Pembina Pipeline Corporation (PBA): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how Pembina Pipeline Corporation (PBA) actually makes its money, and honestly, it's a textbook midstream play built on rock-solid, long-term fee contracts, not volatile commodity swings. As someone who's spent two decades in this game, I can tell you their model is about reliable infrastructure-pipelines and facilities-securing stable cash flow, targeting an Adjusted EBITDA guidance of $4.25 billion to $4.35 billion for 2025 while pushing big growth like the Cedar LNG project. If you want the precise breakdown of their key partners, resources, and the revenue engine driving that stability, dive into the full Business Model Canvas we mapped out below.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Pembina Pipeline Corporation's growth engine as of late 2025. These aren't just casual agreements; they are deep, capital-intensive partnerships that secure long-term, contracted revenue streams, which is the bedrock of a stable midstream business.

Joint venture partners in Pembina Gas Infrastructure (PGI)

Pembina Pipeline Corporation's gas processing arm, Pembina Gas Infrastructure Inc. (PGI), is a key example of a strategic joint venture. PGI combines assets to serve customers across the Montney and Duvernay trends, boasting a combined processing capacity of five billion cubic feet per day.

The ownership structure is clearly defined, though KKR is reportedly exploring divesting its share, which could be valued around $7 billion as of late 2025.

Partner	Ownership Stake	Role/Context
Pembina Pipeline Corporation	60 percent	Operates and manages PGI facilities.
Affiliates of KKR	40 percent	Financial partner; stake established from assets acquired in 2015 and combined in 2022.

This partnership has also involved significant recent transactions with other producers. For instance, in January 2025, PGI closed an acquisition of a 50 percent working interest in Whitecap Resources Inc.'s 15-07 Kaybob Complex. Furthermore, PGI has commitments to fund capital for gathering infrastructure with Veren, with a total funding commitment now near $200 million ($120 million net to Pembina Pipeline Corporation) supported by long-term take-or-pay commitments.

PETRONAS for the Cedar LNG project and long-term LNG Agreement

The Cedar LNG project is a massive undertaking, with a gross estimated cost of $4 billion, and it remains on schedule for an expected in-service date in late 2028. A cornerstone of securing the Final Investment Decision was the capacity commitment from Petroliam Nasional Berhad (PETRONAS).

In November 2025, Pembina Pipeline Corporation and PETRONAS announced a significant 20-year agreement.

• Capacity secured by PETRONAS: 1.0 million tonnes per annum (mtpa) under a synthetic liquefaction service structure.
• Prior capacity secured in June 2024: 1.5 mtpa under a 20-year take-or-pay tolling deal.
• Total contracted capacity as of late 2025: 2.5 mtpa.

Pembina Pipeline Corporation expects to finalize agreements for the remaining liquefaction capacity by the end of 2025. This project is designed to be one of the world's lowest-carbon LNG operations, powered by renewable electricity from BC Hydro.

Western Canadian Sedimentary Basin (WCSB) energy producers

The health and growth of energy producers in the Western Canadian Sedimentary Basin directly feed Pembina Pipeline Corporation's core business. This relationship underpins the company's financial outlook.

For fiscal 2025, Pembina Pipeline Corporation projects its adjusted EBITDA to be between $4.2 billion and $4.5 billion. This guidance explicitly reflects the positive impacts of continued volume growth across the WCSB and the full-year effect of consolidating the Alliance and Aux Sable assets. The company is on track to achieve four to six percent compound annual growth of fee-based adjusted EBITDA per share from 2023-2026, driven by these producer volumes.

Strategic alliances for new energy and power generation (e.g., Greenlight Electricity Centre)

Pembina Pipeline Corporation is actively partnering to extend its value chain into power generation and lower-carbon solutions. A notable example is the partnership related to the Greenlight Electricity Centre LLP in Alberta.

Pembina Pipeline Corporation secured a 50% stake in the Greenlight Electricity Centre LLP, a natural gas-fired, combined-cycle power generation facility being developed with Kineticor Asset Management. This facility is strategically located adjacent to Pembina Pipeline Corporation's Redwater complex, offering integration potential with its gas business and the nearby Alliance Pipeline, which transports up to 1.6 Bcf/d to the Chicago area.

Indigenous communities for major project development and ownership

Partnerships with Indigenous communities are central to major project execution, particularly in British Columbia. The Cedar LNG project exemplifies this commitment.

