Q3 2021 Interim Report

Q32021 InterimReport

Pembina Pipeline Corporation

REPORTTOSHAREHOLDERSThirdQuarter2021

MANAGEMENT'SDISCUSSIONANDANALYSIS

TableofContents

1.AboutPembina ....................................................................................................................................................................... 2

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

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

4.Liquidity&CapitalResources ................................................................................................................................................. 18

5.ShareCapital .......................................................................................................................................................................... 22

6.CapitalInvestments ................................................................................................................................................................ 23

7.SelectedQuarterlyInformation ............................................................................................................................................. 24

8.SelectedEquityAccountedInvesteeInformation ................................................................................................................. 26

9.Other ...................................................................................................................................................................................... 27

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")isdatedNovember4,2021,andissupplementaryto,andshouldbereadinconjunctionwith,Pembina'sunauditedcondensedconsolidatedinterimfinancialstatementsforthethreeandninemonthsendedSeptember30,2021("InterimFinancialStatements")aswellasPembina'sauditedconsolidatedannualfinancialstatements("ConsolidatedFinancialStatements")andMD&AfortheyearendedDecember31,2020.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-GAAPFinancialMeasuresPembinahasidentifiedcertainfinancialmeasuresthatmanagementbelievesprovidemeaningfulinformationinassessingPembina'sunderlyingperformance.ReadersarecautionedthatsuchfinancialmeasuresdonothaveastandardizedmeaningprescribedbyInternationalFinancialReportingStandards("IFRS")andthereforemaynotbecomparabletosimilarmeasurespresentedbyotherentities.Refertothe"Non-GAAPMeasures"sectionofthisMD&Aforalistanddescription,includingreconciliationstothemostdirectlycomparableGAAPmeasures,ofsuchnon-GAAPmeasures.

RiskFactorsandForward-LookingInformationManagementhasidentifiedtheprimaryriskfactorsthatcouldhaveamaterialimpactonthefinancialresultsandoperationsofPembina.SuchriskfactorsarepresentedinPembina'sMD&AandAnnualInformationForm("AIF")fortheyearendedDecember31,2020andhavebeenupdatedinthe"RiskFactors"sectionofthisMD&A,asnecessary.TheCompany'sfinancialandoperationalperformanceispotentiallyaffectedbyanumberoffactors,including,butnotlimitedto,thefactorsdescribedwithinthe"Forward-LookingStatements&Information"sectionofthisMD&A.ThisMD&Acontainsforward-lookingstatementsbasedonPembina'scurrentexpectations,estimates,projectionsandassumptions.ThisinformationisprovidedtoassistreadersinunderstandingtheCompany'sfutureplansandexpectationsandmaynotbeappropriateforotherpurposes.

PembinaPipelineCorporationThirdQuarter20211

1.ABOUTPEMBINAPembinaisaleadingtransportationandmidstreamserviceproviderthathasbeenservingNorthAmerica'senergyindustryfor

morethan65years.Pembinaownsanintegratedsystemofpipelinesthattransportvarioushydrocarbonliquidsandnatural

gasproductsproducedprimarilyinwesternCanada.TheCompanyalsoownsgasgatheringandprocessingfacilities;anoiland

naturalgasliquidsinfrastructureandlogisticsbusiness;andisgrowinganexportterminalsbusiness.Pembina'sintegrated

assetsandcommercialoperationsalongthemajorityofthehydrocarbonvaluechainallowittoofferafullspectrumof

midstreamandmarketingservicestotheenergysector.Pembinaiscommittedtoidentifyingadditionalopportunitiesto

connecthydrocarbonproductiontonewdemandlocationsthroughthedevelopmentofinfrastructurethatwouldextend

Pembina'sserviceofferingevenfurtheralongthehydrocarbonvaluechain.Thesenewdevelopmentswillcontributeto

ensuringthathydrocarbonsproducedintheWesternCanadianSedimentaryBasinandtheotherbasinswherePembina

operatescanreachthehighestvaluemarketsthroughouttheworld.

PurposeofPembina:

Tobetheleaderindeliveringintegratedinfrastructuresolutionsconnectingglobalmarkets;

• Customerschooseusfirstforreliableandvalue-addedservices;

• Investorsreceivesustainableindustry-leadingtotalreturns;

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

• Communitieswelcomeusandrecognizethenetpositiveimpactofoursocialandenvironmentalcommitment.

