Latest news with #CER
Scoop
16 hours ago
- Business
- Scoop
PM Luxon concludes successful Aus-NZ meeting
Rt Hon Christopher Luxon Prime Minister Christopher Luxon has met his Australian counterpart Anthony Albanese today in Queenstown. 'It's an absolute pleasure to welcome my great mate Anthony to the jewel in the crown of New Zealand's scenic beauty. I'm looking forward to spending more time with him and Jodie, enjoying the best Queenstown has to offer. 'Prime Minister Albanese and I have just concluded an energetic set of talks where we traversed the full range of matters that are top of mind for two leaders that see the world in very similar ways. 'We discussed the shared challenges facing the New Zealand and Australian economies and the opportunities we have to work together. 'In particular, I valued the discussion about our respective economic plans. The crossover between New Zealand's Going for Growth agenda and Australia's productivity agenda provides plenty of cooperation opportunities,' Mr Luxon says. The two leaders announced a new partnership between New Zealand and Australia's national standards bodies. More harmonisation of standards will make trade even easier, bring down costs and support economic growth on both sides of the Tasman. The annual leaders' meeting kicks off a busy period of trans-Tasman economic meetings with the Australia New Zealand Leadership Forum in Canberra in September and the Climate and Finance Ministers' meeting and CER Trade Ministers' meeting taking place later this year.
Yahoo
4 days ago
- Business
- Yahoo
ZBH Stock Gains On Q2 Earnings and Revenue Beat, '25 EPS View Up
Zimmer Biomet Holdings, Inc. ZBH posted second-quarter 2025 adjusted earnings per share (EPS) of $2.07, which beat the Zacks Consensus Estimate by 4.5%. The adjusted figure rose 3% year over year. The quarter's adjustments included certain amortization, restructuring and other cost reduction initiatives, inventory and manufacturing-related charges and European Union Medical Device Regulation-related charges, among others. On a reported basis, the company registered earnings of 77 cents per share compared with $1.18 in the year-ago period Following the announcement, shares of ZBH edged up 2.2% in pre-market trading today. ZBH's Q2 Revenues Second-quarter net sales of $2.08 billion increased 7% (up 5.4% at constant exchange rate or CER) year over year. The figure exceeded the Zacks Consensus Estimate by 1.6%. ZBH's Revenues by Geography During the second quarter, sales generated in the United States totaled $1.17 billion (up 6.1% year over year), while International sales grossed $903.5 million (up 8.1% year over year and 4.6% at CER). Our model projected revenues of $1.16 billion from the United States and $872.4 million from International. Segmental Analysis of ZBH's Revenues The company currently reports under four product categories — Knees, Hips, S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) and Technology & Data, Bone Cement and Surgical. Sales in the Knees unit improved 1.8% year over year at CER to $826 million. Our model estimate was pegged at $851.1 million. Hips sales grew 4% year over year at CER to $536.1 million. Our model estimate was $526.6 million for the same. Revenues in the S.E.T. unit rose 16% year over year at CER to $550.6 million. Our model estimate was $481.7 million. Technology & Data, Bone Cement and Surgical (historically referred to as "Other") revenues decreased 2.2% to $164.6 million at CER in the second quarter. Our model estimate was $172.7 million. ZBH's Margin Performance Adjusted gross margin, after excluding the impact of intangible asset amortization, was 71.5%, which remained flat year over year. Selling, general and administrative expenses rose 10.5% to $814.8 million. Research and development expenses rose 3.6% to $113.3 million. Adjusted operating margin contracted 109 bps to 26.8%. ZBH's Cash Position Zimmer Biomet exited the second quarter with cash and cash equivalents of $556.9 million compared with $1.38 billion at the end of the first quarter of 2025. Cumulative net cash provided by operating activities at the end of the second quarter was $761 billion compared with $597.4 billion in the year-ago period. ZBH's Updated 2025 Outlook Zimmer Biomet updated its financial guidance for 2025. Revenue growth is now expected to be in the band of 6.7-7.7% (earlier guidance: 5.7-8.2%). The company currently expects foreign exchange to have an adverse impact of 0.5% on revenues (0.0-0.5%). Zimmer Biomet Holdings, Inc. Price, Consensus and EPS Surprise Zimmer Biomet Holdings, Inc. price-consensus-eps-surprise-chart | Zimmer Biomet Holdings, Inc. Quote Adjusted EPS for the full year is now expected to be in the range of $8.10-$8.30 (up from $7.90-$8.10). The Zacks Consensus Estimate for 2025 adjusted EPS is pegged at $7.95 on revenues of $8.19 billion. Our Take on ZBH Zimmer Biomet ended the second quarter of 2025 on a strong note, with earnings and revenues exceeding their respective Zacks Consensus Estimate. The strong performance can be attributed to ZBH's diversified portfolio outside core orthopedics and the company's strategic investments in attractive, higher-growth segments. Barring the Technology & Data, Bone Cement and Surgical segment, all other business divisions reported year-over-year CER growth. Performance across the geographic regions was solid as well. However, contraction in the operating margins was discouraging. In the second quarter, the company completed the acquisition of Paragon 28, which is expected to drive innovation and diversification, expanding the S.E.T. business into the high-growth foot and ankle segment with advanced technologies and a dedicated commercial channel. Additionally, the raised EPS guidance for 2025 is encouraging. ZBH's Zacks Rank and Key Picks Zimmer Biomet currently has a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are Boston Scientific BSX, Cardinal Health CAH and Cencora COR. Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, reported a second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Revenues of $5.06 billion topped the Zacks Consensus Estimate by 2.3%. BSX has a long-term earnings growth rate of 14% compared with the industry's 14.2%. Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%. CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry's 9.9%. Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion. Cencora has an estimated long-term growth rate of 12.8%. COR's earnings yield of 5.4% compares favorably with the industry's 4.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Cencora, Inc. (COR) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
Pembina Pipeline Reaches Settlement With Shippers On Alliance Pipeline
All financial figures are in Canadian dollars unless otherwise noted. CALGARY, Alberta, July 24, 2025--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA) announced today that Alliance Pipeline Limited Partnership ("Alliance") has reached a negotiated settlement (the "Settlement") with shippers and interested parties (the "Shipper Committee") on the Canadian portion of the Alliance Pipeline and filed an application with the Canada Energy Regulator (the "CER") seeking approval of the Settlement. Separately, Alliance announced it is soliciting non-binding expressions of interest for a new regional short-haul transportation service. "We are pleased after many months of complex, yet productive, discussions to have reached a negotiated solution with the Shipper Committee, consisting of over 30 members," said Scott Burrows, Pembina's President and Chief Executive Officer. "The negotiated tolls are competitive and will provide toll certainty to Shippers. The Settlement is fair and equitable to Alliance and all Shippers. We now look forward to a timely response from the CER." In November 2024, the CER ordered Alliance to submit for approval a detailed toll application justifying why its current tolling methodology remained compliant with the Canadian Energy Regulator Act, or a new tolling methodology application. Likewise, the CER ordered that the current tolls be deemed interim tolls until resolution of the above. Following the CER order, Alliance worked collaboratively with the Shipper Committee towards a negotiated settlement. Highlights of the Settlement include: A 10-year term, effective November 1, 2025 - October 31, 2035. A revised term-differentiated toll schedule that includes the establishment of a new 10-year toll and a reduction to the existing 1-year, 3-year and 5-year tolls ("New Tolls"). The New Tolls are expected to reduce existing long-term firm tolls by an average of 14 percent on a volume weighted average basis. All existing long-term firm service contracts will incorporate the New Tolls, and the New Tolls will remain fixed for the 10-year period effective November 1, 2025. The Settlement offers existing long-term firm shippers a one-time term extension option, enabling shippers to take advantage of the new term-differentiated tolls, effective November 1, 2025. Alliance anticipates a significant portion of contracted volumes to take advantage of the 10-year toll, thereby extending the weighted average term of Alliance's contractual profile. Revenue from biddable transportation service (seasonal and interruptible) for volumes above long-term firm capacity of 1.325 billion cubic feet per day, will be shared 50/50 between Alliance and firm and seasonal shippers, thus aligning the interests of Alliance and its shippers and maintaining Alliance's ability to fairly and equitably allocate short-term capacity when available and demanded by the market. The Settlement has no retroactive impact on the interim tolls in effect since November 2024. The interim tolls will be made final and apply until October 31, 2025. Alliance will remain under an 'at-risk' commercial model where returns and Alliance's ability to recover operating costs are squarely driven by the customer demand for its service and Alliance's ability to efficiently provide such service and manage costs. Alliance will return approximately $95 million, currently held as an existing liability on Alliance's balance sheet, associated with eligible recoverable costs ("Recoverable Cost Variance"). The economic impact to Alliance of the return of this balance is limited to foregone carrying charges, which previously accrued at 8.75 percent. Alliance's ability to recover the same limited categories of cost in the future via surcharges under the Settlement is unchanged. The Shipper Committee supported the Settlement through a vote on July 23, 2025. The Settlement is contingent on approval by the CER. Alliance has filed an application with the CER requesting approval of the Settlement by September 15, 2025. The full application is available for viewing on the CER Website. Pembina expects the financial impact to Alliance from the Settlement over the next 10 years will be an approximately $50 million per year reduction