Pembina Pipeline Corporation (NYSE:PBA) Q1 2023 Earnings Call Transcript

We will make some call in the future as to that level, but we’re pretty confident on the MOU work that we’re going through in the definitive progress that we’ve already made that we’ll be able to contract a 100%. We haven’t contemplated or sat back and looked at a minimum number. Right now everything is pushing to contract the entire capacity.

Linda Ezergailis: Okay, thank you. And just as a follow up in terms of your discussions with producers in the region, can you talk about how your discussions are going in terms of the services that they’re looking to add. When it is new services, are they trending any way based on choosing full path versus discreet services and any other attributes in terms of the duration that they’re preferring longer versus shorter and conviction they have on firming things up would be helpful?

Jaret Sprott: Good morning, Linda. It’s Jared. It kind of broke out there, but I think the question was with respect to the producers, I’ll start, so right now I think what we’re hearing from our producers is obviously that gas egress is becoming the largest constraint here in Western Canada. We’re hearing a lot — we’re obviously seeing the well performance continues, and I know I say this every quarter, but the weld performance continues to excite permanent and obviously our customers highly. There’s resolution in Northeast BC and I think with some of the recent public announcements, you can see that some of the customers are getting a little bit more bullish on their short term when I mean short term, like two to three year development plans, which obviously is also a very exciting to Pembina.

And then with respect to your question on services that the customers, I think you’ve seen that some of our customers choose to build their own gas plan. Some of our customers choose to utilize PGI for that service. Obviously the peace pipeline is instrumental to a large portion of the customers in Western Canada getting their products safely and reliably into the Edmonton market. And then obviously with the addition of RFS IV, there’s high demand for existing one, two and three frac services, but also incremental and that’s even — that white space in RFS IV is closing very quickly. So, and it honestly depends with respect to your question on term and tenure of what people are looking for. It really depends on the customer. I think we recently announced that the 65,000 barrels on piece, that averaged about six years.

So you can see some customers are a little bit shorter and some customers like that certainty for longer term long range plans of north of seven to 10 years.

Linda Ezergailis: Thank you. And just as a short term, there’s …

Jaret Sprott: There were a few questions there. Did I get them all?

Linda Ezergailis: Sure. I don’t think I lost track of my questions as well. Maybe more in the short term, will any of your facilities potentially directly or indirectly be affected by any sort of NGTL maintenance this summer?

Jaret Sprott: The stuff definitely up in Northeast BC, some of our customers in and around the Dawson Creek area, they do see restrictions, but they’re pretty savvy and they also have many of our customers have alliance capacity. So they’re pretty savvy in capturing IT, moving volumes from receipt points, moving volumes on to their firm contracts on alliance, etcetera, but, we did see some noise in Q1, but the over performance of the assets kind of muted the noise of the northern outage and any announced maintenance.

Operator: Thank you. Next question comes from Rob Hope at Scotiabank. Please go ahead.