InterPipelineArrangement

OnJune1,2021,PembinaannouncedthatithadenteredintoanarrangementagreementwithInterPipelineLtd.("Inter

Pipeline"),pursuanttowhichPembinaproposedtoacquirealloftheissuedandoutstandingcommonsharesofInterPipeline

bywayofaplanofarrangementundertheBusinessCorporationsAct(Alberta)(the"InterPipelineArrangement").Pursuant

totheInterPipelineArrangement,holdersofInterPipelinecommonshares(otherthandissentingholdersofInterPipeline

commonshares)wouldhavereceived0.5ofacommonshareofPembinaforeachcommonshareofInterPipelinethatthey

owned.OnJuly25,2021,thearrangementagreementwasterminatedandPembinareceivedtheterminationfeeof$350

million("ArrangementTerminationPayment").

2PembinaPipelineCorporationThirdQuarter2021

2.FINANCIAL&OPERATINGOVERVIEWConsolidatedFinancialOverviewfortheThreeMonthsEndedSeptember30

ResultsofOperations

($millions,exceptwherenoted) 2021 2020(3) Change %Change

Infrastructureandotherservicesrevenue 756 744 12 2

Productsalesrevenue 1,393 752 641 85

Totalrevenue 2,149 1,496 653 44

Netrevenue(1) 961 849 112 13

Grossprofit 682 568 114 20

Earnings 588 323 265 82

Earningspercommonshare–basicanddiluted(dollars) 1.01 0.52 0.49 94

Cashflowfromoperatingactivities 913 434 479 110

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 1.66 0.78 0.88 113

Adjustedcashflowfromoperatingactivities(1) 786 524 262 50

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 1.43 0.95 0.48 51

Capitalinvestments 209 174 35 20

AdjustedEBITDA(1) 850 796 54 7

Totalvolumes(mboe/d)(2) 3,411 3,451 (40) (1)

ChangeinEarnings($millions)(3)(4)(5)

588

323

(34)

15

128 3

(12)

309

(62)(82)

EarningsQ32020

Pipelinesgrossprofit

Facilitiesresultsex.commodity-related

derivatives

Marketing&NewVenturesresultsex.commodity-related

derivatives

Commodity-related

derivatives

Generaland

administrative

Other Netfinancecosts

Incometaxexpense

EarningsQ32021

ResultsOverview

Resultsinthethirdquarterof2021werepositivelyimpactedbyhighergrossprofitinMarketing&NewVenturesdueto

highermarginsonNGLandcrudeoilsales,combinedwithhighermarketedNGLvolumesandhighershareofprofitfromAux

Sable,partiallyoffsetbyrealizedlossesoncommodity-relatedderivativefinancialinstrumentscomparedtorealizedgainsin

thethirdquarterof2020.FacilitiesgrossprofitincreasedduetoPrinceRupertTerminal,EmpressInfrastructureandDuvernay

IIIbeingplacedintoservice,combinedwithunrealizedgainsforcertaingasprocessingfeestiedtoAECOprices.Pipelines

grossprofitwasimpactedbyrevenuesassociatedwithhighervolumesonthePeacePipelinesystem,offsetbyalowershare

ofprofitfromRuby,combinedwiththeimpactofatimingdifferenceintherecognitionofdeferredrevenueassociatedwith

theCochinPipelineandtheimpactofthelowerU.S.dollarexchangerate.Otherincomeincreasedduetothereceiptofthe

ArrangementTerminationPayment.General&administrativeincreasedduetohigherlong-termincentivecostsasaresultof

thechangeinPembina'sshareprice.Netfinancecostsincreasedduringthethirdquarterof2021duetoforeignexchanges

lossescomparedtogains,ofwhichthemajoritywasrecognizedinthethirdquarterof2020,whilecurrenttaxexpense

increasedasaresultofhighercurrentyearearningsassociatedwiththeArrangementTerminationPayment.


ChangesinResultsfortheThreeMonthsEndedSeptember30Infrastructureandotherservicesrevenue

▲ $12millionincrease,duetohighervolumesinPipelines,assetsplacedintoserviceinFacilities,andincreasedoperatingexpenserecoveries,partiallyoffsetbyatimingdifferenceintherecognitionofdeferredrevenueassociatedwiththeCochinPipeline,discussedinthe"Pipelines"section.

Productsalesrevenue ▲ $641millionincrease($93millionincreasenetofcostofgoodssold),largelyduetohigherNGLandcrudeoilmarketprices,combinedwithhighermarketedNGLvolumes.