Cedar LNG is a partnership between Pembina Pipeline Corporation and the Haisla Nation, which will make it the largest Indigenous-majority-owned infrastructure project in Canada upon its expected start-up in late 2028. The floating LNG facility is proposed to be located on Haisla-owned land near Kitimat, British Columbia.

Finance: draft 2026 capital allocation plan by end of Q1 2026.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Key Activities

You're looking at the core engine of Pembina Pipeline Corporation (PBA) as of late 2025, focusing on the actual work driving their numbers. Here's the breakdown of what they are actively doing to generate revenue and grow the business, grounded in their latest reported figures.

Operating and maintaining an integrated pipeline and facilities network

This is the day-to-day reality: keeping the pipes flowing and the plants running safely and efficiently. This activity is supported by dedicated capital spending to ensure reliability. For the third quarter of 2025, the Pipelines segment delivered earnings of \$477 million. This segment's performance reflects the ongoing utilization of their assets across the Western Canadian Sedimentary Basin (WCSB).

To maintain this network, Pembina Pipeline Corporation allocated significant funds within its 2025 plan. Specifically, the 2025 capital program includes \$200 million of non-recoverable sustaining capital earmarked to support safe and reliable operations. Furthermore, Pembina continues to advance more than \$1 billion of proposed pipeline expansions to meet rising transportation demand. This work includes progressing inflight construction projects like the RFS IV Expansion and the Wapiti Expansion.

Key operational milestones for ongoing projects include:

• RFS IV construction is approximately 75 percent complete, trending under budget, with an expected in-service date in the second quarter of 2026.
• The Wapiti Expansion is nearing completion of tie-in work, trending on budget, with an expected in-service date in the first quarter of 2026.

Executing a $1.3 billion capital investment program for 2025

Pembina Pipeline Corporation revised its 2025 capital investment program outlook to \$1.3 billion as of August 2025, up from the initial guidance of \$1.1 billion. This spending is structured to support growth, maintain assets, and fund strategic investments, all while remaining within a fully funded model.

Here is how that \$1.3 billion program is allocated:

Capital Category	Approximate Amount (CAD)	Purpose/Detail
Contributions to Equity Accounted Investees (Cedar LNG)	Approximately \$200 million	Funding for the construction of the Cedar LNG Project.
Sustaining Capital (Non-recoverable)	\$200 million	Support safe and reliable operations.
Digitization, Technology, and Systems Investments	\$85 million	Aim to enhance operational efficiency.
Total Explicitly Itemized Capital (Minimum)	\$485 million	This is a floor; the total program is \$1.3 billion.

The program also includes spending on proposed conventional pipeline expansions and development spending on potential future projects. What this estimate hides is the potential for up to an additional \$200 million in capital if certain development projects, like the Fox Creek-to-Namao Peace Pipeline Expansion, are sanctioned.

Securing long-term, fee-based transportation and processing contracts

A key activity is locking in long-term, fee-based revenue streams to underpin the business's stability. Pembina Pipeline Corporation has shown strong success in recontracting key assets. For instance, on the Alliance Pipeline, shippers elected a new 10-year toll on approximately 96 percent of the firm capacity available.

The company also secured new agreements on the Peace Pipeline system:

• Agreements cover renewal and addition of volumes totaling approximately 50,000 barrels per day (bpd).
• These new contracts carry a weighted average term of approximately 10 years.

Pembina has successfully recontracted substantially all volumes available for renewal under contracts expiring in 2025 and 2026. Plus, they entered into long-term agreements with Dow Chemical Canada to supply up to 50,000 bpd of ethane for their Path2Zero Project.

Marketing and trading natural gas liquids (NGLs) and crude oil

The Marketing & New Ventures segment contributes significantly to overall guidance, though its performance is tied to commodity margins. The midpoint of Pembina Pipeline Corporation's 2025 adjusted EBITDA guidance includes a forecasted contribution from this segment of \$550 million. For the third quarter of 2025 specifically, the segment reported adjusted EBITDA of \$99 million and earnings of \$68 million.

To manage the volatility inherent in this activity, Pembina employs hedging strategies. The company has hedged approximately 32% of its 2025 frac spread exposure.

