Pembina Pipeline Corporation (NYSE:PBA) Q1 2023 Earnings Call Transcript

Ben Pham: Hi, thanks. Good morning. Can you comment on PTI, is it trending higher than your expectations or some positive commentary in your package? And then can you also comment on, is there any areas or gas processing assets that you’re seeing utilization hit a level where you may need to look at the bottom net opportunities?

Jaret Sprott: Great question, Ben. It’s Jaret here. So the PGI integration and commercial opportunities with the rest of our business continue to like surpass our initial expectations. We recently just executed another with one of our larger customers another pipe and processing deal as showing, the value of that integrated value chain. So that was obviously very exciting. With respect to the volumes, the volumes do continue to grow, and I think it specifically mentioned the ETC, former ETC assets and the Dawson assets, but we’re seeing that gas growth, obviously with the liquid growth that we’re seeing on the LVP side, obviously gas comes along with that and then obviously the HVP has been impacted by Northern, but yeah, volumes are very strong.

I think there was a question earlier, it might have been, it might have been Rob, but specifically, like just last week PGI management presented to the board and PGI is actively advancing engineering and commercial discussions on $750 million of pros incremental projects to either debottleneck or expand enhance our business. So, it’s becoming a very exciting time and the diversity of those assets across, the oily Montney, the liquids-rich Montney, or the even the dryer and then we got access to the Cretaceous, and then obviously we’re in the , it really allows, the customers to be very fairly fluid and dynamic on what they need to drill. So, it’s a very exciting portfolio and I can — I’ll speak on behalf of Pamela and the partner. We’re very excited with the growth opportunities there.

Ben Pham: Okay, great. And then there’s also commentary about Ammonia. Can you — and as in terms around the CapEx program. Can you comment on how broad you’re looking at in terms of that value chain, because, there’s different components where it’s small dollars and there’s some that could be multi-billion dollar projects.

Stuart Taylor: Hey Ben, it’s Stu. Yeah, we’re looking across the board at this point in time. We have the Pembina asset base and looking to utilize the asset base from an operations perspective, from a feedstock perspective, from a citing and operation perspective, work in conversations with people ranging from small, as you mentioned, small dollar capital opportunities. We’re looking at being a service provider in some cases, bringing, water pipeline feedstock, pipeline integration, power integration to their asset. And then in other cases, we’re taking a more fulsome view in trying to, evaluate the opportunity where we might be partnered with under a major place such as an ammonia facility as well and so, it’s a bit across the board at this point in time as we look at what those opportunities may be and trying to understand where Pembina best fits and where the best use of our capital will be.

Operator: Thank you. And the next question comes from Robert Kwan at RBC Capital Markets. Please go ahead.

Robert Kwan: Hey, good morning. If I can just go back to your Northern outlook for the second quarter, how much of that estimate is still repair, clean up, ILIs versus lost revenue now that you’ve started up and are expecting to ramp up? I guess where I’m going is if you can’t get to full rates, what’s more of the ongoing loss revenue impact if this continues?

Stuart Taylor: Morning, Robert? The majority of the loss, the majority of the costs in the second quarter is loss revenue, missing out on the C2 plus essentially from younger and obviously some of our other customers are currently still restricted, but that is most of it. There’s some minor integrity repairs still ongoing, but that is the majority.