PEMBINA PIPELINE CORPORATION

Transcription

1 PEMBINA PIPELINE CORPORATION CONSTRUCTION UPDATE TSX: PPL, NYSE: PBA November

2 FORWARD-LOOKING STATEMENTS & INFORMATION 2 This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an offer to sell or the solicitation of an offer to buy, securities of Pembina Pipeline Corporation. This presentation and its contents should not be construed, under any circumstances, as investment, tax or legal advice. Any person accepting delivery of this presentation acknowledges the need to conduct their own thorough investigation into Pembina and its activities before considering any investment in its securities. This presentation contains certain forward-looking statements and information within the meaning of the "safe harbour" provisions of applicable securities legislation that are based on Pembina Pipeline Corporation's expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends as well as current market conditions and perceived business opportunities. In some cases, forward-looking information can be identified by terminology such as "expects", could", "plans", trading, would, "potential", "will", and similar expressions suggesting future events or future performance. In particular, this presentation contains forward-looking statements, including certain financial outlooks, pertaining to corporate strategy (capital expenditures, schedules, expected capacity, approval and contracting expectations with respect to current and potential projects), financial performance and future financing sources, the stability and sustainability of cash dividends, expansion and diversification opportunities, expectations regarding future supply and demand. Undue reliance should not be placed on these forward-looking statements and information as they are based on assumptions made by Pembina as of the date hereof regarding, among other things, industry conditions, the availability and sources of capital, operating costs, the ability to reach required commercial agreements, and the ability to obtain required regulatory approvals. While Pembina believes the expectations and assumptions reflected in these forwardlooking statements are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Forward-looking statements are subject to known and unknown risks and uncertainties which may cause actual performance and financial results to differ materially from the results expressed or implied, including but not limited to: the impact of competitive entities and pricing; reliance on key alliances and agreements; the strength and operations of the oil and natural gas industry and related commodity prices; regulatory environment; fluctuations in operating results; the availability and cost of labour and other materials; the ability to finance projects on advantageous terms; and tax laws and tax treatment. Additional information on these factors as well as other factors that could impact Pembina's operational and financial results are contained in Pembina's Annual Information Form and Management's Discussion and Analysis, and described in our public filings available in Canada at and in the United States at Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, Pembina and its subsidiaries assume no obligation to update forward-looking statements and information should circumstances or management's expectations, estimates, projections or assumptions change. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Readers are cautioned that management of Pembina approved the financial outlooks contained herein as of the date of this presentation. The purpose of the financial outlooks contained herein is to give the reader an indication of the value of Pembina's current and anticipated growth projects. Readers should be cautioned that the information contained in the financial outlooks contained herein may not be appropriate for other purposes. In this presentation, we refer to certain financial measures such as EBITDA, total enterprise value and operating margin that are not determined in accordance with International Financial Reporting Standards ("Canadian GAAP"). For more information about these non-gaap and additional GAAP measures, see the Appendix to this presentation. All financial information is expressed in Canadian dollars unless otherwise specified.

3 PEMBINA IS A UNIQUE INVESTMENT OPPORTUNITY 3 Pembina represents a pure play energy infrastructure company that allows investors to participate in the resurgent volume growth of the Western Canadian Sedimentary Basin Well-Positioned for Growth Strong Demand for our Services Solid Business Platform

4 BUSINESSES AT A GLANCE Oil Sands & Heavy Oil 1,650 km of pipelines with 880 mbpd of contracted capacity TSX: PPL NYSE: PBA Common shares outstanding (1) 337 million TSX common share trading price (1) $43.01 Gas Services 368 MMcf/d net natural gas processing capacity; 539 MMcf/d enhanced liquids extraction capacity; 375 km of gathering pipelines Conventional Pipelines 8,500 km network transports approx. 50% of Alberta's conventional crude oil & approx. 30% of western Canada's NGL Midstream 73,000 bpd fractionator; 21 truck terminals; 13.9 mmbbl storage capacity; product marketing; crude by rail; 2.4 bcf extraction capacity; Nexus Terminal hubs TSX 52-week trading range (1) $ $53.04 Market capitalization (1) Total enterprise value (1) Common Share Dividend $14.5 billion $18.3 billion Yield (1) 4.05% Corporate credit rating (2) Member of the TSX/S&P 60 $1.74/share annualized ($0.145/share monthly) BBB (1) As at November 14, TEV includes convertible debentures and preferred shares as at November 14, 2014 and senior debt as at October 31, 2014; see "Non- GAAP and Additional GAAP measures." (2) DBRS and S&P. 4

