Pembina Pipeline (PPL) Q1 2026 earnings summary

Executive summary

• Q1 2026 adjusted EBITDA was CAD 1.131 billion ($1,131 million), reflecting strong fee-based and marketing performance, with volume strength across key pipeline systems and outperformance due to a commodity market spike in March.

• Major projects, including the Wapiti Expansion and K3 Cogeneration Facility, entered service on time and on budget, supporting growth and operational efficiency.

• The company executed and renewed 110,000 bpd of transportation contracts on the Peace Pipeline and successfully closed an open season for Alliance Pipeline expansion.

• The board declared a 3.5% increase in the quarterly dividend, reflecting confidence in future growth and financial stability.

• Strategic focus remains on disciplined execution, capital project delivery, and maintaining investment grade credit rating.

Financial highlights

• Q1 2026 revenue was $2,106 million, down from $2,282 million year-over-year, mainly due to lower NGL margins and Alliance Pipeline toll changes.

• Adjusted EBITDA for Q1 2026 was $1,131 million, a 3% decrease year-over-year, with adjusted earnings of $505 million and earnings of $498 million.

• Adjusted cash flow from operating activities was $790 million ($1.36 per share), up from $777 million year-over-year.

• Capital expenditures for Q1 2026 totaled $187 million, up from $174 million year-over-year.

• Adjusted earnings per share increased to $0.81 from $0.78 year-over-year.

Outlook and guidance

• 2026 adjusted EBITDA guidance was raised to $4.35–$4.55 billion (CAD 4.35–4.55 billion), a $175 million increase at the midpoint, reflecting a stronger marketing outlook.

• 5–7% compound annual fee-based adjusted EBITDA per share growth targeted through 2030.

• Approximately 65% of 2026 frac spread exposure is hedged, with higher hedge ratios in Q2 and Q3.

• Year-end 2026 debt to adjusted EBITDA ratio is projected at 3.5x–3.7x (3.3x–3.5x excluding Cedar LNG construction debt).

• Current income tax expense for 2026 expected to be $385–$420 million.