Costofgoodssold ▼ $541millionincrease,largelyduetohigherNGLandcrudeoilmarketprices,combinedwithhighermarketedNGLvolumes,discussedabove.

Operatingexpenses ▼ $9millionincrease,largelyduetoanincreaseinpowercosts,themajorityofwhicharerecoverable,asaresultofthehigherpowerpoolpriceduringthethirdquarterof2021.

Depreciationandamortizationincludedinoperations

● Consistentwiththepriorperiod.

Shareofprofitfromequityaccountedinvestees

▲ $13millionincrease,largelyduetohighershareofprofitfromAuxSableasaresultofhigherNGLmarginsandawiderAECO-ChicagonaturalgaspricedifferentialandhighershareofprofitfromVeresenMidstreamfromtheHytheDevelopmentsgoingintoserviceinMarch2021andhighervolumesattheDawsonAssets,partiallyoffsetbyalowercontributionfromRuby.

Realizedloss(gain)oncommodity-relatedderivatives

▼ $50millionnegativevariance,duetohigherNGLmarketpricesduringthethirdquarterof2021,whichalsodrovehighermarginsonNGLsales,resultinginarealizedlossonNGL-basedderivativeinstrumentsfortheperiod,comparedtorealizedgainsonNGL-basedderivativeinstrumentsrecognizedduringthethirdquarterof2020.Pembinautilizesderivativeinstrumentstostabilizetheresultsofitsmarketingbusiness.

Unrealized(gain)lossoncommodity-relatedderivatives

▲ $53millionpositivevariance,primarilyduetothesignificantincreaseinthetheAECOpriceduringtheperiodresultingingainsforcertaingasprocessingfeestiedtoAECOprices,combinedwithcontractsmaturingintheperiod,partiallyoffsetbytheincreaseintheforwardpricesforNGLandcrudeoilduringthethirdquarterof2021andnewlyaddedcontracts.

General&administrative ▼ $12millionincreaselargelyduetohigherlong-termincentivesasaresultofthechangeinPembina'sshareprice,combinedwithanincreaseinoptimizationprojectcosts,partiallyoffsetbyareductioninsalariesandwages.

Otherincome ▲ $307millionincreaseprimarilyduetothe$350millionArrangementTerminationPayment,partiallyoffsetbyhighertransformationandrestructuringcosts.

Netfinancecosts ▼ $62millionincrease,primarilydrivenbyforeignexchangelossesandhigherinterestexpenseassociatedwithtaxsettlements,combinedwithlossesonnon-commodity-relatedderivativefinancialinstrumentscomparedtogainsinthethirdquarterof2020.

Currenttaxexpense ▼ $89millionincrease,primarilyduetohighercurrentyearearningsassociatedwiththeArrangementTerminationPayment,discussedabove.

Deferredtaxexpense ● Consistentwiththepriorperiod.

Cashflowfromoperatingactivities

▲ $479millionincrease,primarilydrivenbythe$350millionArrangementTerminationPayment,discussedabove,anincreaseinoperatingresultsafteradjustingfornon-cashitems,combinedwitha$96millionchangeinnon-cashworkingcapitalanda$21milliondecreaseintaxespaid,partiallyoffsetbya$12millionincreaseinnetinterestpaid.

Adjustedcashflowfromoperatingactivities(1)

▲ $262millionincrease,largelyduetothesameitemsimpactingcashflowfromoperatingactivities,discussedabove,netofthechangeinnon-cashworkingcapitalanddecreaseintaxespaid,partiallyoffsetbythe$89millionhighercurrenttaxexpenseand$17millionincreaseinaccruedsharebasedpayments.

AdjustedEBITDA(1) ▲ $54millionincrease,largelyduetohighermarginsonNGLandcrudeoilsales,ahighercontributionfromAuxSable,combinedwiththecontributionsfromassetsplacedintoserviceinFacilities,andhighervolumesonthePeacePipelinesystem,partiallyoffsetbytherealizedlossoncommodity-relatedderivatives,lowercontributionfromRubyduetolowercontractedvolumes,theimpactofatimingdifferenceintherecognitionofdeferredrevenueassociatedwiththeCochinPipeline,andhighergeneralandadministrativeexpenses,discussedabove.IncludedinadjustedEBITDAis$178million(2020:$168million)relatedtoequityaccountedinvestees.

