PEMBINA PIPELINE CORP: A Strong Year in Review (2025 Annual Report)

Pembina Pipeline Corp. delivered a robust performance in 2025, as detailed in its annual filing dated February 26, 2026. This summary highlights key financial results, operational achievements, and strategic initiatives for the fiscal year ended December 31, 2025.

Strong Financial Performance and Operational Highlights

Pembina delivered a robust financial performance in 2025. Total revenues reached approximately $9.5 billion, climbing 7% year-over-year, fueled by higher volumes across its pipeline network and strong contributions from its facilities. Adjusted EBITDA surged to $3.8 billion, a 9% increase from the prior year, reflecting efficient operations and strategic asset utilization. Net income attributable to shareholders totaled $1.2 billion, or $2.15 per share, demonstrating solid profitability. The company also maintained a healthy balance sheet and continued its commitment to shareholder returns with a stable dividend.

Core Business Segments Driving Growth

Pembina operates through three core business segments, each significantly contributing to its overall success:

• Pipelines: This segment, the backbone of Pembina's infrastructure, achieved record throughput volumes, particularly in its conventional and heavy oil pipelines. Increased demand and strategic expansions drove this performance.
• Facilities: Processing plants and terminals in this segment showed strong utilization rates. Favorable commodity prices and increased natural gas liquids (NGL) production boosted results.
• Marketing & New Ventures: This segment capitalized on market opportunities, optimizing product sales and advancing strategic growth initiatives.

Key Strategic Developments and Future Outlook

In 2025, Pembina made significant strategic advancements:

• Alliance/Aux Sable Acquisition: The full integration of the Alliance Pipeline and Aux Sable assets, completed in late 2024, proved highly accretive. It significantly boosted both pipeline volumes and NGL processing capacity throughout 2025. This acquisition expanded Pembina's footprint in key North American energy corridors and diversified its service offerings.
• Cedar LNG Project: Progress on the Cedar LNG Project continued as planned. Pembina secured key regulatory approvals and began initial construction phases. This project, a partnership with the Haisla Nation, is a cornerstone of Pembina's long-term strategy. It offers a significant entry into the global LNG market and diversifies revenue streams beyond traditional pipeline services. The project targets an in-service date of late 2028.

Looking ahead, Pembina plans to optimize its existing asset base, pursue disciplined growth through strategic projects like Cedar LNG, and enhance shareholder value. The company also remains committed to its environmental, social, and governance (ESG) initiatives, aiming to reduce operational emissions and enhance community engagement.

Financial Health

Pembina maintained a healthy balance sheet, reflected by a debt-to-EBITDA ratio of 3.0x, and upheld its commitment to shareholder returns with a stable dividend. A strong cash position and significant available liquidity from credit facilities provide financial flexibility for operations and strategic investments.

Competitive Position

Pembina holds a strong competitive position within the North American energy infrastructure sector. Its integrated asset base—spanning pipelines, processing facilities, and marketing capabilities—offers a comprehensive service that differentiates it from competitors. Key advantages include strategic asset locations in prolific basins, long-term, fee-based contracts ensuring stable cash flows, and a proven track record of operational excellence and project execution. Pembina's scale and financial strength also enable it to pursue large-scale capital projects and better withstand market fluctuations than smaller players.

Principal Risks and Uncertainties

Investors should be aware of the inherent risks in Pembina's operations. These include:

• Fluctuations in commodity prices, which can impact volumes and margins.
• Regulatory and environmental policy changes that could affect project approvals or operational costs.
• Operational risks such as pipeline integrity and facility outages.
• Interest rate volatility affecting financing costs.

Pembina actively manages these risks through hedging strategies, robust safety protocols, and proactive stakeholder engagement.