Pembina Pipeline Corporation · 2020. 11. 5. · Pembina will continue to keep its employees and stakeholders top of mind and supported while navigating through these events. Pembina

Q3Pembina Pipeline Corporation

2020 Interim Report

REPORTTOSHAREHOLDERSThirdQuarter2020

MANAGEMENT'SDISCUSSIONANDANALYSIS

TableofContents

1.AboutPembina..................................................................................................................................................................... 1

2.Financial&OperatingOverview........................................................................................................................................... 3

3.SegmentResults.................................................................................................................................................................... 7

4.Liquidity&CapitalResources................................................................................................................................................ 19

5.CapitalInvestments.............................................................................................................................................................. 23

6.Dividends.............................................................................................................................................................................. 23

7.SelectedQuarterlyInformation............................................................................................................................................ 25

8.SelectedEquityAccountedInvesteeInformation................................................................................................................ 27

9.Other..................................................................................................................................................................................... 28

10.AccountingPolicies&Estimates......................................................................................................................................... 30

11.RiskFactors......................................................................................................................................................................... 32

12.Non-GAAPMeasures.......................................................................................................................................................... 33

13.Abbreviations...................................................................................................................................................................... 36

14.Forward-LookingStatements&Information...................................................................................................................... 37

BasisofPresentationThefollowingManagement'sDiscussionandAnalysis("MD&A")ofthefinancialandoperatingresultsofPembinaPipelineCorporation("Pembina"orthe"Company")isdatedNovember5,2020,andissupplementaryto,andshouldbereadinconjunctionwith,Pembina'sunauditedcondensedconsolidatedinterimfinancialstatementsforthethreeandninemonthsendedSeptember30,2020("InterimFinancialStatements")aswellasPembina'sauditedconsolidatedannualfinancialstatements("ConsolidatedFinancialStatements")andMD&AfortheyearendedDecember31,2019.AllfinancialinformationhasbeenpreparedinaccordancewithIAS34InterimFinancialReportingandisexpressedinCanadiandollars,unlessotherwisenoted.AdescriptionofPembina'soperatingsegmentsandadditionalinformationaboutPembinaisfiledwithCanadianandU.S.securitiescommissions,includingquarterlyandannualreports,annualinformationforms(filedwiththeU.S.SecuritiesandExchangeCommissionunderForm40-F)andmanagementinformationcirculars,whichcanbefoundonlineatwww.sedar.com,www.sec.govandthroughPembina'swebsiteatwww.pembina.com.InformationcontainedinorotherwiseaccessiblethroughPembina'swebsitedoesnotformpartofthisMD&Aandisnotincorporatedintothisdocumentbyreference.

AbbreviationsForalistofabbreviationsthatmaybeusedinthisMD&A,refertothe"Abbreviations"sectionofthisMD&A.

Non-GAAPFinancialMeasuresPembinahasidentifiedcertainoperatingandfinancialperformancemeasuresthatmanagementbelievesprovidemeaningfulinformationinassessingPembina'sunderlyingperformance.ReadersarecautionedthatthesemeasuresdonothaveastandardizedmeaningprescribedbyInternationalFinancialReportingStandards("IFRS")andthereforemaynotbecomparabletosimilarmeasurespresentedbyotherentities.Refertothe"Non-GAAPMeasures"sectionofthisMD&Aforalistanddescription,includingreconciliationstothemostdirectlycomparableGAAPmeasures,ofsuchnon-GAAPmeasures.

RiskFactorsandForward-LookingInformationManagementhasidentifiedtheprimaryriskfactorsthatcouldhaveamaterialimpactonthefinancialresultsandoperationsofPembina.SuchriskfactorsarepresentedinPembina'sMD&AandAnnualInformationForm("AIF")fortheyearendedDecember31,2019andhavebeenupdatedinthe"RiskFactors"sectionofthisMD&Aasnecessary.TheCompany'sfinancialandoperationalperformanceispotentiallyaffectedbyanumberoffactors,including,butnotlimitedto,thefactorsdescribedwithinthe"Forward-LookingStatements&Information"sectionofthisMD&A.ThisMD&Acontainsforward-lookingstatementsbasedonPembina'scurrentexpectations,estimates,projectionsandassumptions.ThisinformationisprovidedtoassistreadersinunderstandingtheCompany'sfutureplansandexpectationsandmaynotbeappropriateforotherpurposes.

1PembinaPipelineCorporationThirdQuarter2020

1.ABOUTPEMBINAPembinaisaleadingtransportationandmidstreamserviceproviderthathasbeenservingNorthAmerica'senergyindustryfor

morethan65years.Pembinaownsanintegratedsystemofpipelinesthattransportvarioushydrocarbonliquidsandnatural

gasproductsproducedprimarilyinwesternCanada.TheCompanyalsoownsgasgatheringandprocessingfacilities;anoiland

naturalgasliquidsinfrastructureandlogisticsbusiness;isgrowinganexportterminalsbusiness;andisdevelopinga

petrochemicalfacilitytoconvertpropaneintopolypropylene.Pembina'sintegratedassetsandcommercialoperationsalong

themajorityofthehydrocarbonvaluechainallowittoofferafullspectrumofmidstreamandmarketingservicestothe

energysector.Pembinaiscommittedtoidentifyingadditionalopportunitiestoconnecthydrocarbonproductiontonew

demandlocationsthroughthedevelopmentofinfrastructurethatwouldextendPembina'sserviceofferingevenfurtheralong

thehydrocarbonvaluechain.Thesenewdevelopmentswillcontributetoensuringthathydrocarbonsproducedinthe

WesternCanadianSedimentaryBasinandtheotherbasinswherePembinaoperatescanreachthehighestvaluemarkets

throughouttheworld.

PurposeofPembina:

Tobetheleaderindeliveringintegratedinfrastructuresolutionsconnectingglobalmarkets;

• Customerschooseusfirstforreliableandvalue-addedservices;

• Investorsreceivesustainableindustry-leadingtotalreturns;

• Employeessaywearethe'employerofchoice'andvalueoursafe,respectful,collaborativeandfairworkculture;and

• Communitieswelcomeusandrecognizethenetpositiveimpactofoursocialandenvironmentalcommitment.

OngoingImpactoftheCOVID-19Pandemic

InMarch2020,theWorldHealthOrganizationdeclaredtheglobaloutbreakofanovelcoronavirus("COVID-19")apandemic.

Inresponse,manygovernmentsimposedrestrictionsonindividualsandbusinesses,resultinginasignificantslowdownofthe

globaleconomy.Whiletheserestrictionshavebeenrelaxedincertainjurisdictions,aresurgenceofviruscasesincertain

geographicareasandtheriskthatthiscouldoccurinotherareashascausedgovernmentsincertainjurisdictionstosustain

andinsomecasesre-imposerestrictions,whichcreatesuncertaintyastotheextentanddurationoftheglobaleconomic

slowdown.Theglobaleconomicslowdownhasledtosignificantoperationaldisruptionofbusinessesandtheirworkforces,a

significantincreaseineconomicuncertaintyandadecreaseindemandforcrudeoil,naturalgas,NGLandothercommodities.

Pembina'sgreatestassetsareitspeopleandtherelationshipswithitscustomers,investorsandthecommunitiesinwhichit

hasapresence.Pembinawillcontinuetokeepitsemployeesandstakeholderstopofmindandsupportedwhilenavigating

throughtheseevents.Pembinawilladjustitsresponse,asneeded,andwillcontinuetobasedecisionsonrecommendations

frompublichealthexperts,ongoingevaluationofglobalenergypricesandtheimpactonPembinaanditscustomers'

businesses.

TheimpactsoftheCOVID-19pandemichavebeenassessedthroughoutthisdocumentand,wherematerial,additional

disclosurehasbeenprovidedtoindicatethepotentialimpactsitmayhaveonPembinaanditsresultsofoperations.

PembinaPipelineCorporationThirdQuarter20202

2.FINANCIAL&OPERATINGOVERVIEWConsolidatedFinancialOverviewfortheThreeMonthsEndedSeptember30

ResultsofOperations

($millions,exceptwherenoted) 2020 2019 Change %Change

Infrastructureandotherservicesrevenue 744 594 150 25

Productsalesrevenue 825 1,106 (281) (25)

TotalRevenue 1,569 1,700 (131) (8)

Netrevenue(1) 849 751 98 13

Grossprofit 563 613 (50) (8)

Earnings 318 370 (52) (14)

Earningspercommonshare–basic(dollars) 0.51 0.66 (0.15) (23)

Earningspercommonshare–diluted(dollars) 0.51 0.66 (0.15) (23)

Cashflowfromoperatingactivities 434 535 (101) (19)

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 0.79 1.05 (0.26) (25)

Adjustedcashflowfromoperatingactivities(1) 524 530 (6) (1)

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 0.95 1.04 (0.09) (9)

Capitalexpenditures 174 421 (247) (59)

AdjustedEBITDA(1) 796 736 60 8

Totalvolume(mboe/d)(2) 3,451 3,436 15 —

BridgeAnalysisofEarnings($millions)

318318

370

4719

(115)

9

(6) (6)

EarningsQ32019

Pipelinesgrossprofit

Facilitiesgrossprofit

Marketing&New

Venturesgrossprofit

Corporate,G&Aandother

Netfinancecosts

Currenttax

expense

EarningsQ32020

ResultsOverview

Duringthethirdquarterof2020,Pembina'shighlycontractedbusinessagaindemonstrateditsstabilityandresiliency.

Earningsinthethirdquarterof2020werepositivelyimpactedbyhighergrossprofitinPipelinesandFacilities,asthe

contributionfromtheassetsacquiredintheKinderAcquisitionoffsetweakerglobalenergydemandresultingfromthe

ongoingCOVID-19pandemic.Marketing&NewVentureswasimpactedbylowermarginsoncrudeoilandNGLsalesduring

thequarterasaresultofreducedcrudeactivitiesduetotheimpactofCOVID-19onmarketconditions,inadditiontolower

fracspreadsimpactingNGLmargins.General&administrativeandotherdecreasedduetolowerincentivecostsasaresultof

adecreaseinPembina'ssharepricecomparedtothepriorperiod.


ChangesinResultsfortheThreeMonthsEndedSeptember30Infrastructureandotherservicesrevenue

▲ $150millionincreaseinrevenueduetorevenuecontributedbytheCochinPipeline,EdmontonTerminalsandVancouverWharvesacquiredintheKinderAcquisition,partiallyoffsetbylowerinterruptiblevolumesinPipelinesandlowercapitalfeesinFacilities,largelyduetoreducedenergydemandasaresultoftheongoingCOVID-19pandemic.

Productsalesrevenue ▼ $281milliondecrease($40milliondecreasenetofcostofgoodssold),largelyduetotheimpactoftheCOVID-19pandemiconmarketconditionsresultinginlowercrudeoilprices,combinedwithlowermarketedNGLvolumes,partiallyoffsetbyhigherpropaneandbutanesalesprices.Additionally,marketconditionscompressedmarginsanddecreasedcrudeactivities,whilelowerfracspreadsimpactedNGLmargins.

Costofgoodssold ▲ $229milliondecrease,largelyduetolowercrudeoilprices,combinedwithlowermarketedNGLvolumes,partiallyoffsetbyhigherAECOnaturalgaspricesimpactingNGLsupplycosts.

Operatingexpenses ▼ $27millionincrease,largelyduetohigherlabourcosts,repairsandmaintenancecostsandpropertytaxesdrivenbygrowthinPembina'sbusinessfollowingtheKinderAcquisition,partiallyoffsetbylowerpowercostsduetoaloweraveragepowerpoolpriceduringthethirdquarterof2020.

Depreciationandamortizationincludedinoperations

▼ $49millionincrease,primarilyduetogrowthinPembina'sassetbasefollowingtheKinderAcquisitionandadditionalassetsbeingplacedintoservice.

Shareofprofitfromequityaccountedinvestees

▼ $28milliondecrease,largelyduetolowerNGLmarginsandanarrowerAECO-Chicagonaturalgaspricedifferential,resultinginalowercontributionfromAuxSableandlowerinterruptiblevolumesontheAlliancePipeline.

Realizedgainoncommodity-relatedderivatives

● Consistentwiththepriorperiod.

Unrealizedloss(gain)oncommodity-relatedderivatives

▼ $46millionnegativevariance,primarilyduetotherecoveryintheforwardpriceofpropaneandbutaneduringthethirdquarterof2020,combinedwithcontractsmaturingintheperiod.

General&administrativeandother

▲ $10milliondecrease,largelyduetolowerincentivecostsfollowingthedeclineinPembina'sshareprice.

Netfinancecosts ● Consistentwiththepriorperiod.Higherinterestexpenseassociatedwithhigheraveragedebtlevelsandinterestexpenseassociatedwithleaseslargelyoffsetgainsonnon-commodity-relatedderivativefinancialinstrumentsandforeignexchangegains.

Currenttaxexpense ● Consistentwiththepriorperiod.

Deferredtaxexpense ● Consistentwiththepriorperiod.

Earnings ▼ $52milliondecrease,duetothefactorsnotedabove.

Cashflowfromoperatingactivities

▼ $101milliondecrease,primarilydrivenbythe$72millionincreaseintaxespaid,ascorporatetaxinstallmentsweredeferreduntilthethirdquarterof2020duetotheCOIVD-19pandemic,$53millionincreaseinnetinterestpaid,$31milliondecreaseindistributionsfromequityaccountedinvesteesand$25millionchangeinnon-cashworkingcapital,partiallyoffsetbytheincreaseinoperatingresultsafteradjustingfornon-cashitems.

Adjustedcashflowfromoperatingactivities(1)

● Consistentwithpriorperiod,asthesamefactorsimpactingcashflowfromoperatingactivities,discussedabove,werelargelyoffsetbythechangeintaxespaid,netofthechangeinnon-cashworkingcapital.

AdjustedEBITDA(1) ▲ $60millionincrease,largelyduetothe$105millioncontributionfromtheCochinPipeline,EdmontonTerminalsandVancouverWharvesacquiredintheKinderAcquisition,partiallyoffsetbylowermarginsoncrudeoilandNGLsalesinthemarketingbusinessasaresultoflowercrudeoilpricesandfracspreadsduringthethirdquarterof2020,andlowercontributionfromAllianceduetolowerinterruptiblevolumesandAuxSableduelargelytolowerNGLmarginsandanarrowerAECO-Chicagonaturalgaspricedifferential,whichresultedinlowerrevenues.IncludedinadjustedEBITDAis$168million(2019:$183million)relatedtoequityaccountedinvestees.

Totalvolume(mboe/d)(2) ▲ 15mboe/dincrease,duetothecontributionfromtheCochinPipelineacquiredintheKinderAcquisition,combinedwithhighersupplyvolumesattheRedwaterComplex,DuvernayIIgoingintoserviceandhighertemporaryinterruptiblevolumesontheRubyPipeline,partiallyoffsetbylowerinterruptiblevolumesinPipelinesduetolowercrudeoilandNGLdemandandanarrowerAECO-Chicagonaturalgaspricedifferential.Revenuevolumesinclude310mboe/d(2019:316mboe/d)relatedtoequityaccountedinvestees.

▲ Increase; ▼ Decrease;or ● Noimpact; toearnings,adjustedEBITDA,cashflowfromoperations,adjustedcashflowfromoperatingactivitiesortotalvolumes.

(1) Refertothe"Non-GAAPMeasures"section.(2) Totalrevenuevolumes.Seethe"Abbreviations"sectionfordefinition.MarketedNGLvolumesareexcludedfromvolumestoavoiddoublecounting.Refertothe"Marketing

&NewVentures"sectionforfurtherinformation.


ConsolidatedFinancialOverviewfortheNineMonthsEndedSeptember30

ResultsofOperations


Infrastructureandotherservicesrevenue 2,199 1,764 435 25

Productsalesrevenue 2,309 3,712 (1,403) (38)

Revenue 4,508 5,476 (968) (18)

Netrevenue(1) 2,490 2,283 207 9

Grossprofit 1,746 1,830 (84) (5)

Earnings 885 1,347 (462) (34)

Earningspercommonshare–basic(dollars) 1.39 2.45 (1.06) (43)

Earningspercommonshare–diluted(dollars) 1.39 2.44 (1.05) (43)

Cashflowfromoperatingactivities 1,486 1,804 (318) (18)

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 2.70 3.53 (0.83) (24)

Adjustedcashflowfromoperatingactivities(1) 1,686 1,658 28 2

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 3.07 3.25 (0.18) (6)

Capitalexpenditures 868 1,216 (348) (29)

AdjustedEBITDA(1) 2,415 2,274 141 6

Totalvolume(mboe/d)(2) 3,462 3,408 54 2

BridgeAnalysisofEarnings($millions)

885885

1,347

119 31

(236)

49

(130) (17)

(278)

EarningsYTD2019

Pipelinesgrossprofit

Facilitiesgrossprofit

Marketing&NewVenturesgrossprofit

Corporate,G&Aandother

Netfinancecosts

Currenttax

expense

Deferredtax

expense

EarningsYTD2020

ResultsOverview

EarningsfortheninemonthsendedSeptember30,2020werepositivelyimpactedbyhighergrossprofitinbothPipelinesand

FacilitiesprimarilyasaresultoftheadditionalassetsacquiredintheKinderAcquisition.OffsettingtheresultsfromPipelines

andFacilities,Marketing&NewVentureswasnegativelyimpactedbylowermarginsoncrudeoilandNGLsalesandlower

marketedNGLvolumes,combinedwithalowercontributionfromAuxSableasaresultoflowerNGLmarginsandanarrower

AECO-Chicagonaturalgaspricedifferential,partiallyoffsetbyrealizedgainsoncommodity-relatedderivativesduetothe

lowerpricingenvironment.DeferredtaxesincreasedastheenactmentofAlberta'sBill3inJune2019,whichreducesthe

Albertacorporateincometaxratefrom12to8percentandresultinginalargedeferredtaxrecoveryduringthesecond

quarterof2019.Netfinancecostsincreasedduetohigherinterestexpense,drivenbyhigheraveragedebtlevels,andforeign

exchangelossesontherepaymentofU.S.dollardenominateddebt.General&administrativeandotherdecreasedinthe

periodduetotherecognitionofotherincomeassociatedwiththeCanadianEmergencyWageSubsidy("CEWS")andlower

incentivecosts.


ChangesinResultsfortheNineMonthsEndedSeptember30Infrastructureandotherservicesrevenue

▲ $435millionincreaseinrevenueduetorevenuecontributedbytheCochinPipeline,EdmontonTerminalsandVancouverWharvesacquiredintheKinderAcquisition,partiallyoffsetbylowerinterruptiblevolumesinPipelinesandlowercapitalfeesinFacilities,largelyduetoreducedenergydemandasaresultoftheongoingCOVID-19pandemic.

Productsalesrevenue ▼ $1.4billiondecrease($216milliondecreasenetofcostofgoodssold),largelyduetoweakerglobalenergydemandduring2020,asaresultoftheongoingCOVID-19pandemic,resultingindecreasedpricesforcrudeoilandNGL,combinedwithlowermarketedNGLvolumes.Additionally,theimpactoftheCOVID-19pandemiconmarketconditionscompressedmarginsanddecreasedcrudeactivities,whilelowerfracspreadsimpactedNGLmargins,combinedwitha$33millionarbitrationawardpaymentreceivedduringthefirstquarterof2019.

Costofgoodssold ▲ $1.2billiondecrease,duetolowercrudeoilandNGLprices,combinedwithlowermarketedNGLvolumes.

Operatingexpenses ▼ $86millionincrease,largelyduetohigherlabourcosts,repairsandmaintenancecostsandpropertytax,asaresultofthelargerassetbasefollowingtheKinderAcquisition,partiallyoffsetbylowerpowercostsduetoaloweraveragepowerpoolpriceduring2020.


▼ $159millionincrease,primarilyduetogrowthinPembina'sassetbasefollowingtheKinderAcquisitionandadditionalassetsbeingplacedintoservice.


▼ $73milliondecrease,largelyduetolowerNGLmarginsandthenarrowerAECO-Chicagonaturalgaspricedifferential,resultinginlowerinterruptiblevolumesontheAlliancePipelineandlowercontributionfromAuxSable.


▲ $35millionincrease,duetolowermarketpricesintheperiodcreatingagainforcrudeandNGL-basedderivativessettledduring2020.



General&administrativeandother

▲ $47milliondecrease,largelyduetolowerincentivecosts,drivenbythedeclineinglobalequitymarketswhichimpactedPembina'sshareprice,combinedwithotherincomeassociatedwiththeCEWS,whichwerepartiallyoffsetbyprojectwrite-downsandacquisitionrelatedcosts.

Netfinancecosts ▼ $130millionincrease,primarilydrivenbyadditionalinterestexpenseassociatedwithhigheraveragedebtlevels,combinedwithanincreaseinforeignexchangelossesontherepaymentofU.S.dollardenominateddebtandincreasedinterestexpenserelatedtoleases.

Currenttaxexpense ▼ $17millionincrease,astaxableincomegeneratedfromtheassetsacquiredintheKinderAcquisitionandthetaximpactoftheCEWSwaspartiallyoffsetbydecreasedtaxableincomefromotherPembinaentities.

Deferredtaxrecovery ▼ $278millionincrease,largelyduetotheenactmentofAlberta'sBill3inJuneof2019,whichreducestheAlbertacorporatetaxratefrom12to8percentandresultinginalargedeferredtaxrecovery,partiallyoffsetbytheutilizationofnon-capitallossesin2019.

Earnings ▼ $462milliondecrease,duetothefactorsnotedabove.

