Pembina Pipeline (PPL) Q1 2026 earnings summary

Executive summary

• Q1 2026 adjusted EBITDA was $1.131 billion, driven by strong fee-based business and marketing outperformance, with volume strength across key pipeline systems and favorable commodity prices and spreads.

• Major projects, including the Wapiti Expansion and K3 Cogeneration Facility, entered service on time and on budget, while the RFS IV fractionator commissioning is underway and Cedar LNG is over 50% complete and progressing as planned.

• 110,000 bpd of new and renewed transportation contracts were executed on the Peace Pipeline, and an open season for Alliance Pipeline expansion was successfully closed.

• The company maintained a strategic focus on disciplined execution, capital project delivery, and investment grade credit rating.

• Dividend was increased by 3.5% to $0.735 per share for Q2 2026, reflecting confidence in future growth and cash flow generation.

Financial highlights

• Q1 2026 adjusted EBITDA was $1.131 billion, a 3% decrease year-over-year due to lower Alliance Pipeline revenue and narrower NGL frac spreads, partially offset by higher volumes.

• Q1 2026 earnings were $498 million, slightly down from $502 million year-over-year, while adjusted earnings rose to $505 million from $489 million.

• Adjusted cash flow from operating activities was $790 million ($1.36 per share), up from $777 million year-over-year.

• Q1 2026 revenue was $2,106 million, down from $2,282 million year-over-year.

• Capital expenditures for Q1 2026 totaled $187 million, up from $174 million year-over-year.

Outlook and guidance

• 2026 adjusted EBITDA guidance was raised to $4.35–$4.55 billion, a $175 million increase at the midpoint, reflecting a stronger marketing outlook and commodity prices.

• 5–7% compound annual fee-based adjusted EBITDA per share growth is targeted through 2030.

• Approximately 65% of 2026 frac spread exposure is hedged, with higher hedge ratios in Q2 and Q3.

• Current income tax expense for 2026 is expected to be $385–$420 million.

• Year-end 2026 debt/adjusted EBITDA ratio is expected at 3.5x–3.7x (3.3x–3.5x excluding Cedar LNG construction debt).