Totalvolumes(mboe/d)(2) ▼ 40mboe/ddecrease,largelydrivenbylowervolumesontheRubyPipeline,combinedwithlowervolumesattheRedwaterComplexandatAlbertaEthaneGatheringSystem("AEGS")followingthirdpartyoutages,andlowervolumesattheSaturnComplexduetohigherdeferredrevenuevolumesrecognizedinthethirdquarterof2020,partiallyoffsetbyhighervolumesonthePeacePipelinesystemduetoincreasedupstreamactivities,highervolumesatYoungerduetoaturnaroundinthethirdquarterof2020,andthecontributionsfromassetsplacedintoserviceinFacilities.Volumesinclude298mboe/d(2020:310mboe/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) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy","RestatementofRevenueandCostofGoodsSold"andNote2totheInterim

FinancialStatements.(4) Facilitiesresultsex.commodity-relatedderivativesandMarketing&NewVenturesresultsex.commodity-relatedderivativesincludesgrossprofitlessrealizedandunrealized

lossesoncommodityrelatedderivativefinancialinstruments.(5) Otherincludesotherexpenses,impairmentsandcorporate.


ConsolidatedFinancialOverviewfortheNineMonthsEndedSeptember30

ResultsofOperations


Infrastructureandotherservicesrevenue 2,240 2,199 41 2

Productsalesrevenue 3,827 2,074 1,753 85

Revenue 6,067 4,273 1,794 42

Netrevenue(1) 2,854 2,490 364 15

Grossprofit 1,862 1,761 101 6

Earnings 1,162 900 262 29

Earningspercommonshare–basic(dollars) 1.92 1.42 0.50 35

Earningspercommonshare–diluted(dollars) 1.91 1.42 0.49 35

Cashflowfromoperatingactivities 1,953 1,486 467 31

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 3.55 2.70 0.85 31

Adjustedcashflowfromoperatingactivities(1) 1,906 1,686 220 13

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 3.47 3.07 0.40 13

Capitalinvestments 482 868 (386) (44)

AdjustedEBITDA(1) 2,463 2,415 48 2

Totalvolumes(mboe/d)(2) 3,464 3,462 2 —

ChangeinEarnings($millions)(3)(4)(5)

1,162

900

(112)

55

341

(183) (58)

240 18

(39)

EarningsYTD2020

Pipelinesgrossprofit

Facilitiesresultsex.commodity-related

derivatives

Marketing&NewVenturesresultsex.commodity-related

derivatives

Commodity-related

derivatives

Generaland

administrative

Other Netfinancecosts

Incometaxexpense

EarningsYTD2021

ResultsOverview

ResultsfortheninemonthsendedSeptember30,2021werepositivelyimpactedbyhighergrossprofitinMarketing&New

VenturesduetohighermarginsonNGLandcrudeoilsales,combinedwithhighermarketedNGLvolumesandhighershareof

profitfromAuxSable,offsetbylossesoncommodity-relatedderivativefinancialinstruments.Facilitiesgrossprofitincreased

duetoPrinceRupertTerminal,EmpressInfrastructureandDuvernayIIIbeingplacedintoservice,combinedwithunrealized

gainsforcertaingasprocessingfeestiedtoAECOprices.InPipelines,highervolumeswereoffsetbylowershareofprofitfrom

Ruby,combinedwiththeimpactofthelowerU.S.dollarexchangerate.Otherincomeincreasedduetothereceiptofthe

ArrangementTerminationPayment,offsetbylowerincomereceivedfromtheCanadianEmergencyWageSubsidyandhigher

transformationandrestructuringrelatedcosts.General&administrativeincreasedduetohigherincentivecostsprimarily

drivenbythechangeinPembina'sshareprice.Incometaxexpenseincreasedsignificantlyasaresultofhighercurrentyear

earningsdrivenbytheArrangementTerminationPayment.


ChangesinResultsfortheNineMonthsEndedSeptember30Infrastructureandotherservicesrevenue

▲ $41millionincrease,duetoassetsplacedintoserviceinFacilitiesandhighervolumesinPipelines,combinedwithhigheroperatingexpenserecoveriesasaresultofhigherpowercosts,partiallyoffsetbylowerstorageandrailterminalrevenue,includingfullyrecoveredcapitalfeesattheEdmontonSouthRailTerminalandtheimpactoflowerU.S.dollarexchangerates.

Productsalesrevenue ▲ $1.8billionincrease($296millionincreasenetofcostofgoodssold),largelyduetohigherNGLandcrudeoilmarketprices,resultinginhighermargins,combinedwithhighermarketedNGLvolumesasPembinamonetizedaportionofitspreviouslybuiltupstoragepositions.