Cashflowfromoperatingactivities

▼ $318milliondecrease,primarilydrivenbythe$175millionchangeinnon-cashworkingcapital,$173millionincreaseintaxespaid,asPembinamadethefinalpaymentof2019taxesandfirstinstallmentsof2020,$102milliondecreaseindistributionsfromequityaccountedinvesteesand$92millionincreaseinnetinterestpaid,partiallyoffsetbytheincreaseinoperatingresultsafteradjustingfornon-cashitemsand$48millionincreaseinpaymentsthatwerereceivedanddeferred.

Adjustedcashflowfromoperatingactivities(1)

▲ $28millionincrease,largelyduetothesamefactorsimpactingcashflowfromoperatingactivities,discussedabove,netofthechangeinnon-cashworkingcapital,increaseintaxespaidand$43millionloweraccruedshare-basedpayments,partiallyoffsetbythe$21millionincreaseinpreferredsharedividendsfollowingtheKinderAcquisition.

AdjustedEBITDA(1) ▲ $141millionincrease,duetothe$312millioncontributionfromtheCochinPipeline,EdmontonTerminalsandVancouverWharvesacquiredintheKinderAcquisition,combinedwiththerealizedgainoncommodityrelatedderivativesandlowergeneral&administrativeandotherexpenses,discussedabove,partiallyoffsetbylowermarginsoncrudeoilandNGLsalesinthemarketingbusinessasaresultoflowerdemandforcrudeoilandNGLduring2020,asaresultoftheCOVID-19pandemic,andlowercontributionfromAuxSableduetolowerNGLmarginsandAllianceduetothenarrowerAECO-Chicagonaturalgaspricedifferential.IncludedinadjustedEBITDAis$509million(2019:$603million)relatedtoequityaccountedinvestees.

Totalvolume(mboe/d)(2) ▲ 54mboe/dincrease,duetothecontributionsfromtheCochinPipelineacquiredintheKinderAcquisition,combinedwithhighertemporaryinterruptiblevolumesonRubyandDuvernayIIgoingintoservice,partiallyoffsetbylowerinterruptiblevolumesinPipelines,duetolowerdemandforcrudeoilandNGLandanarrowerAECO-Chicagonaturalgaspricedifferential.Revenuevolumesinclude312mboe/d(2019:320mboe/d)relatedtoequityaccountedinvestees.

▲ Increase; ▼ Decrease;or ● Noimpact; toearnings,adjustedEBITDA,cashflowfromoperations,adjustedcashflowfromoperatingactivitiesortotalvolumes.

(1) Refertothe"Non-GAAPMeasures"section.(2) Totalrevenuevolumes.Seethe"Abbreviations"sectionfordefinition.MarketedNGLvolumesareexcludedfromvolumestoavoiddoublecounting.Refertothe"Marketing

&NewVentures"sectionforfurtherinformation.


3.SEGMENTRESULTSBusinessOverview

ThePipelinesDivisionprovidescustomerswithpipelinetransportation,terminalling,storageandrailservicesinkeymarket

hubsinCanadaandtheUnitedStatesforcrudeoil,condensate,naturalgasliquidsandnaturalgas.Thedivisionincludes

pipelinetransportationcapacityofapproximately3.1mmboe/d(1)andabovegroundstorageofapproximately11mmbbls(1)

withinitsconventional,oilsandsandheavyoil,andtransmissionassets.Theconventionalassetsincludestrategicallylocated

pipelinesandterminallinghubsthatgatherandtransportlightandmediumcrudes,condensateandnaturalgasliquidsfrom

westernAlbertaandnortheastBritishColumbiatotheEdmonton,Albertaareaforfurtherprocessingortransportationon

downstreampipelines.TheoilsandsandheavyoilassetstransportheavyandsyntheticoilproducedwithinAlbertatothe

Edmontonareaandofferassociatedstorage,terminallingandrailservices.Thetransmissionassetstransportnaturalgas,

ethaneandcondensatethroughoutCanadaandtheUnitedStatesonlonghaulpipelineslinkingvariouskeymarkethubs.In

addition,thePipelinesDivisionassetsprovidelinkagesbetweenPembina'supstreamanddownstreamassetsacrossNorth

America,enablingintegratedcustomerserviceofferings.Together,theseassetssupplyproductfromhydrocarbonproducing

regionstorefineries,fractionatorsandmarkethubsinAlberta,BritishColumbia,IllinoisandCalifornia,aswellasotherregions

throughoutNorthAmerica.

TheFacilitiesDivisionincludesinfrastructurethatprovidesPembina'scustomerswithnaturalgas,condensateandNGL

services.Pembina'snaturalgasgatheringandprocessingassetsarestrategicallypositionedinactive,liquids-richareasofthe

WCSBandWillistonBasinandareintegratedwiththeCompany'sotherbusinesses.Pembinaprovidessweetandsourgas

gathering,compression,condensatestabilization,andbothshallowcutanddeepcutgasprocessingserviceswithatotal

capacityofapproximately6bcf/d(2)foritscustomers.VirtuallyallofthecondensateandNGLextractedthroughCanadian-

basedfacilitiesaretransportedbyPembina'sPipelinesDivision.Inaddition,allNGLtransportedalongtheAlliancePipelineare

extractedthroughthePembinaoperatedChannahonFacilityattheterminus.TheFacilitiesDivisionincludesapproximately

326mbpd(2)ofNGLfractionation,21mmbbls(1)ofcavernstorageandassociatedpipelineandrailterminallingfacilitiesandthe

CompanyiscurrentlyconstructingaliquefiedpropaneexportfacilityonCanada'sWestCoast.Thesefacilitiesarefully

integratedwiththeCompany'sotherdivisions,providingcustomerswiththeabilitytoaccessacomprehensivesuiteof

servicestoenhancethevalueoftheirhydrocarbons.

TheMarketing&NewVenturesDivisionstrivestomaximizethevalueofhydrocarbonliquidsandnaturalgasoriginatinginthe

basinswheretheCompanyoperates.Pembinaseekstocreatenewmarkets,andfurtherenhanceexistingmarkets,tosupport

boththeCompany'sanditscustomers'overallbusinessinterests.Inparticular,Pembinaseekstoidentifyopportunitiesto

connecthydrocarbonproductiontonewdemandlocationsthroughthedevelopmentofinfrastructure.Pembinastrivesto

increaseproducernetbacksandproductdemandtoimprovetheoverallcompetitivenessofthebasinswheretheCompany

operates.WithintheMarketing&NewVenturesDivision,Pembinaundertakesvalue-addedcommoditymarketingactivities

includingbuyingandsellingproducts(naturalgas,ethane,propane,butane,condensateandcrudeoil),commodityarbitrage,

andoptimizingstorageopportunities.ThemarketingbusinessentersintocontractsforcapacityonbothPembina'sandthird-

partyinfrastructure,handlesproprietaryandcustomervolumesandaggregatesproductionforonwardsale.TheMarketing&

NewVenturesDivisionincludesanintegratedPDH/PPFacilitybeingdevelopedbyPembina'sjointventure,CKPCandthe

proposedJordanCoveLNGproject.

(1) Netcapacity;excludesprojectsunderdevelopment.(2) Netcapacity.IncludesAuxSablecapacity.ThefinancialandoperationalresultsforAuxSableareincludedintheMarketing&NewVenturesDivision;excludesprojectsunder

development.


FinancialandOperationalOverviewbyDivision

3MonthsEndedSeptember30 9MonthsEndedSeptember30

2020 2019 2020 2019

($millions,exceptwherenoted) Volumes(1)

GrossProfit

AdjustedEBITDA(2) Volumes(1)

GrossProfit


GrossProfit


GrossProfit

AdjustedEBITDA(2)

Pipelines 2,580 378 541 2,570 331 458 2,588 1,150 1,631 2,532 1,031 1,387

Facilities 871 180 251 866 161 233 874 517 757 876 486 701

Marketing&NewVentures(3) — 5 34 — 120 83 — 77 118 — 313 301

Corporate — — (30) — 1 (38) — 2 (91) — — (115)

Total 3,451 563 796 3,436 613 736 3,462 1,746 2,415 3,408 1,830 2,274(1) VolumesforPipelinesandFacilitiesarerevenuevolumes,whicharephysicalvolumesplusvolumesrecognizedfromtake-or-paycommitments.Volumesarestatedinmboe/

d,withnaturalgasvolumesconvertedtomboe/dfromMMcf/data6:1ratio.(2) Refertothe"Non-GAAPMeasures"section.(3) MarketedNGLvolumesareexcludedfromvolumestoavoiddoublecounting.Refertothe"Marketing&NewVentures"sectionforfurtherinformation.


Pipelines

FinancialOverviewfortheThreeMonthsEndedSeptember30

ResultsofOperations


Conventionalrevenue(1) 323 327 (4) (1)

Transmissionrevenue(1) 120 50 70 140

OilSandsrevenue(1) 114 64 50 78

Pipelinesrevenue(1) 557 441 116 26

Operatingexpenses(1) 129 109 20 18

Shareofprofitfromequityaccountedinvestees 55 63 (8) (13)

Depreciationandamortizationincludedinoperations 105 64 41 64

Grossprofit 378 331 47 14


Volumes(mboe/d)(3) 2,580 2,570 10 —

Distributionsfromequityaccountedinvestees 84 99 (15) (15)

ChangeinResults

Conventionalrevenue(1) ● Consistentwiththepriorperiod.ReducedglobalenergydemandduetotheongoingCOVID-19pandemicresultedinlowerinterruptiblevolumesonthePeacePipelinesystemandtheDraytonValleyPipeline,largelyoffsetbyPhaseVIcomingintoserviceduringJune2020andadditionalrevenueontheNEBCPipelinesystem.

Transmissionrevenue(1) ▲ IncreaselargelyduetothecontributionfromtheCochinPipelinefollowingtheKinderAcquisition,partiallyoffsetbylowerinterruptiblevolumesontheVantageSystem,duetocurrentmarketconditions.

OilSandsrevenue(1) ▲ IncreaseprimarilyduetothecontributionfromtheEdmontonTerminalsfollowingtheKinderAcquisition.

Operatingexpenses(1) ▼ IncreaseprimarilyduetotheadditionaloperatingexpensesassociatedwiththeCochinPipelineandEdmontonTerminalsfollowingtheKinderAcquisition.


▼ DecreaselargelyduetolowerinterruptiblevolumesontheAlliancePipeline,drivenbyanarrowerAECO-Chicagonaturalgaspricedifferential.


▼ IncreaseindepreciationduetothelargerassetbaseasaresultoftheadditionoftheassetsacquiredintheKinderAcquisition.

Distributionsfromequityaccountedinvestees

▼ $53million(2019:$68million)fromAllianceand$31million(2019:$31million)fromRuby.ThedecreaseindistributionsfromAllianceislargelyduetothesamefactorsimpactingshareofprofitfromequityaccountedinvesteesnotedabove.

Volumes(mboe/d)(3) ▲ IncreaseprimarilyduetothecontributionfromtheCochinPipelinefollowingtheKinderAcquisition,combinedwithhighertemporaryinterruptiblevolumesonRuby,partiallyoffsetbylowerthroughputonAlbertaEthaneGatheringSystemandlowerinterruptiblevolumesdiscussedabove.Revenuevolumesinclude126mboe/d(2019:141mboe/d)relatedtoAllianceand108mboe/d(2019:89mboe/d)relatedtoRuby.

AdjustedEBITDA(2) ▲ IncreaseduetohigherrevenueassociatedwiththeCochinPipelineandEdmontonTerminalsfollowingtheKinderAcquisition,partiallyoffsetbyincreasedoperatingexpensesassociatedwiththelargerassetbaseandalowercontributionfromAllianceduetothenarrowerAECO-Chicagonaturalgaspricedifferential.IncludedinadjustedEBITDAis$66million(2019:$78million)relatedtoAllianceand$47million(2019:$48million)relatedtoRuby.

BridgeAnalysisofAdjustedEBITDA(2)($millions)

541541

458

(4)

70

50

(20) (1)(12)

AdjustedEBITDAQ32019

Conventionalrevenue

Transmissionrevenue

OilSandsrevenue

Operatingexpenses

G&Aandother

AdjustedEBITDAfromequityaccountedinvestees


(1) Includesinter-divisiontransactions.SeeNote12oftheInterimFinancialStatements.(2) Refertothe"Non-GAAPMeasures"section.(3) Revenuevolumes.Seethe"Abbreviations"sectionfordefinition.


FinancialOverviewfortheNineMonthsEndedSeptember30

ResultsofOperations


Conventionalrevenue(1) 951 960 (9) (1)

Transmissionrevenue(1) 342 129 213 165

OilSandsrevenue(1) 355 211 144 68

Totalrevenue(1) 1,648 1,300 348 27




Grossprofit 1,150 1,031 119 12

AdjustedEBITDA(2) 1,631 1,387 244 18

Volumes(mboe/d)(3) 2,588 2,532 56 2


ChangeinResults

Conventionalrevenue(1) ● Consistentwiththepriorperiod.LowerinterruptiblerevenuevolumesontheDraytonValleyPipelineduetotheongoingCOVID-19pandemicwhichhasreducedglobalenergydemand,largelyoffsetbyPhaseVIcomingintoserviceduringJune2020andadditionalrevenueontheNEBCPipelineSystem.

Transmissionrevenue(1) ▲ IncreaselargelyduetothecontributionfromtheCochinPipelineandhigheroperatingexpenserecoveriesontheAlbertaEthaneGatheringSystem.

OilSandsrevenue(1) ▲ IncreaseprimarilyduetocontributionfromtheEdmontonTerminalsfollowingtheKinderAcquisition,partiallyoffsetbytherecognitionof$22millionindeferredvariablerevenueinthesecondquarterof2019.

Operatingexpenses(1) ▼ IncreaseprimarilyduetotheadditionaloperatingexpensesassociatedwiththeCochinPipelineandEdmontonTerminalsfollowingtheKinderAcquisition,partiallyoffsetbylowerrepairsandmaintenancecostsfortheconventionalassetsanddecreasedpowercostsduetoaloweraveragepowerpoolpriceduring2020.


▼ DecreaselargelyduetolowerinterruptiblevolumesontheAlliancePipeline,drivenbyanarrowerAECO-Chicagonaturalgaspricedifferential.


▼ Increaseindepreciationduetothelargerassetbase,primarilyasaresultoftheassetsacquiredintheKinderAcquisition.


▼ $166million(2019:$218million)fromAllianceand$93million(2019:$91million)fromRuby.ThedecreaseindistributionsfromAlliancewaslargelyduetothesamefactorsimpactingshareofprofitfromequityaccountedinvesteesnotedabove.

Volumes(mboe/d)(3) ▲ IncreaseprimarilyduetothecontributionfromtheCochinPipelinefollowingtheKinderAcquisition,combinedwithhighertemporaryinterruptiblevolumesonRuby,partiallyoffsetbylowerinterruptiblevolumesontheDraytonValleyPipelineandtheAlliancePipeline,discussedabove.Revenuevolumesinclude127mboe/d(2019:144mboe/d)relatedtoAllianceand104mboe/d(2019:89mboe/d)relatedtoRuby.

AdjustedEBITDA(2) ▲ IncreaseduetohigherrevenueassociatedwiththeCochinPipelineandEdmontonTerminalsfollowingtheKinderAcquisition,partiallyoffsetbyincreasedoperatingexpensesassociatedwiththelargerassetbaseandalowercontributionfromAlliance,duetothenarrowerAECO-Chicagonaturalgaspricedifferential.IncludedinadjustedEBITDAis$207million(2019:$252million)relatedtoAllianceand$143million(2019:$150million)relatedtoRuby.


1,6311,631

1,387

(9)

213

144

(63)

11

(52)

AdjustedEBITDAYTD2019

Conventionalrevenue

Transmissionrevenue

OilSandsrevenue

Operatingexpenses

G&Aandother





OperationalOverview


2020 2019 2020 2019


GrossProfit


GrossProfit


GrossProfit


GrossProfit

AdjustedEBITDA(2)

Pipelines

Conventional 863 210 253 908 208 248 866 632 760 894 633 740

Transmission 661 120 210 594 94 168 666 351 623 572 288 511

OilSands 1,056 48 78 1,068 29 42 1,056 167 248 1,066 110 136

Total 2,580 378 541 2,570 331 458 2,588 1,150 1,631 2,532 1,031 1,387(1) Revenuevolumesinmboe/d.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.

Projects&NewDevelopments(1)

Pipelinescontinuestofocusontheexecutionofvarioussystemexpansions.Theprojectsinthefollowingtablewererecently

placedintoserviceandimpactPipelinesresults.

SignificantProjects In-serviceDate

PhaseVIPeacePipelineExpansion June2020

WapitiCondensateLateral March2020

NEBCMontneyInfrastructure February2020

ThefollowingoutlinestheprojectsandnewdevelopmentswithinPipelines:

Aspreviouslyannounced,inresponsetotheCOVID-19pandemic,theresultingeconomicslowdownanddecreaseddemand

forcrudeoilandNGL,Pembinamadethedecisiontodefersomeofitspreviouslyannouncedexpansionprojects:

PhaseVIIPeacePipelineExpansion Status:Deferred

Thisexpansionisexpectedtoaddapproximately240mbpdofincrementalcapacityupstreamofFoxCreek,accessingcapacityavailableonthepipelinesdownstreamofFoxCreek.Includedintheexpansionisa20-inch,approximately220-kilometerpipelineintheLaGlace-Valleyview-FoxCreekcorridor,aswellassixnewpumpstationsorterminalupgrades,betweenLaGlaceandEdmonton,Alberta.Whiledeferred,theCompanycontinuestoadvanceengineeringworkandoptimizescopetomeetcustomers'needs.

ThecarryingvalueoftheprojectatSeptember30,2020was$300million.

PhaseVIIIPeacePipelineExpansion Status:Deferred

Thisexpansionwillinclude10-inchand16-inchpipelinesintheGordondaletoLaGlacecorridoraswellassixnewpumpstationsorterminalupgradeslocatedbetweenGordondaleandFoxCreek.


PhaseIXPeacePipelineExpansion Status:Deferred

Thisexpansionwillinclude6-inchand16-inchpipelinesdebottleneckingthecorridornorthofGordondaleaswellasupgradesatonepumpstation.Inaddition,thisexpansionwillseeexistingpipelines,whicharecurrentlybatching,convertedtosingleproductlines.

ThecarryingvalueoftheprojectatSeptember30,2020was$3million.(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitions,refertoPembina'sAIFfortheyearendedDecember31,2019filedatwww.sedar.com(filedwiththe

U.S.SecuritiesandExchangeCommissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.


Facilities


ResultsofOperations


GasServicesnetrevenue(1)(2) 145 151 (6) (4)

NGLServicesnetrevenue(1)(2) 163 137 26 19

Facilitiesnetrevenue(1)(2) 308 288 20 7



Unrealizedlossoncommodity-relatedderivativefinancialinstruments (11) — (11) 100




Volumes(mboe/d)(3) 871 866 5 1

Distributionsfromequityaccountedinvestees 25 24 1 4

ChangesinResults

GasServicesnetrevenue(1)(2) ● Consistentwiththepriorperiod.IncreasedrevenueassociatedwithDuvernayIIbeingplacedintoservice,combinedwithincreasedprocessingdaysatKakwaRiverduetoaturnaroundinthethirdquarterof2019,offsetlowerrevenuesattheResthavenfacilityandtheCutbankComplexduetolowercapitalfeesandlowervolumesattheYoungerfacilityduetoaregularlyscheduledturnaroundduringSeptember2020.

NGLServicesnetrevenue(1)(2) ▲ IncreaseprimarilyduetorevenuesfromtheVancouverWharvesfollowingtheKinderAcquisition.

Operatingexpenses(1) ● Consistentwithpriorperiod.IncreasedoperatingexpensesassociatedwiththeVancouverWharves,followingtheKinderAcquisition,combinedwithDuvernayIIandtheDuvernaySourTreatmentFacilitiesgoingintoservice,largelyoffsetbysavingsatYoungerfollowingthescheduledmaintenanceeventandlowerpowercostsduetoaloweraveragepowerpoolpriceduringthethirdquarterof2020.




▼ IncreaseindepreciationduetothelargerassetbaseasaresultoftheassetsacquiredintheKinderAcquisition,combinedwithDuvernayIIandDuvernaySourTreatmentFacilitiesgoingintoservice.


● $23million(2019:$23million)fromVeresenMidstreamand$2million(2019:$1million)fromFortCorp.

Volumes(mboe/d)(3) ● Consistentwiththepriorperiod.HighersupplyvolumesattheRedwaterComplexandrevenuevolumesassociatedwithDuvernayII,largelyoffsetlowervolumesattheYoungerfacility,discussedabove.Revenuevolumesinclude76mboe/d(2019:86mboe/d)relatedtoVeresenMidstream.

AdjustedEBITDA(2) ▲ IncreaseprimarilyduetothecontributionfromtheVancouverWharvesfollowingtheKinderAcquisitionandDuvernayIIbeingplacedintoservice,combinedwithincreasedrevenueatKakwaRiver,partiallyoffsetbylowerrevenueattheResthavenfacilityandCutbankComplexandlowervolumesattheYoungerfacility,discussedabove.IncludedinadjustedEBITDAis$41million(2019:$41million)relatedtoVeresenMidstream.


251251

233

(6)

26

(2)


GasServices

netrevenue

NGLServices

netrevenue

Operatingexpenses





ResultsofOperations


GasServicesnetrevenue(1)(2) 424 436 (12) (3)

NGLServicesnetrevenue(1)(2) 474 396 78 20

Facilitiesnetrevenue(1)(2) 898 832 66 8


Shareofprofitfromequityaccountedinvestees 41 36 5 14

Unrealizedgainoncommodity-relatedderivativefinancialinstruments (14) — (14) 100




Volumes(mboe/d)(3) 874 876 (2) —


ChangesinResults

GasServicesnetrevenue(1)(2) ▼ DecreaselargelyduetolowercapitalfeesattheResthavenfacilityandtheCutbankComplex,combinedwithlowervolumesattheYoungerfacility,duetoaregularlyscheduledturnaroundduringSeptember2020,partiallyoffsetbyrevenueassociatedwithDuvernayIIbeingplacedintoserviceandincreasedprocessingdaysatKakwaRiverduetoaturnaroundinthethirdquarterof2019.