Developing the Cedar LNG project and other export capacity

Developing export capacity is a major strategic activity, highlighted by the Cedar LNG project, which Pembina Pipeline Corporation has a 49.9% ownership stake in. The project has a total price tag of \$4 billion (USD), with estimated capital costs of approximately \$3.4 billion. Pembina anticipates its equity contribution for 2025 to be approximately \$200 million.

The Cedar LNG facility is designed for:

• Nameplate capacity of 3.3 mtpa (million tonnes per annum).
• Processing 400 million standard cubic feet of natural gas per day.
• Anticipated in-service date in late 2028.

In addition to Cedar LNG, Pembina is enhancing NGL export capacity through other means. They approved a \$145 million optimization of their 20,000 bpd Prince Rupert Terminal (PRT) and entered a long-term tolling agreement for 30,000 bpd of LPG export capacity at AltaGas's Ridley Island Propane Export Terminal (RIPET) and future REEF. This work will give Pembina access to 50,000 bpd of highly competitive propane export capacity.

Finance: draft 13-week cash view by Friday.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Key Resources

You're looking at the core assets Pembina Pipeline Corporation (PBA) uses to run its business as of late 2025. These aren't just lines on a map; they are the physical and contractual backbone generating revenue.

The company's financial outlook for 2025 reflects the strength of these resources, with the updated Adjusted EBITDA guidance range set between $4.25 billion to $4.35 billion.

Here's a breakdown of the key, quantifiable resources:

Key Resource Component	Metric/Capacity/Value	Specific Data Point or Context
Extensive Pipeline Network Capacity (Peace & Northern Systems)	1.1 million bpd (Current Total Capacity)	The capacity of the Peace Pipeline and Northern Pipeline systems as of late 2025.
Potential Pipeline Expansion Capacity	200,000 bpd additional capacity	Potential addition via the Fox Creek-to-Namao Peace Pipeline Expansion, bringing total system capacity to 1.3 million bpd.
Gas Gathering & Processing Assets (Duvernay Complex)	8.33 percent interest acquired	Pembina Gas Infrastructure (PGI) acquired the remaining interest in three gas processing trains at the Duvernay Complex.
Gas Gathering & Processing Assets (Duvernay Complex)	$55 million total purchase price	The total cost for PGI's acquisition of the remaining Duvernay Assets.
Redwater Complex Fractionation Capacity (Total Post-RFS IV)	~256 Mb/d	Total fractionation capacity at the Redwater Complex upon RFS IV in-service (expected Q2 2026).
Redwater Complex Fractionation Capacity (C2 Ethane)	60 Mb/d	C2 ethane fractionation capacity included in the total, from the RFS I and RFS II units.
Redwater Fractionator (RFS IV) Construction Status	75% complete	Status of the new 55 Mb/d propane-plus (C3+) Redwater Fractionator (RFS IV) as of November 2025.
Redwater Fractionator (RFS IV) Estimated Cost	Approximately $525 million	The expected capital cost for the RFS IV expansion.
Redwater Co-generation Facility Power Generation	Up to 45 MW	Electrical power generation capacity at the Redwater Complex.
Prince Rupert Terminal (PRT) Licensed Capacity	25,000 bbls/d	The licensed capacity for propane handling at the terminal.
Prince Rupert Terminal (PRT) Optimization Investment	$145 million approved	Capital approved for optimizing the 20,000 bpd PRT.
Cedar LNG Project Ownership Stake	49.9%	Pembina's ownership percentage in the US$4 billion (gross) Cedar LNG liquefaction plant.
2025 Capital Investment Program Outlook	$1.3 billion	Pembina's revised outlook for its 2025 capital investment program as of Q2 2025.

The long-term contracts are definitely a core asset, locking in future cash flows. For instance, the company is advancing definitive agreement negotiations to remarket the remaining 0.5 mtpa of its Cedar LNG capacity by the end of 2025, building on the 20-year, 1.0 mtpa agreement already signed with PETRONAS.

You can also see the impact of contract renewals on existing systems:

• Agreements on the Peace Pipeline system for renewal and addition totaling approximately 50,000 bpd.
• These Peace Pipeline contracts have a weighted average term of approximately 10 years.
• A 20-year take-or-pay agreement with Dow Chemical Canada for up to 50,000 bpd of ethane for their Path2Zero Project.

The workforce is highly skilled, but specific headcount or training investment numbers aren't readily available in the latest reports.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Value Propositions

Pembina Pipeline Corporation provides a value proposition centered on reliable, integrated midstream services across diverse energy commodities, underpinned by long-term commercial certainty.