5 IDEALLY LOCATED ASSETS Integrated system of pipelines transport hydrocarbon liquids produced in western Canada: conventional and synthetic crude oil, heavy oil and oil sands products, condensate (diluent) natural gas liquids Gas gathering and processing facilities Oil and natural gas liquids infrastructure and logistics business Full spectrum of midstream and marketing services that spans across operations Gas Processing Plant Redwater Fractionator Midstream Storage Facility Truck Terminal Pembina Conventional Pipelines Pembina Oil Sands Pipelines Third Party Pipelines Map for illustrative purposes only. 5

6 ASSETS AND MAJOR PLAYS ALBERTA MONTNEY ATHABASCA OIL SANDS SEAL PELICANLAKE SWAN HILLS DEEP BASIN Gas Processing Plant Redwater Fractionator Midstream Storage Facility Truck Terminal Rail Terminal Pembina Conventional Pipelines DUVERNAY CARDIUM Pembina Oil Sands/Heavy Oil Pipelines SEEP pipeline BAKKEN BRITISH COLUMBIA Map for illustrative purposes only. MONTANA 6

7 7 CUSTOMER FOCUSED VALUE CHAIN Gas Services Conventional Pipelines Midstream Gas/HVP Value Chain: Gathering and processing Transportation on Conventional Pipelines Fractionation at Redwater Production Gathering, Processing, Field Extraction HVP Feeder Pipelines Terminalling & Marketing Mainline Extraction Fractionation Logistics & Distribution Consumption Oil/Condensate/LVP Value Chain: Truck and full-service terminals Pipeline transportation Storage, logistics, distribution Production Mining/In-situ Midstream Field Terminalling &Treatment Upgrading Conventional & Oil Sands Pipelines LVP Feeder Pipelines Midstream Terminalling & Marketing Diluent Logistics & Distribution Refining Spec Products Logistics & Distribution Consumption

8 FEE-FOR-SERVICE PROJECTS Projects (all fee-for-service) Conventional Pipelines Capital (C$MM) In-Service Red indicates projects under construction or development (not including SEEP & Potential West Coast Propane Terminal) Phase II Expansions* $ Phase III Pipeline Expansions* $ 2, NEBC Expansion* $ TAYLOR FORT MCMURRAY Laterals $ 150 Gas Services Musreau II Facility $ SEEP Facility (plus SEEP pipeline) $ Saturn II Facility $ Resthaven Expansion $ PRINCE GEORGE Midstream Cavern Development $ EDMONTON Canadian Diluent Hub $ /2017 Terminal and Hub Services $ RFS II Fractionator $ RFS III Fractionator $ Other $ 420 Committed Capital $ 5,770 KAMLOOPS CALGARY Potential West Coast Terminal (USD)* $ Uncommitted Opportunities $ 1,800 Total Unrisked Capital Opportunities $ 8,070 VANCOUVER 1 Should partners in the existing Resthaven Facility not participate in the expansion, Pembina s capital for the plant will increase to $170 million. * Phase II (HVP), Phase III & NEBC Expansions subject to environmental and regulatory approval. The potential West Coast Terminal is subject to Map is for illustrative purposes only project sanctioning, reaching commercial agreements and obtaining regulatory and environmental approvals thereafter. See "Forward-Looking Statements and Information." 8

9 Millions ($) PROJECT TIMELINES & IN-SERVICE DATES Committed Capital Expected In-Service Date* Expected Project Timelines* $4,000 $3,500 ~ $3,619 MM Musreau II Saturn II SEEP Resthaven Expansion $3,000 Phase II Expansion Phase III Expansion $2,500 $2,000 $1,500 MS II ~ $1,720 MM Other Laterals NEBC Expansion Caverns Full-Service Terminal Canadian Diluent Hub $1,000 Terminal and Hub Services RFS II $500 ~ $391 MM ~ $333 MM RFS III Other $ Terminal & Hub services FST Committed Capital = Potential West Coast Terminal + Uncommitted Opportunities + $5,770 MM $500 MM $1,800 MM Unrisked Capital Opportunities = $8,070 MM * Expected in-service dates are shown in the most conservative outcome. Actual capital in-service dates may be different than what is shown here. See "Forward-Looking Statements & Information." 9