in long-term firm service revenue, plus the impact of the new revenue sharing provision. The impact of the revenue sharing provision is subject to biddable transportation service tolls, which will depend primarily on future commodity prices. The estimated impact of the revenue sharing provision assuming an AECO-Chicago natural gas spread of C$1.50 per thousand cubic feet ("mcf") is approximately $40 million. The estimated impact of every incremental C$0.25/mcf change is approximately $10 million. Applying the terms of the Settlement to Alliance's financial results over the historical five-year period from 2020 to 2024, the average annual impact of the Settlement, including the reduction in long-term firm service revenue and the impact of the new revenue sharing provision, would have been approximately $95 million. Alliance has a proven track record of high reliability and high utilization and is unique in its ability to transport liquids-rich, Canadian-produced natural gas, while providing a cross-border conduit to high demand U.S. markets. Pembina looks forward to continuing to deliver exceptional customer service and maximizing the value of this critical and highly differentiated North American energy infrastructure asset. Prospective Regional Short-Haul Alliance Expansion Alliance is soliciting non-binding expressions of interest for a prospective new short-haul expansion providing transportation capacity to Alberta's Industrial Heartland with delivery to Fort Saskatchewan, Alberta. As part of its proposed offering, Alliance has initiated a feasibility study for up to 350 million cubic feet per day of incremental capacity with an anticipated in-service date in late 2029. About Alliance Pipeline The Alliance Pipeline delivers an average of 1.7 bcf/d of liquids rich gas and consists of an approximately 3,850 km integrated Canadian and U.S. natural gas transmission pipeline, from the WCSB and the Williston Basin in North Dakota to natural gas markets in the Chicago, Illinois area. The Canadian portion of the Alliance Pipeline consists of a 1,561 km natural gas mainline pipeline and related lateral pipelines connected to natural gas receipt locations, primarily at gas processing facilities in northwestern Alberta and northeastern British Columbia. The U.S. portion of the Alliance Pipeline consists of 1,556 km of infrastructure, including the 129 km Tioga lateral in North Dakota. About Pembina Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically-located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive. Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit Forward-Looking Statements and Information This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance. In particular, this news release contains forward-looking statements, including certain financial outlooks, pertaining to, without limitation, the following: the expected term, conditions, costs, timing and impact of the Settlement, including its expected financial impact to Alliance; the impact of the New Tolls; the expected timing and impact of the decision by the CER; and the expected impact on Alliance's contracted volumes. The forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: that the approval by the CER will occur on a timely basis; prevailing commodity prices, interest rates, carbon prices, tax rates, exchange rates and inflation rates; oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any third-party projects relating to Pembina's growth projects will be sanctioned and completed as expected; that any required commercial agreements can be reached in the manner and on the terms expected by Pembina; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy) and certain other assumptions in respect of Pembina's forward-looking statements detailed in Pembina's Annual Information Form for the year ended December 31, 2024 (the "AIF") and Management's Discussion and Analysis for the year ended December 31, 2024 (the "Annual MD&A"), which were each filed on SEDAR+ on February 27, 2025, in Pembina's Management's Discussion and Analysis for the three months ended March 31, 2025 (the "Interim MD&A"), which was filed on SEDAR+ on May 8, 2025, and from time to time in Pembina's public disclosure documents available at and through Pembina's website at Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: unfavourable outcomes to Alliance in respect of the ultimate CER decision relating to the Settlement; required changes to the design or scope of the Settlement that result in significant cost increases or timing delays or other negative implications in respect of the Settlement and the commitment of shippers thereon; the strength and operations of the oil and natural gas production industry and related commodity prices; the regulatory environment and decisions and Indigenous and landowner consultation requirements including the outcome of regulatory hearings; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages;-performance or default by counterparties to agreements which Pembina or one or more of its affiliates, including Alliance, has entered into in respect of its business; actions by governmental or regulatory authorities, including changes in laws and treatment, including uncertainty with respect to the interpretation of the recently enacted Bill C-59 and related amendments to the Competition Act (Canada,; changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; Pembina's ability to realize the anticipated benefits of recent acquisitions; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in the AIF, Annual MD&A, Interim MD&A and from time to time in Pembina's public disclosure documents available at and through Pembina's website at This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date hereof. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The purpose of the financial outlooks contained herein is to assist readers in understanding Pembina's expected financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. View source version on Contacts For further information:Investor Relations(403) 231-31561-855-880-7404e-mail: investor-relations@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
