Pembina Pipeline Corporation (NYSE:PBA) Q1 2016 Earnings Conference Call - Preliminary Transcript

May 05, 2019 • 10:00 am ET


Pembina Pipeline Corporation (NYSE:PBA) Q1 2016 Earnings Conference Call - Preliminary Transcript


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Good morning. My name is Steve and I will be your conference operator today. And I would like to welcome you to the Pembina Pipeline Corporation's 2016 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be question-and-answer session [Operator Instructions] Thank you. Scott Burrows, Pembina's Vice President of Finance and Chief Financial Officer. Please go ahead.

J. Scott Burrows

Thank you Steve and Good morning everyone and welcome to Pembina's conference call and webcast to review our first quarter and 2016 results. Joining me today is Mick Dilger, Pembina's President and Chief Executive Officer as well as Paul J. Murphy, Pembina's Senior Vice President - Pipeline and Crude Oil Facilities and Stu Taylor Pembina's Senior Vice President NGL and Natural Gas Facilities. I would like to remind you that some of the comments made today maybe forward-looking in nature and are based on Pembina's current expectations, estimates, projections and risks and assumptions. Further, some of the information provided refers to non-GAAP measures.

To learn more about these forward-looking statements, and non-GAAP measures, please see the Company's various financial reports, which are available at and on both SEDAR and EDGAR. Actual results could differ materially from the forward-looking statements we may express or imply today. I would also encourage listeners to review the news releases, MD&A and financials we issued yesterday, which provide our results for the first quarter 2016, as I won't go over each metric on today's call. Before I review our consolidated financial performance and operational results, I wanted touch briefly on a few year-to-date highlights. We achieved record revenue volumes on a corporate basis for the second quarter in a row.

We placed approximately $340 million of new assets into service primarily within our Midstream and Gas services segments. We successfully closed $566 million acquisition of Paramount, 250 million cubic feet per day sour gas plant and supporting infrastructure. We announced a feasibility study for an integrated polypropylene facility which Mick will discuss later in the call. We completed three successful public offerings raising $365 million of equity to both common and preferred share sales. We expanded our credit facility by $500 million to $2.5 billion and we increased our dividend by the same amount of last year $0.025 per share or 4.9% which results in an annualized dividend $1.92 per share.

So far in 2016, the macro-economic environment has remained challenging as evidence by the sustained lower commodity pricing as well as significant volatility. On averages as compared to the first quarter of 2015, key commodity prices are down approximately 30% including crude oil, propane and natural gas. In the first three months of 2016 crude oil and Mont Belvieu propane saw price swings in excess of 20% while Alberta Natural Gas pricing moved in excess of 40%. Financial operation and capital market successes, Pembina as a key so far to here demonstrate our strategy continues to deliver significant value in both good times