10 10 PROJECT EXECUTION OVERVIEW

11 11 IN-HOUSE PROJECT EXECUTION EXPERTISE Project Management Office (PMO) Creates, implements and updates project management processes, standards and best practices Three teams: Project Governance, Project Cost Services, Project Controls Major Projects Provides project management for larger scale or complex projects where business units may not have the expertise or manpower to develop these projects alone Corporate Development Supports business units with assessment and execution of strategic transactions and key business decisions; facilitates project look backs to ensure maximum value for Pembina Other service teams (Procurement and Strategic Sourcing, Regulatory, Environmental, Aboriginal Relations, Legal etc.) Provide in-house expertise to streamline project execution and enhance efficiencies among multiple projects Cross functional project teams in place to help ensure safe, effective and efficient project delivery on-time and on-budget

12 12 PROJECT APPROACH Delivery and governance lifecycle: Screening Initiation Definition Scoping Preparation Agreement Execution Turnover Close Out Look Back Project development expertise: Repeatability Standardized designs (leveraging design and engineering work) Experienced construction teams Disciplined cost control Regulatory and permitting effectiveness Well-known corridors Strong safety & integrity culture

13 13 EXCELLENT TRACK RECORD Committed to delivering on our goals Excellent track record of executing projects on-time and on-budget History of meeting or exceeding best practices in safety Strong relationships with local communities and First Nations groups Project Heavy Oil & Oil Sands Capital Cost (C$MM) Date in-service Completed on-time Completed on-budget Safety Metric Nipisi & Mitsue $ 400 August 2011 Mitsue: ahead of schedule Nipisi: on-time Under budget by $40 million 1,152,065 man hours & 8,420,896 km travel with 0.17 lost time injury frequency Conventional Phase I Mainline Expansion (LVP/HVP) $ 130 December 2013 On-time On-budget Metric unavailable Simonette $ 110 August 6, 2014 On-time Under budget by $5 million 347,724 man hours & 2,268,767 km travel with 1.15 lost time injury frequency Gas Services Saturn I $ 200 Late-October 2013 On-time On-budget 500,000+ man hours & 150,000+ km travel with No lost time injury frequency

14 PROJECTED CAPITAL SPEND PROFILE AND PROJECT STATUS UPDATE Projects (in construction/ development) Capital (C$MM) Regulatory Approval Project Status Contract Type Capacity under contract Expected In-Service Tracking On-time/budget Gas Services Musreau II Facility $ 110 Yes Under construction Fee-for-service 100% Q Ahead of schedule/ under budget Saturn II Facility $ 170 Yes Under construction Fee-for-service 65% Q Yes SEEP Facility $ 100 Yes Under construction Fee-for-service 100% Mid 2015 Yes Resthaven Expansion 1 $ 140* Pending In development Fee-for-service Midstream Pipeline: Q Plant: Mid Yes RFS II Fractionator $ 415 Yes Under construction Fee-for-service 97% Q Yes RFS III Fractionator $ 400 Pending In development Fee-for-service 100% Q Yes Cavern Development $ 135 On-going On-going Fee-for-service 100% *excluding Pembina proprietary use Yes ENT Storage $ 75 Yes Under construction 2016 Yes Conventional Phase II Expansions (LVP/HVP) $ 695 LVP: Yes, HVP: Pending Pre-commissioning/ under construction Fee-for-service 100% Q Q Slightly delayed Phase III Pipeline Expansions $ 2,400 Pending In development Take-or-pay ~310,000 bpd See "Forward-Looking Statements & Information." Late-2016 Mid Overall portfolio of projects tracking on time and on budget 1) Should partners in the existing Resthaven Facility not participate in the expansion, Pembina s capital for the plant will increase to $170 million. 14 Yes

15 15 MAJOR PROJECT DETAILS

16 mbpd CONVENTIONAL PIPELINES: EXPANSIONS COULD BRING CAPACITY TO ~1.5 MILLION BPD 1,600 ~1,508 mbpd 1,400 1,200 1, Pre-Expansion Phase I Phase II Phase III Phase III (Ultimate (in-service) (early to mid 2015) (late 2016 to mid Capacity) 2017) Phase III (combined system capacity) Crude Oil & Condensate NGL Project under development See "Forward-Looking Statements & Information." Phase II HVP and Phase III Expansions subject to regulatory approval. 16