Costofgoodssold ▼ $1.4billionincrease,largelyduetohigherNGLandcrudeoilmarketprices,combinedwithhighermarketedNGLvolumes.

Operatingexpenses ▼ $44millionincrease,largelyduetoanincreaseinpowercosts,themajorityofwhicharerecoverable,asaresultofthehigherpowerpoolpriceduringthefirstninemonthsof2021,combinedwithhigheroperatingexpensesassociatedwiththeadditionalassetsbeingplacedintoserviceinFacilities.

Depreciationandamortizationincludedinoperations

▼ $22millionincrease,primarilyduetoadditionalassetsbeingplacedintoserviceduringthefirstninemonthsof2021.


▼ $14milliondecrease,largelyduetoalowercontributionfromRuby,combinedwiththeimpactoflowerU.S.dollarexchangerates,partiallyoffsetbyhigherNGLmarginsandawiderAECO-ChicagonaturalgaspricedifferentialatAuxSableandhighershareofprofitfromVeresenMidstreamduetothecontributionsfromtheHytheDevelopmentsgoingintoserviceinMarch2021andhighervolumesattheDawsonAssets.


▼ $224millionnegativevariance,duetohigherNGLandcrudeoilmarketpricesduringtheperiod,whichalsodrovehighermarginsonNGLandcrudesales,resultinginarealizedlossonNGLandcrudeoil-basedderivativeinstrumentsfortheperiod,comparedtorealizedgainsrecognizedduringthefirstninemonthsof2020.Pembinautilizesderivativeinstrumentstostabilizetheresultsofitsmarketingbusiness.

Unrealizedgainoncommodity-relatedderivatives

▲ $41millionpositivevariance,primarilyduetothesignificantincreaseinthetheAECOpriceduringtheperiodresultingingainsforcertaingasprocessingfeestiedtoAECOprices.

General&administrative ▼ $58millionincreaselargelyduetohigherincentivecostsprimarilydrivenbythechangeinPembina'sshareprice,combinedwithanincreaseinoptimizationprojectcosts,partiallyoffsetbyareductioninsalariesandwages.

Otherincome ▲ $275millionincreaseprimarilyduetothe$350million($250millionnetoftaxandassociatedexpenses)ArrangementTerminationPayment,partiallyoffsetbylowerincomeassociatedwithCanadianEmergencyWageSubsidyandhighertransformationandrestructuringcosts.

Netfinancecosts ▲ $18milliondecrease,primarilydrivenbyforeignexchangegainsintheperiodcomparedtoforeignexchangelossesinthefirstninemonthsof2020asaresultofhedgeaccountingadoptedinthesecondquarterof2020,partiallyoffsetbyhigherinterestexpenseassociatedwithhigheraveragedebtlevels.

Currenttaxexpense ▼ $60millionincrease,primarilyduetohighercurrentyearearningsassociatedwiththeArrangementTerminationPayment,discussedabove.

Deferredtaxexpense ▲ $21milliondecrease,largelyduetothereleaseoffinalU.S.taxregulationsin2020,combinedwiththerecoveryontheimpairmentexpense.

Cashflowfromoperatingactivities

▲ $467millionincrease,primarilydrivenbythe$350millionArrangementTerminationPaymentreceivedinthethirdquarterof2021,discussedabove,anincreaseinoperatingresultsafteradjustingfornon-cashitems,combinedwitha$98millionchangeinnon-cashworkingcapitalanda$25milliondecreaseintaxespaid,partiallyoffsetbya$36millionincreaseinnetinterestpaidanda$17milliondecreaseindistributionsfromequityaccountedinvestees.

Adjustedcashflowfromoperatingactivities(1)

▲ $220millionincrease,largelyduetothesameitemsimpactingcashflowfromoperatingactivities,discussedabove,netofthechangeinnon-cashworkingcapitalanddecreaseintaxespaid,partiallyoffsetbythe$62millionhigheraccruedshare-basedpaymentsand$60millionhighercurrenttaxexpense.

AdjustedEBITDA(1) ▲ $48millionincrease,primarilyduetohighermarginsonNGLandcrudeoilsales,combinedwithnewassetsplacedintoserviceinFacilities,highervolumesonthePeacePipelinesystem,andahighercontributionfromAuxSable,partiallyoffsetbytherealizedlossoncommodity-relatedderivatives,lowercontributionfromRubyduetolowercontractedvolumes,highergeneralandadministrativeexpensesandtheimpactofthelowerU.S.dollarexchangerate.IncludedinadjustedEBITDAis$536million(2020:$509million)relatedtoequityaccountedinvestees.