NGLServicesnetrevenue(1)(2) ▲ IncreaseprimarilyduetoadditionalrevenuesfromtheVancouverWharvesfollowingtheKinderAcquisition,combinedwiththeRedwaterCo-generationfacilitygoingintoserviceinMarch2019.

Operatingexpenses(1) ▼ IncreaselargelyduetotheadditionoftheVancouverWharvesfollowingtheKinderAcquisition,combinedwithDuvernayIIandtheDuvernaySourTreatmentFacilitiesgoingintoservice,partiallyoffsetbylowerpowercostsatvariousfacilitiesduetoaloweraveragepowerpoolpriceduring2020andlowerrepairsandmaintenancecosts.


▲ Increaselargelyduetoaone-timerevenueadjustmentof$5millionrecognizedinthethirdquarterof2019relatedtoVeresenMidstream'sDawsonfacilities.


▼ IncreaseindepreciationduetothelargerassetbaseasaresultoftheadditionoftheassetsacquiredintheKinderAcquisitionandDuvernayIIandtheDuvernaySourTreatmentFacilitiesgoingintoservice.


● $72million(2019:$76million)fromVeresenMidstreamand$4million(2019:$4million)fromFortCorp.

Volumes(mboe/d)(3) ● Consistentwiththepriorperiod.LowerrevenuevolumesattheYoungerfacilityduetoaregularlyscheduledturnaroundandincreasedcompetitionfromacompetitorpipeline,combinedwithlowerrevenuevolumesatVeresenMidstreamasaresultoflowcommodityprices,werelargelyoffsetbyrevenuevolumesassociatedwithDuvernayIIbeingplacedintoservice,combinedwithhighersupplyvolumesattheRedwaterComplex.Revenuevolumesinclude81mboe/d(2019:88mboe/d)relatedtoVeresenMidstream.

AdjustedEBITDA(2) ▲ IncreaseprimarilyduetoadditionalcontributionfromtheVancouverWharvesandtheRedwaterCo-generationfacility,combinedwithlowergeneral&administrativeexpense,asaresultoflowerlong-termincentivecosts,partiallyoffsetbylowercapitalfeesinGasServices.IncludedinadjustedEBITDAis$132million(2019:$134million)relatedtoVeresenMidstream.


757757

701

(12)

78

(17)

8

(1)


GasServices

netrevenue

NGLServices

netrevenue

Operatingexpenses

G&Aandother





OperationalOverview


2020 2019 2020 2019


GrossProfit


GrossProfit


GrossProfit


GrossProfit

AdjustedEBITDA(2)

Facilities

GasServices 657 94 138 672 83 133 664 267 420 674 247 405

NGLServices 214 86 113 194 78 100 210 250 337 202 239 296

Total 871 180 251 866 161 233 874 517 757 876 486 701(1) Revenuevolumesinmboe/d,withnaturalgasvolumesconvertedtomboe/dfromMMcf/data6:1ratio.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.


Facilitiescontinuestobuild-outitsnaturalgasandNGLprocessingandfractionationassetstoservicecustomerdemand.The

projectsinthefollowingtablewererecentlyplacedintoserviceandimpactFacilitiesresults.

SignificantProjects In-serviceDate

DuvernaySourTreatmentFacilities March2020

DuvernayII November2019

RedwaterCo-generationFacility March2019

BurstallEthaneStorage January2019

Subsequenttothequarter,PembinacompletedthestartupofnewfractionationandterminallingfacilitiesattheEmpressNGL

ExtractionFacility.Thisprojectwasplacedintoserviceontimeandonbudget.Thesenewassetsaddapproximately30mbpd

ofpropane-plusfractionationcapacityandenablePembinatooptimizepropanemarketingfromthefacilitybetweeneastern

andwesternmarkets.

ThefollowingoutlinestheprojectsandnewdevelopmentswithinFacilities:

DuvernayIII

CapitalBudget:$200million In-serviceDate:Fourthquarterof2020 Status:Ontime,trendingunderbudget

DuvernayIIIisthesecondtrancheofinfrastructuredevelopmentunderthe20-yearinfrastructuredevelopmentandserviceagreementwithChevronCanadaLimitedandKuwaitForeignPetroleumExplorationCompany.Thisdevelopmentincludesa100MMcf/dsweetgas,shallowcutprocessingtrain,20mbpdofinletcondensatestabilizationandotherassociatedinfrastructure.Constructionissubstantiallycompleteandcommissioningworkiscurrentlyprogressingasplanned.

PrinceRupertTerminal

CapitalBudget:$250million In-serviceDate(2):Firstquarterof2021 Status:Delayed,trendingoverbudget

ThePrinceRupertTerminalislocatedonWatsonIsland,BritishColumbiaandisexpectedtohaveapermittedcapacityofapproximately25mbpdofpropane.ThepropanesupplywillbesourcedprimarilyfromtheCompany'sRedwaterComplex.AllsiteconstructionactivitieshaverestartedsincebeingtemporarilyhaltedduringMarch,AprilandMayasaresultoftheCOVID-19pandemic.Facilitypiping,on-sitesphereconstruction,marineandelectricalworkcontinuetoprogresstocompletion.

HytheDevelopments

CapitalBudget(3):$240million In-serviceDate:Late2020 Status:Ontime,trendingonbudget

Pembinaandits45percentownedjointventure,VeresenMidstream,willconstructnaturalgasgatheringandprocessinginfrastructureinthePipestoneMontneyregion.Theinfrastructureconsistsofanexpansionofupto125MMcf/d(56MMcf/dnettoPembina)ofsourgasprocessingatVeresenMidstream'sexistingHytheFacilityandanew,approximately65km,12-inchsourgaspipeline,tobeownedbyVeresenMidstreamandconstructedbyPembina.Inaddition,VeresenMidstreamwillfundandownacompressorstation,builtandoperatedbyNuVistaEnergyLtd.Pembinawillownandconstructvariousotherlaterals.Constructionissubstantiallycomplete.



forcrudeoilandNGL,Pembinamadethedecisiontodefersomeofitspreviouslyannouncedexpansionprojects:

PrinceRupertTerminalExpansion Status:Deferred

ThePrinceRupertTerminalExpansionwillincreasepropaneexportcapacitytoapproximately40mbpd.


EmpressCo-generationFacility Status:Deferred

ThisprojectwillenablePembinatobemoreefficientwithitsproduction,utilizeheatrecoveryandprovideasecondsourceofpowerthroughtheinstallationofaco-generationunitattheEmpressNGLExtractionFacility.

ThecarryingvalueoftheprojectatSeptember30,2020was$12million.(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitions,refertoPembina'sAIFfiledatwww.sedar.com(filedwiththeU.S.SecuritiesandExchange

Commissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.(2) Subjecttoenvironmentalandregulatoryapprovals.Seethe"Forward-LookingStatements&Information"section.(3) NettoPembina.


Marketing&NewVentures


ResultsofOperations


Marketingrevenue(1) 825 1,106 (281) (25)

Costofgoodssold(1) 793 1,034 (241) (23)

Netrevenue(1)(2) 32 72 (40) (56)

Shareof(loss)profitfromequityaccountedinvestees (5) 14 (19) (136)

Realizedgainoncommodity-relatedderivativefinancialinstruments (7) (5) 2 (40)

Unrealizedloss(gain)oncommodity-relatedderivativefinancialinstruments 17 (40) (57) 143


Grossprofit 5 120 (115) (96)

AdjustedEBITDA(2) 34 83 (49) (59)

Volumes(mboe/d)(3) 169 176 (7) (4)


ChangeinResults

Netrevenue(1)(2) ▼ DecreaselargelyduetotheimpactofCOVID-19pandemiconmarketconditionsresultinginlowercrudeoilprices,compressedmarginsanddecreasedcrudeactivities,combinedwithlowermarketedNGLvolumesandlowerfracspreadswhichimpactedNGLmargins.

Shareof(loss)profitfromequityaccountedinvestees

▼ DecreaselargelyduetolowerrevenuesatAuxSableasaresultoflowerNGLmarginsandanarrowerAECO-Chicagonaturalgaspricedifferential.




▼ Unrealizedlossoncommodity-relatedderivativesprimarilyduetotherecoveryintheforwardpriceofpropaneandbutaneduringthethirdquarterof2020,combinedwithcontractsmaturingintheperiod.




▼ DecreaseduetothelowerrevenuesatAuxSableasaresultoflowerNGLmarginsandanarrowerAECO-Chicagonaturalgaspricedifferential.

Volumes(mboe/d)(3) ▼ MarketedNGLvolumesdecreasedasPembinaproactivelyincreasedstoragepositionswiththeintentiontomonetizethemduringtheupcomingwinterseason,partiallyoffsetbyincreasedvolumesatAuxSable.Revenuevolumesincludes37mboe/d(2019:33mboe/d)relatedtoAuxSable.

AdjustedEBITDA(2) ▼ DecreaselargelyduetolowermarginsoncrudeoilandNGLsalesasaresultofthelowercrudeoildifferentialsandfracspreadsduringthethirdquarterof2020,combinedwithalowercontributionfromAuxSable,duetolowerNGLmarginsandthenarrowerAECO-Chicagonaturalgaspricedifferential,whichresultedinlowerrevenues.IncludedinadjustedEBITDAis$1million(2019:$15million)relatedtoAuxSable.


3434

83

(281)

241 2

(11)


Marketingrevenue

Costofgoodssold

Realizedgainoncommodity-

relatedderivatives

AdjustedEBITDAfromequityaccounted

investees


(1) Includesinter-divisiontransactions.SeeNote12oftheInterimFinancialStatements.(2) Refertothe"Non-GAAPMeasures"section.(3) MarketedNGLvolumes.Seethe"Abbreviations"sectionfordefinition.



ResultsofOperations


Marketingrevenue(1) 2,309 3,712 (1,403) (38)

Costofgoodssold(1) 2,241 3,428 (1,187) (35)

Netrevenue(1)(2) 68 284 (216) (76)

Shareof(loss)profitfromequityaccountedinvestees (2) 37 (39) (105)

Realizedgainoncommodity-relatedderivativefinancialinstruments (60) (25) 35 (140)

Unrealizedloss(gain)oncommodity-relatedderivativefinancialinstruments 12 (10) (22) 220

Depreciationandamortizationincludedinoperations 37 43 (6) (14)

Grossprofit 77 313 (236) (75)

AdjustedEBITDA(2) 118 301 (183) (61)

Volumes(mboe/d)(3) 173 189 (16) (8)


ChangeinResults

Netrevenue(1)(2) ▼ DecreaselargelyduetolowercrudeoilandNGLpricesandlowermarketedNGLvolumes,primarilyasaresultoftheCOVID-19pandemicandtheresultingdecreaseinglobalenergydemand.Marketconditionsalsocompressedmarginsanddecreasedcrudeactivities,whilelowerfracspreadsimpactedNGLmargins,combinedwitha$33millionarbitrationawardpaymentreceivedduringthefirstquarterof2019.

Shareof(loss)profitfromequityaccountedinvestees

▼ DecreaselargelyduetolowerrevenuesatAuxSableasaresultoflowerNGLmarginsandanarrowerAECO-Chicagonaturalgaspricedifferential,partiallyoffsetbyloweroperatingandgeneralandadministrativeexpenses.


▲ IncreaseduetolowermarketpricescreatingagainforcrudeandNGL-basedderivativessettledduringtheperiod.


▼ Unrealizedlossprimarilyduetocontractsmaturingduringtheperiod,combinedwithadditionalcontactsadded,partiallyoffsetbyanincreaseintheforwardpriceofnaturalgas.




▼ DecreaselargelyduetothelowermarginsatAuxSable,discussedinshareofprofitfromequityaccountedinvesteesabove.

Volumes(mboe/d)(3) ▼ MarketedNGLvolumesdecreasedduetoreduceddemandforpropaneandbutaneasaresultoftheon-goingCOVID-19pandemic,combinedwithincreasedNGLstoragepositions,builtupduringthesecondandthirdquarters,tobemonetizedduringtheupcomingwinterseason,partiallyoffsetbyhigherethanevolumesatAuxSable.Revenuevolumesincludes37mboe/d(2019:33mboe/d)relatedtoAuxSable.

AdjustedEBITDA(2) ▼ DecreaselargelyduetolowermarginsoncrudeoilandNGLsalesasaresultoflowercrudeoilpricesandfracspreadsduring2020,combinedwithalowercontributionfromAuxSableduetolowerNGLmarginsandthenarrowerAECO-Chicagonaturalgaspricedifferential,partiallyoffsetbyhigherrealizedgainoncommodity-relatedderivativefinancialinstruments.IncludedinadjustedEBITDAis$14million(2019:$56million)relatedtoAuxSable.

BridgeAnalysisofAdjustedEBITDA(2)(4)($millions)

118118

301

(1,370)

1,187 35 8 (43)


Marketingrevenueincluding

adjustments

Costofgoodssold

Realizedgainoncommodity-

relatedderivatives

G&Aandother



(1) Includesinter-divisiontransactions.SeeNote12oftheInterimFinancialStatements.(2) Refertothe"Non-GAAPMeasures"section.(3) MarketedNGLvolumes.Seethe"Abbreviations"sectionfordefinition.(4) Marketingrevenueexcludesthepositivearbitrationawardpaymentof$33million.


OperationalOverview


2020 2019 2020 2019


GrossProfit


GrossProfit


GrossProfit


GrossProfit

AdjustedEBITDA(2)

Marketing&NewVentures

Marketing 169 3 36 176 118 84 173 74 127 189 311 311

NewVentures(3) — 2 (2) — 2 (1) — 3 (9) — 2 (10)

Total 169 5 34 176 120 83 173 77 118 189 313 301(1) MarketedNGLvolumesinmboe/d.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.(3) AllNewVenturesprojectshavenotyetcommencedoperationsandthereforehavenovolumes.


ThefollowingoutlinestheprojectsandnewdevelopmentswithinMarketing&NewVentures:

JordanCoveLNGProject(proposed)

TheproposedJordanCoveLNGproject("JordanCove")isaworld-scaleLNGexportfacility,whichwouldtransportNorthAmericannaturalgastoworldmarkets.Theprojectismadeupoftwoparts:theLNGterminal,withaplanneddesigncapacityof7.8milliontonnesperannum,andthePacificConnectorGasPipelinewhichwouldtransportnaturalgasfromMalin,OregontoanLNGterminalinCoosCounty,Oregon.

PembinahasreceivedacertificateofapprovalfromtheU.S.FederalEnergyRegulatoryCommissionforJordanCove.

OnJuly6,2020,theUnitedStatesDepartmentofEnergyannouncedanissuanceorderauthorizingJordanCovetoexportliquefiednaturalgasfromtheproposedexportterminalinCoosBay,Oregon.TheissuanceorderbytheDepartmentofEnergymarkedanotherimportantstepforwardforJordanCove.

TheCompanyremainsfocusedoncompletingtheregulatoryprocess,receivingtheremainingpermitsrequiredtoproceedandenablingthecommercialviabilityoftheproject.Thetimingandultimateapprovalofthisprojectisuncertainanddependentuponreceiptoftheseremainingapprovals.

Inconjunctionwithafinalinvestmentdecision,theCompanyintendstoseekpartnersforboththePacificConnectorGasPipelineandLNGTerminaltherebyreducingits100percentownershipinteresttoanetownershipinterestofbetween40and60percentwiththeintentiontoreducethecapital,operatingandotherprojectrisks.

ThecarryingvalueoftheprojectatSeptember30,2020was$371million,includingcapitalizedborrowingcostsof$20million.


forcrudeoilandNGL,PembinamadethedecisiontodeferitsinvestmentinitsintegratedPDH/PPprojectbeingdeveloped

throughitsjointventureentityCKPC.

PDH/PPFacility Status:Deferred

ThePDH/PPFacilitywillbelocatedadjacenttoPembina'sRedwaterfractionationcomplexandwillconvertapproximately23,000bpdoflocallysuppliedpropaneintopolypropylene,ahighvaluerecyclablepolymerusedinawiderangeoffinishedproductsincludingbutnotlimitedtoautomobiles,medicaldevices,foodpackagingandhomeelectronicappliances,amongothers.

ThecarryingvalueofinvestmentinCKPCatSeptember30,2020was$326million.

(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitions,refertoPembina'sAIFfortheyearendedDecember31,2019filedatwww.sedar.com(filedwiththeU.S.SecuritiesandExchangeCommissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.


4.LIQUIDITY&CAPITALRESOURCESAvailableSourcesofLiquidity

($millions) September30,2020 December31,2019

Workingcapital(1)(4) (370) (468)

Variableratedebt(2)(3)

Bankdebt 1,644 2,100

Variableratedebtswappedtofixed (333) —

Totalvariableratedebtoutstanding(weightedaverageinterestrateof1.6%(2019:3.3%)) 1,311 2,100

Fixedratedebt(2)

Seniorunsecurednotes — 273

Seniorunsecuredmedium-termnotes 9,300 7,800

Variabledebtswappedtofixed 333 —

Totalfixedratedebtoutstanding(weightedaverageinterestrateof3.9%(2019:4.0%)) 9,633 8,073

Totaldebtoutstanding 10,944 10,173

Cashandunutilizeddebtfacilities 2,539 1,040(1) AsatSeptember30,2020,workingcapitalincluded$250million(December31,2019:$74million)associatedwiththecurrentportionofloansandborrowings.(2) Facevalue.(3) NoU.S.dollarvariableratedebtoutstandingatSeptember30,2020(December31,2019:U.S.$454million).(4) TheDecember31,2019balancehasbeenrecast.SeeNote3totheInterimFinancialStatements.

Pembinacurrentlyanticipatesitscashflowfromoperatingactivities,themajorityofwhichisderivedfromfee-based

contracts,willbemorethansufficienttomeetitsshort-termandlong-termoperatingobligations,capitalinvestment

requirementsandtofunditsdividends.Pembinaexpectstosourcefundsrequiredforcapitalprojectsandcontributionsto

investmentsinequityaccountedinvesteesfromcash,itscreditfacilitiesandbyaccessingthecapitalmarkets,asrequired.

Basedonitssuccessfulaccesstofinancinginthecapitalmarketsoverthepastseveralyears,Pembinaexpectstocontinueto

haveaccesstoadditionalfundsasrequired.However,dependingonthedurationandseverityoftheCOVID-19pandemic,the

resultingslowdownoftheglobaleconomyandthedecreaseindemandforcrudeoilandNGL,Pembina'sabilitytoaccess

financinginthecapitalmarketscouldbeadverselyimpacted.Referto"RiskFactors–OngoingImpactofCOVID-19Pandemic"

belowand"RiskFactors–GeneralRiskFactors–AdditionalFinancingandCapitalResources"inPembina'sMD&AandNote24

totheConsolidatedFinancialStatementsformoreinformation.Managementcontinuestomonitorthesituationandremains

satisfiedthattheleverageemployedinPembina'scapitalstructureissufficientandappropriategiventhecharacteristicsand

operationsoftheunderlyingassetbase.

ManagementmayadjustPembina'scapitalstructureasaresultofchangesineconomicconditionsortheriskcharacteristics

oftheunderlyingassets.TomaintainormodifyPembina'scapitalstructureinthefuture,Pembinamayrenegotiatedebt

terms,repayexistingdebt,seeknewborrowings,issueadditionalequityand/orrepurchaseshares.


AsatSeptember30,2020,Pembina'screditfacilitiesconsistedof:anunsecured$2.5billion(December31,2019:$2.5billion)

revolvingcreditfacility,whichincludesa$750million(December31,2019:$750million)accordionfeatureandmaturesin

May2024;anunsecured$500million(December31,2019:$500million)non-revolvingtermloan,whichmaturesinAugust

2022;anunsecured$800millionrevolvingcreditfacility(December31,2019:nil),whichmaturesinApril2022;anunsecured

U.S.$250millionnon-revolvingtermloan(December31,2019:nil),whichmaturesinMay2025andanoperatingfacilityof

$20million(December31,2019:$20million)whichisdueinMay2021andistypicallyrenewedonanannualbasis,

collectivelythe"CreditFacilities".Therearenorepaymentsdueoverthetermofthesefacilities.AsatSeptember30,2020,

Pembinahad$2.5billion(December31,2019:$1.0billion)ofcashandunutilizeddebtfacilities.AtSeptember30,2020,

Pembinahadloansandborrowings(excludingdeferredfinancingcosts)of$10.9billion(December31,2019:$10.2billion).

Pembinaisrequiredtomeetcertainspecificandcustomaryaffirmativeandnegativefinancialcovenantsunderitsmedium-

termnotesandCreditFacilities,includingarequirementtomaintaincertainfinancialratios.Pembinaisalsosubjectto

customaryrestrictionsonitsoperationsandactivitiesunderitsmedium-termnotesandCreditFacilities,includingrestrictions

onthegrantingofsecurity,incurringindebtednessandthesaleofitsassets.

FinancingActivity

OnJanuary10,2020,Pembinaclosedanofferingof$1.0billionofseniorunsecuredmedium-termnotes.Theofferingwas

conductedinthreetranches,consistingof$250millionissuedthroughare-openingofPembina'sseniorunsecuredmedium-

termnotes,series10,havingafixedcouponof4.02percentperannum,payablesemi-annuallyandmaturingonMarch27,

2028;$500millionissuedthroughare-openingofPembina'sseniorunsecuredmedium-termnotes,series11,havingafixed

couponof4.75percentperannum,payablesemi-annuallyandmaturingonMarch26,2048;and$250millionissuedthrough

are-openingofPembina'sseniorunsecuredmedium-termnotes,series12,havingafixedcouponof3.62percentperannum,

payablesemi-annuallyandmaturingonApril3,2029.