17 PHASE II CONSTRUCTION UPDATE Phase II LVP & HVP $695 Million Expansion To- Date Will increase capacity by 55 mbpd on Peace and Northern NGL system and will increase capacity by 53 mbpd on LVP system Underpinned by long-term contracts LVP mainline pump stations heading into commissioning activities LVP laterals finishing construction with commissioning activities forth coming HVP laterals in construction Pipe for LVP & HVP mainline have been purchased; winter construction of LVP underway; HVP to start in Spring Received all AER permits for LVP Program is trending on-budget and on-time

18 RECENTLY UPSIZED $2.44 BILLION PHASE III EXPANSION FT. ST. JOHN TAYLOR ALBERTA GORDONDALE By 2017, over 1,000 mbpd ultimate capacity on Peace & Northern Pipelines DAWSON CREEK LAGLACE VALLEYVIEW BRITISH COLUMBIA GRANDE PRAIRIE SWAN HILLS FOX CREEK Phase III Expansion Phase III Expansion (under construction) Recently completed Simonette Expansion Previously announced Phase II Expansion Pembina crude oil and condensate pipelines Pembina NGL pipelines Other Pembina pipelines Truck terminals Map for illustrative purposes only. WHITECOURT EDSON NAMAO Redwater Fractionator EDMONTON Heartland Hub FT SASKATCHEWAN See Forward-Looking Statements & Information. 18

19 PHASE III CONSTRUCTION UPDATE Phase III $2.44 Billion Expansion To- Date Secured additional commitments to upsize expansion to include a new 16" pipeline from Fox Creek into Namao and a new 12" pipeline from Wapiti into Kakwa for a capital expenditure of ~$435 million Capacity of 420 mbpd, up from 320 mbpd of initial capacity between Fox Creek and Edmonton Initial volumes substantially all under long-term contracts Ability to increase capacity to over 680 mbpd from 500 mbpd 880 km total of new pipeline (previously 540 km) with four distinct lines from Fox Creek into Edmonton that can separately transport C2+, C3+, condensate and crude oil Construction staged over a 4 year period ( ) Simonette to Fox Creek completed in 2014 (62 km 16 ) Clearing work and horizontal directional drilling commenced for Kakwa to Simonette on target for Q1/Q (72 km 16 ) Submitted regulatory applications for Fox Creek to Namao portion of project (270 km of 24 & 16 ); subject to receiving regulatory approvals, plan to commence construction next winter Preliminary engineering underway for northern section of Phase III (Taylor to Gordondale and Wapiti to Kakwa) Phase III trending for mid 2017 start-up and on budget

20 NEBC MONTNEY EXPANSION BRITISH COLUMBIA Proposed Expansion Area Pembina Blueberry System Pembina's Other Pipelines Major Highways $210 MM expansion, underpinned by long-term, cost-of-service agreement with anchor shipper 160 kilometres of up to 12- inch diametre pipeline Base capacity of up to 75,000 bpd Parallels Pembina s existing Blueberry pipeline system northwest of Taylor, BC to the Highway/Blair Creek area of BC. Fort St. John Subject to regulatory and environmental approval, inservice Q2 to Q Feeds Pembina's downstream expansions (Phase III) See "Forward-Looking Statements and Information. 20

21 NEW PIPELINE ACQUISTION IN THE NORTH DAKOTA BAKKEN EDMONTON CANADA USA Fort Saskatchewan Petrochemical Complex Joffre Petrochemical Complex CALGARY ALBERTA Map for illustrative purposes only. 1 USD$650 million includes the in-development deep cut gas plant and other associated infrastructure. *See slide in Gas Services section for more information. See "Forward-Looking Statements and Information. EMPRESS, ALBERTA Vantage Pipeline SEEP Tioga, North Dakota Acquired the Vantage HVP pipeline system for USD $650 million, including associated assets 1 Pipeline originates in Tioga, North Dakota and terminates near Empress, Alberta ~700 km total of recently constructed pipeline with additional expansion opportunities via pump stations Underpinned by long-term, fee-for-service contract Provides geographic diversification and new access to the growing North Dakota Bakken play, linking ethane supply to the Alberta petrochemical market 21

