Each one in plain English, with the numbers worked through for a shareholder.
9 Mar 2018dividend declaration▲ GoodMajor
Pembina declared its March 2018 common dividend of $0.18 per share, payable April 15, 2018 to holders of record March 25, unchanged. It also closed a previously announced $1 billion non-revolving term loan with existing lenders, with an initial three-year term and prepayable at its option, to partly repay amounts drawn on its $2.5 billion revolving credit facility. That facility was extended and now matures May 31, 2023. The release states the loan provides additional liquidity, flexibility and interest cost savings; this adds to the credit facility drawn to pay part of the Veresen deal.
Pembina declared its January 2018 common dividend of $0.18 per share, payable February 15, 2018 to holders of record January 25, unchanged. It also declared quarterly preferred dividends on Series 1, 3, 5, 7, 9, 11, 13, 15, 17 and 19 and said it expects to declare one on a new Series 21 (PPL.PF.A, $0.2819); Series 21 appears here for the first time and the filing does not explain its origin. Series 1-13 and 21 pay March 1, 2018 (record February 1), while the Series 15, 17 and 19 shares inherited from Veresen pay March 31 (record March 15).
Pembina declared its December 2017 common dividend of $0.18 per share, payable January 15, 2018 to holders of record December 31, 2017, unchanged. US-dollar recipients would get about US$0.1419 per share before withholding tax at an exchange rate of 0.7886.
Pembina declared its November 2017 common dividend of $0.18 per share, payable December 15, 2017 to holders of record November 25. This is the same rate set at the Veresen closing, and US-dollar recipients would get about US$0.1408 per share before withholding tax at an exchange rate of 0.7822.
Pembina filed the formal report on its October 2, 2017 acquisition of Veresen. The price was 99,465,826 new Pembina common shares plus $1,522,501,087 in cash, with the cash paid from cash on hand and a draw on Pembina's credit facility; this fills in the share count and cash amount that were not stated at closing. Veresen's preferred shares were exchanged for Pembina preferred shares now listed as PPL.PR.O, .Q and .S. The report describes Veresen's holdings (50% of Alliance Pipeline, a 50% convertible preferred interest in Ruby Pipeline, AEGS, a 47% interest in Veresen Midstream, Aux Sable stakes, Jordan Cove and Pacific Connector, and an ethane storage facility under construction near Burstall, Saskatchewan). Pro forma figures in the filing show total assets of about $23.8B and non-current loans and borrowings of about $7.35B against $4.7B for Pembina alone as of June 30, 2017, so debt rises materially.
Pembina completed its acquisition of Veresen Inc. by plan of arrangement, a deal valued at about $9.4 billion including assumed debt and preferred shares. Veresen was amalgamated into Pembina, and its preferred shares were exchanged for Pembina preferred shares on the same terms (series 15, 17 and 19). Veresen common holders get either 0.4287 of a Pembina share per share, or, if they elected cash, a pro-rated mix of about $6.4314 cash plus about 0.2809 of a Pembina share per Veresen share, so existing Pembina holders are diluted by the new shares issued. Pembina also raised its monthly common dividend 5.9% from $0.17 to $0.18 (October dividend payable November 15 to holders of record October 25). The Competition Bureau review of the Alberta Ethane Gathering System (about 1% of forecast 2018 adjusted EBITDA) is ongoing and could be referred to the Competition Tribunal for up to a year. Business update: Phase III was placed in service June 30, 2017 (earlier than the July expectation); the Duvernay complex is expected in service November 1, 2017, ahead of schedule and under budget; the NEBC Expansion (about 75,000 bpd) is expected to finish in October. About $2.8 billion of projects a
Pembina declared its September 2017 common dividend of $0.17 per share, payable October 15, 2017 to holders of record September 25, unchanged. For US-dollar recipients it is expected to be about US$0.1386 per share before withholding tax, at an exchange rate of 0.8154.
Pembina closed the $600 million note offering announced August 14: $350 million added to the 2.99% Series 8 notes due 2024 and $250 million added to the 4.74% Series 9 notes due 2047. Proceeds go to repay short-term credit facility debt, fund the capital program and general corporate purposes, as previously stated; this completes the offering.
Pembina agreed to issue $600 million of senior unsecured medium-term notes by reopening two existing series: $350 million of the 2.99% Series 8 notes due January 22, 2024 and $250 million of the 4.74% Series 9 notes due January 21, 2047, with closing expected August 16, 2017. Proceeds will repay short-term credit facility debt, fund the capital program and cover general corporate purposes, continuing the pattern of replacing credit facility borrowings with notes; it adds to the $300 million of each series issued in January 2017 and is offered under a new base shelf prospectus dated July 27, 2017.
