This is the largest capital budget
Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced that its Board of Directors has approved a capital program of approximately $1.9 billion in 2015. This is the largest capital budget in the Company's history and is an increase of approximately 36 percent from our expected spending plan of $1.4 billion in 2014.
"Our 2015 capital program is mainly directed towards progressing our various multi-year execution projects, which are, for the most part, underpinned by long-term, fee-for-service contracts with our customers," said Mick Dilger, Pembina's President and Chief Executive Officer. "In addition to advancing several multi-year builds in 2015, we will be placing approximately $1.5 billion of fee-for-service assets into service during the year ahead."
"The 2015 capital program is driven by Pembina's success over the past several years in securing an enviable suite of long-term, fee-for-service growth projects," added Mr. Dilger. "Our current roster of committed capital projects totals approximately $6 billion. The majority of these projects, which are in various stages of development, have in-service dates ranging between the end of 2014 and mid-2017. These secured projects, in aggregate, have the potential to add an incremental $700 million to $1 billion of EBITDA per year on a run-rate basis once they are all in-service, with the upper end of the range depending on utilization above take-or-pay levels. This represents an increase of 70 to 100 percent over Pembina's 12-month trailing EBITDA."