22 MMcf/d GAS SERVICES: EXPANDING TO MEET CUSTOMER DEMAND Bpd (NGL and C 5 Output) 1, ,363 MMcf/d 70,000 1, ,000 1, , , , Additional 51% of contracted growth by mid , ,000 Cutbank Musreau Deep cut Shallow cut Expansion Saturn Resthaven Musreau II SEEP Saturn II Resthaven Expansion 1 Total In-Service Under Construction bpd (NGL and C 5 output) ~64,000 bpd of NGL Conventional Pipelines Fractionation Marketing 1 If partners participate with Resthaven expansion, Pembina s net capacity will be reduced to 69 MMcf/d. See "Forward-Looking Statements & Information." 22

23 GAS SERVICES: PROJECT CONSTRUCTION Musreau II expected onstream Q Saturn II expected onstream Q Resthaven placed into service October 2014 See "Forward-Looking Statements & Information."

24 NEW GAS PLANT ACQUISTION CANADA Acquired the in-development Saskatchewan Ethane Extraction Plant ("SEEP") as part of Vantage acquisition WEYBURN Viewfield Plant Viewfield Gas Gathering System SEEP Expected additional capital cost of ~$100 million to complete the 60 MMcf/d deep cut plant and associated gathering and delivery system Vantage Pipeline Will connect into Vantage Pipeline to service the southeast Saskatchewan Bakken region and is expected to produce up to ~4,500 bpd of ethane USA BV09 Map for illustrative purposes only. Crescent Point Flat Lake Plant ESTEVAN Flat Lake Gas Gathering System (Owned by Crescent Point) SASKATCHEWAN NORTH DAKOTA Underpinned by long-term ethane sales contract and a long-term fee-for-service processing contract Expected to be in-service in mid See "Forward-Looking Statements and Information. 24

25 SEEP CONSTRUCTION UPDATE SEEP To- Date Expected capital expenditure of approximately $100 MM to complete facility and associated gathering system Long-term, fee-for-service processing agreement and long-term ethane sales agreement Extraction capacity approximately 4,500 bpd of ethane and will connect into Pembina s Vantage pipeline Plant site construction ~20% complete Pipeline construction ~95% complete 100% of long-lead equipment ordered Contracted and managed all engineering, fabrication and construction services Tracking on-budget and on-schedule All regulatory and environmental approvals obtained

26 RESTHAVEN RECENTLY COMPLETED Resthaven facility $253 MM (net) To- Date Long-term contracts in place for 200 MMcf/d (134 MMcf/d net to Pembina) for deep cut NGL extraction Extraction capacity up to 13,000 bpd of NGL for transportation on Pembina s Peace Pipeline 300 MMcf/d of molecular sieve dehydration and cryogenic ethane extraction Integrated existing 100 MMcf/d shallow cut plant into front end of deep cut plant Phase I compression includes 200 MMcf/d of inlet and residue sales compression (10,000 HP existing plus 20,000 HP new reciprocating compressors) Plant site construction 100% complete with all major equipment installed Phase II includes 15,000 HP of additional compression to reach 300 MMcf/d of deep cut processing Gas plant construction completed Placed in-service October 6, 2014

27 RESTHAVEN FACILITY PHOTOS Power generation building 5 MW View of compressor building, main rack and flare area View of compressor building, existing plant, and tank farm Compressor Building 20,000 HP engine driven reciprocating gas compressors

28 MUSREAU II CONSTRUCTION UPDATE Musreau II (constructing $110 MM facility) To Date 100 MMcf/d shallow cut gas plant Underpinned by long-term contracts for 100% of capacity Expected to yield ~4,200 bpd of NGL (based on 100% utilization) for transportation on Pembina s Conventional Pipelines All major equipment has been set on location and tied in Gas refrigeration temperature is -40 C Reciprocating gas compression Contracted and managed all engineering, fabrication and construction services Foreground: Musreau II Gas Plant under construction Background: existing Musreau I Gas Plant Plant site construction 95% complete Pipelines connecting Plant to gathering system 80% complete Tracking under-budget and ahead of schedule Setting Process Heater Refrigeration Compressors

