Pembina Pipeline Announces 2026 EBITDA Guidance of $4.125 Billion to $4.425 Billion
- 2026 Financial Outlook: Pembina anticipates adjusted EBITDA for 2026 to range between $4.125 billion and $4.425 billion, reflecting a 4% increase in fee-based adjusted EBITDA, indicating strong growth potential amid North America's energy transformation.
- Cedar LNG Agreement: The 12-year agreement with Ovintiv for 0.5 mtpa of liquefaction capacity at Cedar LNG is expected to generate stable long-term revenues of $220 million to $280 million annually, further solidifying Pembina's position in the global LNG market.
- Pipeline System Expansion: The Fox Creek-to-Namao expansion of the Peace Pipeline System is projected to add 70,000 barrels per day of delivery capacity at an estimated cost of $200 million, with an expected in-service date in Q1 2027, significantly enhancing operational flexibility.
- Capital Investment Plan: Pembina's 2026 capital budget totals $1.6 billion, including $380 million for the Cedar LNG project, demonstrating the company's ongoing commitment to strategic growth and infrastructure development.
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Pembina Aims for Expansion and LNG Initiatives to Drive Growth by 2026
Growth Strategy for 2026: Pembina Pipeline Corporation has outlined an ambitious growth strategy aiming for an adjusted EBITDA of C$4.1 billion to C$4.4 billion by 2026, driven by increased volumes across its diversified energy assets and significant capital investments, including C$1.6 billion for pipeline and facility expansions.
Strategic Agreements and Expansions: The company has secured a 12-year agreement with Ovintiv Inc. for liquefaction capacity at the Cedar LNG facility, expected to contribute C$220 million to C$280 million annually in adjusted EBITDA, while also expanding its Peace Pipeline System to meet rising energy product demand.
Leadership Transition: Pembina is undergoing a leadership transition with key executives retiring by the end of 2025, aiming to strengthen organizational capabilities and support its long-term strategic goals, including the development of the Greenlight Electricity Center for sustainable energy generation.
Market Position and Future Outlook: Despite challenges in its marketing segment due to fluctuating commodity prices, Pembina remains well-positioned in the North American energy infrastructure market, focusing on safe, reliable, and cost-effective solutions to meet future energy demands and drive innovation.
Pembina Pipeline Releases 2026 Forecast, Finalizes Cedar LNG Agreement, and Expands Peace Pipeline
2026 Financial Guidance: Pembina Pipeline Corp. forecasts adjusted EBITDA between C$4.125 billion and C$4.425 billion for 2026, indicating a four percent increase in fee-based adjusted EBITDA compared to 2025, with a capital investment program of approximately $1.6 billion.
New Commercial Agreement: The company signed a 12-year agreement with Ovintiv Inc. for 0.5 million tonnes per annum of capacity at the Cedar LNG facility, completing the remarketing of its total 1.5 mtpa allocation.
Peace Pipeline Expansion: Pembina approved a C$200 million expansion of the Peace Pipeline System to enhance propane-plus delivery capacity into the Namao, Alberta hub, with ongoing expansions in northeast British Columbia.
Greenlight Electricity Centre Project: Pembina and Kineticor are progressing on the Greenlight Electricity Centre project, with a final investment decision expected in the first half of 2026.
