PBNAF · Pembina Pipeline Corporation

Pembina’s Q1 2026 results reflect a mixed operational backdrop shaped by structural changes in pipeline tolling and volatile commodity markets. The $4 million decline in GAAP earnings to $498 million was largely attributable to the implementation of the Alliance New Toll Structure effective November 1, 2025, which reduced net revenue on the Alliance Pipeline by $26 million year-over-year. This was compounded by narrower WCSB and U.S. NGL frac spreads, negatively impacting Marketing & New Ventures. However, these headwinds were partially offset by strong underlying volume growth across Pipelines and Facilities, including higher interruptible and seasonal natural gas demand in the U.S. Midwest and improved performance from PGI assets. Adjusted EBITDA declined $36 million to $1,131 million — consistent with the earnings trend but excluding non-cash items like unrealized foreign exchange losses and Cedar LNG derivative gains. Notably, cash flow from operations dropped sharply to $335 million, down $505 million year-over-year, driven almost entirely by a surge in margin deposits tied to derivative contracts amid elevated commodity price volatility in March — a working capital effect unrelated to core operational performance. In contrast, Adjusted Cash Flow from Operating Activities rose $13 million to $790 million, underscoring the resilience of Pembina’s underlying cash generation when excluding non-recurring working capital swings. Management highlighted continued execution against its three-pillar strategy — Capture, Connect, and Catalyze — with emphasis on expanding egress capacity (e.g., LNG/LPG exports) and developing new demand platforms such as gas-to-power for data centers. No forward guidance was disclosed in the filing.