24-07-2025
- Business
- Business Wire
Pembina Pipeline Reaches Settlement With Shippers On Alliance Pipeline
CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA) announced today that Alliance Pipeline Limited Partnership ("Alliance") has reached a negotiated settlement (the "Settlement") with shippers and interested parties (the "Shipper Committee") on the Canadian portion of the Alliance Pipeline and filed an application with the Canada Energy Regulator (the "CER") seeking approval of the Settlement. Separately, Alliance announced it is soliciting non-binding expressions of interest for a new regional short-haul transportation service. "We are pleased after many months of complex, yet productive, discussions to have reached a negotiated solution with the Shipper Committee, consisting of over 30 members," said Scott Burrows, Pembina's President and Chief Executive Officer. "The negotiated tolls are competitive and will provide toll certainty to Shippers. The Settlement is fair and equitable to Alliance and all Shippers. We now look forward to a timely response from the CER." In November 2024, the CER ordered Alliance to submit for approval a detailed toll application justifying why its current tolling methodology remained compliant with the Canadian Energy Regulator Act, or a new tolling methodology application. Likewise, the CER ordered that the current tolls be deemed interim tolls until resolution of the above. Following the CER order, Alliance worked collaboratively with the Shipper Committee towards a negotiated settlement. Highlights of the Settlement include: A revised term-differentiated toll schedule that includes the establishment of a new 10-year toll and a reduction to the existing 1-year, 3-year and 5-year tolls ("New Tolls"). The New Tolls are expected to reduce existing long-term firm tolls by an average of 14 percent on a volume weighted average basis. All existing long-term firm service contracts will incorporate the New Tolls, and the New Tolls will remain fixed for the 10-year period effective November 1, 2025. The Settlement offers existing long-term firm shippers a one-time term extension option, enabling shippers to take advantage of the new term-differentiated tolls, effective November 1, 2025. Alliance anticipates a significant portion of contracted volumes to take advantage of the 10-year toll, thereby extending the weighted average term of Alliance's contractual profile. Revenue from biddable transportation service (seasonal and interruptible) for volumes above long-term firm capacity of 1.325 billion cubic feet per day, will be shared 50/50 between Alliance and firm and seasonal shippers, thus aligning the interests of Alliance and its shippers and maintaining Alliance's ability to fairly and equitably allocate short-term capacity when available and demanded by the market. The Settlement has no retroactive impact on the interim tolls in effect since November 2024. The interim tolls will be made final and apply until October 31, 2025. Alliance will remain under an 'at-risk' commercial model where returns and Alliance's ability to recover operating costs are squarely driven by the customer demand for its service and Alliance's ability to efficiently provide such service and manage costs. Alliance will return approximately $95 million, currently held as an existing liability on Alliance's balance sheet, associated with eligible recoverable costs ("Recoverable Cost Variance"). The economic impact to Alliance of the return of this balance is limited to foregone carrying charges, which previously accrued at 8.75 percent. Alliance's ability to recover the same limited categories of cost in the future via surcharges under the Settlement is unchanged. The Shipper Committee supported the Settlement through a vote on July 23, 2025. The Settlement is contingent on approval by the CER. Alliance has filed an application with the CER requesting approval of the Settlement by September 15, 2025. The full application is available for viewing on the CER Website. Pembina expects the financial impact to Alliance from the Settlement over the next 10 years will be an approximately $50 million per year reduction in long-term firm service revenue, plus the impact of the new revenue sharing provision. The impact of the revenue sharing provision is subject to biddable transportation service tolls, which will depend primarily on future commodity prices. The estimated impact of the revenue sharing provision assuming an AECO-Chicago natural gas spread of C$1.50 per thousand cubic feet ("mcf") is approximately $40 million. The estimated impact of every incremental C$0.25/mcf change is approximately $10 million. Applying the terms of the Settlement to Alliance's financial results over the historical five-year period from 2020 to 