Safe and reliable transportation of diverse hydrocarbons (oil, gas, NGLs)

• Delivering a full suite of services across natural gas, crude oil, and NGLs.
• Achieved first quarter 2025 Adjusted EBITDA of $1,167 million.
• Forecasting 2025 Adjusted EBITDA guidance between $4.225 billion and $4.425 billion.
• Fee-based Adjusted EBITDA at the midpoint of 2025 guidance reflects an approximately 5.5 percent increase relative to 2024 forecast.

Integrated midstream services from wellhead to market/export

Pembina Pipeline Corporation offers an integrated value chain, which is being enhanced through strategic project execution and commercial agreements.

• Secured a long-term agreement with Dow Chemical Canada to supply up to 50,000 barrels per day (bpd) of ethane for their Path2Zero Project.
• Sanctioned the $210 million (net to Pembina) Wapiti Expansion and K3 Cogeneration Facility.
• Approved a $145 million optimization of the Prince Rupert Terminal (PRT) to expand market access and reduce per unit shipping costs.
• Acquired the remaining 8.33 percent interest in three gas processing trains at the Duvernay Complex for $55 million ($33 million net to Pembina).

Access to premium US and global markets (e.g., Alliance Pipeline to Chicago)

The value proposition includes securing access to premium international markets, particularly for natural gas and NGLs, which enhances producer netbacks.

• Secured access to 50,000 bpd of highly competitive propane export capacity through a new commercial agreement and a newly sanctioned project.
• Entered a long-term tolling agreement with AltaGas Ltd. for 30,000 bpd of LPG export capacity at RIPET/REEF.
• The Alliance Pipeline has a long-term firm capacity of 1.325 billion cubic feet per day under the negotiated shipper settlement.

Stable, predictable cash flow backed by long-term contracts (up to 10 years)

Stability comes from long-term, take-or-pay commitments that secure a strong base of committed volumes across key systems.

Contract/Agreement Type	Term Length	Associated Asset/Volume	Financial Impact/Detail
Cedar LNG Agreement with PETRONAS	20-year agreement	1.0 million tonnes per annum (mtpa) of liquefaction capacity	Provides Pembina with a stable long-term, take-or-pay revenue stream.
Alliance Pipeline Settlement	10-year term (effective Nov 1, 2025 - Oct 31, 2035)	Canadian portion of Alliance Pipeline	Expected to reduce long-term firm service revenue by approximately C$50 million per year over 10 years.
Q1 2025 Commercial Agreements	New and extended long-term, take-or-pay commitments	Peace Pipeline, Pouce Coupé systems, and NEBC Pipeline	Secures volume growth from a leading Montney producer.

Capacity expansion to meet WCSB volume growth (e.g., Peace Pipeline)

Pembina Pipeline Corporation is actively investing to accommodate growing production volumes from the Western Canadian Sedimentary Basin (WCSB).

• Advancing more than $1 billion of proposed conventional pipeline expansions.
• The current total capacity of the Peace Pipeline and Northern Pipeline systems is approximately 1.1 million bpd.
• The Fox Creek-to-Namao Peace Pipeline Expansion could add approximately 200,000 bpd of additional capacity through low-cost pump station additions, bringing total capacity to 1.3 million bpd.
• The Phase VIII Peace Pipeline Expansion (completed in the past year) cost $430 million.
• The Taylor to Gordondale Project (Pouce Coupé system expansion) is in the regulatory assessment phase, with a Final Investment Decision (FID) expected by the end of 2025.
• The Fox Creek-to-Namao Expansion, if sanctioned, would add approximately 70,000 bpd of propane-plus capacity, with FID expected by the end of 2025.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Customer Relationships

You're looking at how Pembina Pipeline Corporation locks in its revenue stream, which is heavily reliant on long-term, stable relationships with major energy producers and industrial users. This isn't about one-off sales; it's about multi-year commitments that underpin the entire business structure.

