CALGARY, April 6, 2020 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today that it has entered into a new $800 million unsecured revolving credit facility.
The Company further announced that its Board of Directors has
declared a common share cash dividend for April 2020 of $0.21
per share and quarterly dividends for the Company's preferred
shares.
New Unsecured Revolving Credit Facility
Pembina has entered into a new $800
million unsecured revolving credit facility (the "Facility")
with certain existing key lenders. The Facility will be available
to Pembina for general corporate purposes, thereby providing
additional liquidity and flexibility should it be required. The
Facility will have an initial term of two years. The other terms
and conditions of the Facility, including financial covenants, are
substantially similar to Pembina's existing $2.5 billion revolving credit facility.
With the addition of the Facility, Pembina now has $3.3 billion in revolving credit facility
capacity and approximately $2.3
billion in available cash and unutilized debt facilities.
Further, over the next two years, Pembina's debt maturities are
modest and include $73 million in
2020 and $800 million distributed
across three instruments throughout 2021.
"In today's challenging and uncertain environment, ensuring
ample liquidity is of utmost importance and I would like to
acknowledge and thank our key lender group for their swift
response. We enjoy productive, long-term relationships with
our lenders and value their deep understanding of our business,"
stated Scott Burrows, Pembina's
Senior Vice President and Chief Financial Officer. "Over the past
two weeks we have taken decisive and unprecedented action to
preserve our strong balance sheet, protect our BBB credit rating
and ensure we have the liquidity to fund our business until market
conditions stabilize," added Mr. Burrows.
Common and Preferred Share Dividends
The common share cash dividend for April
2020 of $0.21 per share will
be paid, subject to applicable law, on May
15, 2020 to shareholders of record on April 24, 2020.
For shareholders receiving their common share dividends in U.S.
funds, the April 2020 cash dividend
is expected to be approximately U.S. $0.1485 per share (before deduction of any
applicable Canadian withholding tax) based on a currency exchange
rate of 0.7071. The actual U.S. dollar dividend will depend on the
Canadian/U.S. dollar exchange rate on the payment date and will be
subject to applicable withholding taxes.
The common share dividends are designated "eligible dividends"
for Canadian income tax purposes. For non-resident shareholders,
Pembina's common share dividends should be considered "qualified
dividends" and may be subject to Canadian withholding tax.
Pembina's Board of Directors also declared quarterly dividends
for the Company's preferred shares, Series 1, 3, 5, 7, 9, 11, 13,
15, 17, 19, 21, 23 and 25. Series 1, 3, 5, 7, 9, 11, 13 and 21
preferred share dividends are payable on June 1, 2020 to shareholders of record on
May 1, 2020. Series 15, 17 and 19
preferred share dividends are payable on June 30, 2020 to shareholders of record on
June 15, 2020. Series 23 and 25
preferred share dividends are payable on May
15, 2020 to shareholders of record on April 30, 2020.
Series
|
Dividend
Amount
|
Preferred Shares,
Series 1 (PPL.PR.A)
|
$0.306625
|
Preferred Shares,
Series 3 (PPL.PR.C)
|
$0.279875
|
Preferred Shares,
Series 5 (PPL.PR.E)
|
$0.285813
|
Preferred Shares,
Series 7 (PPL.PR.G)
|
$0.273750
|
Preferred Shares,
Series 9 (PPL.PR.I)
|
$0.296875
|
Preferred Shares,
Series 11 (PPL.PR.K)
|
$0.359375
|
Preferred Shares,
Series 13 (PPL.PR.M)
|
$0.359375
|
Preferred Shares,
Series 15 (PPL.PR.O)
|
$0.279000
|
Preferred Shares,
Series 17 (PPL.PR.Q)
|
$0.301313
|
Preferred Shares,
Series 19 (PPL.PR.S)
|
$0.312500
|
Preferred Shares,
Series 21 (PPL.PF.A)
|
$0.306250
|
Preferred Shares,
Series 23 (PPL.PF.C)
|
$0.328125
|
Preferred Shares,
Series 25 (PPL.PF.E)
|
$0.325000
|
Confirmation of Record and Payment Date Policy
Pembina pays cash dividends on its common shares in Canadian
dollars on a monthly basis to shareholders of record on the
25th calendar day of each month (except for the December
record date, which is December
31st), if, as and when determined by the Board of
Directors. Should the record date fall on a weekend or a statutory
holiday, the effective record date will be the previous business
day. The dividend payment date is the 15th calendar day
of the month following the record date. Should the payment date
fall on a weekend or on a statutory holiday, the business day prior
to the weekend or statutory holiday becomes the payment date.
Dividends on the preferred shares Series 1, 3, 5, 7, 9, 11, 13
and 21 are payable on the first calendar day of March, June,
September and December in each year, if, as and when declared by
the Board of Directors to shareholders of record on the first
calendar day of the preceding month, or, if such payment or record
date is not a business day, the next succeeding business day after
the weekend or statutory holiday. Dividends on the preferred shares
Series 15, 17 and 19 are payable on the last calendar day of March,
June, September and December in each year, if, as and when declared
by the Board of Directors to shareholders of record on the
15th calendar day of the same month, or, if such payment
or record date is not a business day, the next succeeding business
day after the weekend or statutory holiday. Dividends on the
preferred shares Series 23 and 25 are payable on the
15th day of February, May, August and November in each
year, if, as and when declared by the Board of Directors to
shareholders of record on the last business day of the preceding
month, or, if such payment or record date is not a business day,
the next succeeding business day after the weekend or statutory
holiday.
