Pembina Pipeline Corporation (PPL) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. I am Randy Findlay, the Chair of the Board of Pembina Pipeline Corporation. And on behalf of the directors, it is my pleasure to welcome you to Pembina's 2021 Annual Meeting of Shareholders. For me, the annual meeting is always a highlight as it provides an opportunity to engage face-to-face with our investors and other stakeholders. Regrettably, once again this year, to address the public health impact of COVID-19 and to mitigate risks to the health and safety of our communities, shareholders, employees, investors and other stakeholders, the meeting is being held as a virtual-only meeting. In a moment, I will join you via audio to conduct the formal business of the meeting, after which we will have a presentation from Pembina's President and CEO, Mick Dilger, followed by a question period. The past year has been one of the most challenging in history and the ultimate test of our resilience, both at Pembina and across the world. I would like to take a moment to thank all of our stakeholders, our customers, employees, communities and investors for their contribution to Pembina's continued success. Strong communication and collaboration between management and the Board was the foundation of Pembina's response to the COVID-19 pandemic. I am proud that together with our stakeholders, we have been able to protect the health and safety of Pembina's staff and communities, ensure critical infrastructure continue to operate safely and reliably and maintain the company's strong financial position. I'm equally proud of what Pembina is achieving with respect to environmental, social and governance, or ESG, matters. ESG is not a new concept to us. There are long-established committees to the Board that have been addressing these areas of our business. Today, however, ESG issues are playing an increasingly significant role in all areas of our business and strategy, and the Board recognizes that ESG is directly linked to Pembina's long-term sustainability. We are fully engaged in guiding management's continuing integration of ESG strategies into the business, and together, we are taking concrete and meaningful steps forward. Most notably, we are enhancing inclusion and diversity, both at the Board level and then across the organization. And we are ensuring Pembina has in place appropriate strategies to ensure improved environmental performance and an ability to navigate an evolving lower carbon energy business. Pembina has a long track record of doing what we say we will do. So we have resisted the trend to make bold commitments to targets until we have the confidence in our ability to achieve or exceed these targets. In closing, let me assure you that your Board will continue to provide management with sound guidance and oversight, while fostering robust 2-way communication that supports execution of Pembina's strategy. The global economy and the demand for energy are recovering. Pembina is poised to capitalize on that recovery and is actively preparing itself for a return to growth and industry-leading value creation. We are looking forward to the many great opportunities ahead for Pembina and its stakeholders. As always, thank you for your support. Now on to the formal part of the meeting. With me on the webcast today are Mick Dilger, President and Chief Executive Officer and a Director of Pembina; and Brenda Rawcliffe, Manager, Associate General Counsel and Corporate Secretary of Pembina. Joining us remotely are our other directors and our executive team. In accordance with our bylaws, I will chair today's meeting, and Brenda Rawcliffe will serve as secretary. In the unlikely event we experience any technical difficulty or disruption and I am unable to chair the meeting, Brenda will be appointed with the consent of the meeting in accordance with our bylaws to also chair the meeting in my absence so that the meeting may continue as planned. I also appoint Kyle Gould, a representative of Pembina's registrar and transfer agent, Computershare Trust Company of Canada, to act as scrutineer for the meeting. I now call the meeting to order. I will now ask Brenda to address a few housekeeping matters related to the formal proceedings.

