Pembina Pipeline Corporation Reports Strong Financial and Operational Performance in 2025, Advances Strategic Growth Initiatives
Pembina Pipeline Corporation today released its financial and operational results for the fourth quarter and full year ended December 31, 2025, highlighting continued growth, strong operational execution, and the advancement of key strategic initiatives across its integrated energy infrastructure platform. The Company reported robust financial metrics, achieved record volumes in its pipelines and facilities operations, and advanced multiple capital projects, reinforcing its position as a leading North American energy infrastructure company with a full suite of midstream services.
Financial Performance and Highlights
For the full year 2025, Pembina reported total earnings of $1,694 million and an adjusted EBITDA of $4,289 million. Adjusted cash flow from operating activities reached $2,854 million, equating to $4.91 per share. The Company’s fourth-quarter results included earnings of $489 million, adjusted EBITDA of $1,075 million, and adjusted cash flow from operating activities of $731 million, representing $1.26 per share. While these figures reflect slight declines relative to 2024, they demonstrate the Company’s continued ability to generate resilient cash flows, supported by its diversified operations and disciplined capital management.
Revenue for the year totaled $7,778 million, representing a $394 million increase compared to 2024, driven by strong operational volumes and contractual contributions across the Pipelines and Facilities divisions. Net revenue rose to $4,877 million, an increase of $101 million over the prior year. Operating expenses decreased marginally by $15 million to $961 million, reflecting ongoing operational efficiency and cost control initiatives. Gross profit for the year was $3,193 million, slightly lower than 2024 levels, while adjusted EBITDA decreased by $119 million, reflecting specific period-over-period adjustments and new tolling arrangements on certain pipeline assets.
Operational Achievements and Volume Growth
Pembina achieved record annual Pipelines and Facilities volumes of 3.7 million barrels of oil equivalent per day (“mboe/d”), a three percent increase over 2024. This growth was primarily driven by higher throughput in natural gas, natural gas liquids (“NGLs”), and condensate volumes across its Western Canadian Sedimentary Basin (“WCSB”) operations. The Pipelines division reported volumes of 2.786 mboe/d for the year, contributing $1,938 million in earnings and $2,596 million in adjusted EBITDA. Facilities volumes reached 871 mboe/d, with earnings of $562 million and adjusted EBITDA of $1,347 million. The Marketing & New Ventures division contributed 339 mboe/d in volumes, generating $457 million in earnings and $724 million in adjusted EBITDA.
Strategic Expansion Projects
Pembina continues to advance a series of strategic pipeline expansions designed to meet growing demand in northeast British Columbia and Alberta. Two conventional pipeline expansion projects totaling $425 million have been sanctioned to increase the Company’s midstream capacity.
The Birch-to-Taylor Expansion will add a 95-kilometre pipeline and facility upgrades, increasing capacity by approximately 120,000 barrels per day (“bpd”) of propane-plus and condensate. Preliminary construction activities have commenced, with all necessary permits secured, and the project is anticipated to enter service in the fourth quarter of 2027 at an estimated cost of $310 million. The expansion is structured under a cost-of-service commercial model, ensuring predictable and stable returns.
The Taylor-to-Gordondale Expansion is being implemented in a phased approach. The initial scope, with an estimated cost of $115 million, includes new and upgraded pump stations downstream of Taylor, British Columbia, and a 16-kilometre pipeline linking Alberta production to the Gordondale pump station. This initial phase is expected to be operational by the first quarter of 2027, subject to regulatory approvals. Pembina recently received federal approval from the Canada Energy Regulator (“CER”) for the remainder of the 89-kilometre pipeline, representing the final regulatory milestone for the project. Both expansions respond to growing customer demand for midstream services and reinforce Pembina’s disciplined capital allocation strategy.
Additionally, the Company previously sanctioned the $200 million Fox Creek-to-Namao Expansion, which will provide approximately 70,000 bpd of additional propane-plus capacity along the Peace Pipeline System. Combined with the new expansions, Pembina is actively investing over $600 million in conventional pipeline projects to support anticipated growth in the WCSB.
Cedar LNG Project and Global Energy Integration
Pembina has also made significant progress on the Cedar LNG project, a joint venture with the Haisla Nation, advancing construction of the floating LNG vessel to over 35 percent completion while continuing onshore construction activities. The Company successfully completed the remarketing of 1.5 million tonnes per annum (“mtpa”) of Cedar LNG capacity, securing long-term agreements with PETRONAS for 1.0 mtpa and Ovintiv for 0.5 mtpa. These agreements highlight strong global demand for Canadian LNG exports, leveraging competitive feedstock pricing and advantageous shipping routes to Asian markets. The contracted capacity increases the expected base adjusted EBITDA contribution from Cedar LNG by approximately 10 percent, providing secured cash flow and potential upside participation without exposure to commodity price fluctuations.
Operational Excellence and Safety Performance
Pembina continued to demonstrate its commitment to operational excellence, safety, and environmental stewardship. In 2025, the Company exceeded internal safety and environmental targets, achieving performance improvements across key indicators relative to three-year averages. High asset reliability and operational efficiency remain top priorities as Pembina executes its expansion projects and supports growing throughput across the integrated energy value chain.
Commercial Developments and Long-Term Contracts
Pembina secured multiple long-term agreements to support sustained cash flow growth. Notably, the Company and its subsidiary, PGI, entered into take-or-pay agreements with Tourmaline Oil, encompassing 270 mmcf/d of gas processing, transportation on the Peace Pipeline, and fractionation at the Redwater Complex. These agreements reinforce Pembina’s long-term contractual resilience and align with its strategy to maintain durable, fee-based cash flow streams.
Furthermore, the Company is actively supporting emerging energy projects, including Dow Inc.’s Path2Zero ethylene cracker and derivatives facility in Fort Saskatchewan. Under a long-term ethane supply agreement, Pembina will provide up to 50,000 bpd of ethane to the project. The development is expected to catalyze additional production of propane, butane, and condensate in the WCSB, providing incremental volumes that could support future expansion opportunities for Pembina’s midstream infrastructure.
Outlook and Strategic Priorities for 2026
Looking ahead, Pembina’s priorities for 2026 focus on operational and project execution excellence, commercial and strategic growth, and financial discipline. Key initiatives include:
- Safe and reliable operations with high asset availability and continued emphasis on employee and contractor safety.
- On-time and on-budget completion of inflight projects, including the RFS IV Expansion, Wapiti Expansion, and K3 Cogeneration Facility.
- Advancement of the Greenlight Electricity Centre and final investment decisions on ethane supply infrastructure to meet growing market demand.
- Evaluation of additional pipeline capacity, including optimization and potential expansion of the Nipisi Pipeline and repurposing underutilized assets.
- Achieving adjusted EBITDA within the 2026 guidance range of $4.125 billion to $4.425 billion, targeting approximately five percent compound annual growth in fee-based EBITDA per share from 2023 to 2026.
