Post by
incomedreamer11 on Dec 08, 2021 10:54am
TD comments
Event PPL provided 2022 guidance, an update on deferred projects, and a business update.
Impact: SLIGHTLY POSITIVE
2022 Guidance: Management expects 2022 adjusted EBITDA of $3.35-3.55Bn and a 2022 capital investment program of $655mm. Our 2022E EBITDA estimate is at the mid-point of the guidance range.
Funding and Capital Allocation: PPL expects cash flow from operations to surpass dividend payments and the 2022 capital investment program. It could spend up to the first $200mm of the excess towards repurchasing common shares, with the remainder available for incremental capital investment if sanctioned, debt repayment, or additional distribution to shareholders.
Peace Pipeline Expansion: Capital costs for Phase VII of the project is now estimated to be $665mm (previously $775mm) due to effective project management, favorable weather conditions, and well performing contractors. The anticipated inservice-date has been advanced to mid 2022. A reactivation decision for Phase VIII is now expected in the first half of 2022. Phase IX of the project remains on track with a cost of ~$120mm and a scheduled in-service date in the second half of 2022. Aliance Pipeline: lThe pipeline is now fully contracted for the 2021/2022 gas year ending on October 31, 2022 and 76% contracted for the 2022/2023 gas year which begins on November 1, 2022. The average contract length is approximately four years.
NEBC: PPL recently executed a new agreement with a second Montney producer for liquids transportation service for volumes from development of the producer's NEBC Montney acreage, on a take-or-pay basis, upon the acreage being developed. Other Business Updates: PPL continues to progress on pre-FID development activities for the Cedar LNG project. Furthermore, Veresen Midstream is considering the opportunity to construct a 200mmcf/d deep cut NGL extraction facility at the Hythe Gas Plant.