OnApril6,2020,Pembinaenteredintoanunsecured$800millionrevolvingcreditfacilitywithcertainexistinglenders,which

providesadditionalliquidityandflexibilityinPembina’scapitalstructureinthecurrentmarketconditions.Thecreditfacility

hasaninitialtermoftwoyears.Theothertermsandconditionsofthecreditfacility,includingfinancialcovenants,are

substantiallysimilartoPembina'sunsecured$2.5billionrevolvingcreditfacility.

OnMay7,2020,PembinaenteredintoanunsecuredU.S.$250millionnon-revolvingtermloanwithaglobalbank,which

providesadditionalliquidityandflexibilityinPembina'scapitalstructureinthecurrentmarketconditions.Thetermloanhas

aninitialtermoffiveyears.Theothertermsandconditionsofthecreditfacility,includingfinancialcovenants,are


OnMay28,2020,Pembinaclosedanofferingof$500millionofseniorunsecuredmedium-termnotes.Theofferingwas

conductedintwotranches,consistingof$400millioninseniorunsecuredmedium-termnotes,series16,havingafixed

couponof4.76percentperannum,payablesemi-annually,andmaturingonMay28,2050and$100millionissuedthrougha

re-openingofPembina'sseniorunsecuredmedium-termnotes,series7,havingafixedcouponof3.71percentperannum,

payablesemi-annuallyandmaturingonAugust11,2026.

OnJuly10,2020,Pembina's$200millionseniorunsecurednotes,seriesC,werefullyrepaidthroughanearlyredemption,of

whichnoticewasprovidedtoholdersonJune5,2020.TheseriesCnoteswereoriginallysettomatureinSeptember2021.


Covenants

Pembina'sfinancialcovenantsincludethefollowing:

DebtInstrument FinancialCovenant(1) Ratio RatioasatSeptember30,2020

Seniorunsecuredmedium-termnotes FundedDebttoCapitalization Maximum0.70 0.40

CreditFacilitiesDebttoCapital Maximum0.65 0.40

EBITDAtoSeniorInterestCoverage Minimum2.5:1.0 7.7(1) Termsasdefinedinrelevantagreements.

PembinawasincompliancewithallcovenantsunderitsnoteindenturesandcreditagreementsasatSeptember30,2020

(December31,2019:incompliance).

CreditRisk

Pembinacontinuestoactivelymonitorandreassessthecreditworthinessofitscounterparties.Therecentslowdownofthe

globaleconomyanddecreaseindemandforcrudeoil,NGLandothercommoditiesasaresultoftheongoingCOVID-19

pandemicincreasesPembina'scounterpartyrisk,asithasthepotentialtonegativelyimpactthefinancialpositionof

Pembina'scustomers'andrelatedparties'andtheiraccesstocredit,capitalmarketsandothersourcesofliquidity.The

majorityofPembina'screditexposureistoinvestmentgradeorsplit-investmentgradeentities.Pembinaassessesall

counterpartiesduringtheon-boardingprocessandactivelymonitorscreditlimitsandexposureacrossthebusiness.Financial

assurancestomitigateandreduceriskmayincludeguarantees,lettersofcreditandcash.Lettersofcredittotaling$142

million(December31,2019:$90million)wereheldasatSeptember30,2020,primarilyinrespectofcustomertrade

receivables.

OutstandingShareData

Issuedandoutstanding(thousands) October30,2020

Commonshares 549,942

Stockoptions 20,348

Stockoptionsexercisable 9,717

ClassA,Series1Preferredshares 10,000














CreditRatings

ThefollowinginformationwithrespecttoPembina'screditratingsisprovidedassuchinformationrelatestoPembina's

financingcostsandliquidity.Specifically,creditratingsaffectPembina'sabilitytoobtainshort-termandlong-termfinancing

andthecostofsuchfinancing.AreductioninthecurrentratingsonPembina'sdebtbyitsratingagencies,particularlya

downgradebelowinvestment-graderatings,couldadverselyaffectPembina'scostoffinancinganditsaccesstosourcesof

liquidityandcapital.Inaddition,changesincreditratingsandtheassociatedcostsmayaffectPembina'sabilitytoenterinto

normalcoursederivativeorhedgingtransactions.Creditratingsareintendedtoprovideinvestorswithanindependent

measureofcreditqualityofanyissuesofsecurities.Thecreditratingsassignedbytheratingagenciesarenot

recommendationstopurchase,holdorsellthesecurities,nordothecreditratingscommentonmarketpriceorsuitabilityfor

aparticularinvestor.Anycreditratingmaynotremainineffectforagivenperiodoftimeormayberevisedorwithdrawn

entirelybyaratingagencyinthefutureif,initsjudgment,circumstancessowarrant.

Pembinatargetsstrong'BBB'creditratings.DBRSLimited("DBRS")ratesPembina'sseniorunsecurednotesandsenior

unsecuredmedium-termnotes'BBB'andratesPembina'sClassAPreferredShares'Pfd-3'.Thelong-termcorporatecredit

ratingfromS&PGlobalRatings("S&P"),adivisionofTheMcGraw-HillCompanies,onPembinais'BBB'anditsratingofthe

ClassAPreferredSharesis'P-3(High)'.DBRSandS&PaffirmedPembina'screditratingsduringthesecondquarterof2020.

ContractualObligationsandOff-BalanceSheetArrangements

ContractualObligations

PembinahadthefollowingcontractualobligationsoutstandingatSeptember30,2020:

ContractualObligations(1) PaymentsDueByPeriod

($millions) Total Lessthan1year 1–3years 3–5years After5years

Leases(2) 1,084 131 222 175 556

Loansandborrowings(3) 16,466 701 2,621 2,828 10,316

Constructioncommitments(4) 1,396 303 301 298 494

Other(5) 599 111 162 80 246

Totalcontractualobligations 19,545 1,246 3,306 3,381 11,612(1) Pembinaentersintoproductpurchaseagreementsandpowerpurchaseagreementstosecuresupplyforfutureoperations.PurchasepricesofbothNGLandpowerare

dependentoncurrentmarketprices.VolumesandpricesforNGLandpowercontractscannotbereasonablydetermined,andtherefore,anamounthasnotbeenincludedinthecontractualobligationsschedule.Productpurchaseagreementsrangefromoneto10yearsandinvolvethepurchaseofNGLproductsfromproducers.Assumingproductisavailable,Pembinahassecuredbetween35and175mbpdofNGLeachyearupto,andincluding,2029.Powerpurchaseagreementsrangefromoneto25yearsandinvolvethepurchaseofpowerfromelectricalserviceproviders.Pembinahassecuredupto80megawattsperdayeachyearupto,andincluding,2044.

(2) Includesterminals,rail,officespace,landandvehicleleases.(3) Excludingdeferredfinancingcosts.IncludinginterestpaymentsonPembina'sseniorunsecurednotes.(4) Excludingsignificantprojectsthatareawaitingregulatoryapproval,projectswhichPembinaisnotcommittedtoconstruct,andprojectsthatareexecutedbyequity

accountedinvestees.(5) Includes$28millionincommitmentsrelatedtoleasesthathavenotyetcommenced.

Off-BalanceSheetArrangements

Pembinadoesnothaveanyoff-balancesheetarrangementsthathave,orarereasonablylikelytohave,acurrentorfuture

effectonPembina'sfinancialcondition,resultsofoperations,liquidityorcapitalexpenditures.

LettersofCredit

Pembinahasprovidedlettersofcredittovariousthirdpartiesinthenormalcourseofconductingbusiness.Thelettersof

creditincludefinancialguaranteestocounterpartiesforproductpurchasesandsales,transportationservices,utilities,

engineeringandconstructionservices.Thelettersofcredithavenothadandarenotexpectedtohaveamaterialimpacton

Pembina'sfinancialposition,earnings,liquidityorcapitalresources.AsatSeptember30,2020,Pembinahad$96million

(December31,2019:$103million)inlettersofcreditissuedtofacilitatecommercialtransactionswiththirdpartiesandto

supportregulatoryrequirements.


5.CAPITALINVESTMENTS


($millions) 2020 2019 2020 2019

Pipelines 53 212 511 637

Facilities 98 167 296 426

Marketing&NewVentures 10 34 34 135

Corporateandotherprojects 13 8 27 18

Totalcapitalinvested 174 421 868 1,216

Contributionstoequityaccountedinvestees(1)(2) 28 25 224 143(1) ContributionsforthethreemonthsendedSeptember30,2020include$28million(2019:$24million)toVeresenMidstreamandnil(2019:$1million)toAuxSable.(2) ContributionsfortheninemonthsendedSeptember30,2020include$69million(2019:$50million)toVeresenMidstream,$3million(2019:$3million)toAuxSableand

$152million(2019:$90million)toCKPC.

CapitalInvested

Inboth2020and2019,PipelinescapitalinvestmentswereprimarilyrelatedtoPembina'songoingpipelineexpansionprojects.

In2020,FacilitiescapitalinvestmentswerelargelyrelatedtoconstructiononDuvernayIII,EmpressExpansionandthePrince

RupertTerminal.In2019,FacilitiescapitalinvestmentswerelargelyrelatedtoconstructionofDuvernayII,Empress

InfrastructureandthePrinceRupertTerminal.CapitalinvestmentsinMarketing&NewVenturesinboth2020and2019were

primarilyrelatedtotheJordanCoveLNGproject.

ContributionstoEquityAccountedInvestees

ContributionsmadetoCKPCduring2020and2019weretoprogressthedevelopmentofthePDH/PPFacility,combinedwitha

parentalguaranteeonCKPC'srevolvingcreditfacilityprovidedbyPembinaduringthefirstquarterof2020,discussedfurther

inthe"RelatedPartyTransactions"sectionbelow.ContributionstoCKPCincreasedinthefirstninemonthsof2020,compared

tothefirstninemonthsof2019,followingtheexecutionofalumpsumengineering,procurementandconstructioncontract

relatedtotheconstructionofthePDHFacility,priortoPembina'sMarch18,2020announcementthatithaddeferredcapital

spendingonthePDH/PPFacility.AsaresultofPembina'sdecisiontodeferinvestmentinCKPC,Pembinahasdeferredfuture

contributionstoCKPC.

ContributionsmadetoVeresenMidstreamduringboth2020and2019werelargelyrelatedtoconstructionoftheHythe

Developments.


6.DIVIDENDSCommonShareDividends

Commonsharedividendsarepayableif,as,andwhendeclaredbyPembina'sBoardofDirectors.Theamountandfrequency

ofdividendsdeclaredandpayableisatthediscretionofPembina'sBoardofDirectors,whichconsidersearnings,cashflow,

capitalrequirements,thefinancialconditionofPembinaandotherrelevantfactorswhenmakingitsdividenddetermination.

PreferredShareDividends

TheholdersofPembina'sClassApreferredsharesareentitledtoreceivefixedcumulativedividends.DividendsontheSeries

1,3,5,7,9,11,13and21ClassApreferredsharesarepayablequarterlyonthefirstdayofMarch,June,Septemberand

December,if,asandwhendeclaredbytheBoardofDirectorsofPembina.DividendsontheSeries15,17and19ClassA

preferredsharesarepayableonthelastdayofMarch,June,SeptemberandDecemberineachyear,if,asandwhendeclared

bytheBoardofDirectorsofPembina.DividendsontheSeries23and25ClassApreferredsharesarepayableonthe15thday

ofFebruary,May,AugustandNovemberineachyear,if,asandwhendeclaredbytheBoardofDirectorsofPembina.

OnJune1,2020,PembinaannouncedthatitdidnotintendtoexerciseitsrighttoredeemtheeightmillionCumulative

RedeemableRateResetClassAPreferredShares,series19sharesoutstandingonJune30,2020.Theannualdividendratefor

theseries19Sharesforthefive-yearperiodfromandincludingJune30,2020to,butexcluding,June30,2025is4.684

percent.

Subsequenttoquarterend,onNovember2,2020,Pembinaannouncedthatitdoesnotintendtoexerciseitsrighttoredeem

theninemillionCumulativeRedeemableRateResetClassAPreferredShares,Series9("PreferredShares,Series9")shares

outstandingonDecember1,2020.


7.SELECTEDQUARTERLYINFORMATIONSelectedQuarterlyOperatingInformation

(mboe/d) 2020 2019 2018

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Volumes(1)(2)

Pipelines

ConventionalPipelines 863 834 902 958 908 895 880 897

TransmissionPipelines 661 668 668 646 594 558 563 566

OilSandsPipelines 1,056 1,053 1,059 1,063 1,068 1,065 1,064 1,066

Facilities

GasServices 657 658 678 690 672 668 682 683

NGLServices 214 214 201 220 194 198 214 241

Total 3,451 3,427 3,508 3,577 3,436 3,384 3,403 3,453(1) Revenuevolumes.Seethe"Abbreviations"sectionfordefinition.(2) IncludesPembina'sproportionateshareofvolumesfromequityaccountedinvestees.

DeferredTake-or-payRevenue

($millions) 2020 2019 2018

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Pipelines

Openingbalance 45 22 8 17 23 19 7 —

Revenuedeferred 66 53 40 31 27 27 36 34

Revenuerecognized (69) (30) (26) (40) (33) (23) (24) (27)

Endingtake-or-paycontractliabilitybalance 42 45 22 8 17 23 19 7

Facilities

Openingbalance 2 1 — — — 1 2 3

Revenuedeferred 1 1 1 — — 2 — —

Revenuerecognized (3) — — — — (3) (1) (1)

Endingtake-or-paycontractliabilitybalance — 2 1 — — — 1 2

QuarterlySegmentedAdjustedEBITDA(1)($millions)

715715

773773 765765736736

787787 830830789789 796796

Pipeline Facilities Marketing&NewVentures

Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320

(1)Refertothe"Non-GAAPMeasures"section.


QuarterlyFinancialInformation

($millions,exceptwherenoted) 2020 2019 2018

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Revenue 1,569 1,268 1,671 1,754 1,700 1,808 1,968 1,726

Netrevenue(1) 849 776 865 837 751 758 774 706

Operatingexpenses 178 154 179 177 151 134 140 165

Realized(gain)lossoncommodity-relatedderivativefinancialinstruments (7) (36) (17) (8) (5) (1) (19) (5)

Shareofprofitfromequityaccountedinvestees 61 65 83 88 89 97 96 129

Grossprofit 563 455 728 603 613 629 588 663

Earnings 318 253 314 145 370 664 313 368

Earningspercommonshare–basic(dollars) 0.51 0.39 0.50 0.21 0.66 1.23 0.55 0.66

Earningspercommonshare–diluted(dollars) 0.51 0.39 0.50 0.21 0.66 1.23 0.55 0.66

Cashflowfromoperatingactivities 434 642 410 728 535 661 608 674

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 0.78 1.17 0.75 1.41 1.05 1.29 1.20 1.33

Adjustedcashflowfromoperatingactivities(1) 524 586 576 576 530 550 578 543

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 0.95 1.07 1.05 1.11 1.04 1.08 1.14 1.07

Commonsharesoutstanding(millions):

Weightedaverage–basic 550 550 549 518 512 511 509 507

Weightedaverage–diluted 550 550 549 519 513 513 511 509

Endofperiod 550 550 550 548 512 511 510 508

Commonsharedividendsdeclared 346 347 346 314 307 302 290 289

Dividendspercommonshare 0.63 0.63 0.63 0.60 0.60 0.59 0.57 0.57

Preferredsharedividendsdeclared 38 37 38 34 31 30 31 31

Capitalexpenditures 174 211 483 429 421 434 361 356

Contributionstoequityaccountedinvestees 28 2 194 120 25 28 90 —

Distributionsfromequityaccountedinvestees 111 116 123 123 142 140 170 158

AdjustedEBITDA(1) 796 789 830 787 736 765 773 715(1) Refertothe"Non-GAAPMeasures"section.

Duringtheperiodsinthetableabove,Pembina'sfinancialandoperatingresultswereimpactedbythefollowingfactorsand

trends:

• TheKinderAcquisition,whichwascompletedonDecember16,2019;

• TheCOVID-19pandemicandtheresultingdecreaseindemandforcommodities,whichledtoasignificantdeclinein

globalenergyprices,resultinginareductionincapitalspendingbudgetsbyPembinaanditscustomers;

• ThenarrowingoftheAECO-Chicagonaturalgaspricedifferential;

• IncreasedproductioninkeyoperatingareasandresourceplayswithintheWCSB(DeepBasin,MontneyandDuvernay)

priortotheCOVID-19Pandemic,whichincreasedrevenueandsalesvolumesonPembina'sexistingassetsinPipelines

andFacilities;

• Newlarge-scalegrowthprojectsacrossPembina'sbusinessbeingplacedintoservice;

• Volatilityincommoditymarketpricesimpactingmarginswithinthemarketingbusiness,partiallymitigatedthrough

Pembina'sriskmanagementprogram;

• ImpairmentofPembina'sconvertiblepreferredinterestinRubyinthefourthquarterof2019;

• AdecreaseintheAlbertacorporatetaxratefrom12to8percentfollowingtheenactmentofBill3inJune2019;

• Highernetfinancecostsimpactingearningsassociatedwithdebtrelatedtofinancingacquisitions,growthprojectsand

volatilityinforeignexchangerates;

• IncreasedcommonandpreferredsharesoutstandingandcorrespondingdividendsduetotheKinderAcquisition;and

• TheadoptionofIFRS16onJanuary1,2019.


8.SELECTEDEQUITYACCOUNTEDINVESTEEINFORMATIONLoansandBorrowingsofEquityAccountedInvestees

Underequityaccounting,theassetsandliabilitiesofaninvestmentarenetintoasinglelineitemintheconsolidated

statementoffinancialposition,"InvestmentsinEquityAccountedInvestees".Toassistreaders'understandingandtoevaluate

thecapitalizationofPembina'sinvestments,loansandborrowingsassociatedwithinvestmentsinequityaccountedinvestees

arepresentedbelowbasedonPembina'sproportionateownershipasatSeptember30,2020.Inaddition,certainofthe

equityaccountedinvesteeshaveborrowingarrangementswithanamortizationstructure,therebynecessitatingperiodic

repaymentsofprincipal.TheserepaymentsoccurpriortothedistributionofresidualcashflowtoPembina.Theloansand

borrowingsandamortizationschedulesarepresentedbelowandclassifiedbythedivisioninwhichtheresultsforthe

investmentarereported.Pleaserefertothe"Abbreviations"sectionforasummaryofPembina'sinvestmentsinequity

accountedinvesteesandthedivisioninwhichtheirresultsarereported.

($millions)(1) September30,2020 December31,2019

Pipelines 1,012 1,057

Facilities 1,175 1,150

Total 2,187 2,207

AmortizationScheduleofLoansandBorrowingsofEquityAccountedInvestees

9MonthsEnded Remainderof

($millions)(1)September30,

2020 2020 2021 2022 2023 2024+

Pipelines 95 63 118 606 62 163

Facilities — — 12 36 36 1,091

Total 95 63 130 642 98 1,254(1) BalancesreflectPembina'sownershippercentageoftheoutstandingbalancefacevalue.

FinancingActivitiesforEquityAccountedInvestees

PriortoCKPC'sdecisiontodeferfurtherinvestmentinthePDH/PPFacility,onFebruary27,2020,CKPCclosedasyndicated

seniorsecuredU.S.$1.7billionamortizingtermfacilityandaU.S.$150millionrevolvingcreditfacility,bothofwhichhave

beenguaranteedequallyonaseveralbasisbytheownersofCKPCthroughthecompletionofconstruction.Thefinalmaturity

dateofboththetermfacilityandrevolvingcreditfacilityisFebruary27,2027.Theparentalguaranteeresultedinthe

recognitionofafinancialguaranteeliability,currentlyvaluedatU.S.$14million,netofamortization,onPembina'sbalance

sheet,withanoffsettingamountrecordedasanequitycontributiontotheinvestmentinCKPC.

OnApril27,2020,Rubyfullyrepaidits364-daytermloan.Concurrenttorepayment,Rubyenteredintoanewtermloanthat

willmatureonMarch31,2021.ThetermloanwillamortizeU.S.$32millionin2020and2021(U.S.$16millionnetto

Pembina),intwoequalpaymentseachyearwiththefirstpaymentmadeinJune2020.

OnJune30,2020,CKPCanditslendersagreedtoamendandwaivecertaintermsandconditionsoftheCKPCcreditfacility.In

connectionwiththeamendment,CKPCvoluntarilyrepaidtheU.S.$26milliondrawnunderthenon-revolvingtermloan.CKPC

alsoretainedtheabilitytore-drawandaccessthefulltermloanofU.S.$1.7billionuponresumptionofkeyactivities.


CommitmentstoEquityAccountedInvestees

PembinaiscontractuallycommittedtoprovideCKPCwithfundingtoconstructassetsthatwillformpartofCKPC'sPDH/PP

Facility,subjecttocertainconditionsbeingmet.FollowingCKPC'sdecisiontodeferinvestmentinthePDH/PPFacility,

PembinahasdeferredfuturecontributionstoCKPC.

PembinahasacontractualcommitmenttoadvanceU.S.$16milliontoRubybyMarch31,2021.

Pembinahascommitmentstoprovidecontributionstocertainequityaccountedinvesteesbasedonannualbudgetsapproved

bythejointventurepartners.

CreditRiskforEquityAccountedInvestees

AtSeptember30,2020,lettersofcredittotaling$103million(December31,2019:$84million)wereheldbyPembina's

variousequityaccountedinvestees,primarilyinrespectofcustomertradereceivables.

