Pembina Pipeline Lifts 2018 Adj. EBITDA Guidance

(RTTNews) - Pembina Pipeline Corp. (PBA, PPL.TO) announced an increase to its 2018 Adjusted EBITDA guidance range to $2.75 billion to $2.85 billion. The Company also announced that in conjunction with incremental volume commitments from customers on the Peace pipeline, Pembina will be developing additional pipeline and terminalling infrastructure in the Wapiti region near Grande Prairie, Alberta and in northeast B.C. The new infrastructure will have a combined aggregate capital cost of approximately $120 million and will be underpinned by long-term, take-or-pay commitments.

Pembina announced that based on strong year-to-date results and the outlook for the remainder of the year, the Company has updated its 2018 Adjusted EBITDA guidance range to $2.75 to $2.85 billion, up from $2.65 to $2.75 billion.

Pembina noted that it continues to experience strong demand for transportation services across the liquids-rich areas of the Western Canada Sedimentary Basin. Since sanctioning the Phase VI expansion earlier this year, Pembina has continued to add long-term firm service commitments on the Peace and Northern Pipeline systems.

Since Phase VI was originally announced in May 2018, Pembina has secured a total of 50,000 barrels per day ("bpd") of additional firm service commitments. As a result, peak firm volume commitments will reach approximately 885,000 bpd in 2019.

The company noted that itis currently progressing negotiations with various customers for incremental volumes. The Wapiti Condensate Lateral will be constructed in tandem with Pembina's Phase VI expansion, affording considerable efficiencies and minimizing incremental land disturbance. Subject to regulatory and environmental approvals, the project is expected to be in-service in the second half of 2019, aligning with the in-service timing of Phase VI.