Thank you, Randy. During the course of this virtual meeting, we have ensured that shareholders are offered the opportunity to participate, submit questions and vote at the meeting. If at any time during the meeting, you experience technical difficulties, please refer to the technical support button on the broadcast section of your screen. The platform we are using today allows our registered shareholders and duly appointed proxy holders the ability to vote online and ask questions during the formal part of the meeting. We would encourage shareholders who have specific questions on an item of business to submit your questions as soon as possible by clicking on the message icon on your screen. This will allow us to address them at the most appropriate time in our meeting. If your question relates to a voting matter, we will answer your question when we reach that item. Please identify yourself and indicate whether you are a shareholder or a proxyholder. Questions not related to a voting matter will be answered after the CEO's remarks, at which time all participants may ask questions during a question-and-answer session. As we may receive multiple questions of a similar theme, your specific question may be paraphrased in the interest of efficiency and to address as many themes as possible. Any questions that we are unable to address during the meeting will be referred to our Investor Relations team for follow-up. To assist us in doing so, please include your contact information with your question. Let's move on to voting. If you are a registered shareholder or a duly appointed proxyholder and have already voted in the manner indicated in the meeting materials that were sent to you, you do not need to vote again at this meeting even if the voting item appears on your screen. Any votes you do cast at this meeting will revoke your prior vote. All items for shareholder approval will be conducted by ballot. If you are a registered shareholder or a duly appointed proxyholder and have not yet voted, you may vote during the meeting by clicking on the voting icon at the top of the screen and selecting voting options on each ballot option. The polls will be opened for all items of business at the start of the meeting. This will allow you to vote on each item immediately, or if you prefer, you may wait until the conclusion of discussion on each item prior to casting your vote. For each item of business, we will address any specific questions from registered shareholders and proxy holders that relate to that item. Once discussion has concluded on all items of business, we will pause for a moment to ensure all votes are entered. We will then declare voting closed on all matters of business. The results of the votes will be announced prior to the close of the meeting. For meeting efficiency, we have asked certain shareholders or proxyholders to move and second motions proposed at this meeting. This is not intended to limit discussion or to suggest that other shareholders and proxyholders are not able to move or second the motions. Registered shareholders and proxyholders should feel free to initiate discussion on any motion.

I have been advised by Computershare that the meeting materials were duly delivered at shareholders -- delivered to shareholders and that a quorum is present. Accordingly, I declare that the meeting has been duly called and is properly constituted for the transaction of business. Computershare's affidavit of mailing and the scrutineer's report on attendance will be filed by the Secretary with the minutes of this meeting. The reading of the notice of meeting will be dispensed with. I now declare the online polls open on each resolution. Each person entitled to vote should see voting choices displayed at the top of their screen. We will now commence with the formal business of the meeting. The first item of business is the presentation of the financial statements for the fiscal year ended December 31, 2020. These statements, including the auditors' report thereon, have been made available to review by shareholders in accordance with the applicable law. No action is required by shareholders on this item. The next item of business is the election of directors. The Board of Directors has fixed the number of directors to be elected today at 11. Pembina's information circular for the meeting sets forth management's proposed 11 director nominees. Each of the nominees is qualified and has consented to their nomination as director today and will serve for a term of 1 year, which expires at the 2022 Annual Meeting of Shareholders or until their successors are duly elected or appointed. As we did not receive any additional nominations, in accordance with our advanced notice bylaw, I will ask the secretary to please read the names of those 11 individuals who have been named and described in the information circular to serve as directors of Pembina.

The management nominees are as follows: Randall Findlay, Anne-Marie Ainsworth, Cynthia Carroll, Michael Dilger, Robert Gwin, Maureen Howe, Gordon Kerr, David LeGresley, Leslie O’Donoghue, Bruce Rubin, and Henry Sykes.

All of the director nominees, other than Mr. Dilger, are independent, and all of the nominees currently sit on our Board. The nominees bring a diversity of skills and experience to our Board, and further information with respect to each nominee is set forth in the information circular for the meeting. May I have a motion to elect the 11 nominees as directors of Pembina Pipeline Corporation?

Mr. Chair, I move to nominate the 11 individuals named and described in the information circular to serve as directors of Pembina and to hold office until the next Annual Meeting of Shareholders or until their successors are duly elected or appointed.

Mr. Chair, I second the motion.

We will now open the floor to any questions on this item of business. Brenda, can you please advise if we have received any questions on the site?

Mr. Chair, we have not received any questions in relation to this item of business.

Thank you, Brenda. As there are no further nominees, I've been advised that sufficient votes have been cast in advance of the meeting to elect the 11 nominees as directors of Pembina. However, in accordance with our majority voting policy for director elections, we will proceed with the voting on this matter. Only registered shareholders or their duly appointed proxyholders can vote by online ballot by selecting the applicable voting options displayed on their screen. The next item of business is to vote on the appointment of KPMG LLP as auditors of Pembina, to hold office until the next annual meeting or until a successor is duly appointed and that their remuneration be fixed by Pembina's Board upon recommendation of its Audit Committee. May I please have a motion?