2024, the average annual impact of the Settlement, including the reduction in long-term firm service revenue and the impact of the new revenue sharing provision, would have been approximately $95 million. Alliance has a proven track record of high reliability and high utilization and is unique in its ability to transport liquids-rich, Canadian-produced natural gas, while providing a cross-border conduit to high demand U.S. markets. Pembina looks forward to continuing to deliver exceptional customer service and maximizing the value of this critical and highly differentiated North American energy infrastructure asset. Prospective Regional Short-Haul Alliance Expansion Alliance is soliciting non-binding expressions of interest for a prospective new short-haul expansion providing transportation capacity to Alberta's Industrial Heartland with delivery to Fort Saskatchewan, Alberta. As part of its proposed offering, Alliance has initiated a feasibility study for up to 350 million cubic feet per day of incremental capacity with an anticipated in-service date in late 2029. About Alliance Pipeline The Alliance Pipeline delivers an average of 1.7 bcf/d of liquids rich gas and consists of an approximately 3,850 km integrated Canadian and U.S. natural gas transmission pipeline, from the WCSB and the Williston Basin in North Dakota to natural gas markets in the Chicago, Illinois area. The Canadian portion of the Alliance Pipeline consists of a 1,561 km natural gas mainline pipeline and related lateral pipelines connected to natural gas receipt locations, primarily at gas processing facilities in northwestern Alberta and northeastern British Columbia. The U.S. portion of the Alliance Pipeline consists of 1,556 km of infrastructure, including the 129 km Tioga lateral in North Dakota. About Pembina Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically-located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive. Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit Forward-Looking Statements and Information This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance. In particular, this news release contains forward-looking statements, including certain financial outlooks, pertaining to, without limitation, the following: the expected term, conditions, costs, timing and impact of the Settlement, including its expected financial impact to Alliance; the impact of the New Tolls; the expected timing and impact of the decision by the CER; and the expected impact on Alliance's contracted volumes. The forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: that the approval by the CER will occur on a timely basis; prevailing commodity prices, interest rates, carbon prices, tax rates, exchange rates and inflation rates; oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any third-party projects relating to Pembina's growth projects will be sanctioned and completed as expected; that any required commercial agreements can be reached in the manner and on the terms expected by Pembina; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy) and certain other assumptions in respect of Pembina's forward-looking statements detailed in Pembina's Annual Information Form for the year ended December 31, 2024 (the "AIF") and Management's Discussion and Analysis for the year ended December 31, 2024 (the "Annual MD&A"), which were each filed on SEDAR+ on February 27, 2025, in Pembina's Management's Discussion and Analysis for the three months ended March 31, 2025 (the "Interim MD&A"), which was filed on SEDAR+ on May 8, 2025, and from time to time in Pembina's public disclosure documents available at and through Pembina's website at Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: unfavourable outcomes to Alliance in respect of the ultimate CER decision relating to the Settlement; required changes to the design or scope of the Settlement that result in significant cost increases or timing delays or other negative implications in respect of the Settlement and the commitment of shippers thereon; the strength and operations of the oil and natural gas production industry and related commodity prices; the regulatory environment and decisions and Indigenous and landowner consultation requirements including the outcome of regulatory hearings; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages;-performance or default by counterparties to agreements which Pembina or one or more of its affiliates, including Alliance, has entered into in respect of its business; actions by governmental or regulatory authorities, including changes in laws and treatment, including uncertainty with respect to the interpretation of the recently enacted Bill C-59 and related amendments to the Competition Act (Canada,; changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; Pembina's ability to realize the anticipated benefits of recent acquisitions; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in the AIF, Annual MD&A, Interim MD&A and from time to time in Pembina's public disclosure documents available at and through Pembina's website at This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date hereof. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The purpose of the financial outlooks contained herein is to assist readers in understanding Pembina's expected financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
National Post
24-07-2025
- Business
- National Post
Pembina Pipeline Reaches Settlement With Shippers On Alliance Pipeline