9.OTHERImpairmentAssessment

InresponsetotheongoingCOVID-19pandemicanditsimpactontheglobaleconomyanddemandforenergyproducts,

Pembinaperformedadetailedassessmentofitscashgeneratingunitstodetermineifanyindicatorsofimpairmentexistedas

atSeptember30,2020.Theassessmentdidnotidentifyindicatorsofimpairmentrequiringanassessmentofrecoverable

amountsofanyofPembina'scashgeneratingunits.PembinawillcontinuetoevaluatethesituationrelatedtotheCOVID-19

pandemicandglobalenergydemandandupdatetheimpairmentassessmentasrequired.

RelatedPartyTransactions

Pembinaentersintotransactionswithrelatedpartiesinthenormalcourseofbusinessandontermsequivalenttothosethat

prevailinarm'slengthtransactions.PembinacontractscapacityfromAlliance,itsequityaccountedinvestee,andadvances

fundstosupportoperationsandprovidesservicestoequityaccountedinvestees.

DuringthethreeandninemonthsendedSeptember30,2020,PembinaadvancedU.S.$8millionandU.S.$24million,

respectively,toRubyPipelineL.L.C.,tofundtherepaymentofitsoutstandingbankfacility.

Inaddition,PembinaprovidedaparentalguaranteetoCKPConitsprojectfinancingarrangement,currentlyvaluedatU.S.$14

million,netofamortization.Theparentalguaranteeistreatedasafinancialguaranteeforaccountingpurposes,whichresults

intherecognitionofaliabilityonPembina'sbalancesheet,withanoffsettingamountrecordedasanequitycontributionto

theinvestmentinCKPC.

ForthethreeandninemonthsendedSeptember30,2020,Pembinahadnoothertransactionswith"relatedparties"(as

definedinIAS24RelatedPartyDisclosures)exceptthosepertainingtocontributionstoPembina'sdefinedbenefitpension

planandremunerationofkeymanagementpersonnelandtheBoardofDirectorsofPembina,intheordinarycourseoftheir

employmentordirectorshipagreements,respectively.


RiskManagement

HedgeofNetInvestmentinForeignOperations

OnMay7,2020,PembinadesignatedtheU.S.$250millionnon-revolvingtermloanitenteredintoasahedgeofthe

Company'snetinvestmentinU.S.functionalcurrencyforeignoperations.Thedesignateddebthasbeenassessedashavingno

ineffectivenessastheU.S.dollardebthasanequalandoppositeexposuretoU.S.dollarfluctuations.Foreignexchangegains

andlossesonthedesignateddebtarerecognizedinthecurrencytranslationreserveinaccumulatedothercomprehensive

income.

InterestRateRisk-CashFlowHedge

OnMay8,2020,Pembinadesignatedfinancialderivativecontractsthatfixtheinterestrateon$250millionofvariablerate

debtascashflowhedginginstruments.Thedesignatedcashflowhedgehasbeenassessedashavingnoineffectivenessasthe

criticaltermsarealigned.Unrealizedgains(losses)onderivativesindesignatedcashflowhedgingrelationshipsarerecognized

inthecashflowhedgereserveinaccumulatedothercomprehensiveincome,withrealizedgains(losses)beingreclassifiedto

netfinancecosts.

DisclosureControlsandProcedures("DC&P")andInternalControloverFinancialReporting("ICFR")

Management'sReportonInternalControlOverFinancialReporting

Pembina'smanagementisresponsibleforestablishingandmaintainingdisclosurecontrolsandproceduresandinternal

controloverfinancialreporting,asthosetermsaredefinedinNationalInstrument52-109CertificationofDisclosureinIssuers'

AnnualandInterimFilings.Theobjectiveofthisinstrumentistoimprovethequality,reliabilityandtransparencyof

informationthatisfiledorsubmittedundersecuritieslegislation.

ThePresidentandChiefExecutiveOfficerandtheSeniorVicePresidentandChiefFinancialOfficerhavedesigned,withthe

assistanceofmanagement,DC&PandICFRtoprovidereasonableassurancethatmaterialinformationrelatingtoPembina's

businessismadeknowntothem,isreportedonatimelybasis,thatfinancialreportingisreliableandthatfinancialstatements

preparedforexternalpurposesareinaccordancewithIFRS.

ChangesinInternalControlOverFinancialReporting

EffectiveMay1,2020,PembinacompletedtheintegrationoftheKinderAcquisitionintoitsexistingenterpriseresource

planning("ERP")system.AsaresultoftheERPsystemintegration,certainprocessessupportingPembina'sICFRfortheKinder

Acquisitionchangedinthesecondquarterof2020.TheCompany'sICFRintegrationoftheKinderAcquisitionisnowcomplete

andtheoverallcontrolsandprocedureswefollowinestablishingICFRwerenotsignificantlyimpacted.Assetsattributableto

theKinderAcquisitionrepresentedapproximately16percentofPembina'stotalassetsasatSeptember30,2020and

revenuesattributabletotheKinderAcquisitionfortheninemonthsendedSeptember30,2020representedapproximately10

percentofPembina'stotalrevenueforthatperiod.

Therewerenochangesinthethirdquarterof2020thathadorarelikelytohaveamaterialimpactonPembina'sICFR.


10.ACCOUNTINGPOLICIES&ESTIMATESChangesinAccountingPolicies

TheaccountingpoliciesusedinpreparingtheInterimFinancialStatementsaredescribedinNote4ofPembina'sConsolidated

FinancialStatements.Exceptasnotedbelow,therewerenonewaccountingstandardsadoptedinthefirstninemonthsof

2020thatareexpectedtohaveamaterialimpactonPembina'sfinancialstatements.

FinancialInstruments

DerivativeFinancialInstrumentsandHedgeAccounting

Pembinaholdsderivativefinancialinstrumentstomanageitsinterestrate,commodity,powercostsandforeignexchangerisk

exposures.Derivativesarerecognizedinitiallyatfairvalue.Subsequenttoinitialrecognition,derivativesaremeasuredatfair

valuewithchangesrecognizedimmediatelyinearnings,unlesshedgeaccountingisapplied.

Pembinaapplieshedgeaccountingtocertainfinancialinstrumentsthatqualifyforandaredesignatedforhedgeaccounting

treatment.Atinceptionofadesignatedhedgingrelationship,formaldocumentationispreparedandincludestherisk

managementobjectiveandstrategyforundertakingthehedge,identificationofthehedgeditemandthehedginginstrument,

thenatureoftheriskbeinghedgedandhowPembinawillassessthehedginginstrument'seffectivenessinoffsettingthe

exposuretochangesinthehedgeditem.

Forderivativesthataredesignatedandqualifiedcashflowhedges,theeffectiveportionofchangesinfairvalueis

accumulatedinothercomprehensiveincome.Theamountaccumulatedisreclassifiedtoearningsinthesameperiodor

periodsduringwhichthehedgedexpectedfuturecashflowsoccur.Anyineffectiveportionofchangesinfairvalueofhedges

arerecordedinearnings.

Fornon-derivativefinancialliabilitiesdesignatedashedginginstrumentsinahedgeofthenetinvestmentinforeign

operations,theeffectiveportionofforeignexchangegainsandlossesarisingontranslationofthefinancialliabilityis

recognizedinothercomprehensiveincome.Anyineffectiveportionoftheforeignexchangegainsandlossesarisingfromthe

translationofthefinancialliabilityisrecognizedimmediatelyinearnings.Theamountaccumulatedintheother

comprehensiveincomeisreclassifiedtoearningsondisposaloftheforeignoperation.

Hedgeaccountingisdiscontinuedprospectivelywhenthehedgingrelationshipnolongerqualifiesforhedgeaccountingorthe

hedginginstrumentissoldorterminated.


Newstandardsandinterpretationsnotyetadopted

InterbankOfferedRates("IBOR")Reform-Phase2

InAugust2020,theIASBissuedamendmentstoIFRS9FinancialInstruments,IFRS7FinancialInstruments:Disclosuresand

IFRS16LeasestoaddressissuesthatimpactfinancialreportingatthetimeofIBORreplacementwithalternativerates.The

amendmentsprovideapracticalexpedienttoeasethepotentialburdenofaccountingforchangesincontractualcashflows,

providerelieffromspecifichedgeaccountingrequirements,andadddisclosurerequirements,atthetimeofIBOR

replacement.PembinawilladopttheamendmentsontheeffectivedateofJanuary1,2021andexpectstheamendmentsto

haveaninsignificantimpactonitsearningsandfinancialpositiononadoption.

CriticalAccountingJudgments&Estimates

CriticalaccountingjudgmentsandestimatesusedinpreparingtheInterimFinancialStatementsaredescribedinNote2of

Pembina'sConsolidatedFinancialStatementsandMD&AfortheyearendingDecember31,2019.Thepreparationof

consolidatedfinancialstatementsinconformitywithIFRSrequiresmanagementtomakebothjudgmentsandestimatesthat

couldmateriallyaffecttheamountsrecognizedinthefinancialstatements.Bytheirnature,judgmentsandestimatesmay

changeinlightofnewfactsandcircumstancesintheinternalandexternalenvironment.Therehavebeennomaterial

changestoPembina'scriticalaccountingestimatesandjudgmentsduringthethreeandninemonthsendedSeptember30,

2020,exceptforthegeneralimpactofsignificantuncertaintiescreatedbytheCOVID-19pandemic,asdiscussedbelow.


FollowingtheWorldHealthOrganizationdeclaringtheCOVID-19outbreaktobeapandemic,manygovernmentshavetaken

stepstocontainthespreadofthevirus,resultinginaslowdownoftheglobaleconomy,whichhasledtoasignificant

disruptionofbusinessoperationsandasignificantincreaseineconomicuncertainty.Thisuncertaintyhascreatedvolatilityin

assetprices,currencyexchangeratesandamarkeddeclineinlong-terminterestrates.Inaddition,theresultingdecreasein

demandforcrudeoilhasresultedinadeclineinglobalenergyprices.Managementappliedjudgmentandwillcontinueto

assessthesituationindeterminingtheimpactofthesignificantuncertaintiescreatedbytheseeventsandconditionsonthe

carryingamountsofassetsandliabilitiesintheInterimFinancialStatements.


11.RISKFACTORSManagementhasidentifiedtheprimaryriskfactorsthatcouldpotentiallyhaveamaterialimpactonthefinancialresultsand

operationsofPembina.Withtheexceptionoftherisksnotedbelow,therehavebeennomaterialchangestotheriskfactors

presentedinPembina'sMD&AandAIFfortheyearendedDecember31,2019.Pembina'sMD&AandAIFareavailableat

www.sedar.com,www.sec.govandthroughPembina'swebsiteatwww.pembina.com.


COVID-19RelatedImpacts

Pembina'sbusinessandoperationshasbeenandwillcontinuetobemateriallyadverselyaffectedbytheCOVID-19pandemic,

includingongoinguncertaintywithrespecttotheextentanddurationofthepandemic.TheongoingCOVID-19pandemic,and

actionsthathave,andmaybe,takenbygovernmentalauthoritiesinresponsetheretohasresulted,andmaycontinueto

resultin,amongotherthings:anoverallslowdownintheglobaleconomy;adecreaseinglobalenergydemand;increased

volatilityinfinancialandcommoditymarkets;disruptionstoglobalsupplychains;labourshortages;significantimpactstothe

workforce;reductionsintradevolumes;temporaryoperationalrestrictionsandrestrictionsongatheringsofindividuals,as

wellasshelter-in-placedeclarationsandquarantineorders;businessclosuresandtravelbans;politicalandeconomic

instability;andcivilunrest.TherecentresurgenceofCOVID-19casesincertaingeographicareas,andthepossibilitythata

resurgencemayoccurinotherareas,hasresultedinthere-impositionofcertainoftheforegoingrestrictionsbygovernmental

authoritiesincertainjurisdictions.Thisfurtherincreasestheriskanduncertaintyastotheextentanddurationofthe

COVID-19pandemicanditsultimateimpactontheglobaleconomyandotheritemsnotedabove.

TheriskstoPembinaoftheongoingCOVID-19pandemicinclude,amongotherthings:riskstothehealthandsafetyof

Pembina'semployees;aslowdownortemporarysuspensionofoperationsincertaingeographiclocationsinwhichPembina

operates;delaysinthecompletion,ordeferral,ofPembina'sgrowthandexpansionprojects;andsupplychaindisruptions,all

oranyofwhichcouldmateriallyadverselyimpactPembina'sbusinessoperationsandfinancialresults.Pembinahasalready

deferredcertaingrowthprojectsasaresultoftheCOVID-19pandemicandresultingdeclineinglobalenergydemandandthe

resultingdecreaseincommoditypricesduring2020.

ThefullextentandimpactoftheCOVID-19pandemiccontinuestobeunknownatthistimeandthedegreetowhichitmay

impactPembina'sbusinessoperationsandfinancialresultswilldependonfuturedevelopments,whicharehighlyuncertain

andcannotbepredictedwithanydegreeofcertainty,including:theduration,severityandgeographicspreadoftheCOVID-19

virus,includinginrespectoftheresurgenceofviruscasesincertaingeographicareas,includingcertainareasinwhich

Pembinaoperates;furtheractionsthatmaybetakenbygovernmentalauthorities,includinginrespectoftravelrestrictions

andbusinessdisruptions;theeffectivenessofactionstakentocontainandtreattheCOVID-19virus;andhowquicklyandto

whatextentnormaleconomicandoperatingconditionscanresume.

ImpactonGeneralRisks

DependingontheextentanddurationoftheCOVID-19pandemic,itmayalsohavetheeffectofheighteningmanyofthe

otherrisksdescribedinPembina'sotherdisclosuredocuments,includingPembina'sMD&AandAIFfortheyearended

December31,2019,suchasrisksrelatingtoPembina'sexposuretocommodityprices;thesuccessfulcompletionofPembina's

growthandexpansionprojects,includingtheexpectedreturnoninvestmentthereof;Pembina'sabilitytomaintainitscredit

ratings;restrictedaccesstocapitalandincreasedborrowingcosts;Pembina'sabilitytopaydividendsandserviceobligations

underitsdebtsecuritiesandotherdebtobligations;andotherwisecomplyingwiththecovenantscontainedinthe

agreementsthatgovernPembina'sexistingindebtedness.


12.NON-GAAPMEASURESThroughoutthisMD&A,PembinahasusedthefollowingtermsthatarenotdefinedbyGAAPbutareusedbymanagementto

evaluatetheperformanceofPembinaanditsbusinesses.Sincenon-GAAPmeasuresdonothaveastandardizedmeaning

prescribedbyIFRSandarethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies,applicable

securitiesregulationssuggestthatnon-GAAPmeasuresbeclearlydefined,qualifiedandreconciledtothemostdirectly

comparableGAAPmeasure.Thesenon-GAAPmeasuresarecalculatedanddisclosedonaconsistentbasisfromperiodto

period.

Theintentofnon-GAAPmeasuresistoprovideadditionalusefulinformationwithrespecttoPembina'soperationaland

financialperformancetoinvestorsandanalysts,thoughthemeasuresdonothaveanystandardizedmeaningunderIFRS.The

measuresshouldnot,therefore,beconsideredinisolationorusedinsubstituteformeasuresofperformancepreparedin

accordancewithIFRS.Otherissuersmaycalculatethesenon-GAAPmeasuresdifferently.

Investorsshouldbecautionedthatnetrevenue,adjustedEBITDA,adjustedEBITDApercommonshare,adjustedcashflow

fromoperatingactivities,cashflowfromoperatingactivitiespercommonshare,andadjustedcashflowfromoperating

activitiespercommonshareshouldnotbeconstruedasalternativestorevenue,earnings,cashflowfromoperatingactivities,

grossprofitorothermeasuresoffinancialresultsdeterminedinaccordancewithGAAPasindicatorsofPembina's

performance.

Non-GAAPProportionateConsolidationofInvestmentsinEquityAccountedInvesteesResults

InaccordancewithIFRS,Pembina'sjointlycontrolledinvestmentsareaccountedforusingequityaccounting.Underequity

accounting,theassetsandliabilitiesoftheinvestmentarepresentednetinasinglelineitemintheConsolidatedStatementof

FinancialPosition,"InvestmentsinEquityAccountedInvestees".Netearningsfrominvestmentsinequityaccountedinvestees

arerecognizedinasinglelineitemintheConsolidatedStatementofEarningsandComprehensiveIncome"ShareofProfit

fromEquityAccountedInvestees".Cashcontributionsanddistributionsfrominvestmentsinequityaccountedinvestees

representPembina'ssharepaidandreceivedintheperiodtoandfromtheinvestmentsinequityaccountedinvestees.

Toassistinunderstandingandevaluatingtheperformanceoftheseinvestments,PembinaissupplementingtheIFRS

disclosurewithnon-GAAPproportionateconsolidationofPembina'sinterestintheinvestmentsinequityaccounted

investees.Pembina'sproportionateinterestinequityaccountedinvesteeshasbeenincludedinadjustedEBITDA.

NetRevenue

Netrevenueisanon-GAAPfinancialmeasurewhichisdefinedastotalrevenuelesscostofgoodssoldincludingproduct

purchases.Managementbelievesthatnetrevenueprovidesinvestorswithasinglemeasuretoindicatethemarginonsales

beforenon-productoperatingexpensesthatiscomparablebetweenperiods.Managementutilizesnetrevenuetocompare

consecutiveresults,inMarketing&NewVenturesandFacilities,toaggregaterevenuegeneratedbyeachoftheCompany's

divisionsandtosetcomparableobjectives.

3MonthsEndedSeptember30

Pipelines FacilitiesMarketing&NewVentures

Corporate&Inter-divisionEliminations Total($millions)

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Revenue 557 441 311 288 825 1,106 (124) (135) 1,569 1,700

Costofgoodssold,includingproductpurchases — — 3 — 793 1,034 (76) (85) 720 949

Netrevenue 557 441 308 288 32 72 (48) (50) 849 751





2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Revenue 1,648 1,300 905 834 2,309 3,712 (354) (370) 4,508 5,476

Costofgoodssold,includingproductpurchases — — 7 2 2,241 3,428 (230) (237) 2,018 3,193

Netrevenue 1,648 1,300 898 832 68 284 (124) (133) 2,490 2,283

AdjustedEarningsBeforeInterest,Taxes,DepreciationandAmortization("AdjustedEBITDA")

AdjustedEBITDAisanon-GAAPmeasureandiscalculatedasearningsfortheyearbeforenetfinancecosts,incometaxes,

depreciationandamortization(includedinoperationsandgeneralandadministrativeexpense)andunrealizedgainsorlosses

oncommodity-relatedderivativefinancialinstruments.Theexclusionofunrealizedgainsorlossesoncommodity-related

derivativefinancialinstrumentseliminatesthenon-cashimpactofsuchgainsorlosses.

AdjustedEBITDAalsoincludesadjustmentstoearningsforlosses(gains)ondisposalofassets,transactioncostsincurredin

respectofacquisitions,impairmentchargesorreversalsinrespectofgoodwill,intangibleassets,investmentsinequity

accountedinvesteesandproperty,plantandequipment,certainnon-cashprovisionsandotheramountsnotreflectiveof

ongoingoperations.Theadjustmentsmadetoearningsarealsomadetoshareofprofitfrominvestmentsinequityaccounted

investees.Inaddition,Pembina'sproportionateshareofresultsfrominvestmentsinequityaccountedinvesteeswitha

preferredinterestispresentedinadjustedEBITDAasa50percentcommoninterest.Theseadditionaladjustmentsaremade

toexcludevariousnon-cashandotheritemsthatarenotreflectiveofongoingoperations.

ManagementbelievesthatadjustedEBITDAprovidesusefulinformationtoinvestorsasitisanimportantindicatorofan

issuer'sabilitytogenerateliquiditythroughcashflowfromoperatingactivitiesandequityaccountedinvestees.Management

alsobelievesthatadjustedEBITDAprovidesanindicatorofoperatingincomegeneratedfromcapitalinvested,whichincludes

operationalfinanceincomefromlessorleasearrangements.AdjustedEBITDAisalsousedbyinvestorsandanalystsfor

assessingfinancialperformanceandforthepurposeofvaluinganissuer,includingcalculatingfinancialandleverageratios.

ManagementutilizesadjustedEBITDAtosetobjectivesandasakeyperformanceindicatoroftheCompany'ssuccess.

PembinapresentsadjustedEBITDAasmanagementbelievesitisameasurefrequentlyusedbyanalysts,investorsandother

stakeholdersinevaluatingtheCompany'sfinancialperformance.