Mr. Chair, I move that KPMG LLP be appointed as the auditors of Pembina until the next Annual Meeting of Shareholders or until a successor is duly appointed and that their remuneration be fixed by the directors of Pembina.

Mr. Chair, I second the motion.

Thank you both. You've heard the motion and it is now open for questions. Brenda, can you report if we have received any questions on this motion?

No, Mr. Chair, we have not received any questions on this motion.

As no comments have been received, I will proceed to the next item of business. The next item of business at this meeting is the approval of Pembina's approach to executive compensation. The text of the resolution is set out in the information circular before the meeting. In order to be passed, the nonbinding resolution must be approved by a majority of the votes cast by Pembina shareholders present or represented by proxy at this meeting. At this time, I would ask to have a motion to conduct a vote of Pembina's shareholders to approve Pembina's approach to executive compensation that is set forth in the information circular.

Mr. Chair, I move that the resolution approving Pembina's approach to executive compensation, as described in the information circular, be approved and authorized by Pembina shareholders as a nonbinding resolution of Pembina shareholders.

Mr. Chair, I second the motion.

You've heard the motion and it is now open for questions. Brenda, have we received any questions on this motion?

Mr. Chair, we've received no questions on this motion.

With there being no questions, I will note that this was the final agenda item and the last matter to be voted at today's meeting. For those of you who have not yet cast your votes, please do so now. I will pause for 1 minute before closing the polls. [Voting]

The polls are now closed. This concludes the voting at today's meeting. I have received the scrutineer's report on the ballots required for each of the items of business, and I am pleased to announce that all items were passed with at least 90% approval. Accordingly, I declare the 11 directors nominated, hereby, elected to Pembina's Board of Directors. I also declare the motion regarding the appointment of KPMG LLP as auditors of Pembina to be passed. Finally, I also declare the resolution approving the nonbinding advisory vote on Pembina's approach to executive compensation to be passed. A report disclosing the number of votes cast in favor, against and withheld from voting in respect of each item of business at this meeting will be filed on SEDAR promptly following the meeting. And a report on the election of each director will be disclosed in our press release to be issued following the meeting. As there is no further business to be considered at the meeting, may I have a motion to terminate the meeting.

Mr. Chair, I move this meeting be terminated.

Mr. Chair, I second the motion.

I declare the formal portion of this meeting terminated. Ladies and gentlemen, this concludes the formal part of our meeting. We will now have a presentation of Pembina's activities by our President and Chief Executive Officer, Mick Didier, after which we'll be pleased to answer any questions you may have. Before I turn the meeting over to Mick, I'd like to thank you for joining us today and that I hope to see you in person at next year's annual meeting. Mick, over to you.