Long-term, dedicated account management for major producers

Pembina Pipeline Corporation emphasizes deep, ongoing relationships, often integrating its services across a producer's entire value chain. This dedicated approach helps secure future volumes and supports joint development. For instance, in May 2025, Pembina entered commercial agreements with a leading Montney producer covering transportation, fractionation, and marketing services, which included significant new and extended long-term commitments. Furthermore, Pembina Gas Infrastructure (PGI) entered an agreement with a Montney producer to fund and acquire the under-construction North Gold Creek Battery for a capital commitment up to $150 million ($90 million net to Pembina), supported by a new long-term, take-or-pay agreement. Also, PGI acquired the remaining 8.33 percent interest in Duvernay Assets from Whitecap for a total purchase price of $55 million ($33 million net to Pembina) effective June 30, 2025.

The company actively works to secure export capacity for its customers, such as entering a long-term tolling agreement with AltaGas Ltd. for 30,000 barrels per day (bpd) of LPG export capacity, with volumes starting in April 2026 and April 2027. Another example of a major producer relationship is the long-term agreement signed with PETRONAS in November 2025 for 1.0 million tonnes per annum (mtpa) of liquefaction capacity at Cedar LNG over a 20-year term.

Contractual relationships with regulated tolls and take-or-pay commitments

The stability of Pembina Pipeline Corporation's cash flow comes directly from the structure of these contracts. The business model is explicitly supported by long-term, predominantly take-or-pay contracts. As of the October 2025 update, the company stated that approximately 80% - 90% of its adjusted EBITDA is fee-based, with about 65% - 70% being take-or-pay or cost-of-service. This structure provides revenue certainty, which is key for financing growth projects.

The Alliance Pipeline Canadian portion recently settled a tolling dispute with shippers, establishing a new 10-year term effective November 1, 2025, through October 31, 2035. These New Tolls are expected to reduce existing long-term firm tolls by an average of 14 percent on a volume weighted average basis. The settlement is projected to reduce long-term firm service revenue by approximately $50 million per year over the next 10 years. Alliance will also return approximately $95 million held as an existing liability related to the Recoverable Cost Variance.

Here's a look at some key long-term commitments:

Contract/Agreement	Customer/Partner	Term Length	Volume/Capacity	Commitment Type
Cedar LNG Liquefaction Capacity	PETRONAS	20-year	1.0 mtpa	Take-or-pay (Synthetic Service)
Alliance Pipeline Tolls	Shippers (Canadian Portion)	10-year (starting Nov 2025)	All existing firm service volumes	Firm Tolls (New Tolls)
LPG Export Tolling Agreement	AltaGas Ltd.	Long-term	30,000 bpd total	Tolling Agreement
Ethane Supply Agreement	Dow Chemical Canada	Long-term	Up to 50,000 bpd	Supply Agreement

Pembina has hedged approximately 32% of its 2025 frac spread exposure.

Collaborative approach to new project development (e.g., pipeline expansions)

Pembina Pipeline Corporation works closely with producers to support growing production, often through joint ventures or by funding infrastructure directly tied to long-term contracts. The Cedar LNG facility, a US$4 billion (gross) project, is a major example of this collaboration, being a partnership with PETRONAS and the Haisla Nation. Pembina previously secured a 20-year take-or-pay tolling service agreement for 1.5 mtpa to support the project's final investment decision in June 2024. The company expects to finalize agreements for the remaining 0.5 mtpa of capacity by the end of 2025.

The company is also advancing more than $1 billion of proposed conventional pipeline expansions to meet rising demand in the Western Canadian Sedimentary Basin (WCSB). Specific collaborative projects include:

• Entering agreements for a 50 percent interest in the Greenlight Electricity Centre Limited Partnership.
• Approving a $145 million optimization of its Prince Rupert Terminal (PRT) to expand market access.
• Advancing engineering for an up to 500 MMcf/d straddle facility.

Investor relations focused on dividend stability and fee-based cash flow

Investor communications strongly emphasize the stability derived from the fee-based model and a consistent dividend record. Pembina's board declared a common share cash dividend for the second quarter of 2025 of $0.71 per share, representing an increase of approximately three percent. The company has a track record of 28 years with no dividend decrease. The payout ratio based on free cash flow was 64.9%, while the payout based on adjusted earnings was 100.7%.

The focus on fee-based growth underpins confidence for shareholders. The midpoint of the 2025 adjusted EBITDA guidance range of $4.2 billion to $4.5 billion reflects an approximately 5.5 percent increase in fee-based adjusted EBITDA relative to the 2024 forecast, when excluding the Marketing & New Ventures segment. Management has stated the company remains on-track to achieve 4% to 6% compound annual growth of fee-based adjusted EBITDA per share from 2023-2026.