Pembina declared its August 2017 common dividend of $0.17 per share, payable September 15, 2017 to holders of record August 25, unchanged from the rate set in April. For US-dollar recipients it is expected to be about US$0.1358 per share before withholding tax, at an exchange rate of 0.7991.
Pembina and Petrochemical Industries Co. of Kuwait (PIC) signed 50/50 joint venture agreements and formed Canada Kuwait Petrochemical Corporation to pursue the proposed propane-to-polypropylene facility in Sturgeon County, Alberta. The venture will now start front end engineering design, expected to finish by late 2018 and cost about 2.0-2.5% of the project's current estimate of $3.8-4.2 billion (gross); each partner still has to make a final investment decision after that. This names the previously unnamed partner on the project that won $300 million of Alberta royalty credits, and moves it forward without yet committing to build.
Pembina raised its monthly common dividend 6.25% from $0.16 to $0.17 per share (its sixth consecutive annual increase), with the April dividend payable May 15, 2017 to holders of record April 25. It also approved $325 million of further pipeline expansions: Phase IV (two pump stations on the Fox Creek to Namao 24-inch line, about $75M, adding ~180,000 bpd, late 2018 subject to approvals) and Phase V (a new ~95 km 20-inch Lator to Fox Creek pipeline, $250M, ~260,000 bpd, approved, late 2018), both backed by take-or-pay contracts. Phase III is now expected in service July 2017, slightly under budget. Pembina expects 2018 adjusted EBITDA of $1.8-1.9 billion and raised its estimated capital cost savings from about $225M to about $275M; this is consistent with the earlier $600M-$950M incremental EBITDA target and counts the 2016 Kakwa River acquisition, which this release treats as completed.
Pembina declared its March 2017 common dividend of $0.16 per share, payable April 15, 2017 to holders of record March 25. It also suspended its dividend reinvestment plan (DRIP) until further notice, effective April 25, 2017, so dividends from April onward (payable May 15) will be paid in cash. Pembina says it suspended the plan because of the near-term completion of its largest capital spending program and its balance sheet strength, and that fee-for-service contracts support funding new projects without further equity; this ends the DRIP that raised $450M in 2016.
Pembina closed the $600 million note offering announced January 17: $300 million Series 8 at 2.99% due January 22, 2024 and $300 million Series 9 at 4.74% due January 21, 2047. Proceeds go to repay short-term credit facility debt, fund the capital program and general corporate purposes, as previously stated; this completes the offering.
Pembina agreed to issue $600 million of senior unsecured medium-term notes in two $300 million tranches: Series 8 at 2.99% maturing January 22, 2024, and Series 9 at 4.74% maturing January 21, 2047, with closing expected January 20, 2017. Proceeds will repay short-term credit facility debt, fund the capital program and cover general corporate purposes, continuing the pattern of replacing credit facility borrowings with notes seen in the Series 7 deal in August 2016.
Pembina declared its January 2017 common dividend of $0.16 per share, payable February 15, 2017 to holders of record January 25, unchanged from December. It also declared the quarterly preferred dividends for Series 1, 3, 5, 7, 9, 11 and 13, payable March 1, 2017 to holders of record February 1; Series 13 (PPL.PR.M) appears here for the first time in the context.
Pembina declared its December 2016 common dividend of $0.16 per share, payable January 15, 2017 to holders of record December 31, 2016, unchanged. US-dollar recipients would get about US$0.1205 per share before withholding tax, at an exchange rate of 0.7530.
Pembina's board approved a 2017 capital program of about $1.9 billion (Conventional Pipelines $1,140M, Midstream $540M, Gas Services $165M, Oil Sands and Heavy Oil $25M), mostly to finish about $4 billion of projects, including the Phase III expansion expected in service mid-2017. It expects an extra $600 million to $950 million of EBITDA in 2018 from 2016 and 2017 assets. 2016 capital spending is expected at $1.9 billion versus an original $2.1 billion budget. Pembina and a partner were also selected for $300 million of Alberta royalty credits for a proposed propane dehydrogenation and polypropylene facility costing $3.8 to $4.2 billion (gross), which could be in service by 2021 but still needs a final investment decision and approvals. The release cites a $2.5 billion credit facility (the context showed $2 billion) and says 2016 raised $420M preferred shares, $345M common equity, $450M through the dividend reinvestment plan and $500M of notes.
