Pembina Pipeline has completed a successful 2017 with a hefty earnings increase to report, in large part thanks to the acquisition of Veresen that closed during the fourth quarter of the year.
Pembina reported a total of $891 million in earnings for the year, a 91 percent increase year over year. Much of that came in the fourth quarter, when the Veresen acquisition added to the bottom line and resulted in earnings of $445 million - 240 percent above the fourth quarter of 2016.
The acquisition of Veresen supports the continued execution of Pembina's long-term strategy by increasing its positioning to long-life economic hydrocarbon reserves, further integrating and enhancing its service offering including adding an entire natural gas value chain, extending reach into the U.S., while also increasing the company's portfolio of secured and unsecured growth projects. In short, Pembina is larger and more diversified. Throughout the year, $4.8 billion of new projects were placed into service. These assets include the company's Phase III expansion, third fractionator at Redwater, Canadian Diluent Hub, four major gas processing facilities (including Veresen Midstream), additional pipeline expansions as well as several other value-added capital projects.
In 2017, Pembina also secured approximately $1.2 billion in new growth projects which will further strengthen our competitive position and support market access solutions for our customers.
"When I look back over the year, I am incredibly proud of all that we have accomplished through the disciplined execution of a consistent strategy, combined with the hard work and determination of our employees who make our success possible," said Mick Dilger, Pembina's President and Chief Executive Officer.
With all the success that 2017 brought and the positive momentum thus far in 2018, Pembina states that it is well positioned for what should be another exciting and active year ahead. Ongoing efforts will continue to focus around building out the value-chain to provide customers with premium market access for energy products derived from western Canadian hydrocarbons.
"Since embarking on our transformational journey a few years ago, I am profoundly humbled by what Pembina has accomplished in becoming a leading North American energy infrastructure company. I want to thank our customers, shareholders, communities and employees for their support during such an extraordinary time for Pembina and I look forward to a prosperous future together," concluded Mr. Dilger.