Hello, everybody. Good afternoon. Thanks, Randy. Well done, everybody. I'm presenting here to a live studio audience of 6 masked people. So this is a little bit new for me, but welcome. A couple of formalities here. We do have forward-looking information in the deck. And what that means in layman's terms is we're providing the best estimates we have, but they are not promises. Also, we are using non-GAAP financial measures. So not all the information here is strictly in accordance with GAAP. As I like to do every year, kind of give you a road map from where we were a year ago in the depths of the pandemic and as we sit today a year later. So I've got a couple of highlights here. Pandemic response, really, in short, very proud of what we did last year. We outlined our plan last year. It was concise. It was bold, and no regrets with what we did there. We left no stakeholder behind. We -- I'm going to talk more about that later in the deck. I guess what I'm most proud of in the last year is the roughly 10 million safe hours we worked. We actually had, despite all the turmoil of the pandemic, our best safety year ever. So just hats off to all of our employees in that regard. Operationally, we integrated Kinder Morgan very well. Thanks to our colleagues at Kinder for helping us there. We had annual record volumes of almost 3.5 million BOEs. About 75% of those barrels were from the Pipeline business. And we did actually get a record of EBITDA, not quite the midpoint of our guidance, but I think 97%. So pretty tremendous accomplishment, and we'll talk more about how we achieved that later in the presentation. On a sustainability front, we did report our second annual -- or biannual report. We're now tracking over 100 metrics, which is a 50% increase from the prior report. We have also hired new talent to lead our ESG efforts, and we'll introduce you to Janet in the video that follows. And also importantly, we are committed now to setting targets for GHG emissions and for diversity later this year. And so we'll set out a 5-year road map later in the year for that. In terms of projects and capital, we placed $1 billion into service successfully, and there's a list there of all the new assets that we activated. We reactivated a few projects that we deferred late last year to protect our balance sheet, namely Phase VII and the Empress Cogen projects, which are now both underway. And we are looking at reactivating roughly another $1 billion, give or take, with Phase VIII, IX and Prince Rupert Terminal expansion. So we just had a heck of a year, all things considered. I'm going to focus the next part of the deck on our stakeholders, our employees, our communities, our customers and our investors. Starting with employees, let me just say I miss you guys. I mean I saw the footage actually of the flyover of the facilities in the intro, and I miss being out in the field. I miss our field trips. I miss presenting and hearing from frontline workers out there. I miss the hundreds of people I don't get to see in the office. So looking very much forward to having people back downtown and collaborating. We -- thanks to you, we delivered our best safety record ever. We transitioned successfully to a work-at-home environment. And despite all that, you would think our morale would be lower, but it was actually really high. We had our best-ever engagement survey. So just, again, well done. I miss all our employees. A quick shout-out to Glen Pullishy, who's just starting his 41st year with Pembina today. Way to go, Glen. I want to take a moment to thank the people in my inner circle at Pembina, Becky here, our senior VPs who listen and our Board. Like we pulled together in a tough year. You think with all the chaos, that you'd fracture. But we pulled together even more, which was just absolutely tremendous. I also -- while I'm on the slide, I want to thank Paul Murphy, Jason Wiun for their steadfast support and service up until their retirements earlier this year. Communities. The communities kept us safe, and we kept them safe. And it was just a terrific overall effort. And because of that, we were able to have tremendous online time and keep powering the economy when not all sectors could. We kept everybody working. We kept the cash flow coming in, and we were able to power the economy. And for our part, we maintained all our commitments to the communities through the pandemic, which we're very proud of. We raised over $3 million for the United Way with a virtual campaign, and we committed over $0.5 million to COVID-19 relief. So again, very, very proud of our alignment and continued 2-way relationship with communities. Moving to customers. Again, very proud of what we've done there. We had the best onstream times in our history last year. And so for customers in the worst parts of the pandemic, when cash flow was precious, we kept their cash register ringing. And our frontline workers did a tremendous job, and we kept that lifeline going for our customers. And we actually improved our alignment with customers. We did some -- many deals. I think we did probably 20 deals in the months following the onset of the pandemic to help people out and increase our alignment with lend and extend and other kinds of agreements that are going to serve both of us for years to come. And we placed $1.3 billion of projects into service. You see the photo here of our new Prince Rupert Terminal in the background behind the ship and the dock there. And really