CALGARY, AB, Feb. 25, 2021
/CNW/ - Pembina Pipeline Corporation ("Pembina" or the
"Company") (TSX: PPL) (NYSE: PBA) announced today the acceptance by
the Toronto Stock Exchange (the "TSX") of Pembina's notice to
commence a normal course issuer bid (the "NCIB") to purchase up to
five percent of its outstanding common shares.
Under the NCIB, purchases of common shares may be made through
the facilities of the TSX, the New York Stock Exchange and/or
alternative Canadian trading systems, commencing on March 2, 2021 and expiring on the earlier of
March 1, 2022 and the date on which
Pembina has acquired the maximum number of common shares allowable
under the NCIB or the date on which Pembina otherwise decides not
to make any further repurchases under the NCIB. As of February 16, 2021, Pembina had 549,949,384 common
shares outstanding and is, therefore, permitted to repurchase up to
27,497,469 common shares, being five percent of its outstanding
common shares, pursuant to the NCIB. Common shares purchased under
the NCIB will be cancelled.
Pembina believes that, from time to time, the market price of
its common shares trade at prices that may not adequately reflect
their underlying value. The actual number of common shares that may
be purchased, if any, and the timing of any such purchases, will be
determined by Pembina based on a number of factors, including
Pembina's financial performance and flexibility in the context of
its financial guardrails, the availability of discretionary cash
flow in excess of dividend and capital funding requirements, and
the risk-adjusted returns of repurchasing common shares compared to
other uses of cash including accretive capital investment
opportunities and debt reduction.
The NCIB will be effected in accordance with the TSX's normal
course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of
1934, as amended, which contain restrictions on the number of
common shares that may be purchased on a single day, subject to
certain exceptions for block purchases, based on the average daily
trading volumes of Pembina's common shares on the applicable
exchange. Subject to exceptions for block purchases, Pembina will
limit daily purchases of common shares on the TSX in connection
with the NCIB to no more than 25 percent (551,928 common shares) of
the average daily trading volume of the common shares on the TSX
(2,207,713 common shares) during any trading day.
Purchases under the NCIB will be made through open market
purchases at market price, as well as by other means as may be
permitted under applicable securities laws, including private
agreements. Any purchases made by private agreement under an issuer
bid exemption order issued by a securities regulatory authority
will be at a discount to the prevailing market price as provided in
any such exemption order.
Pembina has entered into an automatic purchase plan with a
broker which will enable Pembina to provide standard instructions
and purchase common shares on the open market during self-imposed
blackout periods. Outside of these blackout periods, common shares
may be purchased in accordance with management's discretion.
About Pembina
Pembina is a leading transportation and midstream service
provider that has been serving North
America's energy industry for more than 65 years. Pembina
owns an integrated system of pipelines that transport various
hydrocarbon liquids and natural gas products produced primarily in
western Canada. The Company also
owns gas gathering and processing facilities; an oil and natural
gas liquids infrastructure and logistics business; and is growing
an export terminals business. Pembina's integrated assets and
commercial operations along the majority of the hydrocarbon value
chain allow it to offer a full spectrum of midstream and marketing
services to the energy sector. Pembina is committed to identifying
additional opportunities to connect hydrocarbon production to new
demand locations through the development of infrastructure that
would extend Pembina's service offering even further along the
hydrocarbon value chain. These new developments will contribute to
ensuring that hydrocarbons produced in the Western Canadian
Sedimentary Basin and the other basins where Pembina operates can
reach the highest value markets throughout the world.
Purpose of Pembina:
To be the leader in delivering integrated infrastructure
solutions connecting global markets:
- Customers choose us first for reliable and value-added
services;
- Investors receive sustainable industry-leading total
returns;
- Employees say we are the 'employer of choice' and value
our safe, respectful, collaborative and fair work culture; and
- Communities welcome us and recognize the net positive
impact of our social and environmental commitment.
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 www.pembina.com.
Forward-Looking Information and Statements
This document contains certain forward-looking statements and
information (collectively, "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
"intend", "will", "shall", and similar expressions suggesting
future events or future performance.
In particular, this news release contains forward-looking
statements relating to Pembina's intention to commence the
NCIB and the timing, methods and quantity of any purchases of
common shares under the NCIB. These forward-looking
statements are based on certain assumptions that Pembina has made
in respect thereof as at the date of this news release, including:
prevailing commodity prices, margins and exchange rates, that
Pembina's businesses will continue to achieve sustainable financial
results and that future results of operations will be consistent
with past performance and management expectations in relation
thereto, the availability and sources of capital, operating costs,
ongoing utilization and future expansions, the ability to reach
required commercial agreements, and the ability to obtain required
regulatory approvals. These forward-looking statements are not
guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties, including, but not
limited to: non-performance of agreements in accordance with their
terms; the impact of competitive entities and pricing; reliance on
key industry partners, alliances and agreements; the strength and
operations of the oil and natural gas production industry and
related commodity prices; the continuation or completion of
third-party projects; regulatory environment and inability to
obtain required regulatory approvals; tax laws and treatment;
fluctuations in operating results; the ability of Pembina to raise
sufficient capital to complete future projects and satisfy future
commitments; construction delays; labour and material shortages;
risks relating to widespread epidemics or pandemic outbreaks,
including the COVID-19 pandemic; general economic, market and
business conditions; and the behaviour of financial markets,
including fluctuations in interest and exchange rates, the pricing
of comparable securities and Pembina's credit ratings; and certain
other risks detailed from time to time in Pembina's public
disclosure documents including, among others, those detailed under
the heading "Risk Factors" in Pembina's management's discussion and
analysis and annual information form, each for the year ended
December 31, 2020, each which can be
found at www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov and available on Pembina's website at
www.pembina.com.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking statements
are expressly qualified by the above statements. 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.
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SOURCE Pembina Pipeline Corporation