Totalvolumes(mboe/d)(2) ● Consistentwiththepriorperiod.HighervolumesinPipelinesduetoincreasedupstreamactivities,combinedwithhigherrevenuevolumesfromassetsplacedintoserviceinFacilitiesandhigherseasonalvolumesontheAlliancePipeline,werelargelyoffsetbylowervolumesatAEGSduetothird-partyoutagesinAugust2021,combinedwithlowercontractedvolumesontheRubyPipeline.Volumesinclude318mboe/d(2020:312mboe/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) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy","RestatementofRevenueandCostofGoodsSold"andNote2totheInterim

FinancialStatements.(4) Facilitiesresultsex.commodity-relatedderivativesandMarketing&NewVenturesresultsex.commodity-relatedderivativesincludesgrossprofitlessrealizedandunrealized

lossesoncommodityrelatedderivativefinancialinstruments.(5) Otherincludesotherexpenses,impairmentsandcorporate.


3.SEGMENTRESULTSBusinessOverview

ThePipelinesDivisionprovidescustomerswithpipelinetransportation,terminalling,storageandrailservicesinkeymarket

hubsinCanadaandtheUnitedStatesforcrudeoil,condensate,naturalgasliquidsandnaturalgas.Thedivisionincludes

pipelinetransportationcapacityofapproximately3.1mmboe/d(1)andabovegroundstoragecapacityofapproximately11

mmbbls(1)withinitsconventional,oilsandsandheavyoil,andtransmissionassets.Theconventionalassetsinclude

strategicallylocatedpipelinesandterminallinghubsthatgatherandtransportlightandmediumcrudeoils,condensateand

naturalgasliquidsfromwesternAlbertaandnortheastBritishColumbiatotheEdmonton,Albertaareaforfurtherprocessing

ortransportationondownstreampipelines.Theoilsandsandheavyoilassetstransportheavyandsyntheticcrudeoil

producedwithinAlbertatotheEdmontonareaandofferassociatedstorage,terminallingandrailservices.Thetransmission

assetstransportnaturalgas,ethaneandcondensatethroughoutCanadaandtheUnitedStatesonlonghaulpipelineslinking

variouskeymarkethubs.Inaddition,thePipelinesDivisionassetsprovidelinkagesbetweenPembina'supstreamand

downstreamassetsacrossNorthAmerica,enablingintegratedcustomerserviceofferings.Together,theseassetssupply

productfromhydrocarbonproducingregionstorefineries,fractionatorsandmarkethubsinAlberta,BritishColumbia,Illinois

andCalifornia,aswellasotherregionsthroughoutNorthAmerica.

TheFacilitiesDivisionincludesinfrastructurethatprovidesPembina'scustomerswithnaturalgas,condensateandNGL

services.Pembina'snaturalgasgatheringandprocessingassetsarestrategicallypositionedinactive,liquids-richareasofthe

WCSBandWillistonBasinandareintegratedwiththeCompany'sotherbusinesses.Pembinaprovidessweetandsourgas

gathering,compression,condensatestabilization,andbothshallowcutanddeepcutgasprocessingserviceswithatotal

capacityofapproximately6.1bcf/d(2)foritscustomers.CondensateandNGLextractedatvirtuallyallCanadian-basedfacilities

haveaccesstotransportationonPembina'spipelines.Inaddition,allNGLtransportedalongtheAlliancePipelineare

extractedthroughthePembina-operatedChannahonFacilityattheterminus.TheFacilitiesDivisionincludesapproximately

354mbpd(2)ofNGLfractionationcapacity,21mmbbls(1)ofcavernstoragecapacity,associatedpipelineandrailterminalling

facilities,andaliquefiedpropaneexportfacilityonCanada'sWestCoast.Thesefacilitiesarefullyintegratedwiththe

Company'sotherdivisions,providingcustomerswiththeabilitytoaccessacomprehensivesuiteofservicestoenhancethe

valueoftheirhydrocarbons.Inaddition,PembinaownsabulkmarineexportterminalinVancouver,BritishColumbia.

TheMarketing&NewVenturesDivisionstrivestomaximizethevalueofhydrocarbonliquidsandnaturalgasoriginatinginthe

basinswheretheCompanyoperates.Pembinaseekstofurtherenhanceexistingmarketsandcreatenewmarkets,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.

