IMPORTANT REMINDER IN THESE UNCERTAIN TIMES............. PPL seems to be a safe place to park your savings and wait for better days.
QUOTE :
09:05 AM EDT, 03/18/2020 (MT Newswires) -- Pembina Pipeline Corporation (PPL.TO) is planning a $900 million to $1.1 billion overall reduction (about 40-50%) to its 2020 capital spending plans of $2.3 billion. Pembina's revised 2020 capital budget will be $1.2 billion to $1.4 billion.
The following projects will be deferred:
Peace Pipeline Phase VII, VIII and IX expansions, representing $1.55 billion of total capital;
Empress Co-generation Facility, representing $120 million of capital;
Prince Rupert Terminal Expansion, representing $175 million of capital; and
Pembina's investment in the integrated propane dehydrogenation plant and polypropylene upgrading facility, representing $2.7 billion of capital, net to Pembina.
The deferred projects were expected to come into service largely in 2021 through 2023 and will not materially impact the 2020 adjusted EBITDA. Pembina believes it will remain within the lower end of the previously disclosed guidance range.
It said its underlying business remains highly contracted, with approximately 85% of 2019 adjusted EBITDA supported by long-term, fee-based contracts, including approximately 62% coming from cost-of-service or take-or-pay contracts with no volume or price risk. Direct commodity exposure in Pembina's business is limited to the Marketing & New Ventures Division, representing approximately 15% of Pembina's overall adjusted EBITDA in 2019. Approximately 45% was generated by natural gas and natural gas liquids marketing activities and 55% by crude oil and condensate marketing activities. This year, Pembina has hedged 50% of its frac spread exposure, excluding Aux Sable.
Pembina's common share dividend of $0.21 per share per month is covered by fee-based cash flows, and is not reliant on the direct commodity price exposed portion of the business to support the dividend. In 2019, its common share dividend represented only 73% of fee-based distributable cash flow, or an all-in dividend payout ratio of 54%. However, there will not be additional dividend increase for the rest of this year.
Pembina is continuing to progress work started earlier this year to pursue non-core assets sales in the range of $200 to $500 million.
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