29 SATURN II CONSTRUCTION UPDATE Saturn II (constructing $170 MM facility) To Date Firm-service contract for 130 MMcf/d (~65% of total capacity) for a term of 10 years Expected to extract ~13,000 bpd of NGL (based on 100% utilization) Leverage engineering work completed for Saturn I Mole sieve dehydration and cryogenic ethane extraction 100% of long-lead equipment ordered Turbine driven centrifugal residue gas compression (20,000 HP) Foreground: Saturn II Gas Plant under construction Background : existing Saturn I Gas Plant Plant site construction is 25% complete Contracted and managed all engineering, fabrication and construction services Tracking on-budget and on-schedule Pile Installation Process Heater at site

30 RESTHAVEN EXPANSION Expanding the Resthaven facility by an incremental 100 MMcf/d, bringing total plant capacity to 300 MMcf/d 1 Constructing a 28 km 12" gathering pipeline to deliver gas into facility Expected additional capital cost of ~$105 million 2 to complete the plant expansion and ~$65 million to construct the pipeline Underpinned by long-term fee-forservice agreement Volumes from expansion under long-term contract for Phase III pipeline capacity and fractionation services at the Redwater complex 1 Current Resthaven Facility 200 MMcf/d (134 MMcf/d net to Pembina). 2 $105 million (gross). Should all partners in existing Resthaven facility participate in expansion, Pembina s capital will decrease to $75 million for additional capacity of 69 MMcf/d net to Pembina. See "Forward-Looking Statements and Information. Plant expansion to be in-service in mid-2016 and gathering pipeline to be in-service in Q

31 NATURAL GAS LIQUIDS FRACTIONATION GROWTH bpd 300 ~250 mbpd Sarnia & RFS I RFS Debottleneck C3+ Debottleneck RFS II RFS II C3+ Debottleneck RFS III RFS III (deethanizer) Total In-service assets Projects under development Could triple Pembina's fractionation capacity at Redwater with RFS III See "Forward-Looking Statements and Information." RFS III subject to regulatory approval. 31

32 STRONG DEMAND FOR OUR SERVICES: FULL NGL SERVICE OFFERING RFS II site in August 2013 RFS II site in May 2014 RFS II on-stream Q See "Forward-Looking Statements & Information." 32

33 RFS II CONSTRUCTION UPDATE RFS II (constructing $415 MM facility) To Date 73 mbpd ethane-plus fractionator Take-or-pay 10 year contract for 100% of operating capacity Leverage engineering work completed for RFS I De-propanizer was erected completing the final tower installment Site and foundations for compressor building nearing completion Pipe rack module fabrication contract complete and pipe racks erected on site 100% of long-lead equipment ordered Plant site mechanical construction 25% complete Contracted and managed all engineering, fabrication and construction services See "Forward-Looking Statements & Information." 33

34 RFS III CONSTRUCTION UPDATE RFS III (constructing $400 MM facility) To Date 55 mbpd propane-plus fractionator Take-or-pay 10 year contract for 100% of operating capacity Leverage engineering work completed for RFS I & II Detailed engineering work has commenced 10% of long-lead equipment ordered See "Forward-Looking Statements & Information." 34

35 35 CORUNNA FACILITIES 1,000 acre site that has 5 million barrels of cavern storage in operation & rail rack for loading and offloading Growth in regional supply from Marcellus/Utica expected to maintain demand for storage Corunna is one of only two large merchant storage facilities in the region Capital spend of approximately $45 million to increase product handling capacity of the facility Rail offload & cavern injection pumps increasing offloading capacity from 3,800 cars per year to 6,200 cars per year Adding 2 km rail track to increase switching/marshalling capabilities Adding new truck bay with 2 loading spots (adds 30 trucks / day capacity) 1.8 MM bbl brine pond, pump and system upgrades

36 36 CORUNNA EXPANSION PROJECT Q Detailed engineering for project begins Road work construction begins for truck loading access road Request for quotations for material and equipment fabrication issued Q Requests for proposals for brine pond construction and facility construction Q2-Q Brine pond and facility construction will begin in early April December commissioning Road Work Material Procurement Construction RFPs Construction Start Commissioning Sept 2014 Nov 2014 Feb 2015 Apr 2015 Dec 2015

37 37 PROPANE EXPORT TERMINAL PROCESS Existing NGL Value Chain Western Canada Marine Terminal Propane export project would extend Pembina's NGL value chain participation

