million, nearly doubling from the prior year.

Financial highlights

• Adjusted EBITDA reached CAD 1.167 billion, up 12% year-over-year, driven by acquisitions, higher Alliance contributions, favorable FX, and increased contracted volumes.

• Earnings of CAD 502 million in Q1 2025, a 15% increase year-over-year.

• Total pipeline and facilities volumes were 3.7 million boe/d, up 9% year-over-year.

• Gross profit increased to $928 million from $730 million.

• Capital expenditures for Q1 2025 were $174 million, down from $186 million in Q1 2024.

Outlook and guidance

• Trending toward the midpoint of 2025 adjusted EBITDA guidance range of CAD 4.2–4.5 billion.

• Full-year Marketing & New Ventures adjusted EBITDA outlook remains at CAD 550 million.

• Guidance assumes existing Alliance tolls for the full year and no material impact from U.S. energy import tariffs.

• Leverage expected to exit 2025 at 3.4–3.7x debt/adjusted EBITDA.

• Future capital expenditures for the remainder of 2025 are estimated at $570–$770 million, focused on RFS IV, NEBC growth, and ethane supply commitments.