Pembina Pipeline Corporation Announces Closing of Transaction and Creation of Pembina’s Gas Infrastructure

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All financial figures are approximate and in Canadian dollars unless otherwise noted.

CALGARY, AB, August 15, 2022 /PRNewswire/ – Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL) (NYSE: PBA) is pleased to announce that it has completed its previously announced joint venture transaction with KKR to to combine their respective western Canadian natural product gas processing facilities into a single, new joint venture company, Pembina Gas Infrastructure Inc. (“PGI”).

“We are pleased to officially announce the formation of PGI, a leading gas processing company in Western Canada this will bring incredible value to Pembina, our partner KKR and our customers. Pembina has enjoyed a strong relationship with KKR at Veresen Midstream for the past four years, and the formation of PGI is a natural next step that will unlock growth and provide expanded service offerings to customers around the world Montney and Duverney Formations, from Central alberta to the northeast British Columbia,” said Scott BurrowsPresident and Chief Executive Officer of Pembina.

Timing of Common Stock Dividend Increase

As previously announced, the Pembina Board of Directors has declared a cash dividend on common shares Aug 2022 from $0.21 per share payable, subject to applicable law, on September 15, 2022to registered shareholders August 25, 2022.

The Board of Directors of Pembina previously: a $0.0075 per common share increase in the monthly common stock dividend rate $00.2175 per common share per month (an increase of 3.6 percent), subject to the completion of the joint venture transaction with KKR. The first dividend under which the increase will take effect will probably be decided early Sep 2022and payable on or at October 14, 2022.

About Pembina

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America Energy industry for over 65 years. Pembina has an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminal business. Through our integrated value chain, we strive to provide secure and reliable infrastructure solutions that connect energy producers and consumers around the world, support a more sustainable future and benefit our customers, investors, employees and communities. Visit pembina.com for more information.

Purpose of Pembina:

To be the leading provider of integrated infrastructure solutions connecting global markets:

  • Customers Choose us first for reliable and value-added services.
  • investors achieve sustainable industry-leading total returns.
  • employee say we are the employer of choice and value our safe, respectful, collaborative and inclusive work culture.
  • communities welcome us and recognize the net positive impact of our social and environmental commitments.

Pembina is organized into three divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina’s common stock is traded on the Toronto and new York Exchanges under PPL or PBA.

About PGI

Pembina Gas Infrastructure (“PGI”) is a leading gas processing company in Western Canada with a total capacity of 5 billion cubic feet per day. As a partnership between Pembina and KKR, PGI is strategically positioned to serve customers around the world Montney and Duverney trends from central alberta to the northeast British Columbia. Pembina owns 60% of PGI and operates and manages PGI facilities, while KKR’s global infrastructure funds own the remaining 40%. Visit www.PGIMidstream.com for more information.

Forward-Looking Information and Statements

This press release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”), including forward-looking statements within the meaning of the “safe harbor” provisions of applicable securities laws, which are based on Pembina’s current expectations, estimates, projections and assumptions in light of its experience and his perception of historical trends. In some cases, forward-looking statements can be identified by terms such as “expect”, “estimate”, “anticipate”, “forecast”, “plan”, “will”, “would”, “could”, “potential”. , “continue”, “commit” and similar expressions that indicate future events or future performance.

Specifically, this press release contains forward-looking statements relating to, without limitation: the joint venture transaction between Pembina and KKR, including the anticipated benefits to Pembina; and Pembina’s future common stock dividends, including the expected time when the increase will be declared and payable.

The forward-looking statements are based on certain assumptions made by Pembina as of the date of this press release, including: that favorable circumstances relating to the operations of the assets contributed to PGI will continue to exist; that PGI’s future results of operations will be consistent with management’s expectations thereon; Scope of exploration and development activities in the oil and gas industry and the geographic region of such activities; prevailing governmental, tax and environmental laws and regulations; PGI’s ability to maintain an investment grade rating; future cash flows; prevailing commodity prices, interest rates, carbon prices, tax rates and exchange rates; the availability of capital to fund PGI’s future capital needs; future operating costs; that the counterparties perform the agreements in a timely manner; that no unforeseen events prevent the fulfillment of the contract; that there are no unforeseen material costs in relation to the relevant facilities that cannot be reimbursed by customers; and maintaining operating margin.

Although Pembina believes that the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of today, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including but not limited to: failure to achieve anticipated benefits and/or synergies of joint venture transaction due to integration problems or other reasons; Expectations and assumptions regarding, among other things: customer demand for PGI’s assets and services; commodity prices, interest rates and exchange rates; planned synergies, operational and capital efficiencies and cost savings; applicable tax laws; future production rates; the adequacy of projected capital expenditures to carry out planned activities; labor and material shortages; failure or default by counterparties to any agreement entered into in relation to PGI’s business; the impact of competitive companies and pricing; reliance on key relationships and agreements; reliance on third parties to successfully operate and maintain certain assets; the regulatory environment and decisions and requirements for consultation with indigenous people and landowners; Actions by governmental or regulatory authorities, including changes in tax laws and treatment, changes in licensing fees, climate protection initiatives or policies, or increased environmental regulations; fluctuations in operating results; adverse general economic and market conditions in Canada, North America and worldwide, including changes, if any, or continued weaknesses in interest rates, foreign exchange rates, commodity prices, supply/demand trends and overall industry activity levels; risks related to the current and potential adverse effects of the COVID-19 pandemic; lower than expected operating results and cash flow growth for PGI’s Pembina; the ability to access various sources of debt and equity; changes in credit ratings; counterparty credit risk; technology and cybersecurity risks; natural disasters; and certain other risks and uncertainties set forth in Pembina’s Annual Information Form and Management’s Discussion and Analysis (“MD&A”), each dated February 24, 2022 for the past year December 31, 2021Pembina’s MD&A dated August 4, 2022 for the past three and six months June 30, 2022 and from time to time in Pembina’s public disclosure documents available at www.sedar.com, www.sec.gov and through Pembina’s website at www.pembina.com.

With respect to the forward-looking statements regarding the expected increase in Pembina’s common stock dividend upon completion of the joint venture transaction, Pembina has made such forward-looking statements relying on certain assumptions it believes are reasonable at this time, including assumptions relating to: prevailing commodity prices, interest rates, margins and exchange rates; that future results of operations may be consistent with past performance and management’s expectations thereon, including with respect to PGI’s future results of operations; the continued availability of capital at attractive prices to fund future capital requirements related to existing assets and projects, including but not limited to future capital expenditures related to expansions, upgrades and maintenance shutdowns; future cash flows and operating expenses; that the counterparties to material agreements continue to act in a timely manner; that no unforeseen events prevent the fulfillment of the contract; that there will be no unanticipated physical construction or other costs associated with current growth projects or ongoing operations; and that there are no unanticipated physical construction or other costs associated with current growth projects or ongoing operations. Pembina is also at this time subject to the requirements of applicable company laws relating to the declaration of dividends.

This list of risk factors should not be considered exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecast or forecast. The forward-looking statements contained in this press release speak only as of the date of this release. Pembina undertakes no obligation to publicly update or revise any forward-looking statements contained herein, except as required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

www.pembina.com

SOURCE Pembina Pipeline Corporation

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