38 NEW POTENTIAL WEST COAST PROPANE TERMINAL Map for illustrative purposes only. Proposed location: Terminal 6 Pembina assets Signed terminal agreement with the Port of Portland, Oregon to advance a propane export terminal Initially will plan to develop a 37,000 bpd propane export facility for expected capital of USD $500 million Terminal will provide growing Western Canadian propane supply access to international markets (Asia-Pacific region) and complement Pembina's existing value chain Potential in-service date of early 2018, subject to project sanctioning, regulatory and environmental approvals Next steps: Commence work with regulatory authorities Consultation process On ground environmental studies See "Forward-Looking Statements and Information." 38

39 PROPANE EXPORT TERMINAL 2015 Continue public consultation and engagement (throughout project) Prepare and submit regulatory applications Prepare detailed engineering Place orders for long-lead equipment 2016 Receive regulatory approvals Complete site civil work Commence initial construction of storage tanks and site mechanical work Complete rail yard work Commence marine berth work 2017/2018 Complete construction of storage tanks, site mechanical and electrical work Complete marine berth work Begin acceptance and testing of facility Commission facility to operation Submit water/env. permit applications Submit city development permit application Receive permits & begin construction Construction Start Testing & commissioning In-Service 1H 2015 Late H 2016 Mid-to-Late H See "Forward-Looking Statements & Information." 39

40 PEMBINA NEXUS TERMINAL CANADIAN DILUENT HUB Crude oil Dilbit Synthetic Crude Diluent Heavy Export Red indicates Pembinaowned existing and proposed pipelines and connections Dashed lines and/or grey text indicates proposed projects whereas black indicates existing assets See "Forward-Looking Statements & Information." Difficult to replicate our asset locations 40

41 millions of barrels thousands of barrels STORAGE POTENTIAL NGL SALT CAVERN STORAGE POTENTIAL ABOVE GROUND STORAGE POTENTIAL Cavern development: At Redwater, 13 caverns in-service and 5 in development Significant demand in west and east ~38 MM bbls 2,000 1,800 1,600 1,400 ~1.8 mmbbls , , In-Service RFS Under Development RFS Potential Growth Corunna Potential Growth Total Existing Storage PNT-E PNT-E (Under Construction) PNT-H (Under Evaluation) Total In-service assets Projects under development Substantial storage cavern and above ground storage development potential See "Forward-Looking Statements & Information." 41

42 CONSTRUCTION PROGRESS AT ENT Site prior to construction Replaced earth berm with concrete berm; re-routed two pipelines to allow for tank 6 Constructing foundations for tanks 4 and 5; working on tank 6 rough grade Prepared tank foundations and leveled bases (Sept 30, 2014) Lined tank foundations, installed cathodic protection, layered engineering fill (Oct 8, 2014) Leveled sand layer (Oct 16, 2014) 42

43 ENT TODAY AND NEXT STEPS Floor and first shell course for tanks 4 and 5 complete (tank 5 being welded); Floor plate for tank 6 placed on completed foundation. Next Steps: Complete tanks; hydrotesting; coating and painting (by Q3 2015) Pipe rack construction and pipe connections (from Q to Q1 2016) Final mechanical, electrical automation and commissioning Finish containment berm In-service Q See "Forward-Looking Statements & Information." 43

44 44 FUTURE SITE OF CDH Fire and storm water ponds Main office Main entry Storage warehouse CN rail way

45 CANADIAN DILUENT HUB (CDH) NEW MARKET HUB FOR DILUENTS Pembina proposed pipelines and connections Pembina existing pipelines and connections Existing connections Proposed third party connections Direct access to growing and diverse diluent supply through Pembina and third-party pipeline connections Variety of condensate qualities, crude grades and synthetic crude oil Segregation infrastructure and flexibility to accommodate proprietary and premium diluent blends Direct connectivity to third-party market terminals and pipelines that supply and serve oil sands producers Marketing services to facilitate supply aggregation Above ground and cavern storage services; access to rail import facilities and future export connections See "Forward-Looking Statements and Information. 45