Key dividend metrics as of late 2025 include:

• Common Share Cash Dividend (Q2 2025): $0.71 per share.
• Average Dividend Increase (10 Years): 4.63% annually.
• Free Cash Flow Payout Ratio: 64.9%.
• Years of No Dividend Decrease: 28 years.

Finance: draft the Q3 2025 cash flow forecast incorporating the Alliance Settlement impact by next Tuesday.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Channels

Hydrocarbon liquids pipelines (e.g., Peace Pipeline, Cochin Pipeline)

Pembina Pipeline Corporation uses its network to move hydrocarbon liquids across key regions.

Pipeline System	Capacity/Volume Metric	Latest Data Point (Late 2025)
Peace Pipeline & Northern Pipeline Systems	Total Current Capacity	Approximately 1.1 million bpd
Peace Pipeline System	Potential Expansion Capacity (Fox Creek-to-Namao)	Approximately 200,000 bpd
Peace Pipeline System	Total Capacity Post-Expansion	1.3 million bpd
Peace Pipeline	New/Renewed Transportation Volumes	Approximately 50,000 bpd
Peace Pipeline	Weighted Average Term of New Agreements	Approximately 10 years
Cochin Pipeline	Q3 2025 Impact on Net Revenue	Contributed to a decrease

The Nipisi Pipeline is being managed to fully contract its remaining available capacity to serve growing volumes from the Clearwater area.

Natural gas pipelines (e.g., Alliance Pipeline)

The Alliance Pipeline channel is critical for natural gas transport, recently seeing significant recontracting activity.

• Alliance Pipeline Firm Capacity Available: 1.325 billion cubic feet per day.
• New 10-Year Toll Effective Date: November 1, 2025.
• Percentage of Firm Capacity Electing New 10-Year Toll: Approximately 96 percent.
• Reduction to Existing Long-Term Firm Tolls (Volume Weighted Average): An average of 14 percent.
• Expected Annual Reduction in Long-Term Firm Service Revenue (Next 10 Years): Approximately C$50 million per year.
• Estimated Revenue Sharing Impact (Assuming AECO-Chicago Spread of C$1.50/mcf): Approximately C$40 million.

Revenue from transportation service for volumes above the long-term firm capacity of 1.325 billion cubic feet per day will be shared 50/50 between Alliance and firm and seasonal shippers.

Gas processing and fractionation facilities

Pembina Gas Infrastructure (PGI) is the largest third-party gas processor in Canada, with assets serving the Montney and Duvernay trends.

Facility Metric	Capacity/Value
Total Gas Gathering and Processing Capacity (Wholly-owned and interest)	Approximately 6.7 bcf/d
NGL Fractionation Capacity (Facilities Division)	Approximately 430 mbpd
Cavern Storage Capacity (Facilities Division)	21 mmbbls
Expected 2025 Adjusted EBITDA Contribution Increase (from 2024)	Approximately $50 million (primarily at PGI)

The Redwater Complex is noted as Canada's premier NGL fractionation complex, featuring dedicated ethane plus and propane plus capacity.

Export terminals for global market access (e.g., Cedar LNG, Prince Rupert)

The Cedar LNG Project is a key channel for global market access, with construction starting in 2025.

• Cedar LNG Total Project Cost: $4 billion.
• Pembina Ownership Stake in Cedar LNG: 49.9%.
• Cedar LNG Facility Nameplate Capacity: 3.3 million tonnes per year (mtpa).
• Natural Gas Processing/Liquefaction Capacity: 400 million standard cubic feet of natural gas per day.
• Pembina Capacity Contracted (PETRONAS): 1.0 mtpa under a 20-year agreement (out of Pembina's 1.5 mtpa commitment).
• ARC Resources Ltd. Capacity Contracted: 1.5 mtpa under a 20-year agreement.
• Construction Start Anticipated: Second quarter of 2025.
• Anticipated In-Service Date: Late 2028.

Pembina forecasts its year-end 2025 proportionately consolidated debt-to-adjusted EBITDA ratio to be 3.4 to 3.7 times; excluding debt related to Cedar LNG construction, this ratio would be 3.2 to 3.5 times.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Customer Segments

Pembina Pipeline Corporation's customer base is centered on entities requiring integrated midstream services across the energy value chain in North America and for global export markets.