Corporate&Inter-divisionEliminations Total($millions,exceptpershareamounts)

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Earningsbeforeincometax 368 329 172 144 2 112 (114) (111) 428 474

Adjustmentstoshareofprofitfromequityaccountedinvesteesandother 59 63 34 33 9 1 — — 102 97

Netfinancecosts 8 2 6 14 (7) (1) 76 62 83 77

Depreciationandamortization 105 64 51 42 12 11 11 9 179 126

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — — (11) — 17 (40) — — 6 (40)

CEWS — — — — — — (9) — (9) —

Lossondisposalofassets 1 — — — — — — 1 1 1

Transactioncostsincurredinrespectofacquisitions — — — — — — 6 2 6 2

Impairmentchargesandnon-cashprovisions — — (1) — 1 — — (1) — (1)

AdjustedEBITDA 541 458 251 233 34 83 (30) (38) 796 736

AdjustedEBITDApercommonshare–basic(dollars) 1.45 1.44




Corporate&Inter-divisionEliminations Total($millions,exceptpershareamounts)

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Earningsbeforeincometax 1,111 1,005 490 457 38 282 (426) (364) 1,213 1,380

Adjustmentstoshareofprofitfromequityaccountedinvesteesandother 183 196 103 109 15 19 — — 301 324

Netfinancecosts 24 7 19 17 2 — 319 210 364 234

Depreciationandamortization 306 179 155 118 37 43 34 32 532 372

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — — (14) — 12 (10) — — (2) (10)

Arbitrationawardpayment — — — — — (33) — — — (33)

CEWS — — — — — — (37) — (37) —

COVID-19restructuring 3 — 2 — 1 — 4 — 10 —

Loss(gain)ondisposalofassets 1 — 1 — — — (1) 2 1 2

Transactioncostsincurredinrespectofacquisitions — — — — — — 16 2 16 2

Impairmentchargesandnon-cashprovisions 3 — 1 — 13 — — 3 17 3

AdjustedEBITDA 1,631 1,387 757 701 118 301 (91) (115) 2,415 2,274

AdjustedEBITDApercommonshare–basic(dollars) 4.39 4.46

AdjustedCashFlowfromOperatingActivities,CashFlowfromOperatingActivitiesperCommonShare

andAdjustedCashFlowfromOperatingActivitiesperCommonShare

Adjustedcashflowfromoperatingactivitiesisanon-GAAPmeasurewhichisdefinedascashflowfromoperatingactivities

adjustingforthechangeinnon-cashoperatingworkingcapital,adjustingforcurrenttaxandshare-basedpaymentexpenses,

anddeductingpreferredsharedividendspaid.Adjustedcashflowfromoperatingactivitiesdeductspreferredsharedividends

paidbecausetheyarenotattributabletocommonshareholders.Thecalculationhasbeenmodifiedtoincludecurrenttaxand

share-basedpaymentexpenseasitallowsmanagementtobetterassesstheobligationsdiscussedbelow.Management

believesthatadjustedcashflowfromoperatingactivitiesprovidescomparableinformationtoinvestorsforassessingfinancial

performanceduringeachreportingperiod.Managementutilizesadjustedcashflowfromoperatingactivitiestosetobjectives

andasakeyperformanceindicatoroftheCompany'sabilitytomeetinterestobligations,dividendpaymentsandother

commitments.Percommonshareamountsarecalculatedbydividingcashflowfromoperatingactivities,oradjustedcash

flowfromoperatingactivities,asapplicable,bytheweightedaveragenumberofcommonsharesoutstanding.



($millions,exceptpershareamounts) 2020 2019 2020 2019

Cashflowfromoperatingactivities 434 535 1,486 1,804

Cashflowfromoperatingactivitiespercommonshare–basic(dollars) 0.79 1.05 2.70 3.53

Add(deduct):

Changeinnon-cashoperatingworkingcapital 89 64 168 (7)

Currenttaxexpense (52) (46) (195) (178)

Taxespaid,netofforeignexchange 89 18 289 118

Accruedshare-basedpayments 1 (4) 6 (37)

Share-basedpayments 1 — 45 50

Preferredsharedividendspaid (38) (37) (113) (92)

Adjustedcashflowfromoperatingactivities 524 530 1,686 1,658

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars) 0.95 1.04 3.07 3.25


13.ABBREVIATIONSThefollowingisalistofabbreviationsthatmaybeusedinthisMD&A:

Other

AECO AlbertaEnergyCompanybenchmarkpricefornaturalgas

B.C. BritishColumbia

GAAP Canadiangenerallyacceptedaccountingprinciples

IFRS InternationalFinancialReportingStandards

LNG Liquefiednaturalgas

LPG Liquefiedpetroleumgas

NGL Naturalgasliquids

U.S. UnitedStates

WCSB WesternCanadianSedimentaryBasin

Deepcut Ethane-pluscapacityextractiongasprocessingcapabilities

Shallowcut Sweetgasprocessingwithpropaneand/orcondensate-plusextractioncapabilities

KinderAcquisition Pembina'sacquisitionofKinderMorganCanadaLimitedandtheU.S.portionoftheCochinPipelinesystemonDecember16,2019

Volumes VolumesforPipelinesandFacilitiesarerevenuevolumes,definedasphysicalvolumesplusvolumesrecognizedfromtake-or-paycommitments.VolumesforMarketing&NewVenturesaremarketedNGLvolumes.Volumesarestatedinmboe/d,withnaturalgasvolumesconvertedtomboe/dfromMMcf/data6:1ratio.

Measurement

mbbls thousandsofbarrels

mbpd thousandsofbarrelsperday

mmbpd millionsofbarrelsperday

mmbbls millionsofbarrels

mboe/d thousandsofbarrelsofoilequivalentperday

mmboe/d millionsofbarrelsofoilequivalentperday

MMcf/d millionsofcubicfeetperday

bcf/d billionsofcubicfeetperday

km kilometer

InvestmentsinEquityAccountedInvestees

Pipelines:

Alliance 50percentinterestintheAlliancePipeline

Ruby 50percentconvertiblepreferredinterestintheRubyPipeline

Facilities:

VeresenMidstream 45percentinterestinVeresenMidstreamLimitedPartnership,whichownsassetsinwesternCanadaservingtheMontneygeologicalplayinnorthwesternAlbertaandnortheasternB.C.includinggasprocessingplantsandgasgatheringpipelinesandcompression

FortCorp 50percentinterestinFortSaskatchewanEthyleneStorageLimitedPartnershipandFortSaskatchewanEthyleneCorporation

Marketing&NewVentures:

AuxSable AnownershipinterestinAuxSable(approximately42.7percentinAuxSableU.S.and50percentinAuxSableCanada),whichincludesanNGLfractionationfacilityandgasprocessingcapacitynearChicago,IllinoisandothernaturalgasandNGLprocessingfacilities,logisticsanddistributionassetsintheU.S.andCanada,aswellastransportationcontractsonAlliance

CKPC 50percentinterestinthepropanedehydrogenation("PDH")plantandpolypropylene("PP")upgradingfacility("PDH/PPFacility")

ReadersarereferredtotheAIFdatedFebruary27,2020onwww.sedar.comforadditionaldescriptions.


14.FORWARD-LOOKINGSTATEMENTS&INFORMATION

IntheinterestofprovidingPembina'ssecurityholdersandpotentialinvestorswithinformationregardingPembina,includingmanagement'sassessmentoftheCompany'sfutureplansandoperations,certainstatementscontainedinthisMD&Aconstituteforward-lookingstatementsorforward-lookinginformation(collectively,"forward-lookingstatements").Forward-lookingstatementsaretypicallyidentifiedbywordssuchas"anticipate","continue","estimate","expect","may","will","project","should","could","would","believe","plan","intend","design","target","undertake","view","indicate","maintain","explore","entail","schedule","objective","strategy","likely","potential","outlook","aim","purpose","goal"andsimilarexpressionssuggestingfutureeventsorfutureperformance.

Bytheirnature,suchforward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycauseactualresultsoreventstodiffermateriallyfromthoseanticipatedinsuchforward-lookingstatements.Pembinabelievestheexpectationsreflectedinthoseforward-lookingstatementsarereasonablebutnoassurancecanbegiventhattheseexpectationswillprovetobecorrectandsuchforward-lookingstatementsincludedinthisMD&Ashouldnotbeundulyreliedupon.Theseforward-lookingstatementsspeakonlyasofthedateoftheMD&A.

Inparticular,thisMD&Acontainsforward-lookingstatementspertainingtothefollowing:

• thepotentialimpactsoftheCOVID-19pandemiconPembina,andPembina'sresponsethereto;

• futurelevelsandsustainabilityofcashdividendsthatPembinaintendstopaytoitsshareholders,thedividendpaymentdate;

• planning,construction,locations,capitalexpenditureestimates,schedules,regulatoryandenvironmentalapplicationsandanticipatedapprovals,expectedcapacity,incrementalvolumes,completionandin-servicedates,rights,sourcesofproduct,activities,benefitsandoperationswithrespecttonewconstructionof,orexpansionsonexisting,pipelines,systems,gasservicesfacilities,processingandfractionationfacilities,terminalling,storageandhubfacilitiesandotherfacilitiesorenergyinfrastructure,aswellastheimpactofPembina'snewprojectsonitsfuturefinancialperformance;

• pipeline,processing,fractionationandstoragefacilityandsystemoperationsandthroughputlevels;

• treatmentundergovernmentalregulatoryregimesinCanadaandtheU.S.,includingtaxesandtaxregimes,environmentalandgreenhousegasregulationsandrelatedabandonmentandreclamationobligations,andIndigenous,landownerandotherstakeholderconsultationrequirements;

• Pembina'sstrategyandthedevelopmentandexpectedtimingofnewbusinessinitiativesandgrowthopportunitiesandtheimpactthereof;

• expectedfuturecashflowsandthesufficiencythereof,financialstrength,sourcesofandaccesstofundsatattractiverates,futurecontractualobligations,futurefinancingoptions,futurerenewalofcreditfacilities,availabilityofcapitalforcapitalprojectsandcontributionstoinvestmentsinequityaccountedinvestees,operatingobligationsanddividendsandtheuseofproceedsfromfinancings;

• Pembina'scapitalstructure,includingthesufficiencyoftheamountofleverageemployedthereinandfutureactionsthatmaybetakenwithrespectthereto;

• Pembina'sexpectationsregardingthecreditworthinessofitscounterparties;• Pembina'sexpectationsregardinginvolvementofpartnersonJordanCove;• currentratingstargetsonPembina'sdebtandthelikelihoodofadowngradebelow

investment-graderatings;• tollsandtariffsandprocessing,transportation,fractionation,storageandservices

commitmentsandcontracts;• operatingrisks(includingtheamountoffutureliabilitiesrelatedtopipelinesspills

andotherenvironmentalincidents)andrelatedinsurancecoverageandinspectionandintegrityprograms;

• expectationsregardingPembina'sNGLstoragepositionsanditsintentionswithrespectthereto;

• Pembina'sintentionswithrespecttotheconversionofthePreferredShares,Series9;and

• theexpecteddemandfor,andpricesandinventorylevelsof,crudeoilandotherpetroleumproducts,includingNGL;andtheimpactofcurrentmarketconditionsonPembina.

VariousfactorsorassumptionsaretypicallyappliedbyPembinaindrawingconclusionsormakingtheforecasts,projections,predictionsorestimationssetoutinforward-lookingstatementsbasedoninformationcurrentlyavailabletoPembina.Thesefactorsandassumptionsinclude,butarenotlimitedto:

• oilandgasindustryexplorationanddevelopmentactivitylevelsandthegeographicregionofsuchactivity;

• thesuccessofPembina'soperations;• prevailingcommodityprices,interestratesandexchangeratesandtheabilityof

Pembinatomaintaincurrentcreditratings;• theavailabilityofcapitaltofundfuturecapitalrequirementsrelatingtoexisting

assetsandprojects;• expectationsregardingPembina'spensionplan;• futureoperatingcostsincludinggeotechnicalandintegritycostsbeingconsistent

withhistoricalcosts;• oilandgasindustrycompensationlevelsremainingconsistent;

• inrespectofcurrentdevelopments,expansions,plannedcapitalexpenditures,completiondatesandcapacityexpectations:thatthirdpartieswillprovideanynecessarysupport;thatanythird-partyprojectsrelatingtogrowthprojectswillbesanctionedandcompletedasexpected;thatanyrequiredcommercialagreementscanbereached;thatallrequiredregulatoryandenvironmentalapprovalscanbeobtainedonthenecessarytermsinatimelymanner;thatcounterpartieswillcomplywithcontractsinatimelymanner;thattherearenounforeseeneventspreventingtheperformanceofcontractsorthecompletionoftherelevantfacilities,andthattherearenounforeseenmaterialcostsrelatingtothefacilitieswhicharenotrecoverablefromcustomers;

• inrespectofthestabilityofPembina'sdividends:prevailingcommodityprices,marginsandexchangerates;thatPembina'sfutureresultsofoperationswillbeconsistentwithpastperformanceandmanagementexpectationsinrelationthereto;thecontinuedavailabilityofcapitalatattractivepricestofundfuturecapitalrequirementsrelatingtoexistingassetsandprojects,includingbutnotlimitedtofuturecapitalexpendituresrelatingtoexpansion,upgradesandmaintenanceshutdowns;thesuccessofgrowthprojects;futureoperatingcosts;thatcounterpartiestomaterialagreementswillcontinuetoperforminatimelymanner;thattherearenounforeseeneventspreventingtheperformanceofcontracts;andthattherearenounforeseenmaterialconstructionorothercostsrelatedtocurrentgrowthprojectsorcurrentoperations;

• prevailingregulatory,taxandenvironmentallawsandregulationsandtaxpoolutilization;and

• theamountoffutureliabilitiesrelatingtolawsuitsandenvironmentalincidentsandtheavailabilityofcoverageunderPembina'sinsurancepolicies(includinginrespectofPembina'sbusinessinterruptioninsurancepolicy).

TheactualresultsofPembinacoulddiffermateriallyfromthoseanticipatedintheseforward-lookingstatementsasaresultofthematerialriskfactorssetforthbelow:

• thefailuretorealizetheanticipatedbenefitsandsynergiesoftheKinderAcquisitionfollowingclosing;

• theregulatoryenvironmentanddecisionsandIndigenousandlandownerconsultationrequirements;

• theimpactofcompetitiveentitiesandpricing;• labourandmaterialshortages;• relianceonkeyrelationships,jointventurepartners,andagreementsandthe

outcomeofstakeholderengagement;• thestrengthandoperationsoftheoilandnaturalgasproductionindustryand

relatedcommodityprices;• non-performanceordefaultbycounterpartiestoagreementswhichPembinaorone

ormoreofitssubsidiarieshasenteredintoinrespectofitsbusiness;• actionsbyjointventurepartnersorotherpartnerswhichholdinterestsincertainof

Pembina'sassets;• actionsbygovernmentalorregulatoryauthoritiesincludingchangesintaxlawsand

treatment,changesinroyaltyrates,climatechangeinitiativesorpoliciesorincreasedenvironmentalregulation;

• fluctuationsinoperatingresults;• adversegeneraleconomicandmarketconditionsinCanada,NorthAmericaand

elsewhere,includingchanges,orprolongedweakness,asapplicable,ininterestrates,foreigncurrencyexchangerates,commodityprices,supply/demandtrendsandoverallindustryactivitylevels;

• risksrelatingtothecurrentandpotentialadverseimpactsoftheCOVID-19pandemicandcontinueddepressedcommodityprices;

• constraintson,ortheunavailabilityofadequateinfrastructure;• changesinthepoliticalenvironment,inNorthAmericaandelsewhere,andpublic

opinion;• abilitytoaccessvarioussourcesofdebtandequitycapital;• changesincreditratings;• technologyandsecurityrisks;• naturalcatastrophes;and• theotherfactorsdiscussedunder"RiskFactors"hereinandinPembina'sMD&Aand

AIFfortheyearendedDecember31,2019,whichareavailableatwww.sedar.com,www.sec.govandthroughPembina'swebsiteatwww.pembina.com.

Thesefactorsshouldnotbeconstruedasexhaustive.Unlessrequiredbylaw,Pembinadoesnotundertakeanyobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.Anyforward-lookingstatementscontainedhereinareexpresslyqualifiedbythiscautionarystatement.


CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFFINANCIALPOSITION(unaudited)

($millions) September30,2020 December31,2019(1)

AssetsCurrentassets

Cashandcashequivalents 31 129

Tradereceivablesandother 637 694

Inventory 217 126

Derivativefinancialinstruments(Note14) 31 40

916 989

Non-currentassets

Property,plantandequipment(Note4) 19,486 18,734

Investmentsinequityaccountedinvestees(Note5) 6,114 5,954

Intangibleassetsandgoodwill 6,415 6,458

Right-of-useassets(Note6) 703 730

Financeleasereceivable(Note6) 140 145

Advancestorelatedpartiesandotherassets 221 156

33,079 32,177

Totalassets 33,995 33,166

LiabilitiesandequityCurrentliabilities

Tradepayablesandother 699 1,013

Loansandborrowings(Note7) 250 74

Dividendspayable 115 110

Leaseliabilities 97 112

Contractliabilities(Note10) 92 39

Taxespayable 14 103

Derivativefinancialinstruments(Note14) 19 6

1,286 1,457

Non-currentliabilities

Loansandborrowings(Note7) 10,737 10,078

Leaseliabilities 686 707

Decommissioningprovision(Note8) 1,073 864

Contractliabilities(Note10) 236 192

Deferredtaxliabilities 3,056 2,919

Otherliabilities 152 179

15,940 14,939

Totalliabilities 17,226 16,396

Equity

Attributabletoshareholders 16,709 16,710

Attributabletonon-controllinginterest 60 60

Totalequity 16,769 16,770

Totalliabilitiesandequity 33,995 33,166(1) PembinahasrecastcertaincomparativeinformationtoreflectchangestothePurchasePriceAllocationoriginallypresentedDecember31,2019.SeeNote3.

Seeaccompanyingnotestothecondensedconsolidatedinterimfinancialstatements


CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFEARNINGSANDCOMPREHENSIVEINCOME(unaudited)


($millions,exceptpershareamounts) 2020 2019 2020 2019Revenue(Note10) 1,569 1,700 4,508 5,476

Costofsales(Note12) 1,068 1,221 3,033 3,963

Gainoncommodity-relatedderivativefinancialinstruments (1) (45) (62) (35)

Shareofprofitfromequityaccountedinvestees(Note5) 61 89 209 282

Grossprofit 563 613 1,746 1,830

Generalandadministrative 56 64 176 214

Other(income)expense (4) (2) (7) 2

Resultsfromoperatingactivities 511 551 1,577 1,614

Netfinancecosts(Note11) 83 77 364 234

Earningsbeforeincometax 428 474 1,213 1,380

Currenttaxexpense 52 46 195 178

Deferredtaxexpense(recovery) 58 58 133 (145)

Incometaxexpense 110 104 328 33

Earnings 318 370 885 1,347

Othercomprehensive(loss)income,netoftax(Note13&14)

Exchange(loss)gainontranslationofforeignoperations (110) 42 143 (119)

Impactofhedgingactivities 6 — 15 —

Re-measurementofdefinedbenefitliability — — 14 —

Totalcomprehensiveincomeattributabletoshareholders 214 412 1,057 1,228

Earningsattributabletocommonshareholders,netofpreferredsharedividends 279 338 768 1,252

Earningspercommonshare–basic(dollars) 0.51 0.66 1.39 2.45

Earningspercommonshare–diluted(dollars) 0.51 0.66 1.39 2.44

Weightedaveragenumberofcommonshares(millions)

Basic 550 512 550 510

Diluted 550 513 550 513



CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFCHANGESINEQUITY(unaudited)

AttributabletoShareholdersoftheCompany

($millions)

CommonShareCapital

PreferredShareCapital Deficit AOCI(1) Total

Non-Controlling

InterestTotalEquity

December31,2019 15,539 2,956 (1,883) 98 16,710 60 16,770

Totalcomprehensiveincome

Earnings — — 885 — 885 — 885

Othercomprehensiveincome(Note13) — — — 172 172 — 172

Totalcomprehensiveincome — — 885 172 1,057 — 1,057

TransactionswithshareholdersoftheCompany

PartVI.1taxonpreferredshares(Note9) — (5) — — (5) — (5)

Share-basedpaymenttransactions(Note9) 99 — — — 99 — 99

Dividendsdeclared–common(Note9) — — (1,039) — (1,039) — (1,039)

Dividendsdeclared–preferred(Note9) — — (113) — (113) — (113)

TotaltransactionswithshareholdersoftheCompany 99 (5) (1,152) — (1,058) — (1,058)

September30,2020 15,638 2,951 (2,150) 270 16,709 60 16,769

December31,2018 13,662 2,423 (2,058) 317 14,344 60 14,404

Impactofchangeinaccountingpolicy — — 22 — 22 — 22

OpeningvalueJanuary1,2019 13,662 2,423 (2,036) 317 14,366 60 14,426

Totalcomprehensiveincome

Earnings — — 1,347 — 1,347 — 1,347

Othercomprehensiveincome

Exchangelossontranslationofforeignoperations — — — (119) (119) — (119)

Totalcomprehensiveincome — — 1,347 (119) 1,228 — 1,228

TransactionswithshareholdersoftheCompany

PartVI.1taxonpreferredshares — (3) — — (3) — (3)

Share-basedpaymenttransactions 152 — — — 152 — 152

Dividendsdeclared–common — — (899) — (899) — (899)

Dividendsdeclared–preferred — — (92) — (92) — (92)

TotaltransactionswithshareholdersoftheCompany 152 (3) (991) — (842) — (842)

September30,2019 13,814 2,420 (1,680) 198 14,752 60 14,812(1) AccumulatedOtherComprehensiveIncome("AOCI").



CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFCASHFLOWS(unaudited)


($millions) 2020 2019 2020 2019

Cashprovidedby(usedin)

Operatingactivities

Earnings 318 370 885 1,347

Adjustmentsfor:

Shareofprofitfromequityaccountedinvestees (61) (89) (209) (282)

Distributionsfromequityaccountedinvestees 111 142 350 452

Depreciationandamortization 179 126 532 372

Unrealizedloss(gain)oncommodity-relatedderivativefinancialinstruments 6 (40) (2) (10)

Netfinancecosts(Note11) 83 77 364 234

Netinterestpaid (124) (71) (297) (205)

Incometaxexpense 110 104 328 33

Taxespaid (90) (18) (290) (117)

Share-basedcompensationexpense 4 9 8 49

Share-basedcompensationpayment (1) — (45) (50)

Netchangeincontractliabilities (7) (7) 35 (13)

Other (5) (4) (5) (13)

Changeinnon-cashoperatingworkingcapital (89) (64) (168) 7

Cashflowfromoperatingactivities 434 535 1,486 1,804

Financingactivities

Bankborrowingsandissuanceofdebt(Note7) 521 — 1,583 94

Repaymentofloansandborrowings (289) (1,000) (2,328) (1,599)

Repaymentofleaseliability (26) (14) (69) (46)

Issuanceofmediumtermnotes(Note7) — 1,518 1,578 2,318

Issuecostsandfinancingfees — (7) (11) (13)

Exerciseofstockoptions 5 25 88 140

Dividendspaid (384) (344) (1,146) (985)

Cashflowused(providedby)infinancingactivities (173) 178 (305) (91)

Investingactivities

Capitalexpenditures (174) (421) (868) (1,216)

Contributionstoequityaccountedinvestees (28) (25) (202) (86)

Receiptoffinanceleasepayments 2 — 7 —

Interestpaidduringconstruction (10) (11) (36) (28)

Recoveryofassetsorproceedsfromsale (1) — 1 6

Advancestorelatedparties (10) (11) (32) (53)

Changesinnon-cashinvestingworkingcapitalandother (81) 55 (140) 132

Cashflowusedininvestingactivities (302) (413) (1,270) (1,245)

Changeincashandcashequivalents (41) 300 (89) 468

Effectofmovementinexchangeratesoncashheld (1) (8) (9) (5)

Cashandcashequivalents,beginningofperiod 73 328 129 157

Cashandcashequivalents,endofperiod 31 620 31 620



NOTESTOTHECONDENSEDCONSOLIDATEDUNAUDITEDINTERIMFINANCIALSTATEMENTS

1.REPORTINGENTITY

PembinaPipelineCorporation("Pembina"orthe"Company")isaCalgary-based,leadingtransportationandmidstream

serviceproviderservingNorthAmerica'senergyindustry.Thecondensedconsolidatedunauditedinterimfinancialstatements

("InterimFinancialStatements")includetheaccountsoftheCompany,itssubsidiarycompanies,partnershipsandany

investmentsinassociatesandjointarrangementsasatandforthethreeandninemonthsendedSeptember30,2020.These

InterimFinancialStatementsandthenotesheretohavebeenpreparedinaccordancewithInternationalFinancialReporting

Standards("IFRS")asissuedbytheInternationalAccountingStandardsBoard("IASB")applicabletothepreparationofinterim

financialstatements,includingInternationalAccountingStandard34InterimFinancialReporting("IAS34").TheseInterim

FinancialStatementshavebeenpreparedfollowingthesameaccountingpoliciesandmethodsofcomputationastheaudited

annualconsolidatedfinancialstatementsoftheCompanyasatandfortheyearendedDecember31,2019("Consolidated

FinancialStatements"),exceptasnotedbelow,andshouldbereadinconjunctionwiththeConsolidatedFinancialStatements.

TheInterimFinancialStatementswereauthorizedforissuebyPembina'sBoardofDirectorsonNovember5,2020.

Pembinaownsanintegratedsystemofpipelinesthattransportvarioushydrocarbonliquidsandnaturalgasproducts

producedprimarilyinwesternCanada.TheCompanyalsoownsgasgatheringandprocessingfacilitiesandanoilandnatural

gasliquidsinfrastructure,storageandlogisticsbusiness.Pembina'sintegratedassetsandcommercialoperationsalongthe

majorityofthehydrocarbonvaluechainallowittoofferafullspectrumofmidstreamandmarketingservicestotheenergy

sector.

FinancialInstruments

DerivativeFinancialInstrumentsandHedgeAccounting

Pembinaholdsderivativefinancialinstrumentstomanageitsinterestrate,commodity,powercostsandforeignexchangerisk

exposures.Derivativesarerecognizedinitiallyatfairvalue.Subsequenttoinitialrecognition,derivativesaremeasuredatfair

valuewithchangesrecognizedimmediatelyinearnings,unlesshedgeaccountingisapplied.

Pembinaapplieshedgeaccountingtocertainfinancialinstrumentsthatqualifyforandaredesignatedforhedgeaccounting

treatment.Atinceptionofadesignatedhedgingrelationship,formaldocumentationispreparedandincludestherisk

managementobjectiveandstrategyforundertakingthehedge,identificationofthehedgeditemandthehedginginstrument,

thenatureoftheriskbeinghedgedandhowPembinawillassessthehedginginstrument'seffectivenessinoffsettingthe

exposuretochangesinthehedgeditem.

Forderivativesthataredesignatedandqualifiedcashflowhedges,theeffectiveportionofchangesinfairvalueis

accumulatedinothercomprehensiveincome.Theamountaccumulatedisreclassifiedtoearningsinthesameperiodor

periodsduringwhichthehedgedexpectedfuturecashflowsoccur.Anyineffectiveportionofchangesinfairvalueofhedges

arerecordedinearnings.

Fornon-derivativefinancialliabilitiesdesignatedashedginginstrumentsinahedgeofthenetinvestmentinforeign

operations,theeffectiveportionofforeignexchangegainsandlossesarisingontranslationofthefinancialliabilityis

recognizedinothercomprehensiveincome.Anyineffectiveportionoftheforeignexchangegainsandlossesarisingfromthe

translationofthefinancialliabilityisrecognizedimmediatelyinearnings.Theamountaccumulatedintheother

comprehensiveincomeisreclassifiedtoearningsondisposaloftheforeignoperation.

Hedgeaccountingisdiscontinuedprospectivelywhenthehedgingrelationshipnolongerqualifiesforhedgeaccountingorthe

hedginginstrumentissoldorterminated.


Newstandardsandinterpretationsnotyetadopted

InterbankOfferedRates("IBOR")Reform-Phase2

InAugust2020,theIASBissuedamendmentstoIFRS9FinancialInstruments,IFRS7FinancialInstruments:Disclosuresand

IFRS16LeasestoaddressissuesthatimpactfinancialreportingatthetimeofIBORreplacementwithalternativerates.The

amendmentsprovideapracticalexpedienttoeasethepotentialburdenofaccountingforchangesincontractualcashflows,

providerelieffromspecifichedgeaccountingrequirements,andadddisclosurerequirements,atthetimeofIBOR

replacement.PembinawilladopttheamendmentsontheeffectivedateofJanuary1,2021andexpectstheamendmentsto

haveaninsignificantimpactonitsearningsandfinancialpositiononadoption.

UseofEstimatesandJudgments

Managementisrequiredtomakeestimatesandassumptionsandusejudgmentintheapplicationofaccountingpoliciesthat

couldhaveasignificantimpactontheamountsrecognizedintheInterimFinancialStatements.Actualresultsmaydifferfrom

estimatesandthosedifferencesmaybematerial.Bytheirnature,judgmentsandestimatesmaychangeinlightofnewfacts

andcircumstancesintheinternalandexternalenvironment.TherehavebeennomaterialchangestoPembina'scritical

accountingestimatesandjudgmentsduringthethreeandninemonthsendedSeptember30,2020,exceptforthegeneral

impactofsignificantuncertaintiescreatedbythecoronavirus("COVID-19")pandemic,asdiscussedbelow.


FollowingtheWorldHealthOrganizationdeclaringtheCOVID-19outbreaktobeapandemic,manygovernmentshavetaken

stepstocontainthespreadofthevirus,resultinginaslowdownoftheglobaleconomy,whichhasledtoasignificant

disruptionofbusinessoperationsandasignificantincreaseineconomicuncertainty.Thisuncertaintyhascreatedvolatilityin

assetprices,currencyexchangeratesandamarkeddeclineinlong-terminterestrates.Inaddition,theresultingdecreasein

demandforcrudeoilhasresultedinadeclineinglobalenergyprices.Managementappliedjudgmentandwillcontinueto

assessthesituationindeterminingtheimpactofthesignificantuncertaintiescreatedbytheseeventsandconditionsonthe

carryingamountsofassetsandliabilitiesintheInterimFinancialStatements.

2.DETERMINATIONOFFAIRVALUES

AnumberoftheCompany'saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalueforbothfinancialand

non-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurebasedonmethods

assetoutintheConsolidatedFinancialStatements.Thesemethodshavebeenappliedconsistentlytoallperiodspresentedin

theseInterimFinancialStatements.


Measuringfairvaluesusingsignificantunobservableinputshasbecomemorechallenginginthecurrentenvironment,where

eventsandconditionsrelatedtotheCOVID-19pandemicaredrivingsignificantdisruptionofbusinessoperationsanda

significantincreaseineconomicuncertainty.Managementapplieditsjudgmentindeterminingtheimpactofthesignificant

uncertaintiescreatedbytheseeventsandconditionsontheassessedfairvaluesofassetsandliabilitiesintheseInterim

FinancialStatements.


3.ACQUISITION

OnDecember16,2019,PembinaacquiredalltheissuedandoutstandingsharesofKinderMorganCanadaLimited("Kinder

MorganCanada")bywayofaplanofarrangementandtheU.S.portionoftheCochinPipelinesystem(collectively,the

"KinderAcquisition")fortotalconsiderationof$4.3billion.

Thepurchasepriceallocation,subjecttofinalization,isbasedonassessedfairvaluesandisasfollows:

AsatDecember16,2019

($millions) PreviouslyReported Adjustments Recast

Purchasepriceconsideration

Commonshares 1,710 — 1,710

Cash(netofcashacquired) 2,009 — 2,009

Preferredshares 536 — 536

4,255 — 4,255

Currentassets 68 2 70

Property,plantandequipment 2,660 (41) 2,619

Intangibleassets 1,254 — 1,254

Right-of-useassets 348 (92) 256

Financeleasereceivable — 116 116

Goodwill 809 28 837

Otherassets 9 — 9

Currentliabilities (124) — (124)

Deferredtaxliabilities (281) (13) (294)

Decommissioningprovision (74) — (74)

Leaseliability (348) — (348)

Otherliabilities (66) — (66)

4,255 — 4,255

Formoreinformation,seeNote6oftheConsolidatedFinancialStatements.DuringtheninemonthsendedSeptember30,

2020,Pembinaadjustedthepurchasepriceallocationtoreflectupdatedassumptionsfortheidentificationandclassification

ofleases,whichresultedintherecognitionoffinanceleaseassetsof$118million,andreductionsinproperty,plantand

equipmentof$26millionandinright-of-useassetsof$92million.Pembina'sverificationofinformationsupportingthefair

valueofassetsacquiredalsoresultedina$15millionreductiontothefairvalueofcertainCanadianproperty,plantand

equipmentwithacorrespondingdecreaseindeferredtaxliabilitiesof$3millionandincreaseingoodwillof$12million.

PembinaalsoadjustedtheallocationoffairvaluebetweenCanadianandU.S.legalentities,resultingina$16millionincrease

inthedeferredtaxliabilityandacorrespondingincreaseingoodwillof$16million.Thepurchasepriceallocationisnotfinalas

Pembinaiscontinuingtoobtainandverifyinformationrequiredtodeterminethefairvalueofcertainassetsandliabilities

includingotherprovisionsrelatingtotaxes.


4.PROPERTY,PLANTANDEQUIPMENT

($millions)Landand

LandRights PipelinesFacilitiesandEquipment

CavernStorageand

OtherAssetsUnderConstruction Total

Cost

BalanceatDecember31,2019(1) 440 8,803 8,730 1,945 1,493 21,411

Additionsandtransfers 8 433 285 54 146 926

Changeindecommissioningprovision — (13) 198 — — 185

Foreignexchangeadjustments 2 23 9 — 7 41

Disposalsandother — (6) (11) (5) (12) (34)

BalanceatSeptember30,2020 450 9,240 9,211 1,994 1,634 22,529

Depreciation

BalanceatDecember31,2019 16 1,363 1,015 283 — 2,677

Depreciation 4 139 115 111 — 369

Disposalsandother — (1) (1) (1) — (3)

BalanceatSeptember30,2020 20 1,501 1,129 393 — 3,043

Carryingamounts

BalanceatDecember31,2019 424 7,440 7,715 1,662 1,493 18,734

BalanceatSeptember30,2020 430 7,739 8,082 1,601 1,634 19,486

Assetssubjecttooperatingleases

December31,2019(1) — 477 514 62 — 1,053

September30,2020 — 472 506 62 — 1,040(1) December31,2019balanceshavebeenrecast.SeeNote3.

5.INVESTMENTSINEQUITYACCOUNTEDINVESTEES

OwnershipInterest

ShareofProfit(Loss)fromEquityInvestments

EquityInvestments9MonthsEndedSeptember30

($millions) September30,2020 December31,2019 2020 2019 September30,2020 December31,2019

Alliance 50% 50% 79 119 2,568 2,620

AuxSable 42.7%-50% 42.7%-50% (5) 35 417 426

Ruby(1) - - 93 90 1,306 1,273

VeresenMidstream 45% 45% 37 34 1,383 1,348

CKPC 50% 50% 3 2 326 171

Other 50%-75% 50%-75% 2 2 114 116

209 282 6,114 5,954(1) Pembinaownsa50percentconvertiblepreferredinterestinRuby.

AtSeptember30,2020,PembinahadU.S.$2.3billionininvestmentsinequityaccountedinvesteesheldbyentitieswhose

functionalcurrencyistheU.S.dollar.Theresultingforeignexchangegainsandlossesareincludedinothercomprehensive

income.ForthethreeandninemonthsendedSeptember30,2020,Pembinarecognizedaforeignexchangelossof$60

millionandaforeignexchangegainof$78million(2019:$42milliongainand$103millionloss),respectively.


FinancingActivities

PriortoCKPC'sdecisiontodeferfurtherinvestmentinthePDH/PPFacility,onFebruary27,2020,CKPCclosedasyndicated

seniorsecuredU.S.$1.7billionamortizingtermfacilityandaU.S.$150millionrevolvingcreditfacility,bothofwhichhave

beenguaranteedequallyonaseveralbasisbytheownersofCKPCthroughthecompletionofconstruction.Thefinalmaturity

dateofboththetermfacilityandrevolvingcreditfacilityisFebruary27,2027.Theparentalguaranteeresultedinthe

recognitionofafinancialguaranteeliability,currentlyvaluedatU.S.$14million,netofamortization,onPembina'sbalance

sheet,withanoffsettingamountrecordedasanequitycontributiontotheinvestmentinCKPC.

OnApril27,2020,Rubyfullyrepaidits364-daytermloan.Concurrenttorepayment,Rubyenteredintoanewtermloanthat

willmatureonMarch31,2021.ThetermloanwillamortizeU.S.$32millionin2020and2021(U.S.$16millionnetto

Pembina),intwoequalpaymentseachyearwiththefirstpaymentmadeinJune2020.

OnJune30,2020,CKPCanditslendersagreedtoamendandwaivecertaintermsandconditionsoftheCKPCcreditfacility.In

connectionwiththeamendment,CKPCvoluntarilyrepaidtheU.S.$26milliondrawnunderthenon-revolvingtermloan.CKPC

alsoretainedtheabilitytore-drawandaccessthefulltermloanofU.S.$1.7billionuponresumptionofkeyactivities.

6.LEASES

LesseeLeases

Pembinaentersintoarrangementstosecureaccesstoassetsnecessaryforoperatingthebusiness.Leased(right-of-use)

assetsincludeterminals,rail,buildings,landandotherassets.Totalcashoutflowsrelatedtoleaseswere$34millionand$98

million,respectively,forthethreeandninemonthsendedSeptember30,2020(2019:$21millionand$62million).

Right-of-UseAssets

($millions) Terminals Rail Buildings Land&Other Total

BalanceatDecember31,2019(1) 225 238 118 149 730

Additions(2) — 2 21 15 38

Amortization (9) (30) (15) (11) (65)

BalanceatSeptember30,2020 216 210 124 153 703(1) TheDecember31,2019balanceofTerminalsRight-of-UseAssetshasbeenrecast.SeeNote3.(2) Includedinadditionsis$13millionrelatedtotheremeasurementofthedecommissioningprovisionfortherestorationofleasedlandassetstotheconditionrequiredbythe

termsoftheunderlyinglease.

LessorLeases

Pembinahasenteredintocontractsfortheuseofitsassetsthathaveresultedinleasetreatmentforaccountingpurposes.

Assetsunderoperatingleasesincludepipelines,terminalsandstoragetanksandcaverns.SeeNote4forcarryingvalueof

property,plantandequipmentunderoperatingleases.Assetsunderfinanceleasesincludeofficesub-leasesandterminal

assets.


MaturityofLeaseReceivables

AsatSeptember30,2020

OperatingLeases FinanceLeases($millions)

Lessthanoneyear 150 22

Onetotwoyears 142 24

Twotothreeyears 140 22

Threetofouryears 124 22

Fourtofiveyears 110 22

Morethanfiveyears 899 230

Totalundiscountedleasereceipts 1,565 342

Unearnedfinanceincomeonleasereceipts (203)

Discountedunguaranteedresidualvalue 8

Financeleasereceivable 147

Lesscurrentportion(1) (7)

Totalnon-current 140(1) IncludedintradereceivablesandotherontheCondensedConsolidatedInterimStatementofFinancialPosition.

Expectedcreditlossesonleasereceivablesaredeterminedusingaprobability-weightedestimateofcreditlosses,measured

asthepresentvalueofallexpectedcashshortfalls,discountedattheinterestratesimplicitintheleases,usingreasonableand

supportableinformationaboutpastevents,currentconditionsandforecastsoffutureeconomicconditions.Pembina

considerstheriskofdefaultrelatingtoleasereceivableslowbasedonPembina'sassessmentofindividualcounterpartycredit

riskthroughestablishedcreditmanagementtechniquesasdisclosedintheConsolidatedFinancialStatements.


7.LOANSANDBORROWINGS

ThisnoteprovidesinformationaboutthecontractualtermsofPembina'sinterest-bearingloansandborrowings,whichare

measuredatamortizedcost.

CarryingValue,TermsandConditions,andDebtMaturitySchedule

CarryingValue

($millions)Authorizedat

September30,2020Nominal

InterestRateYearofMaturity September30,2020 December31,2019

Seniorunsecuredcreditfacilities(1)(3)(4) 4,153 1.58(2) Various(1) 1,638 2,097

SeniorunsecurednotesseriesA — 5.57 2020 — 74

SeniorunsecurednotesseriesC — 5.58 2020 — 199

Seniorunsecuredmedium-termnotesseries1 250 4.89 2021 250 250















Seniorunsecuredmedium-termnotesseries16 400 4.67 2050 397 —

Seniorunsecuredmedium-termnotesseries3A 50 5.05 2022 52 52

Seniorunsecuredmedium-termnotesseries5A 350 3.43 2021 353 353

Totalinterestbearingliabilities 10,987 10,152

Lesscurrentportion (250) (74)

Totalnon-current 10,737 10,078(1) Pembina'sunsecuredcreditfacilitiesincludea$2.5billionrevolvingfacilitythatmaturesinMay2024,a$500millionnon-revolvingtermloanthatmaturesinAugust2022,a

$800millionrevolvingfacilitythatmaturesinApril2022,aU.S.$250millionnon-revolvingtermloanthatmaturesinMay2025anda$20millionoperatingfacilitythatmaturesinMay2021,whichistypicallyrenewedonanannualbasis.

(2) ThenominalinterestrateistheweightedaverageofalldrawncreditfacilitiesbasedonPembina'screditratingatSeptember30,2020.Borrowingsunderthecreditfacilitiesbearinterestatprime,Bankers'Acceptance,orLIBORrates,plusapplicablemargins.

(3) NoU.S.dollarvariableratedebtoutstandingatSeptember30,2020(December31,2019:U.S.$454million).(4) TheU.S.dollardenominatednon-revolvingtermloanisdesignatedasahedgeoftheCompany’snetinvestmentinselectedforeignoperationswithaU.S.dollarfunctional

currency.RefertoNote14forforeignexchangeriskmanagement.

OnJanuary10,2020,Pembinaclosedanofferingof$1.0billionofseniorunsecuredmedium-termnotes.Theofferingwas

conductedinthreetranches,consistingof$250millionissuedthroughare-openingofPembina'sseniorunsecuredmedium-

termnotes,series10,havingafixedcouponof4.02percentperannum,payablesemi-annuallyandmaturingonMarch27,

2028;$500millionissuedthroughare-openingofPembina'sseniorunsecuredmedium-termnotes,series11,havingafixed

couponof4.75percentperannum,payablesemi-annuallyandmaturingonMarch26,2048;and$250millionissuedthrough

are-openingofPembina'sseniorunsecuredmedium-termnotes,series12,havingafixedcouponof3.62percentperannum,

payablesemi-annuallyandmaturingonApril3,2029.

OnApril6,2020,Pembinaenteredintoanunsecured$800millionrevolvingcreditfacilitywithcertainexistinglenders,which

providesadditionalliquidityandflexibilityinPembina’scapitalstructureinthecurrentmarketconditions.Thecreditfacility

hasaninitialtermoftwoyears.Theothertermsandconditionsofthecreditfacility,includingfinancialcovenants,are



OnMay7,2020,PembinaenteredintoanunsecuredU.S.$250millionnon-revolvingtermloanwithaglobalbank,which

providesadditionalliquidityandflexibilityinPembina'scapitalstructureinthecurrentmarketconditions.Thetermloanhas

aninitialtermoffiveyears.Theothertermsandconditionsofthecreditfacility,includingfinancialcovenants,are


OnMay28,2020,Pembinaclosedanofferingof$500millionofseniorunsecuredmedium-termnotes.Theofferingwas

conductedintwotranches,consistingof$400millioninseniorunsecuredmedium-termnotes,series16,havingafixed

couponof4.76percentperannum,payablesemi-annually,andmaturingonMay28,2050and$100millionissuedthrougha

re-openingofPembina'sseniorunsecuredmedium-termnotes,series7,havingafixedcouponof3.71percentperannum,

payablesemi-annuallyandmaturingonAugust11,2026.

OnJuly10,2020,Pembina's$200millionseniorunsecurednotes,seriesC,werefullyrepaidthroughanearlyredemption,of

whichnoticewasprovidedtoholdersonJune5,2020.TheseriesCnoteswereoriginallysettomatureinSeptember2021.

