Pembina to Receive
$350 Million Cash Termination
Fee
CALGARY, AB, July 26, 2021 /PRNewswire/ -- Pembina
Pipeline Corporation ("Pembina")
(TSX: PPL) (NYSE: PBA) today announced that it has terminated the
arrangement agreement with Inter Pipeline Ltd. ("Inter Pipeline")
(TSX: IPL) providing for the proposed acquisition by Pembina of Inter Pipeline, in accordance with
its terms. In connection with the termination, Inter Pipeline has
agreed to pay Pembina the
C$350 million termination fee
provided for in the agreement.
Pembina's President and Chief
Executive Officer, Mick Dilger said,
"The industrial logic of a combined Pembina and Inter Pipeline remains
unparalleled and the value creation between certain of our assets
is impossible to replicate by any other entity. While we are
disappointed with this outcome, we will continue to seek
opportunities for growth through focused acquisitions."
"Pembina remains optimistic
about its future, including the profitability of our existing
business given foreseeable sector tailwinds, as well as with
tremendous flexibility to pursue an ever increasing and more
diverse set of opportunities for growth, some of which we were able
to highlight and advance during this process. I would also like to
thank our dedicated staff, alongside our legal counsel, Blakes, and
financial advisor, Scotiabank, for their hard work and expert
counsel throughout this process, which leaves Pembina in an even stronger position as we
move forward."
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. Pembina 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 Statements and Information
This document 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 intentions, 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
"intends", "expects", "will", "would", "anticipates", "plans",
"estimates", "develop", "potential", "continue", "could", "create",
and similar expressions suggesting future events or future
performance.
In particular, this document contains forward-looking
statements pertaining to, without limitation, the following: future
value creation, potential future acquisitions and Pembina's future development plans.
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 or events and
are based on numerous assumptions and subject to a number of known
and unknown risks and uncertainties including, but not limited to:
the ability of Pembina to receive,
in a timely manner, the necessary regulatory approvals for future
development projects; the ability of Pembina to acquire or
develop the necessary infrastructure in respect of future
development projects; customer demand for the Pembina's servicers; the ability to complete
future development without material delay or cost overruns;
reliance on key relationships and agreements; the strength and
operations of the oil and natural gas production industry and
related commodity prices; actions by governmental or regulatory
authorities, including changes in tax laws and treatment, changes
in the regulation of competition in Canada and elsewhere; fluctuations in
operating results; adverse general economic and market conditions
in Canada, North America and worldwide; and certain other
risks detailed from time to time in Pembina's public disclosure documents
available at www.sedar.com, www.sec.gov and through Pembina's website at www.pembina.com.
This list of risk factors should not be construed as
exhaustive. Readers are cautioned that events or circumstances
could cause results to differ materially from those predicted,
forecasted or projected. The forward-looking statements contained
in this document speak only as of the date of this document.
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 forward-looking statements contained in this
document are expressly qualified by this cautionary
statement.
Investor Relations: Cameron
Goldade, Vice President, Capital Markets, (403) 231-3156,
1-855-880-7404, e-mail: investor-relations@pembina.com,
www.pembina.com; Media Relations: (403) 691-7601,
media@pembina.com