Pembina Pipeline Corporation Reports 3rd Quarter Results.

CALGARY: Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL;NYSE: PBA) announced today its financial and operating results for the third quarter of 2019.

Financial & Operational Highlights

Third quarter earnings of $370 million, an 11 percent increase over the same period of the prior year, were positively impacted by higher gross profit in both Facilities and Marketing & New Ventures due to higher terminalling revenue, combined with realized and unrealized gains from commodity-related derivative contracts, respectively, partially offset by lower Pipelines gross profit as a result of higher deferred revenue recognized during the third quarter of 2018 compared to the third quarter of 2019. Higher net finance costs were largely offset by a reduction in general & administrative and other expense. A decrease in deferred tax expense was partially offset by an increase in current tax due to growth in partnership earnings in the prior year, as a result of expansions, that are recognized in taxable income in the current year;

Cash flow from operating activities of $535 million for the third quarter, an 11 percent increase over the same period in 2018, was primarily due to increased operating results after adjusting for non-cash items, change in non-cash working capital and the impact from the adoption of IFRS 16 Leases ("IFRS 16"), partially offset by a decrease in distributions from equity accounted investees and an increase in taxes paid. On a per share (basic) basis, cash flow from operating activities for the third quarter increased by 11 percent compared to the same period in the prior year;

Adjusted cash flow from operating activities of $530 million in the third quarter of 2019 was consistent with the same period in 2018 and was attributable to the factors discussed above impacting cash flow from operating activities, net of change in non-cash working capital, an increase in current tax expense and an increase in preferred share dividends paid. On a per share (basic) basis, adjusted cash flow from operating activities for the third quarter was consistent with the same period of the prior year;

Total volumes of 3,436 mboe/d for the third quarter of 2019 were consistent with the same period in the prior year; and

Third quarter adjusted EBITDA of $736 million, was consistent with the same period in 2018, as the contribution from new assets placed into service in Pipelines and Facilities combined with the impact from the adoption of IFRS 16 was largely offset by decreased NGL and crude margins in Marketing & New Ventures.

Divisional Highlights

Pipelines reported third quarter adjusted EBITDA of $458 million, representing a two percent increase, and volumes of 2,570 mboe/d, representing a one percent decrease, compared to the same period of 2018. The higher adjusted EBITDA was driven primarily by decreased general and administrative expenses as a result of lower incentives combined with increased revenues, partially offset by increased operating expenses. Volumes were impacted by higher take-or-pay volumes recognized in the third quarter of 2018, partially offset by higher volumes on the Alberta Ethane Gathering System and Vantage system;

Facilities reported third quarter adjusted EBITDA of $233 million, representing an eight percent increase, and volumes of 866 mboe/d, representing a decrease of one percent, compared to the same period of 2018. The increase in adjusted EBITDA was primarily due to higher net revenue, partially offset by increased operating expenses and a one-time adjustment related to Veresen Midstream's Dawson facilities. Volumes were impacted by lower supply volumes at the Redwater Complex, combined with a third party outage affecting the Younger NGL Extraction Facility and a scheduled turnaround at the Kakwa River processing facility, partially offset by additional volumes at the Saturn Complex and Duvernay processing facilities; and

Marketing & New Ventures reported third quarter adjusted EBITDA of $83 million, 15 percent lower than the same period in 2018, and NGL sales volumes of 176 mboe/d, representing a 10 percent increase...