Pembina Pipeline Corporation (NYSE:PBA) Q4 2023 Earnings Call Transcript

Jaret Sprott: I can’t speak to specifics, Pat. But I think a couple of quarters ago I mentioned that we had line of sight to a substantial amount of capital to be deployed on a gross and a net basis through PGI. But obviously, with the K3 co-gen [ph], which is going to obviously increase the reliability of that asset, lower the carbon intensity, the Wapadi [ph] expansion that’ll utilize the acid gas transmission line that that we acquired through the Energy Transfer Canada acquisition. We have other opportunities to do — I would call it what field based processing, but incrementally through PGI with the partnership with Dow and our incremental C2 supply agreement. We have opportunities to deploy more capital on the field-based extraction as well; so can’t get into this specifics but lots of opportunities for sure.

Patrick Kenny: And then, maybe from a tuck-in or M&A perspective. Curious Jaret, if you’re seeing any shift in producer appetite for third-party gas processing services; just given the outlook for gas prices, at least through the summer? And maybe their need to secure downstream access and maximize the value of their liquids production within their overall net backs.

Jaret Sprott: I would say no material change in the market. There continues to be — it’s very producer specific in terms of — certain producers want to own and operate and that’s core to their business, and others look at what opportunities there are for midstreamers [ph] to enhance their capital allocation decisions. And so, I would say it’s — both discussions are ongoing, and always have been, and it’s really producer specific. But I wouldn’t say there’s any kind of material step change, given gas prices or anything like that; it would be normal course.

Scott Burrows: I would say thought Pat that, any acquisitions we do through PGI, obviously, we have to be on-site with our partner. But we really want to make sure that we’re focused on the geology that we’re buying, processing assets that have long reserve life indexes, and then obviously contribute to the rest of Pembina’s value chain.

Patrick Kenny: Okay, that’s great. Thanks, guys.

Operator: Thank you. And ladies and gentlemen, we have reached the end of our Q&A session. I would like to send it back to Pembina’s President and Chief Executive Officer, Scott Burrows, for closing remarks.

Scott Burrows: Thank you, everyone. Thanks to our staff that are listening in, to our customers; we really appreciate all the hard work, and thank you to all the investors and analysts on the call. 2023 was an exceptional year for our company, and we’re pretty excited about what we can deliver in 2024. So, thank you everyone.

Operator: Thank you, Scott Burrows. And ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.