proud of what we've done there. That project, I'll talk more about it later in the deck. And then moving to investors. We realized cost savings of $150 million. We're working to sustain those. We believe we can. We deferred $1 billion of capital to safeguard our balance sheet. We think it's prudent. No regrets of that. We maintained our BBB credit rating and have recently been upgraded. We secured $800 million of additional liquidity when we needed it the most. So shout-out to our banks, who were there for us when we needed them and needed to shore up our balance sheet. And we termed out additional debt. And we delivered, as I mentioned earlier, almost to the midpoint of our guidance range, 97%. And so when we set that, that was prepandemic. And to still deliver to the midpoint of that was incredible, and I'll talk more about how we did that. Here is my favorite slide. The blue bars are how much we make EBITDA per share, the diamonds are our dividends per share. And so this is just kind of a nice stairway to heaven. Every year, we increase our EBITDA. We increase our dividends. We hope to increase our dividends still this year. And you can see the red bars moving around. That's the oil price. You can see the lighter blue, I think, line moving around. That's the gas price. And what you can see in the different crises we've been through together: the financial crisis of '08; the commodity price collapse in '15, '16; the impacts of COVID, kind of a double pandemic if you're in this sector; leading to the worst oil prices I think the globe's ever seen. And despite all that, Pembina is just -- continues to generate the types of results year after year after year. And so I'm hoping with the 3 crises behind us that, that will be fully appreciated in the market in the months to come. And how do we do that? You think about our commodities. We're beautifully distributed between commodity types: 30% gas, 30% NGL, 40% crude and condensate. But also our contracts are rock solid: 77% take-or-pay, 17% fee-for-service, so recently single-digit commodity exposure. And that's really what underpins that graph I just showed you, that together with our counterparty credit quality. And we've kind of coined this phrase, financial guardrails, a number years ago, which still serves us well. So our guardrails being that 80% of our business will be fee-for-service. And so regardless of what's happening with commodity prices, as I showed you on the graph, we can fund our dividend. So we're at 94% right now, and that's part of the reason we're being upgraded. And the guardrail #2 is really that we live -- our dividend lives within our fee-for-service. So right now, we're only using about 72% of our fee-for-service cash flow to fund our dividend. So we not only have a nice cushion just with our fee-for-service business, we have our whole marketing business that's incremental to that as an additional cushion. Our credit exposure to counterparties remains steadfast at about 75%. I would say that's trending favorable with the industry consolidations that we're seeing. And I said already, our -- we're strong BBB, with 1 of the 2 services upgrading us at 17%. So where are we? Where are we in the cycle? And we all hope we'd be post-COVID. We are not yet in Canada. Congratulations to those from the United States listening. Hopefully, you're on a patio someplace. We hope to be there soon. So we're not out of COVID yet, but our business looks like it's coming out of COVID, and I'll talk more about that later. We don't know the exact time we're coming out of it. The business is coming back. We are going to see rising global demand. We're seeing it already, and we're going to see more of that because who do you know that doesn't want to get in their motor home, visit their grandkids, get on an airplane. And the economy, with the natural stimulus we have from all the savings, combined with all the government stimulus, it's going to supercharge the economy. And we're going to see hydrocarbon demand come back across the globe. So how is Pembina going to participate in that? We believe right now, as demand returns, that Canada is extremely well positioned to participate in that demand growth. First of all, our producers have done a fantastic job recovering from the pandemic, and I'm reading with joy the press releases our customers are putting out and the speed at which they are rightsizing their balance sheet. They're paying down their debts just incredible a fashion, and their stock prices are coming up nicely. And so we don't think it's going to be too long before stock prices are high enough that people don't want to buy them back, producers, and that they've gotten to their -- whatever they're 2x or 1x debt-to-EBITDA targets. And when that happens, it's going to happen in Canada faster than the U.S. The U.S. typically has used more leverage in their structure, and they're going to have a harder time recovering. The Canadian producers have been living within cash flow for 3 years. I think that's something new to some of the producers in the U.S. We have the resource. We've got the Montney, we've got the Duvernay, we've got the oil sands and the everything is working right now. I'll talk more about that. So we've got the resource. The new thing, there's 2 new developments, though, that with -- combined with all things I'm talking about, we call Advantage Canada. Number 1 is egress. For 10 years, we have not had adequate egress. We've had more supply than