Pembina Pipeline (PPL) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 adjusted EBITDA of CAD 1.167 billion, a 12% year-over-year increase, and net earnings of CAD 502 million, up 15% from the prior year.

• Revenue for Q1 2025 was $2,282 million, up $742 million year-over-year, driven by the Alliance/Aux Sable Acquisition and higher volumes across segments.

• Announced a 3% increase in the quarterly dividend to $0.71 per share, payable June 30, 2025, reflecting confidence in the business outlook.

• Completed the $2.8 billion Alliance/Aux Sable Acquisition on April 1, 2024, fully consolidating these assets.

• Entered significant new and extended long-term commercial agreements with a leading Montney producer, supporting higher utilization and future expansions.

Financial highlights

• Adjusted EBITDA rose 12% year-over-year to CAD 1.167 billion, driven by higher contributions from Alliance, favorable FX, and increased volumes.

• Net earnings reached CAD 502 million, a 15% increase over Q1 2024, with EPS (basic) at $0.80, up from $0.74.

• Q1 2025 revenue was $2,282 million, up from $1,540 million in Q1 2024.

• Cash flow from operating activities was $840 million, nearly doubling from $436 million in the prior year.

• Capital expenditures for Q1 2025 were $174 million, down from $186 million in Q1 2024.

Outlook and guidance

• Trending toward the midpoint of 2025 adjusted EBITDA guidance of CAD 4.2–4.5 billion.

• Full-year Marketing & New Ventures adjusted EBITDA guidance remains at CAD 550 million.

• Guidance assumes current Alliance tolls for the full year and no material impact from U.S. energy import tariffs.

• Future capital expenditures for the remainder of 2025 are estimated at $570–$770 million, focused on RFS IV construction, NEBC growth, and ethane supply commitments.

• Q2 expected to be sequentially lower due to planned maintenance and seasonality; Q3 and Q4 to see higher integrity costs and stronger NGL marketing.