8.DECOMMISSIONINGPROVISION

($millions) 2020

BalanceatJanuary1 867

Unwindingofdiscountrate 14

Changeinrates 212

Additions 20

Changeincostestimatesandother (38)

Total 1,075

Lesscurrentportion(1) (2)

BalanceatSeptember30 1,073(1) IncludedintradepayablesandotherontheCondensedConsolidatedInterimStatementofFinancialPosition.

Pembinaappliedarisk-freerealreturnrateof-0.2percent(December31,2019:0.3percent)toestimatethepresentvalueof

thedecommissioningprovision.Changesinthemeasurementofthedecommissioningprovisionareaddedto,ordeducted

from,thecostoftherelatedproperty,plantandequipmentorright-of-useasset.

9.SHARECAPITAL

CommonShareCapital

($millions,exceptasnoted)

NumberofCommonShares

(millions)Common

ShareCapital

BalanceatDecember31,2019 548 15,539

Share-basedpaymenttransactions 2 99

BalanceatSeptember30,2020 550 15,638

PreferredShareCapital

($millions,exceptasnoted)

NumberofPreferredShares

(millions)Preferred

ShareCapital

BalanceatDecember31,2019 122 2,956

PartVI.1tax — (5)

BalanceatSeptember30,2020 122 2,951


Dividends

ThefollowingdividendsweredeclaredbyPembina:


($millions) 2020 2019

Commonshares

$1.89percommonshare(2019:$1.76) 1,039 899

Preferredshares

$0.92perSeries1preferredshare(2019:$0.92) 9 9











$0.98perSeries23preferredshare(2019:nil) 12 —

$0.98perSeries25preferredshare(2019:nil) 10 —

113 92

OnJune1,2020,PembinaannouncedthatitdidnotintendtoexerciseitsrighttoredeemtheeightmillionCumulative

RedeemableRateResetClassAPreferredShares,Series19sharesoutstandingonJune30,2020.

OnOctober6,2020,PembinaannouncedthatitsBoardofDirectorshaddeclaredadividendof$0.21percommonshare

($2.52annually)inthetotalamountof$115million,payableonNovember13,2020toshareholdersofrecordonOctober23,

2020.Pembina'sBoardofDirectorsalsodeclaredquarterlydividendsforPembina'spreferredsharesasoutlinedinthe

followingtable:

Series RecordDate PayableDate PerShareAmountDividendAmount

($millions)

Series1 November2,2020 December1,2020 $0.306625 3







Series15 December15,2020 December31,2020 $0.279000 2




Series23 November2,2020 November16,2020 $0.328125 4

Series25 November2,2020 November16,2020 $0.325000 3

38

Subsequenttoquarterend,onNovember2,2020,Pembinaannouncedthatitdidnotintendtoexerciseitsrighttoredeem

theninemillionCumulativeRedeemableRateResetClassAPreferredShares,Series9sharesoutstandingonDecember1,

2020.


10.REVENUE

Revenuehasbeendisaggregatedintocategoriestoreflecthowthenature,timinganduncertaintyofrevenueandcashflows

areaffectedbyeconomicfactors.

a. RevenueDisaggregation

2020 2019


Pipelines Facilities

Marketing&New

Ventures Total Pipelines Facilities

Marketing&New

Ventures Total($millions)

Take-or-pay(1) 428 197 — 625 288 151 — 439

Fee-for-service(1) 55 22 — 77 100 33 — 133

Productsales(2) — — 825 825 — — 1,106 1,106

Revenuefromcontractswithcustomers 483 219 825 1,527 388 184 1,106 1,678

Operationalfinanceleaseincome 3 — — 3 — — — —

Fixedoperatingleaseincome 31 8 — 39 16 6 — 22

Totalexternalrevenue 517 227 825 1,569 404 190 1,106 1,700(1) Revenuerecognizedovertime.(2) Revenuerecognizedatapointintime.

2020 2019


Pipelines Facilities

Marketing&New

Ventures Total Pipelines Facilities

Marketing&New

Ventures Total($millions)

Take-or-pay(1) 1,206 556 — 1,762 862 469 — 1,331

Fee-for-service(1) 220 80 — 300 288 74 — 362

Productsales(2) — — 2,309 2,309 — 3 3,712 3,715

Revenuefromcontractswithcustomers 1,426 636 2,309 4,371 1,150 546 3,712 5,408

Operationalfinanceleaseincome 11 — — 11 — — — —

Fixedoperatingleaseincome 100 26 — 126 47 21 — 68

Totalexternalrevenue 1,537 662 2,309 4,508 1,197 567 3,712 5,476(1) Revenuerecognizedovertime.(2) Revenuerecognizedatapointintime.


b. ContractLiabilities

Significantchangesinthecontractliabilitiesbalancesduringtheperiodareasfollows:

9MonthsEndedSeptember30,2020 12MonthsEndedDecember31,2019

($millions) Take-or-Pay

OtherContractLiabilities

TotalContractLiabilities Take-or-Pay

OtherContractLiabilities

TotalContractLiabilities

Openingbalance 8 223 231 9 159 168

Additions(netintheperiod) 42 103 145 4 35 39

Acquisition(Note3) — — — — 77 77

Revenuerecognizedfromcontractliabilities(1) (8) (40) (48) (5) (48) (53)

Closingbalance 42 286 328 8 223 231

Lesscurrentportion(2) (42) (50) (92) (8) (31) (39)

Endingbalance — 236 236 — 192 192(1) Recognitionofrevenuerelatedtoperformanceobligationssatisfiedinthecurrentperiodthatwereincludedintheopeningbalanceofcontractliabilities.(2) AsatSeptember30,2020,thebalanceincludes$42millionofcashcollectedundertake-or-paycontractswhichwillberecognizedwithinoneyearasthecustomerchoosesto

ship,process,orotherwiseforegotheassociatedservice.

ContractliabilitiesdepictPembina'sobligationtoperformservicesinthefutureforcashandnon-cashconsiderationwhich

hasbeenreceivedfromcustomers.Contractliabilitiesincludeup-frontpaymentsornon-cashconsiderationreceivedfrom

customersforfuturetransportation,processingandstorageservices.Contractliabilitiesalsoincludeconsiderationreceived

fromcustomersfortake-or-paycommitmentswherethecustomerhasamake-uprighttoshiporprocessfuturevolumes

underafirmcontract.Theseamountsarenon-refundableshouldthecustomernotuseitsmake-uprights.

Pembinadoesnothaveanycontractassets.Inallinstanceswheregoodsorserviceshavebeentransferredtoacustomerin

advanceofthereceiptofcustomerconsideration,Pembina'srighttoconsiderationisunconditionalandhasthereforebeen

presentedasareceivable.

11.NETFINANCECOSTS


($millions) 2020 2019 2020 2019

Interestexpenseonfinancialliabilitiesmeasuredatamortizedcost:

Loansandborrowings 91 71 269 216

Leases 9 4 29 13

Unwindingofdiscountrate 5 3 14 10

Financeleaseincome(1) — — (1) (1)

(Gain)lossinfairvalueofnon-commodity-relatedderivativefinancialinstruments (11) 2 11 5

Foreignexchange(gains)lossesandother (11) (3) 42 (9)

Netfinancecosts(1) 83 77 364 234(1) Excludesoperationalfinanceleaseincomefromlessorleasearrangementswhichisincludedinrevenueasthisincomeisgeneratedfromphysicalassetsinthenormalcourse

ofoperations.


12.OPERATINGSEGMENTS

Pembina'soperatingsegmentsareorganizedbythreedivisions:Pipelines,FacilitiesandMarketing&NewVentures.

3MonthsEndedSeptember30,2020

Pipelines(1) FacilitiesMarketing&New

Ventures(2)


Revenuefromexternalcustomers 517 227 825 — 1,569

Inter-divisionrevenue 40 84 — (124) —

Totalrevenue(3) 557 311 825 (124) 1,569

Operatingexpenses 129 99 — (50) 178

Costofgoodssold,includingproductpurchases — 3 793 (76) 720

Depreciationandamortizationincludedinoperations 105 51 12 2 170

Costofsales 234 153 805 (124) 1,068

Realizedgainoncommodity-relatedderivativefinancialinstruments — — (7) — (7)

Shareofprofit(loss)fromequityaccountedinvestees 55 11 (5) — 61

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — (11) 17 — 6

Grossprofit 378 180 5 — 563

Depreciationincludedingeneralandadministrative — — — 9 9

Othergeneralandadministrative 6 2 9 30 47

Other(income)expense (4) — 1 (1) (4)

Reportablesegmentresultsfromoperatingactivities 376 178 (5) (38) 511

Netfinancecosts(income) 8 6 (7) 76 83

Reportablesegmentearnings(loss)beforetax 368 172 2 (114) 428

Capitalexpenditures 53 98 10 13 174

Contributionstoequityaccountedinvestees — 28 — — 28


Pipelines(1) FacilitiesMarketing&

NewVentures(2)


Revenuefromexternalcustomers 404 190 1,106 — 1,700


Totalrevenue(3) 441 288 1,106 (135) 1,700


Costofgoodssold,includingproductpurchases — — 1,034 (85) 949


Costofsales 173 139 1,045 (136) 1,221


Shareofprofitfromequityaccountedinvestees 63 12 14 — 89

Unrealizedgainoncommodity-relatedderivativefinancialinstruments — — (40) — (40)

Grossprofit 331 161 120 1 613



Other(income)expense (5) — — 3 (2)

Reportablesegmentresultsfromoperatingactivities 331 158 111 (49) 551

Netfinancecosts(income) 2 14 (1) 62 77

Reportablesegmentearnings(loss)beforetax 329 144 112 (111) 474


Contributionstoequityaccountedinvestees — 24 1 — 25(1) Pipelinestransportationrevenueincludes$62million(2019:$7million)associatedwithU.S.pipelinerevenue.(2) Marketing&NewVenturesincludesrevenueof$33million(2019:$28million)associatedwithU.S.midstreamsales.(3) Duringthethirdquarterof2020,noonecustomeraccountedfor10percentormoreoftotalrevenuesreportedthroughoutallsegments.Duringthethirdquarterof2019,

onecustomeraccountedfor10percentormoreoftotalrevenueswith$244millionreportedthroughoutallsegments.




Ventures(2)

Corporate&Inter-DivisionEliminations Total($millions)

Revenuefromexternalcustomers 1,537 662 2,309 — 4,508


Totalrevenue(3) 1,648 905 2,309 (354) 4,508


Costofgoodssold,includingproductpurchases — 7 2,241 (230) 2,018


Costofsales 668 443 2,278 (356) 3,033


Shareofprofit(loss)fromequityaccountedinvestees 170 41 (2) — 209

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — (14) 12 — (2)

Grossprofit 1,150 517 77 2 1,746



Other(income)expense (1) 1 13 (20) (7)

Reportablesegmentresultsfromoperatingactivities 1,135 509 40 (107) 1,577

Netfinancecosts 24 19 2 319 364

Reportablesegmentearnings(loss)beforetax 1,111 490 38 (426) 1,213


Contributionstoequityaccountedinvestees — 69 155 — 224



Ventures(2)

Corporate&Inter-DivisionEliminations Total($millions)

Revenuefromexternalcustomers 1,197 567 3,712 — 5,476


Totalrevenue(3) 1,300 834 3,712 (370) 5,476


Costofgoodssold,includingproductpurchases — 2 3,428 (237) 3,193


Costofsales 478 384 3,471 (370) 3,963


Shareofprofitfromequityaccountedinvestees 209 36 37 — 282

Unrealizedgainoncommodity-relatedderivativefinancialinstruments — — (10) — (10)

Grossprofit 1,031 486 313 — 1,830



Other(income)expense (3) — 3 2 2

Reportablesegmentresultsfromoperatingactivities 1,012 474 282 (154) 1,614

Netfinancecosts 7 17 — 210 234

Reportablesegmentearnings(loss)beforetax 1,005 457 282 (364) 1,380

Capitalexpenditures 637 426 135 18 1,216

Contributionstoequityaccountedinvestees — 50 93 — 143(1) Pipelinestransportationrevenueincludes$170million(2019:$18million)associatedwithU.S.pipelinerevenue.(2) Marketing&NewVenturesincludesrevenueof$98million(2019:$126million)associatedwithU.S.midstreamsales.(3) During2020,noonecustomeraccountedfor10percentormoreoftotalrevenuesreportedthroughoutallsegments.During2019,onecustomeraccountedfor10percentor

moreoftotalrevenueswith$681millionreportedthroughoutallsegments.


13.ACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)

($millions)

CurrencyTranslation

Reserve

CashFlowHedgeReserve

PensionandotherPost-RetirementBenefitPlan

Adjustments(2) Total

BalanceatDecember31,2018 348 — (31) 317

Othercomprehensivelossbeforehedgingactivities (119) — — (119)

BalanceatSeptember30,2019 229 — (31) 198

BalanceatDecember31,2019 134 — (36) 98

Othercomprehensivegainbeforehedgingactivities 143 — 14 157

Othercomprehensivegain(loss)resultingfromhedgingactivities(1) 17 (1) — 16

Taximpact (1) — — (1)

BalanceatSeptember30,2020 293 (1) (22) 270(1) AmountsrelatetohedgesoftheCompany'snetinvestmentinforeignoperations(reportedinCurrencyTranslationReserve)andinterestratederivativesdesignatedascash

flowhedges(reportedinCashFlowHedgeReserve)(Note14).(2) PensionandotherPost-RetirementBenefitPlanAdjustmentswillnotbereclassifiedintoearnings.

14.FINANCIALINSTRUMENTS&RISKMANAGEMENT

RiskManagement

HedgeofNetInvestmentinForeignOperations

OnMay7,2020,PembinadesignatedtheU.S.$250millionnon-revolvingtermloanitenteredintoasahedgeofthe

Company'snetinvestmentinselectedU.S.functionalcurrencyforeignoperations.Thedesignateddebthasbeenassessedas

havingnoineffectivenessastheU.S.dollardebthasanequalandoppositeexposuretoU.S.dollarfluctuations.Foreign

exchangegainsandlossesonthedesignateddebtarerecognizedinthecurrencytranslationreserveinaccumulatedother

comprehensiveincome(Note13).

InterestRateRisk-CashFlowHedge

OnMay8,2020,PembinadesignatedfinancialderivativecontractsthatfixtheinterestrateonU.S.$250millionofvariable

ratedebtascashflowhedginginstruments.Thedesignatedcashflowhedgehasbeenassessedashavingnoineffectiveness

asthecriticaltermsarealigned.Unrealizedgains(losses)onderivativesindesignatedcashflowhedgingrelationshipsare

recognizedinthecashflowhedgereserveinaccumulatedothercomprehensiveincome,withrealizedgains(losses)being

reclassifiedtonetfinancecosts(Note13).


FairValues

Thefairvaluesoffinancialassetsandliabilities,togetherwiththecarryingamountsshowninthecondensedconsolidated

interimstatementsoffinancialposition,areshowninthetablebelow.Certainnon-derivativefinancialinstrumentsmeasured

atamortizedcostincludingcashandcashequivalents,tradereceivablesandother,financeleasereceivables,advancesto

relatedpartiesandtradepayablesandotherhavebeenexcludedbecausetheyhavecarryingamountsthatapproximatetheir

fairvalueduetothenatureoftheitemortheshorttimetomaturity.TheseinstrumentswouldbeclassifiedinLevel2ofthe

fairvaluehierarchy.Afinancialguaranteeincludedinotherliabilitieshasacarryingamountthatapproximatesfairvalueat

thereportingdateduetothenatureoftheunderlyingdevelopmentprojectandisclassifiedinLevel3ofthefairvalue

hierarchyandhasbeenexcludedfromthetablebelow.

September30,2020 December31,2019

CarryingValue

FairValue(1) CarryingValue

FairValue(1)

($millions) Level1 Level2 Level3 Level1 Level2 Level3

Financialassetscarriedatfairvalue

Derivativefinancialinstruments(3) 75 — 75 — 48 — 48 —

Financialliabilitiescarriedatfairvalue

Derivativefinancialinstruments(3) 22 — 22 — 9 — 9 —

Financialliabilitiescarriedatamortizedcost

Loansandborrowings(2) 10,987 — 11,939 — 10,152 — 10,729 —(1) ThebasisfordeterminingfairvalueisdisclosedinNote2.(2) Carryingvalueofcurrentandnon-currentbalances.(3) AtSeptember30,2020allderivativefinancialinstrumentsarecarriedatfairvaluethroughearnings,exceptfor$1millionininterestratederivativefinancialliabilitiesthat

havebeendesignatedascashflowhedges(December31,2019:nil)

15.COMMITMENTSANDCONTINGENCIES

Commitments

PembinahadthefollowingcontractualobligationsoutstandingatSeptember30,2020:

ContractualObligations PaymentsDuebyPeriod

($millions) Total Lessthan1Year 1–3Years 3–5Years After5Years

Leases(1) 1,084 131 222 175 556

Loansandborrowings(2) 16,466 701 2,621 2,828 10,316

Constructioncommitments(3) 1,396 303 301 298 494

Other(4) 599 111 162 80 246

Totalcontractualobligations 19,545 1,246 3,306 3,381 11,612(1) Includesterminals,rail,officespace,landandvehicleleases.(2) Excludingdeferredfinancingcosts.IncludinginterestpaymentsonPembina'sseniorunsecurednotes.(3) Excludingsignificantprojectsthatareawaitingregulatoryapproval,projectswhichPembinaisnotcommittedtoconstruct,andprojectsthatareexecutedbyequity

accountedinvestees.(4) Includes$28millionincommitmentsrelatedtoleasesthathavenotyetcommenced.

Pembinaentersintoproductpurchaseagreementsandpowerpurchaseagreementstosecuresupplyforfutureoperations.

PurchasepricesofbothNGLandpoweraredependentoncurrentmarketprices.VolumesandpricesforNGLandpower

contractscannotbereasonablydeterminedandthereforeanamounthasnotbeenincludedinthecontractualobligations

schedule.Productpurchaseagreementsrangefromoneto10yearsandinvolvethepurchaseofNGLproductsfrom

producers.Assumingproductisavailable,Pembinahassecuredbetween35and175mbpdofNGLeachyearuptoand

including2029.Powerpurchaseagreementsrangefromoneto25yearsandinvolvethepurchaseofpowerfromelectrical

serviceproviders.Pembinahassecuredupto80megawattsperdayeachyearuptoandincluding2044.


CommitmentstoEquityAccountedInvestees

PembinaiscontractuallycommittedtoprovideCKPCwithfundingtoconstructassetsthatwillformpartofCKPC'sPDH/PP

Facility,subjecttocertainconditionsbeingmet.FollowingCKPC'sdecisiontodeferinvestmentinthePDH/PPFacility,

PembinahasdeferredfuturecontributionstoCKPC.

PembinahasacontractualcommitmenttoadvanceU.S.$16milliontoRubybyMarch31,2021.

Pembinahascommitmentstoprovidecontributionstocertainequityaccountedinvesteesbasedonannualbudgetsapproved

bythejointventurepartners.

Contingencies

Pembina,itssubsidiariesanditsinvestmentsinequityaccountedinvesteesaresubjecttovariouslegalandregulatoryandtax

proceedings,actionsandauditsarisinginthenormalcourseofbusiness.Werepresentourinterestsvigorouslyinall

proceedingsinwhichweareinvolved.Legalandadministrativeproceedingsinvolvingpossiblelossesareinherentlycomplex,

andweapplysignificantjudgmentinestimatingprobableoutcomes.Whiletheoutcomeofsuchactionsandproceedings

cannotbepredictedwithcertainty,managementbelievesthattheresolutionsofsuchactionsandproceedingswillnothavea

materialimpactonPembina'sfinancialpositionorresultsofoperations.

LettersofCredit

Pembinahasprovidedlettersofcredittovariousthirdpartiesinthenormalcourseofconductingbusiness.Thelettersof

creditincludefinancialguaranteestocounterpartiesforproductpurchasesandsales,transportationservices,utilities,

engineeringandconstructionservices.Thelettersofcredithavenothadandarenotexpectedtohaveamaterialimpacton

Pembina'sfinancialposition,earnings,liquidityorcapitalresources.

AtSeptember30,2020,Pembinahad$96million(December31,2019:$103million)inlettersofcreditissuedtofacilitate

commercialtransactionswiththirdpartiesandtosupportregulatoryrequirements.


www.pembina.com

HEAD OFFICEPembina Pipeline Corporation

Suite 4000, 585 – 8th Avenue SW

Calgary, Alberta T2P 1G1

AUDITORSKPMG LLP

Chartered Accountants

Calgary, Alberta

TRUSTEE, REGISTRAR & TRANSFER AGENTComputershare Trust Company of Canada

Suite 600, 530 – 8th Avenue SW

Calgary, Alberta T2P 3S8

1.800.564.6253

STOCK EXCHANGEPembina Pipeline Corporation

Toronto Stock Exchange listing symbols for:COMMON SHARES PPL

PREFERRED SHARES PPL.PR.A, PPL.PR.C, PPL.PR.E, PPL.PR.G, PPL.PR.I, PPL.PR.K,

PPL.PR.M, PPL.PR.O, PPL.PR.Q, PPL.PR.S, PPL.PF.A, PPL.PF.C and PPL.PF.E

New York Stock Exchange listing symbol for:Common shares PBA

INVESTOR INQUIRIESPhone 403.231.3156

Fax 403.237.0254

Toll Free 1.855.880.7404

Email [email protected]

Website www.pembina.com

Documents

Pembina Pipeline Corporation · 2020. 11. 5. · Pembina will continue to keep its employees and stakeholders top of mind and supported while navigating through these events. Pembina