egress. So prices in Canada have remained low. We are seeing Trans Mountain come out -- come into the ground. We've got Line 3 coming. We have the Shell LNG project. So that's about a million barrels a day of incremental oil pipeline capacity that will need to be filled. We've got our Prince Rupert Terminal. We've got third-party propane terminals and some new demand coming. That's 100,000 barrels a day. The Shell project is 2 Bs (sic) [ 2 Bcfs ] a day of gas. And so all that capacity needs to be filled in a basin, as I mentioned, that is a great basin. Maybe the Montney is the best gas basin on the whole planet, and with producers who are getting ready to grow, in my opinion. So all those things combined, we think, are Advantage Canada. We also have, of course, the Biden administration coming in, and we really believe the playing field between the regulatory regime and the other factors that used to favor the U.S. are, at the minimum, a level playing field. And we'll see what the U.S. administration does next. So that's kind of the macro. And then imagine what is Pembina's job? Pembina takes product from where it's discovered and it brings it to the center and, more and more, takes it to export. And so we are between all that incremental egress capacity and where it has to go. So it's hard to imagine 1 million barrels of oil being discovered, 2 Bcf a day of gas, hundred thousand of incremental propane without Pembina being right in the middle of that. So we're very optimistic. We see it in the pricing, too. So I'll just look at 2 columns here. The thing about pricing, just before I get into the numbers is it's pretty rare that all 3 commodities work, i.e. oil -- oil and condensate, nat gas and NGLs. So in 2019, in the fourth quarter, which is when Pembina's stock price was in the low to mid-50s. We had $56 oil, $2.20 gas, $0.50 propane, $70 condensate. And then we had the horror show of April 2020, which I'm trying to forget. And now we are in 2021. And look, we're actually favorable in Q1. We averaged $57. I think we're $65 now. Nat gas is still pinned around $2.77, and propane has almost doubled. And so look at where our price of our shares were in Q4 and now look at the commodities end. We actually have substantially better commodity pricing now than when we went into the depths of COVID. And cross-reference that with our volumes building. Our volumes right now in April are at pre or above pre-pandemic levels. So we have price, we have volume, and we're launching. So our first quarter results, very pleased with our first quarter results. The takeaway is our underlying business is performing at record levels. We overhedged a little bit. I don't regret that. I mean we put on these hedges in the depths of the pandemic. And you pay us to be careful. We were careful. In hindsight, who knew price of oil would be $60. We over-hedged a bit. Those -- that over-hedging is over as we come out of the first quarter. And now we are just doing our nondiscretionary hedging program. And so we won't have that burden of that over-hedging. As I mentioned, the overall business environment is improving. We expect that to accelerate as producers pay off their debts and if prices -- particularly if prices remain high. I mentioned our system volumes are building in every commodity, and we are now at pre-pandemic levels. And that's, I think, why DBRS moved us up to -- in our credit rating recently. They see the shedding of risk and the improving prospects. Looking forward to '21, we've set guidance of $3.2 billion to $3.4 billion. We're comfortable with that guidance now. We got asked a lot of questions on the call about are we going to blow to the high end of the guidance? Well, listen, we just -- it's just the first quarter. So we're careful people. So for now, we're comfortable within that guidance range. We're funding our whole capital program out of cash right now. So we -- if things keep going, we're going to have leftover cash. We tend to exploit very accretively. So our first call for capital will be growth. Our debt is comfortable right now. We have the option to continue to reduce debt. We could raise our dividend. We'd like to see a higher stock price before shareholders are signaling adequately to us that they value the dividend. And then, of course, we had the non -- we had the share repurchase option recently approved. So opportunities, as I said, about $1 billion currently under construction. $800 million could come back. Other things are happening, so let's call that $1 billion. And then we have $4 billion of new projects: Cochin, Edmonton Terminals, northeast B.C., laterals, cogens and of course, the Alberta government's program to spur additional petrochemical investment. We think we can participate in that quite nicely. And then we have a whole bunch of stuff that we just haven't socialized yet that we feel is exciting. We really are hitting play again. Our ESG journey. We've been very good at most parts of ESG. Maybe we haven't done the best job of reporting it, and we're doing a better job now. But our governance has been great. Our safety has been great. We've been great with communities. And now we're just starting to really properly report all that stuff and put more effort into it. We're really focused on the E. And as you can see, lower down, we just made a 100-megawatt purchase of wind power. People don't know, but I'll talk about it. I've got a better slide, so I won't go through it all now. We talked about