Conference Call and Webcast Details for First Quarter 2020
Results
Pembina will release its first quarter 2020 results on
Thursday, May 7, 2020 after markets
close. A conference call and webcast have been scheduled for
Friday, May 8, 2020, at 8:00 a.m. MT (10:00 a.m.
ET) for interested investors, analysts, brokers and media
representatives.
The conference call dial-in numbers for Canada and the U.S. are 647-427-7450 or
888-231-8191. A recording of the conference call will be available
for replay until May 15, 2020 at
11:59 p.m. ET. To access the replay,
please dial either 416-849-0833 or 855-859-2056 and enter the
password 3298148.
A live webcast of the conference call can be accessed on
Pembina's website at www.pembina.com under Investor Centre,
Presentation & Events, or by entering:
https://produceredition.webcasts.com/starthere.jsp?ei=1290098&tp_key=0acdce5bbf
in your web browser. Shortly after the call, an audio archive will
be posted on the website for a minimum of 90 days.
Annual General Meeting of Common Shareholders
The Company will hold its Annual General Meeting of common
shareholders ("AGM") on Friday, May 8,
2020 at 2:00 p.m. MT
(4:00 p.m. ET). The AGM will he
held as a virtual-only meeting, which will be conducted via live
audio webcast at https://web.lumiagm.com/119921742. Participants
are recommended to register for the virtual webcast at least 10
minutes before the presentation start time. A copy of the AGM
presentation can be accessed on Pembina's website at
www.pembina.com under Investor Centre, Presentation &
Events.
For further information on Pembina's virtual AGM, kindly visit
the Shareholder Information page under the Investor Centre tab at
www.pembina.com.
About Pembina
Calgary-based Pembina Pipeline
Corporation is a leading transportation and midstream service
provider that has been serving North
America's energy industry for 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; is growing an export
terminals business; and is currently developing a petrochemical
facility to convert propane into polypropylene. 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 news release contains certain forward-looking
information and statements (collectively, "forward-looking
statements") that are based on Pembina's current expectations,
estimates, projections and assumptions in light of its experience
and its perception of historical trends. In this news release, such
forward-looking statements can be identified by terminology such as
"should", "may", "will", "continue", "if", "to be", "expects", and
similar expressions suggesting future events or future
performance.
In particular, this news release contains forward-looking
statements relating to: future dividends which may be declared on
Pembina's common shares and preferred shares; the timing and the
amount of the dividend payments and the tax treatment thereof; the
Company's expectations regarding future liquidity; the timing for
release of the Company's first quarter 2020 results; and the date
and time of the AGM. These forward-looking statements are being
made by Pembina based on certain assumptions that Pembina has made
in respect thereof as at the date of this news release, regarding,
among other things: the ability of Pembina and any required
third parties to effectively engage with stakeholders; oil
and gas industry exploration and development activity levels; the
success of Pembina's operations and growth projects; prevailing
commodity prices, margins, volumes and exchange rates; that
Pembina's future results of operations will be consistent with past
performance and management expectations in relation thereto; the
continued availability of capital at attractive prices to fund
future capital requirements relating to existing assets and
projects, including but not limited to future capital expenditures
relating to expansion, upgrades and maintenance shutdowns; 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; that all required regulatory and
environmental approvals can be obtained on the necessary terms in a
timely manner; that counterparties to material agreements will
continue to perform in a timely manner; that there are no
unforeseen events preventing the performance of contracts; that
there are no unforeseen material construction, integrity or other
costs related to current growth projects or current operations;
prevailing interest and tax rates; and the availability of coverage
under Pembina's insurance policies (including in respect of
Pembina's business interruption insurance policy).
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. Readers are cautioned that events or
circumstances could cause actual results to differ materially from
those predicted, forecasted or projected. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These
known and unknown risks and uncertainties, include, but are not
limited to: the regulatory environment and decisions;
the ability of Pembina to raise sufficient capital (or to raise
sufficient capital on favourable terms) to fund future expansions
and growth projects and satisfy future commitments; failure to
negotiate and conclude any required commercial agreements or
failure to obtain project sanctioning; increased construction
costs, or construction delays, on Pembina's expansion and growth
projects; labour and material shortages; non-performance or
default by counterparties to agreements which Pembina or one or
more of its affiliates has entered into in respect of its business;
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; actions by governmental or regulatory
authorities including changes in tax laws and treatment, changes in
royalty rates, climate change initiatives or policies or increased
environmental regulation; the failure to realize the anticipated
benefits or synergies of acquisitions (including the acquisition of
Kinder Morgan Canada Limited and the U.S. portion of the Cochin
Pipeline), integration issues or otherwise; adverse general
economic and market conditions in Canada, North
America and worldwide, including changes, or prolonged
weaknesses, as applicable, in interest rates, foreign currency
exchange rates, commodity prices, supply/demand trends and overall
industry activity levels; risks relating to widespread epidemics or
pandemic outbreaks, including the COVID-19 pandemic; changes in
credit ratings; counterparty credit risk; technology and cyber
security risks; and certain other risks detailed from time to time
in Pembina's public disclosure documents including, among other
things, those detailed under the heading "Risk Factors" in
Pembina's management's discussion and analysis and annual
information form for the year ended December
31, 2019, which can be found at
www.sedar.com, www.sec.gov and through
Pembina's website at www.pembina.com.The
forward-looking statements are expressly qualified by the above
statements and speak only as of the date of this document. Pembina
does not undertake any obligation to publicly update or revise any
forward-looking statements contained herein, except as required by
applicable laws.
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SOURCE Pembina Pipeline Corporation