Article content All financial figures are in Canadian dollars unless otherwise noted. Article content CALGARY, Alberta — Pembina Pipeline Corporation ('Pembina') (TSX: PPL; NYSE: PBA) announced today that Alliance Pipeline Limited Partnership ('Alliance') has reached a negotiated settlement (the 'Settlement') with shippers and interested parties (the 'Shipper Committee') on the Canadian portion of the Alliance Pipeline and filed an application with the Canada Energy Regulator (the 'CER') seeking approval of the Settlement. Separately, Alliance announced it is soliciting non-binding expressions of interest for a new regional short-haul transportation service. Article content Article content 'We are pleased after many months of complex, yet productive, discussions to have reached a negotiated solution with the Shipper Committee, consisting of over 30 members,' said Scott Burrows, Pembina's President and Chief Executive Officer. 'The negotiated tolls are competitive and will provide toll certainty to Shippers. The Settlement is fair and equitable to Alliance and all Shippers. We now look forward to a timely response from the CER.' Article content In November 2024, the CER ordered Alliance to submit for approval a detailed toll application justifying why its current tolling methodology remained compliant with the Canadian Energy Regulator Act, or a new tolling methodology application. Likewise, the CER ordered that the current tolls be deemed interim tolls until resolution of the above. Following the CER order, Alliance worked collaboratively with the Shipper Committee towards a negotiated settlement. Article content Highlights of the Settlement include: Article content A 10-year term, effective November 1, 2025 – October 31, 2035. A revised term-differentiated toll schedule that includes the establishment of a new 10-year toll and a reduction to the existing 1-year, 3-year and 5-year tolls ('New Tolls'). The New Tolls are expected to reduce existing long-term firm tolls by an average of 14 percent on a volume weighted average basis. All existing long-term firm service contracts will incorporate the New Tolls, and the New Tolls will remain fixed for the 10-year period effective November 1, 2025. The Settlement offers existing long-term firm shippers a one-time term extension option, enabling shippers to take advantage of the new term-differentiated tolls, effective November 1, 2025. Alliance anticipates a significant portion of contracted volumes to take advantage of the 10-year toll, thereby extending the weighted average term of Alliance's contractual profile. Revenue from biddable transportation service (seasonal and interruptible) for volumes above long-term firm capacity of 1.325 billion cubic feet per day, will be shared 50/50 between Alliance and firm and seasonal shippers, thus aligning the interests of Alliance and its shippers and maintaining Alliance's ability to fairly and equitably allocate short-term capacity when available and demanded by the market. The Settlement has no retroactive impact on the interim tolls in effect since November 2024. The interim tolls will be made final and apply until October 31, 2025. Alliance will remain under an 'at-risk' commercial model where returns and Alliance's ability to recover operating costs are squarely driven by the customer demand for its service and Alliance's ability to efficiently provide such service and manage costs. Alliance will return approximately $95 million, currently held as an existing liability on Alliance's balance sheet, associated with eligible recoverable costs ('Recoverable Cost Variance'). The economic impact to Alliance of the return of this balance is limited to foregone carrying charges, which previously accrued at 8.75 percent. Alliance's ability to recover the same limited categories of cost in the future via surcharges under the Settlement is unchanged. Article content The Shipper Committee supported the Settlement through a vote on July 23, 2025. The Settlement is contingent on approval by the CER. Alliance has filed an application with the CER requesting approval of the Settlement by September 15, 2025. The full application is available for viewing on the CER Website. Article content Pembina expects the financial impact to Alliance from the Settlement over the next 10 years will be an approximately $50 million per year reduction in long-term firm service revenue, plus the impact of the new revenue sharing provision. The impact of the revenue sharing provision is subject to biddable transportation service tolls, which will depend primarily on future commodity prices. The estimated impact of the revenue sharing provision assuming an AECO-Chicago natural gas spread of C$1.50 per thousand cubic feet ('mcf') is approximately $40 million. The estimated impact of every incremental C$0.25/mcf change is approximately $10 million. Applying the terms of the Settlement to Alliance's financial results over the historical five-year period from 2020 to 2024, the average annual impact of the Settlement, including the reduction in long-term firm service revenue and the impact of the new revenue sharing provision, would have been approximately $95 million. Article content Alliance has a proven track record of high reliability and high utilization and is unique in its ability to transport liquids-rich, Canadian-produced natural gas, while providing a cross-border conduit to high demand U.S. markets. Pembina looks forward to continuing to