the sustainability report. We hired Janet. She's a true advocate in this area. And so it's just a delight to have her. And around my table, she's always asking, what about ESG? What about ESG? And so you're just going to see a different trajectory for us in that regard. And as I mentioned, we're setting specific 5-year targets later this year. Speaking of ESG, these are before and after pictures of Prince Rupert. And literally, somebody left a pulp mill in the middle of the night with the product in tanks and just sailed away. So the before was Chernobyl, like we bought Chernobyl. And after, we have a facility that the community can be proud of, and Mayor Lee Brain will talk about that later in the video. A legacy for that community and a lifesaver for the town of Prince Rupert, and we're just moving our first cargo. So this is just -- it doesn't get any better than this. We're super proud of what's going on there. Now the opportunities we have looking forward in terms of reducing our carbon footprint, we are going to be part of the solution towards building a lower carbon economy. We just, as I mentioned, we bought 100 megawatts of wind. We already had a small wind farm. So we know that business relatively well. We're up to about 150 megawatts of cogeneration in our space, and we have numerous other locations to keep doing that. And of course, cogeneration displaces the coal gas mix we get on the grid with just gas, and so there's a lower carbon footprint. We already have a hydrogen facility. It's not big, but it supplies Shell Scotford, so we are already in hydrogen. We're running a pilot at Redwater to sequester. The things you need to be good at for carbon capture, transportation, sequestration, we already do all those things. Capture is an amine plant; transportation by pipeline, I think that speaks for itself; and sequestration, the industry has known how to sequester acid gas for decades. And so that's all within the skill set. And LNG remains in scope, and the LNG buyers that we have or we've identified and have relationships with are all using their nat gas to displace coal. So we have a bunch of things we're doing today, and we have things that are in strategy for the future. So stay tuned. So in summary, our value proposition. We are a proud provider of essential energy to North America. We kept everyone's homes warm with the last year. And when the economy reemerges, they're going to need what we produce. We had a decade long run of outperformance. And I dare say, if you go back 10 years and look at performance, we're still at the top of the heap over the last 10 years. We had a dip through the pandemic, but we're kind of right back where we were prepandemic. And we're going to build throughout the year. So let's just wait and see what happens. We have resilient assets. We -- I talked about the commodity mix. I talked about counterparty credit. I talked about the contract type. Our producers are strong. They're getting stronger. And we have -- we sit -- our assets sit on top of some of the best geology in the world. And you can rely on us for our steadfast discipline and adherence to our guardrails and there's some metrics there. Our EBITDA per share, not in total, but per share, that's the number that matters, has doubled in the last 5 years. And we're approaching $10 billion next year on total distributions. Now the fun part. I get to introduce you to Janet. And we have a motto at Pembina, which is companies -- if you ask a company how good they are, they'll always tell you they're great. But what really matters is what other people say about them. And so we thought we'd take a moment to show you a short video. You're going to meet Janet Loduca, who's our Sustainability Officer, and you'll hear from a cross-section of our stakeholders. So with that, maybe we'll all conclude. And thank you, everybody, for your support, and I look forward to seeing you all in person. [Presentation]

I guess we'll have a quick question-and-answer period. So not sure who's going to ask. Okay, Scott, thank you. Do we have any questions?

Thanks, Mick. The first question relates to Jordan Cove and is as follows: Jordan Cove has been a challenging project for Pembina, and the company has been unable to secure required permits to construct the project. There's concern that the company continues to spend funds on the project, and so please comment on the go-forward plan for Jordan Cove.

Yes, I'd be happy to. Let's talk about Jordan Cove, and we'll talk about the PDH/PP project, which we put on indefinite hold as well. The funding to safeguard those assets is really modest. All we're doing at -- on the PDH/PP is we are safeguarding the investment we have. I think they are each about $300 million, and making sure that if the circumstances become favorable again, we can essentially bring those assets back and recover that entire value. That's similar to Jordan Cove. The investment to do that is really very, very nominal.

Okay. Mick, There are no further questions at this time. So I'll turn it back to you for some closing remarks.

Wow, that was easy. Anyway, on behalf of myself, all the employees at Pembina, our Board, I really want to thank -- this is a year where I so sincerely thank all our stakeholders for their collaboration through the very difficult year. We're almost there. And hopefully, we'll continue to build through 2021 and get to that breakthrough year in 2022 again. So thank you very much. Take care and stay safe.