Financial Metric (2025)	Value	Unit
Updated Adjusted EBITDA Guidance Range	$4.25 billion to $4.35 billion	Canadian Dollars
Revised Capital Investment Program Outlook	$1.3 billion	Canadian Dollars
Fee-based Adjusted EBITDA Growth (2023-2026 CAGR Target)	four to six percent	per share

Upstream energy producers in the WCSB (crude oil, natural gas, NGLs)

These producers rely on Pembina Pipeline Corporation for gathering, processing, and transportation services to move their product from the wellhead to market.

• Forecasted physical volume growth on conventional systems is aligned with mid-single digit volume growth expected in the WCSB.
• Revenue volume growth reflects certain customers growing into their contractual take-or-pay commitments.
• Higher contracted and interruptible volumes and higher tolls on conventional pipelines are expected to contribute approximately $80 million to 2025 adjusted EBITDA relative to 2024 guidance midpoint.
• Pembina has successfully recontracted substantially all volumes available for renewal under contracts expiring in 2025 and 2026.

Midstream processors and marketers

This segment includes entities that process and market the commodities, often utilizing Pembina Pipeline Corporation's facilities and marketing services.

• The full year impact of higher ownership of Alliance Pipeline following the 2024 transaction is expected to contribute approximately $70 million to 2025 adjusted EBITDA.
• A higher contribution from gas processing assets is anticipated, primarily at PGI due to higher volumes and impacts from announced transactions with Veren Inc.
• Pipelines segment reported adjusted EBITDA of $646 million for the second quarter of 2025.
• Pipelines segment reported adjusted EBITDA of $630 million for the third quarter of 2025.
• Lower firm tolls on the Cochin Pipeline are noted due to recontracting in July 2024.

Petrochemical manufacturers requiring ethane and propane supply

Pembina Pipeline Corporation supports petrochemical operations through NGL services, including fractionation and supply agreements.

Pembina Pipeline Corporation has secured significant export capacity to serve these customers:

Propane/LPG Service	Capacity	Status/Agreement
Propane Export Capacity Access	50,000 barrels per day (bpd)	New commercial agreement and newly sanctioned project.
Prince Rupert Terminal (PRT) Optimization	20,000 bpd	Approved $145 million optimization.
AltaGas Tolling Agreement (RIPET/REEF)	30,000 bpd	Long-term tolling agreement for LPG export capacity.

Global energy buyers via export facilities (e.g., LNG customers)

These customers are served through Pembina Pipeline Corporation's export infrastructure, connecting WCSB supply to international markets.

• Projects are in development related to optimization of the Prince Rupert Terminal to allow for the use of larger vessels.
• The Dow Supply Agreement is a key development related to future projects.
• Third-party projects supporting West Coast LNG Exports have an estimated capacity of approximately 2.8 to 4.9 bcf/d of natural gas feedstock.

You're looking at the core revenue drivers for Pembina Pipeline Corporation's fee-based business, which is targeted for four to six percent compound annual growth of fee-based adjusted EBITDA per share from 2023-2026.

Finance: review contract renewal impact on Q4 2025 revenue projections by end of month.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Cost Structure

The Cost Structure for Pembina Pipeline Corporation is heavily weighted toward maintaining its extensive asset base and funding significant future growth initiatives. This structure is characterized by high fixed costs necessary to ensure safe and reliable operations across its network.

High fixed costs for pipeline and facility integrity and maintenance represent a non-negotiable component of the operating structure. For instance, non-recoverable sustaining capital expenditure for the remainder of 2025 is designated to be approximately $35 million to support safe and reliable operations, as noted in the Q3 2025 update. Also, higher integrity spend in the Facilities Division contributed to an increase to operating expenses in the third quarter of 2025.

Significant capital expenditures for growth projects (e.g., RFS IV, Peace expansions) drive substantial cash outlay. Pembina Pipeline Corporation revised its outlook for its 2025 capital investment program to $1.3 billion. Future capital expenditures for the remainder of 2025 were estimated to be approximately $225 million as of the Q3 2025 report. Specific project costs contributing to this include:

• RFS IV anticipated total cost is approximately $500 million.
• The Phase VIII Peace Pipeline Expansion estimated project cost was $430 million.
• The Wapiti Expansion was approved with an expected cost of $140 million net to Pembina.

