Pembina Pipeline (PPL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 adjusted EBITDA of $1.091 billion, up 33% year-over-year, and net income of $479 million, driven by the Alliance/Aux Sable acquisition and strong asset performance.

• Revenue for Q2 2024 was $1,855 million, up $433 million year-over-year, with EPS of $0.75.

• Completed the Alliance/Aux Sable acquisition, fully consolidating these assets and boosting results in Pipelines and Facilities.

• Announced positive FID on Cedar LNG Project, advancing LNG and low-carbon strategy.

• Completed Phase VIII Peace Pipeline expansion, enhancing network capacity.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $1,091 million, up $268 million year-over-year; earnings increased 32% to $479 million.

• Cash flow from operating activities in Q2 2024 was $954 million, up $301 million year-over-year; adjusted cash flow from operations was $837 million ($1.44 per share).

• Capital expenditures in Q2 2024 were $265 million, primarily for pipeline expansions and Redwater projects.

• Pipeline volumes grew 11% to 2,716 mboe/d; facilities volumes up 14% to 855 mboe/d year-over-year.

• Gross profit for Q2 2024 was $815 million, up $156 million year-over-year.

Outlook and guidance

• Raised 2024 adjusted EBITDA guidance to $4.20–$4.35 billion, a $100 million increase at midpoint.

• Revised 2024 capital investment program to $1.3 billion, including $1.0 billion in capital expenditures and $0.3 billion in equity contributions.

• Future capital expenditures for the remainder of 2024 are estimated at $525–$575 million, focused on RFS IV, NEBC MPS Expansion, and smaller growth projects.

• Capital program expected to be funded by operating cash flow net of dividends.

• Cedar LNG Project is expected in service by late 2028, with a total estimated cost of US$4.0 billion (gross).