annual canadian oil sands summit - iis windows...
TRANSCRIPT
Forward-Looking Statements
The information contained in this presentation contains certain forward-looking
information and statements within the meaning of applicable securities laws. Such
information and statements includes, among other things, statements regarding
business strategy, future cash flows and cash distributions, the completion and in-
service dates of future projects, future expansion and diversification opportunities
and other expectations, beliefs, goals, objectives, assumptions or statements about
future events or performances. Undue reliance should not be placed on these
forward-looking statements and information as both known and unknown risks and
uncertainties, including those business risks stated below, 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 and information. Forward-looking statements are based on the
Fund’s current expectations, estimates, projections and assumptions in light of its
experience and its perception of historical trends as well as current market
conditions and perceived opportunities.
Forward-Looking Statements: Continued
These statements are not guarantees of future performance and are subject to a
number of known and unknown risks and uncertainties, including but not limited to,
the impact of competitive entities and pricing, reliance on key alliances and
agreements, the strength and operations of the oil and natural gas production
industry and related commodity prices, regulatory environment, fluctuations in
operating results, the availability and cost of labour and other materials, the ability to
finance future projects on advantageous terms, tax laws and tax treatment of
distributions and certain other risks detailed from time to time in the Fund’s public
disclosure documents. Additional information on these and other factors that could
affect the Fund's future operations and financial results are contained in the Fund's
Annual Information Form and its Management's Discussion and Analysis filed with
the Canadian securities regulatory authorities. Except as required by applicable
securities laws, the Fund and its subsidiaries assume no obligation to update
forward-looking information and statements should circumstances or management's
expectations, estimates, projections or assumptions change.
Fund Profile at December 29, 2006
Trust Units Outstanding 126.2 MM
Trust Unit Trading Price $15.83
52 Week Trading Range $18.58-$12.88
Annual Distribution Rate (per trust unit) 1 $1.32
Total Enterprise Value $2.5 billion
S&P and DBRS Corporate Credit Rating BBB
DBRS Stability Rating STA-2 (low)1 Paid Monthly, $1.20 per unit until December 31, 2006, $1.32 effective January 2007
PIF.UN1 2005 projection based on Management’s outlook and guidance as at presentation date.
1
Stable Cash DistributionsStable Cash Distributions
$0
$25
$50
$75
$100
$125
$150
1998 1999 2000 2001 2002 2003 2004 2005 2006
$0.85
$0.90
$0.95
$1.00
$1.05
$1.10
$1.15
$1.20
Distributed Cash ($ millions) $ Per Unit
1
1 Q306 distribution annualized for illustrative purposes only. 2006 annualized per unit distribution: $1.14 to July, 2006, $1.20 to December, 2006. Annual Distribution rate
increased to $1.32 per unit effective January 2007
Slide Title
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
1998 1999 2000 2001 2002 2003 2004 2005 3Q06
Debt
Equity
($ billions)
1
1 Debt includes convertible debentures
2.7
27.3%
2.7
34.2%
3.03.02.72.84.1--Senior Debt to EBITDA
23.5%35.8%28.6%31.3%---Debt to Total EV1
Conservative Capital StructureConservative Capital Structure
Diversified Energy Infrastructure Assets in Three Segments
Diversified Energy Infrastructure Assets in Three Segments
EDMONTON
CALGARYKAMLOOPS
PRINCE GEORGE
TAYLOR
FORT McMURRAY
Conventional Pipelines
Oil Sands
Pipelines By Others
Ethylene Storage Facility
VANCOUVER
CONVENTIONAL
� A leading integrated transportation service provider in western Canada
MIDSTREAM
� Growing midstream business
leverages inherent value of existing
pipeline and storage infrastructure to
access low-risk alternative
supplemental revenue
OIL SANDS
� A competitive player in oil sands transportation infrastructure with contracted capacity of 389,000 bpd, growing to 640,000 bpd by mid-2008
KITIMAT
Proposed Pipeline
Segmented Net Operating Income
$0
$50
$100
$150
$200
$250
2001 2002 2003 2004 2005 2006 *
($ millions)
Conventional Oilsands Midstream
* Third quarter 2006 results, annualized for illustrative purposes only.
Throughput Composition
36%
36%
28%
Conventional crude oil
Synthetic crude oil
Condensate and Natural Gas Liquids
Net Operating Income
61%17%
22%
Conventional PipelinesOil SandsMidstream Business
Q3 2006 Throughput and Net Operating Income Composition
Q3 2006 Throughput and Net Operating Income Composition
Oil Sands Infrastructure: StrategyOil Sands Infrastructure: Strategy
� Pembina is uniquely positioned with infrastructure and
operating knowledge in the oil sands region
� We will continue to use this competitive position to pursue
future opportunities in this key area
� The fully-contracted and very long term returns generated by
the oil sands assets provide a secure stream of stable cash
flow to the Fund
Oil Sands Infrastructure: Development ActivityOil Sands Infrastructure: Development Activity
Fort McMurray
Athabasca Oil Sands
Sherwood Park Control CentreEdmonton
CNRL Horizon
Scotford Terminal
Horizon Pipeline
AOSPL PipelineAthabasca
River
Syncrude
Cheecham Lateral
Oil Sands Infrastructure: ProjectsOil Sands Infrastructure: Projects
Horizon & Cheecham Pipelines:
� 25-year extendible contract term
� fixed rate of return on invested capital
� flow-through operating costs
� no commodity price or pipeline utilization risk
Other Oil Sands Development Projects*Other Oil Sands Development Projects*
Fort McMurrayAthabasca Oil
Sands
Sherwood Park Control CentreEdmontonScotford Terminal
Horizon Pipeline
AOSPL PipelineAthabasca
River
Cheecham Lateral
Encana BorealisCNRL Horizon
Petro Canada Ft. Hills Synenco Northern Lights
Total JoslynHusky
Oil Sands Development Projects
Cheecham
IOL Kearl Lake
Syncrude
* Map depicts partial listing only of regional publicly announced project proposals; project locations on map are approximate.
� 100,000 bpd throughput (16,000 m3/day)
� Condensate imported globally (by Shippers) delivered to Kitimat,
B.C.
� Arrangement with existing marine terminal at Kitimat, B.C.
sought
� Combination of new (880 km) and existing (530 km) for a total of
1410 km of pipeline
� Project cost $1.2 billion
� Estimated completion January 2010
Pembina’s Proposed Kitimat to Summit LakeCondensate Pipeline Project
Proposed Condensate Pipeline Route
AlbertaBritish
Columbia
Taylor
Kitimat
Vancouver
Calgary
EdmontonPrince George
Rainbow
Enbridge
Rangeland
Northern Route
Dawson Creek
Kamloops
LegendExisting PembinaNew Pembina C5Existing Pembina to C5Other Pipelines
LegendExisting PembinaNew Pembina C5Existing Pembina to C5Other Pipelines
Fort McMurray
Agreement in Principle on Contract Terms with Shippers include:
� 15-year extendible contract term
� fixed rate of return on invested capital
� flow-through operating costs
� no commodity price or pipeline utilization risk
Proposed Kitimat to Summit LakeCondensate Pipeline Project
Investment Highlight Summary
� Stable, liquid trust sector investment
� Diversified base of premium energy infrastructure assets,
dominant market position
� Consistent & sustainable monthly cash distributions
� Conservative capital structure
� Investment grade credit ratings (S&P’s and DBRS)
� Excellent business development prospects