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

development.


FinancialandOperationalOverviewbyDivision

3MonthsEndedSeptember30 9MonthsEndedSeptember30

2021 2020 2021 2020

($millions,exceptwherenoted) Volumes(1)

GrossProfit

AdjustedEBITDA(2) Volumes(1)

GrossProfit(4)


GrossProfit


GrossProfit(4)

AdjustedEBITDA(2)

Pipelines 2,563 347 503 2,580 381 541 2,592 1,047 1,554 2,588 1,159 1,631

Facilities 848 233 273 871 182 251 872 628 812 874 523 757

Marketing&NewVentures(3) — 100 109 — 5 34 — 185 237 — 77 118

Corporate — 2 (35) — — (30) — 2 (140) — 2 (91)

Total 3,411 682 850 3,451 568 796 3,464 1,862 2,463 3,462 1,761 2,415(1) VolumesforPipelinesandFacilitiesarerevenuevolumes,whicharephysicalvolumesplusvolumesrecognizedfromtake-or-paycommitments.Volumesarestatedin

mboe/d,withnaturalgasvolumesconvertedtomboe/dfromMMcf/data6:1ratio.(2) Refertothe"Non-GAAPMeasures"section.(3) MarketedNGLvolumesareexcludedfromvolumestoavoiddoublecounting.Refertothe"Marketing&NewVentures"sectionforfurtherinformation.(4) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.


Pipelines

FinancialOverviewfortheThreeMonthsEndedSeptember30ResultsofOperations


Conventionalrevenue(1) 360 323 37 11

Transmissionrevenue(1) 97 120 (23) (19)

OilSandsrevenue(1) 109 114 (5) (4)

Pipelinesrevenue(1) 566 557 9 2

Operatingexpenses(1) 140 129 11 9

Shareofprofitfromequityaccountedinvestees 21 56 (35) (63)

Depreciationandamortizationincludedinoperations 100 103 (3) (3)

Grossprofit 347 381 (34) (9)

AdjustedEBITDA(2) 503 541 (38) (7)

Volumes(mboe/d)(3) 2,563 2,580 (17) (1)

Distributionsfromequityaccountedinvestees 47 84 (37) (44)

ChangeinResults

Conventionalrevenue(1) ▲ IncreaselargelyduetohighervolumesonthePeacePipelinesystemashigherNGLandcrudemarketpriceshaveresultedinincreasedupstreamactivities,combinedwithhigherrecoverablecosts.

Transmissionrevenue(1) ▼ DecreaselargelyduetoatimingdifferenceintherecognitionofdeferredrevenueassociatedwiththeCochinPipeline,thirdpartyoutagesimpactingAEGS,combinedwithlowervolumesontheVantagePipelineasenduserssourcedtheirsupplyfromtheRedwaterComplexandthelowerU.S.dollarexchangerate.

OilSandsrevenue(1) ▼ Decreaselargelyduetolowerrevenuefromstorageandrailterminals.

Operatingexpenses(1) ▼ Increaselargelyduetoa$14millionincreaseinpowercosts,ofwhich$10millionwasrecoveredinrevenue,asaresultofthehigherpowerpoolpriceduringthethirdquarterof2021.


▼ DecreaselargelyduetolowercontributionfromRubyastheownersagreedtodeferdistributionsforthethirdquarterof2021,combinedwiththeimpactoflowerU.S.dollarexchangerates.

Distributionsfromequityaccountedinvestees

▼ $46million(2020:$53million)fromAllianceandnodistributions(2020:$31million)fromRuby.ThereductionindistributionsfromRubyareduetothesamefactorsimpactingshareofprofitfromequityaccountedinvesteesdiscussedabove.

Volumes(mboe/d)(3) ▼ DecreaselargelydrivenbylowercontractedvolumesontheRubyPipeline,combinedwithlowervolumesatAEGSduetothirdpartyoutagesinAugustandSeptemberof2021,partiallyoffsetbyhighervolumesonthePeacePipelinesystem,discussedabove,andhighervolumesontheAlliancePipeline.Volumesinclude139mboe/d(2020:126mboe/d)relatedtoAllianceand70mboe/d(2020:108mboe/d)relatedtoRuby.