46 SUMMARY

47 47 SUMMARY Strong growth portfolio ~$8 billion of unrisked projects Excellent track record History of safe and reliable operations Proven ability to bring projects in on-time and on-budget Demonstrated ability to execute growth plan Staffed for execution Proper processes in place Experienced construction teams Design repeatability Continued focus on safety Best in class integrity program Overall growth project portfolio is tracking ontime and on-budget Strong management team Solid historical financial and operational performance under experienced leaders Strategically located and well-established infrastructure Extensive asset footprint with high barriers to entry Assets service long-life, economic hydrocarbon reserves Strong balance sheet Financed for execution Investment-grade credit rating with proven access to debt/equity markets and financial flexibility Attractive debt metrics Highly contracted and stable cash flow Fee-for-service focused capital program Strong foundation set with the right strategy and people in place

48 FINANCED FOR EXECUTION

49 LIQUIDITY & ACCESS TO CAPITAL Access capital at attractive rates DRIP (1) currently raising ~$26 million per month $1.5 billion credit facility: completely undrawn $900 million of preferred shares raised (in 2013 and 2014) $600 million 30-year notes at 4.81% issued in April 2014 Capital Structure (2) 20% 4% $200 million 30-year notes at 4.75% issued in April 2013 Weighted average length of debt is 16 years Weighted average cost of debt is 4.8% No near-term maturities Prudent and flexible capital structure Senior debt to total capital ~23% (2) Dedicated to our BBB credit ratings 9% 4% Equity Preferred Shares 63% Convertible Debentures Debt Pembina has a conservative balance sheet (1) DRIP is the Premium Dividend and Dividend Reinvestment Plan. (2) At September 30,

50 Total Debt / TTM EBITDA* CLEAN BALANCE SHEET 9.0x A- 8.0x 7.0x BBB BBB+ 6.0x Baa2 BBB 5.0x Baa2 4.0x 3.0x Ba2 NR BBB 2.0x 1.0x 0.0x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Pembina continues to employ significantly less leverage than its peers * As of Q Source: Company filings (Q & Q4 2013), Bloomberg. Ratings based on S&P (Moody/DBRS used if S&P rating unavailable). Peer group includes AltaGas, Enbridge, Enbridge Income Fund, Gibsons, Inter Pipeline, Keyera, TransCanada & Veresen. See Non-GAAP & Additional GAAP Measures." 50

51 GOING THE DISTANCE Planning BOB MICHALESKI MICK DILGER MICK DILGER PETER ROBERTSON PETER ROBERTSON SCOTT BURROWS SCOTT BURROWS Chief Executive Officer President & Chief Executive Officer President & Chief Operating Officer Senior Vice President, Chief Financial Officer Vice President, Finance & Chief Financial Officer Vice President, Capital Markets Senior Manager, Corporate Development & Pembina Pipeline Corporation Pembina Pipeline Corporation Suite 3800, th Avenue S.W. Calgary, AB T2P 1G1 Suite 3800, th Avenue S.W. Phone Calgary, AB T2P 1G1 Fax Phone Toll Free Fax investor-relations@pembina.com Toll Free Trustee, Registrar investor-relations@pembina.com & Transfer Agent Computershare Trust Company of Canada Trustee, Registrar & Transfer Agent Suite 600, Computershare th Avenue S.W. Trust Company of Canada Calgary, Alberta T2P 3S8 Suite 600, th Avenue S.W Calgary, Alberta T2P 3S

52 52 NON-GAAP AND ADDITIONAL GAAP MEASURES This presentation uses certain terms that are not defined by GAAP but are used by management of Pembina to evaluate Pembina's performance. Non-GAAP and additional GAAP financial measures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. In particular, Pembina uses the non-gaap terms "total enterprise value" (Pembina's market capitalization plus preferred shares, senior debt and convertible debentures), and EBITDA (results from operating activities plus share of profit from equity accounted investees (before tax) plus depreciation and amortization (included in operations and general and administrative expense) and unrealized gains or losses on commodity-related derivative financial instruments). Management believes these non-gaap measures provide an indication of the results generated by Pembina's business activities and the value those businesses generate. Investors should be cautioned that these non-gaap measures should not be construed as an alternative to net earnings, cash flow from operating activities or other measures of financial performance determined in accordance with GAAP as an indicator of Pembina's performance. For additional information with respect to financial measures which have not been identified by GAAP, including reconciliations to the closest comparable GAAP measure, see Pembina's Management's Discussion and Analysis for the fiscal year ended December 31, 2013, available on SEDAR at or in Pembina's annual report on Form 40-F for the fiscal year ended December 31, 2013 available on EDGAR at