timely access to markets and provide further support for our development plans associated with the Open Season.”
The Company also recently completed construction of a new crude oil pipeline in the Drayton Valley, Alberta area extending from its Buck Creek pump station into the Willesden Green field. The pipeline, which was underpinned by an agreement with a third-party, will be able to service growing volumes of crude oil from the Willesden Green area, and is anticipated to provide up to 30,000 bpd of capacity. The new pipeline parallels an existing Pembina pipeline, where the existing pipeline will be converted from crude oil to condensate service, and will ultimately provide approximately 16,000 bpd of capacity for producers in emerging condensate-rich plays, particularly the Duvernay. Pembina expects that the crude oil and condensate capacity will be available in the first quarter of 2014.
Other Developments in 2013
In addition to the above noted recent developments, during 2013, Pembina completed and brought into service its Saturn I Facility and associated infrastructure as well as its Phase I NGL, crude oil and condensate pipeline expansions and additional underground storage caverns. The Company also received regulatory approval to proceed with, ordered long-lead equipment for and began active construction on its two new gas processing plants – Saturn II and Musreau II – and its second fractionator, RFS II, each as discussed above.
The Company’s growth plan going into 2014 is backed by a strong financial position. Pembina was particularly successful over the past year in accessing both the debt and equity markets, having raised $400 million in preferred shares, $345 million in common equity and $200 million in 30-year notes during 2013. Pembina also continues to have robust participation in its Premium Dividend™ and Dividend Reinvestment Plan, which should raise approximately $275 million for 2013.
“As we embark on our ambitious 2014 capital program, I have a high degree of confidence given the financial, operational and commercial successes that we achieved in 2013,” added Mr. Dilger. “We will leverage the lessons we learned constructing Saturn I, our Phase I pipeline expansions and our crude oil rail loading facility to help ensure our projects are executed safely and on time and on budget. In addition, we’ll maintain our focus on strong operational performance and delivering safe, responsible and reliable services from our existing assets.”
Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for nearly 60 years. Pembina owns and operates pipelines that transport various hydrocarbon liquids including conventional and synthetic crude oil, heavy oil and oil sands products, condensate (diluent) and natural gas liquids produced in western Canada. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. With facilities strategically located in western Canada and in natural gas liquids markets in eastern Canada and the U.S., Pembina also offers a full spectrum of midstream and marketing services that spans across its operations. Pembina’s integrated assets and commercial operations enable it to offer services needed by the energy sector along the hydrocarbon value chain.
Pembina is a trusted member of the communities in which it operates and is committed to generating value for its investors by running its businesses in a safe, environmentally responsible manner that is respectful of community stakeholders.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of the “safe harbor” provisions of applicable securities legislation that are based on Pembina’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as “plans”, “maintain”, “targets”, “expects”, “proposes”, “projects”, “will”, “estimates”, “intends”, “anticipates”, “develop”, “continue”, “could”, “potential” and similar expressions suggesting future events or future performance.
In particular, this document contains forward-looking statements, including certain financial outlook, pertaining to, without limitation, the following: Pembina’s corporate strategy; planning, construction, capital expenditure estimates, schedules, expected capacity, incremental volumes, in-service dates, rights, activities and operations with respect to planned new construction of, or expansions in relation to Pembina’s 2014 capital spending plan for each of its business units; Pembina’s crude by rail initiative; Pembina’s plans in respect of, and the impact of, recent acquisitions; the ongoing utilization and expansions of and additions to Pembina’s business and asset base, growth and growth potential; expectations regarding future demand for transportation services; and expectations regarding supply and demand factors and pricing for oil and natural gas. These forward-looking statements and information are being made by Pembina based on certain assumptions that Pembina has made in respect thereof as at the date of this document including those discussed below.
With respect to forward-looking statements contained in this document, Pembina has made assumptions regarding, among other things: oil and gas industry exploration and development activity levels; the success of Pembina’s operations; prevailing commodity prices and exchange rates and the ability of Pembina to maintain current credit ratings; the availability of capital to fund future capital requirements relating to existing assets and projects; expectations regarding participation in Pembina’s dividend reinvestment plan; future operating costs; geotechnical and integrity costs; in respect of current developments, expansions, planned capital expenditures, completion dates and capacity expectations: that third parties will provide any necessary support, that any third party projects relating to Pembina’s growth projects will be sanctioned and completed as expected, that any required commercial agreements can be reached; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner, that counterparties will comply with contracts in a timely manner, that there are no unforeseen events preventing the performance of contracts or the completion of the relevant facilities, and that there are no unforeseen material costs relating to the facilities which are not recoverable from customers; interest and tax rates; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to environmental incidents; and the availability of coverage under Pembina’s insurance policies (including in respect of Pembina’s business interruption insurance policy).
Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements and information. These known and unknown risks and uncertainties, include, but are not limited to: the regulatory environment and decisions; the ability of Pembina to raise sufficient capital (or to raise sufficient capital on favourable terms) to fund future expansions and growth projects and satisfy future commitments; the continuation of completion of third-party projects; lower than anticipated results of operations and accretion from Pembina’s expansion and growth projects and other business initiatives; reduced amounts of cash available for dividends to shareholders; increased construction costs, or construction delays, on Pembina’s expansion and growth projects; the impact of competitive entities and pricing; labour and material shortages; reliance on key relationships and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by counterparties to agreements which Pembina or one or more of its affiliates has entered into in respect of its business; actions by governmental or regulatory authorities including changes in tax laws and treatment, changes in royalty rates or increased environmental regulation; fluctuations in operating results; adverse general economic and market conditions in Canada, North America and elsewhere, including changes in interest rates, foreign currency exchange rates and commodity prices; and certain other risks detailed from time to time in Pembina’s public disclosure documents available at www.sedar.com. 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. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
SOURCE Pembina Pipeline Corporation
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