Pembina Posts Higher Profit

Pembina Pipeline Corp has reported CAD 512 million ($364.61 million) in net income and CAD 415 million in net income adjusted for nonrecurring items for the second quarter (Q2), up year-on-year from CAD 417 million and CAD 377 million respectively.

The increase "primarily reflects wider NGL [natural gas liquids] frac spreads, mainly as a result of rising NGL prices, combined with strong underlying operational performance and volumes across the Pipelines and Facilities divisions, offset by the impact of the new toll structure and revenue-sharing mechanism on the Alliance Pipeline effective November 1, 2025", the Calgary, Canada-based oil and gas midstream company said in a statement.

Last year the Canadian Energy Regulator approved a settlement between Pembina and shippers on Canada’s side of the gas pipeline with the United States. The settlement included a reduction, from November 2025 to October 2035, in firm tolls from those approved 2015 by the National Energy Board and a new 10-year term-differentiated toll, according to the record of decision dated September 15, 2025.

Adjusted earnings per share for Q2 2026 stood at CAD 0.66, compared to CAD 0.58 for Q2 2025. For the third quarter, Pembina maintained its dividend rate at CAD 0.735 per share, up from last year’s quarterly dividend per share of CAD 0.71.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to CAD 1.06 billion for Q2 2026 from CAD 1.01 billion for Q2 2025.

Pipelines adjusted EBITDA fell CAD 20 million year-over-year to CAD 626 million due to lower revenue from the Alliance Pipeline resulting from the new toll agreement. This was partly offset by higher contracted volumes on the Nipisi Pipeline and higher revenue on the Cochin Pipeline due to tariff adjustments, it said.

Pembina reported a CAD 37-million year-on-year increase to CAD 111 million in adjusted EBITDA from Marketing and New Ventures, benefiting from higher crude oil prices and sales volumes.

Revenue grew to CAD 2.15 billion for Q2 2026 from CAD 1.79 billion for Q2 2026, while operating expenses were flat year-on-year. Operating activities generated CAD 897 million in cash flow - CAD 778 million after adjustments.

"Since outlining our 3Cs Strategy and establishing a target of five to seven percent compound annual fee-based adjusted EBITDA per share growth through 2030 at our April 7 Business Update, we have built significant momentum across our business. We have completed and progressed ongoing projects, sanctioned two new growth projects, announced participation in a nation-building pipeline project and further strengthened a key customer relationship through expanded long-term commercial agreements with Dow", Pembina said.

"Together, these developments demonstrate tangible execution across each pillar of the Company's 3Cs Strategy to Capture volumes, Connect them to markets and Catalyze new hydrocarbon demand platforms, while reinforcing visibility to long-term growth".

The "nation-building" West Coast Oil Pipeline project is proposed to serve as a new gateway for Alberta province's oil sands to British Columbia and eventually Asia, with a capacity of over one million barrels of oil per day, according to the provincial government.

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