deliver exceptional customer service and maximizing the value of this critical and highly differentiated North American energy infrastructure asset. Prospective Regional Short-Haul Alliance Expansion Article content Alliance is soliciting non-binding expressions of interest for a prospective new short-haul expansion providing transportation capacity to Alberta's Industrial Heartland with delivery to Fort Saskatchewan, Alberta. As part of its proposed offering, Alliance has initiated a feasibility study for up to 350 million cubic feet per day of incremental capacity with an anticipated in-service date in late 2029. Article content About Alliance Pipeline Article content The Alliance Pipeline delivers an average of 1.7 bcf/d of liquids rich gas and consists of an approximately 3,850 km integrated Canadian and U.S. natural gas transmission pipeline, from the WCSB and the Williston Basin in North Dakota to natural gas markets in the Chicago, Illinois area. The Canadian portion of the Alliance Pipeline consists of a 1,561 km natural gas mainline pipeline and related lateral pipelines connected to natural gas receipt locations, primarily at gas processing facilities in northwestern Alberta and northeastern British Columbia. The U.S. portion of the Alliance Pipeline consists of 1,556 km of infrastructure, including the 129 km Tioga lateral in North Dakota. About Pembina Article content Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically-located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit Article content Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive. Article content Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Article content Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit Article content Forward-Looking Statements and Information Article content This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking statements'), including forward-looking statements within the meaning of the 'safe harbor' provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as 'continue', 'anticipate', 'schedule', 'will', 'expects', 'estimate', 'potential', 'planned', 'future', 'outlook', 'strategy', 'project', 'plan', 'commit', 'maintain', 'focus', 'ongoing', 'believe' and similar expressions suggesting future events or future performance. Article content In particular, this news release contains forward-looking statements, including certain financial outlooks, pertaining to, without limitation, the following: the expected term, conditions, costs, timing and impact of the Settlement, including its expected financial impact to Alliance; the impact of the New Tolls; the expected timing and impact of the decision by the CER; and the expected impact on Alliance's contracted volumes. Article content The forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: that the approval by the CER will occur on a timely basis; prevailing commodity prices, interest rates, carbon prices, tax rates, exchange rates and inflation rates; oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any third-party projects relating to Pembina's growth projects will be sanctioned and completed as expected; that any required commercial agreements can be reached in the manner and on the terms expected by Pembina; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy) and certain other assumptions in respect of Pembina's forward-looking statements detailed in Pembina's Annual Information Form for the year ended December 31, 2024 (the 'AIF') and Management's Discussion and Analysis for the year ended December 31, 2024 (the 'Annual MD&A'), which were each filed on SEDAR+ on February 27, 2025, in Pembina's Management's Discussion and Analysis for the three months ended March 31, 2025 (the 'Interim MD&A'), which was filed on SEDAR+ on May 8, 2025, and from time to time in Pembina's public disclosure documents available at Article content Article content , Article content . Article content Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: unfavourable outcomes to Alliance in respect of the ultimate CER decision relating to the Settlement; required changes to the design or scope of the Settlement that result in significant cost increases or timing delays or other negative implications in respect of the Settlement and the commitment of shippers thereon; the strength and operations of the oil and natural gas production industry and related commodity prices; the regulatory environment and decisions and Indigenous and landowner consultation requirements including the outcome of regulatory hearings; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages;-performance or default by counterparties to agreements which Pembina or one or more of its affiliates, including Alliance, has entered into in respect of its business; actions by governmental or regulatory authorities, including changes in laws and treatment, including uncertainty with respect to the interpretation of the recently enacted Bill C-59 and related amendments to the Competition Act (Canada,; changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; Pembina's ability to realize the anticipated benefits of recent acquisitions; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in the AIF, Annual MD&A, Interim MD&A and from time to time in Pembina's public disclosure documents available at Article content Article content , Article content Article content and through Pembina's website at Article content Article content . 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