Pembina declared its November 2016 common dividend of $0.16 per share, payable December 15, 2016 to holders of record November 25, 2016, unchanged. US-dollar recipients would get about US$0.1195 per share before withholding tax, at an exchange rate of 0.7470.
Pembina declared its September 2016 common dividend of $0.16 per share, payable October 15, 2016 to holders of record September 25, 2016, unchanged from the prior month. For US-dollar recipients it is expected to be about US$0.1240 per share before withholding tax, at an exchange rate of 0.7752.
11 Aug 2016capital raising announcement● NeutralMajor
Pembina closed the $500 million Series 7 note offering announced August 8: 3.71% fixed coupon, paid semi-annually, maturing August 11, 2026. Proceeds go to repay short-term credit facility debt, fund the capital program and general corporate purposes, as previously stated. This completes the offering announced three days earlier.
Pembina agreed to issue $500 million of senior unsecured medium-term notes (Series 7) at a fixed 3.71% a year, maturing August 11, 2026, with closing expected August 11, 2016. Proceeds will repay short-term credit facility debt, fund the capital program and cover general corporate purposes; this continues the pattern of paying down credit facility borrowings with long-term note money.
Pembina declared its August 2016 common dividend of $0.16 per share, payable September 15, 2016 to holders of record on August 25, unchanged from the May rate. The company description now says its pipelines carry products produced 'primarily in western Canada', where earlier releases said 'western Canada and North Dakota'; the filing does not explain the change.
Pembina declared its May 2016 common dividend of $0.16 per share, payable June 15, 2016 to holders of record on May 25. This is the first payment at the higher rate announced March 17, up from $0.1525.
Pembina received Alberta Energy Regulator approval to build the two Fox Creek to Namao pipelines (24-inch and 16-inch, each about 270 km) that are part of the Phase III expansion. This resolves the approval and court-stay uncertainty from March 16. Pembina says the project is tracking on time and under budget and still expects the whole Phase III program in service by mid-2017. The 16-inch line, previously described as pending commercial support, is now included in the approval.
29 Mar 2016capital raising announcement● NeutralMajor
Pembina closed the common share offering at 10,148,750 shares at $34.00, including all 1,323,750 over-allotment shares, for about $345 million gross. Net proceeds plus existing credit facilities are earmarked for the proposed Paramount Resources gas processing acquisition, and the use may change if that deal does not complete. This completes the offering announced March 17 and increases shares outstanding.
18 Mar 2016capital raising announcement● NeutralMajor
Pembina set the terms of the common share bought deal flagged on March 17: 8,825,000 shares at $34.00 each for about $300 million, plus an option for up to 1,323,750 more (up to $45 million extra), with closing expected around March 29, 2016. Proceeds, together with existing credit facilities, will fund the purchase of the Paramount Resources gas processing assets. New shares dilute existing holders' ownership percentage.
What it means for a shareholder
8.8m new shares at C$34.00 to raise about C$300m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Pembina said the Alberta Court of Queen's Bench temporarily blocked the Alberta Energy Regulator from issuing its written decision on the Fox Creek to Namao pipeline (part of the Phase III expansion), after a last-minute application by the Alexander First Nation. The AER decision was due by March 17, 2016 (90 days after the hearing closed); the Court did not consider the merits and ordered the application be heard quickly. Pembina says it expects the Court to reach the same result as the AER, which earlier rejected Alexander's arguments, and still expects to finish the project on time and on budget. This delays the approval step noted as pending in the context.
Pembina agreed to buy Paramount Resources' Kakwa sour gas processing complex and related pipelines, plus plans and rights for a future '6-18' sour gas facility, for about $556 million cash. The Kakwa plant adds 250 million cubic feet per day of capacity next to Pembina's Cutbank Complex, backed by a 20-year take-or-pay services agreement with Paramount. Pembina also agreed to spend about $35 million on a debottlenecking project. Closing awaits Competition Act approval, expected in the second quarter of 2016. It will be funded by a concurrently announced common share bought deal and its $2 billion revolving credit facility (up from the $1.5 billion in the earlier context). The board also raised the monthly dividend from $0.1525 to $0.16 (4.9%), starting with the dividend payable May 13, 2016 to holders of record April 25, the fifth consecutive annual increase.
This Form 6-K files the amended and restated dividend reinvestment plan with a summary of changes, dated January 6, 2016. It repeats the changes announced January 7: board-set discount up to 5% (currently 3%) and the premium dividend option falling from 102% to 101%. It also deletes the 'Proration in Certain Events' section and restates the Canadian tax summary. No new financial figures or business events.