Operating expenses, including power and environmental compliance, fluctuate based on operational needs and market prices. In the third quarter of 2025, operating expenses saw increases due to higher transportation costs and higher integrity spend, though this was partially offset by lower recoverable power costs resulting from a lower power pool price during the period.

The company manages its financing costs by targeting a specific leverage level. Pembina Pipeline Corporation is forecasting a year-end proportionately consolidated debt-to-adjusted EBITDA ratio of 3.4 to 3.7 times for 2025. If the debt related to the Cedar LNG project is excluded, this ratio would be 3.2 to 3.5 times. The interest expense on debt is a direct function of the outstanding debt required to fund the capital program, which is set against the projected 2025 Adjusted EBITDA guidance range of $4.25 billion to $4.35 billion.

Here is a snapshot of key 2025 financial metrics relevant to the cost structure context:

Financial Metric	2025 Guidance/Actual (Q3 YTD)	Unit
2025 Adjusted EBITDA Guidance Range (High End)	4.35 Billion	CAD
2025 Capital Investment Program (Total)	1.3	Billion
Remaining 2025 Capital Expenditures (Estimate)	225 Million	CAD
Anticipated 2025 Income Tax Expense Range (Low End)	415 Million	CAD
Year-End Debt-to-Adjusted EBITDA Target (Upper End)	3.7	Times
Q3 2025 Adjusted EBITDA	1,034 Million	CAD

The total capital expenditures for the nine months ended September 30, 2025, reached $549 million. This compares to $713 million in capital expenditures for the same nine-month period in 2024.

Pembina Pipeline Corporation (PBA) - Canvas Business Model: Revenue Streams

You're looking at how Pembina Pipeline Corporation generates its cash flow, which is heavily weighted towards stable, long-term contracts. Honestly, for a midstream player, this is what you want to see-less exposure to volatile commodity prices and more reliance on steady service fees.

The core of Pembina Pipeline Corporation's revenue comes from fee-for-service transportation and processing tolls. This forms the majority of their earnings power, giving you that predictable cash flow stream. This is the bedrock of their business model.

Here's a quick look at the key financial targets for 2025, based on the latest figures:

Metric	Value
2025 Adjusted EBITDA Guidance Range	$4.25 billion to $4.35 billion
Forecasted Marketing & New Ventures Contribution (Midpoint)	$550 million
Fee-Based Adjusted EBITDA Growth (2023-2026 CAGR)	4 to 6 percent
Fee-Based Adjusted EBITDA Growth (vs. 2024 Forecast Midpoint)	Approximately 5.5 percent increase

The commodity sales and marketing margins from the Marketing & New Ventures segment provide an important, though less stable, component. For 2025, the midpoint of the overall guidance range anticipates a contribution of $550 million from this segment. This segment's contribution is what frames the lower and upper ends of the total guidance range, as it is more sensitive to commodity prices and the US/Canadian dollar exchange rate.

You can see the focus on the stable side of the business through their growth targets. Pembina remains on-track to achieve four to six percent compound annual growth of fee-based adjusted EBITDA per share from 2023-2026. Excluding the marketing segment, the midpoint of the 2025 guidance reflects an approximately 5.5 percent increase in fee-based adjusted EBITDA compared to the forecast for 2024. That's solid, low-to-mid single-digit growth driven by infrastructure assets.

The stability you're looking for is locked in through long-term contracts, which often include take-or-pay contract revenue provisions. This means customers commit to paying for a certain volume or capacity regardless of whether they use it all, which is key for volume and price stability.

We see this stability reflected in recent contract actions:

• New transportation agreements on the Peace Pipeline secured renewals and additions totaling approximately 50,000 barrels per day (bpd) with a weighted average term of approximately 10 years.
• The long-term contractual profile for Alliance Pipeline was strengthened, with shippers electing a new 10-year toll on approximately 96 percent of the firm capacity available.
• Revenue volume growth on conventional pipelines and gas processing assets is expected to be lower than physical volume growth as certain customers expand into their contractual take-or-pay commitments in 2025.
• New long-term take-or-pay agreements support infrastructure funding, such as an agreement tied to a Montney producer for an under-construction battery and additional infrastructure, backed by a new long-term take-or-pay agreement.

These long-term, fee-based arrangements are what drive the predictable cash flow that supports the dividend and debt repayment plans.