Key Highlights

● Adjusted EBITDA was C$1,064 million, up 5% from C$1,013 million.

● Earnings were C$512 million, or C$0.83 per share, versus C$417 million.

● Management reiterated 2026 adjusted EBITDA guidance of C$4.35–C$4.55 billion.

● The board declared a third-quarter dividend of C$0.735 per share.

Pembina Pipeline Corporation (NYSE:PBA) is a Calgary-based energy infrastructure company whose common shares are listed on the Toronto Stock Exchange as PPL and the New York Stock Exchange as PBA. It reports in Canadian dollars through three divisions: Pipelines, Facilities, and Marketing and New Ventures. On July 30, 2026 it reported second-quarter revenue of C$2,152 million, up from C$1,792 million, and adjusted EBITDA of C$1,064 million, 5% higher than C$1,013 million a year earlier.

Earnings were C$512 million, or C$0.83 basic per share, compared with C$417 million and C$0.65. Adjusted earnings rose to C$415 million, or C$0.66 per share, from C$377 million and C$0.58. Cash flow from operating activities was C$897 million (C$790 million), and adjusted cash flow from operating activities was C$778 million (C$698 million). Capital expenditure was C$218 million, up from C$197 million.

Divisional picture and volumes

Facilities adjusted EBITDA increased 17% to C$386 million, and Marketing and New Ventures rose 50% to C$111 million. Pipelines slipped to C$626 million from C$646 million, which the company attributed mainly to the toll change on the Alliance pipeline under the new toll structure effective November 1, 2025. Corporate costs were C$59 million, higher by C$21 million, chiefly from incentive compensation. Volumes were firm: pipelines averaged 2,809 thousand barrels of oil equivalent per day (2,768), facilities 889 (826) and marketed crude and NGL volumes 372 (302). For the first half, adjusted EBITDA was C$2,195 million against C$2,180 million.

Guidance, projects and funding

Management reiterated 2026 adjusted EBITDA guidance of C$4.35 billion to C$4.55 billion and said Pembina is trending to the midpoint. It expects third-quarter adjusted EBITDA to fall below the second quarter, with the fourth quarter higher, citing frac spread seasonality, higher pipeline integrity and maintenance spending, Alliance seasonality and a lower Cochin contribution. These are management expectations, not reported results.

The RFS IV fractionation expansion at Redwater entered service in late May 2026, adding 55,000 barrels per day and taking capacity to about 256,000. The Heartland Extraction Plant was sanctioned at C$570 million, and the C$4.6 billion Greenlight Electricity Center, a 932 megawatt gas-fired plant serving a Meta (NASDAQ:META) data center in Alberta, reached final investment decision. Cedar LNG is expected to deliver first exports in late 2028. Pembina targets 5 to 7% compound annual growth in fee-based adjusted EBITDA per share through 2030.

Dividend and the benchmark comparison

The board declared a third-quarter common dividend of C$0.735 per share, paid on September 29, 2026 to holders of record on September 15, which Pembina put at roughly US$0.5219 per share before withholding tax at an exchange rate of 0.7101. These are distributions on the ordinary shares that trade as PBA. Adjusted earnings of C$0.66 per share in the quarter compare with the C$0.735 quarterly dividend, so the payout relies on cash flow rather than adjusted earnings alone.

Pembina's results are driven by contracted fees and commodity-linked margins rather than the broader market, so benchmark comparisons such as the S&P/TSX Composite are best made over full cycles.

Marketing Margins and Project Cost Risks

Commodity-linked margins in marketing and the frac spread, interruptible volumes, the US and Canadian dollar exchange rate and share-price effects on incentive costs can all move earnings within the guidance range. Large projects, including Cedar LNG and the Greenlight plant, carry construction and cost risks. The Alliance toll change has already reduced pipeline earnings.