CALGARY, AB – Inter Pipeline Ltd. (“Inter Pipeline”) (TSX: IPL) announced today it will report first quarter 2021 operating and financial results under a new business structure to align with how it manages budgets and commercially operates its business. Inter Pipeline was previously organized into four businesses: oil sands transportation, conventional oil pipelines, NGL processing and bulk liquid storage. Effective January 1, 2021, these four segments have been repositioned into four new segments: transportation, facilities infrastructure, marketing and new ventures.
Planned in early 2020, and approved by the Board in October, the reorganization integrates similar assets and contract structures thereby maximizing operational efficiencies. The new structure will also streamline external reporting and promote alignment with Inter Pipeline’s energy infrastructure peers. A centralized and integrated marketing division has been established to aggregate commodity-based adjusted EBITDA, while handling commodity risk management and hedging activities. Additional benefits include enhancing transparency with cost-of-service and fee-based adjusted EBITDA generated by the transportation and facilities infrastructure segments and providing a platform for the integration of large-scale new business ventures, such as HPC.
“Since becoming a public entity in 1997, Inter Pipeline has experienced tremendous growth through the development and expansion of our oil sands transportation, conventional oil pipelines and NGL processing business segments,” said Christian Bayle, Inter Pipeline’s President and Chief Executive Officer. “Given the enhanced scale of our business, the ongoing integration of the Heartland Petrochemical Complex and the changing nature of the energy industry, the time was right for Inter Pipeline’s structure to further adapt to position us for continued long-term success.”
The following diagram summarizes the changes to the business segments and further details are outlined in a presentation available on Inter Pipeline’s website at: www.interpipeline.com
Inter Pipeline’s transportation segment is comprised of oil sands and conventional oil pipeline systems, as well as bulk liquid storage terminals. These infrastructure assets generate adjusted EBITDA that is underpinned by stable cost-of-service and fee-based contracts. Midstream marketing activities are completed by the marketing segment for fixed service fees. In total, Inter Pipeline operates six pipeline systems with ultimate capacity to transport over five million barrels per day of petroleum products from producing sites in Alberta and Saskatchewan. Additionally, Inter Pipeline operates bulk liquid storage terminals in Denmark and Sweden, which includes approximately 19 million barrels of storage capacity across eight terminals.
Facilities Infrastructure Business
The facilities infrastructure segment owns and operates assets that provide customers with NGL, offgas and petrochemical products and services. Adjusted EBITDA from this business is generated by cost-of-service and fee-based arrangements. Commodity based products are sold to the marketing segment for fixed service fees. NGL and offgas fractionation is provided through interests in three Alberta straddle plants at Cochrane and Empress, as well as an integrated offgas business that includes the Redwater Olefinic Fractionator, Pioneer I and Pioneer II processing facilities located near Fort McMurray, Alberta and the Boreal pipeline that connects these facilities.
Inter Pipeline’s marketing segment manages the logistics and sale of products not produced under fee-based or cost-of-service agreements, as well as engaging in facility and pipeline optimization opportunities. The objective is to maximize the value of Inter Pipeline’s petroleum, petrochemical, olefinic and paraffinic products while reducing the volatility associated with market-based product sales. Adjusted EBITDA and operational results are subject to a variety of factors including commodity prices, volume fluctuations and differentials. The marketing segment is also responsible for Inter Pipeline’s commodity risk management activities, including hedging.
New Ventures Business
The new ventures segment focuses on the development of large-scale innovative projects to create new cash flow streams, while better serving Inter Pipeline customers through enhanced services or market access. Inter Pipeline’s new ventures business currently includes the Heartland Petrochemical Complex, a world-scale integrated complex with one of the lowest greenhouse gas emissions footprints in the world for producing polypropylene. Polypropylene is a high value, easily transported, recyclable plastic used in the manufacturing of an extensive range of finished products and consumer goods, such as packaging, textiles, automobile components, healthcare products and medical supplies.
First Quarter 2021 Financial Results Conference Call and Webcast
Inter Pipeline will announce its first quarter 2021 financial and operating results on May 6, 2021. A conference call and webcast has been scheduled for May 7, 2021 at 11:00 a.m. MT (1:00 p.m. ET) for interested shareholders, analysts and media representatives.
To participate in the conference call, please dial 1 (888) 231-8191. The conference ID is 9870355. A replay of the conference call will be available until May 14, 2021 by calling 1 (855) 859-2056. The code for the replay is 9870355.
A live audio webcast of the conference call will be accessible on Inter Pipeline’s website at www.interpipeline.com, and a replay of the webcast will be available for approximately 90 days.
About Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation and natural gas liquids processing business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in Western Canada and is building the Heartland Petrochemical Complex — North America’s first integrated propane dehydrogenation and polypropylene facility. Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL. www.interpipeline.com