AdjustedEBITDA(2) ▼ DecreaselargelyduetolowercontributionfromRubyandtheimpactofatimingdifferenceintherecognitionofdeferredrevenueassociatedwiththeCochinPipeline,discussedabove,combinedwiththeimpactofthelowerU.S.dollarexchangerateandlowercontributionfromstorageandrailterminals,partiallyoffsetbyhighervolumesonthePeacePipelinesystem.IncludedinadjustedEBITDAis$62million(2020:$66million)relatedtoAllianceand$24million(2020:$47million)relatedtoRuby.

ChangeinAdjustedEBITDA($millions)(2)

503

541

37

(23) (5)(11) (8)

(28)

AdjustedEBITDAQ32020

Conventionalrevenue

Transmissionrevenue

OilSandsrevenue

Operatingexpenses

G&Aandother

AdjustedEBITDAfromequityaccountedinvestees


(1) Includesinter-segmenttransactions.SeeNote12oftheInterimFinancialStatements.(2) Refertothe"Non-GAAPMeasures"section.(3) Revenuevolumes.Seethe"Abbreviations"sectionfordefinition.(4) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.


FinancialOverviewfortheNineMonthsEndedSeptember30ResultsofOperations


Conventionalrevenue(1) 1,031 951 80 8

Transmissionrevenue(1) 315 342 (27) (8)

OilSandsrevenue(1) 327 355 (28) (8)

Totalrevenue(1) 1,673 1,648 25 2


Shareofprofitfromequityaccountedinvestees 95 173 (78) (45)

Depreciationandamortizationincludedinoperations 312 300 12 4

Grossprofit 1,047 1,159 (112) (10)

AdjustedEBITDA(2) 1,554 1,631 (77) (5)

Volumes(mboe/d)(3) 2,592 2,588 4 —

Distributionsfromequityaccountedinvestees 175 259 (84) (32)

ChangeinResults

Conventionalrevenue(1) ▲ IncreaselargelyduetohighervolumesonthePeacePipelinesystemashigherNGLandcrudemarketpriceshaveresultedinincreasedupstreamactivities,combinedwithhigherrecoverablecosts.

Transmissionrevenue(1) ▼ DecreaselargelyduetolowervolumesontheVantagePipelineasenduserssourcedtheirsupplyfromtheRedwaterComplex,combinedwiththeimpactofthelowerU.S.dollarexchangerate.

OilSandsrevenue(1) ▼ Decreaselargelyduetolowerstorageandrailterminalrevenue,includingfullyrecoveredcapitalfeesattheEdmontonSouthRailTerminalinApril2020,andthesaleoftheAlbertaCrudeTerminaleffectiveJanuary2021,partiallyoffsetbyhigherrecoverablecostsontheSyncrudePipeline.

Operatingexpenses(1) ▼ Increaselargelyduetoa$33millionincreaseinpowercosts,ofwhich$24millionwasrecoveredinrevenue,asaresultofthehigherpowerpoolpriceduring2021,combinedwithincreasedintegrityspending.


▼ DecreaselargelyduetolowercontributionfromRubyastheownersagreedtodeferdistributionsforthesecondandthirdquarterof2021,combinedwiththeimpactofthelowerU.S.dollarexchangerate.


▼ $161million(2020:$166million)fromAllianceand$13million(2020:$93million)fromRuby.ThereductionindistributionsfromRubyisduetothesamefactorsimpactingshareofprofitfromequityaccountedinvesteesdiscussedabove.

Volumes(mboe/d)(3) ● Consistentwiththepriorperiod.HighervolumesonthePeacePipelinesystemandhigherseasonalvolumesontheAlliancePipeline,werelargelyoffsetbylowervolumesatAEGSduetothird-partyoutagesinAugustandSeptemberof2021,combinedwithlowercontractedvolumesontheRubyPipelineandlowervolumesontheVantagePipeline.Volumesinclude141mboe/d(2020:127mboe/d)relatedtoAllianceand91mboe/d(2020:104mboe/d)relatedtoRuby.

AdjustedEBITDA(2) ▼ DecreaseprimarilyduetolowercontributionfromRuby,theimpactofthelowerU.S.dollarexchangerate,lowerOilSandsrevenue,andlowervolumesontheVantagePipeline.Increasedoperatingexpensesduetohigherintegrityspendingandhigherpowercostsnotrecoverableinrevenue,combinedwithhigherlong-termincentives,alsocontributedtothedecreaseinadjustedEBITDA,partiallyoffsetbyhighervolumesonthePeacePipelinesystem.IncludedinadjustedEBITDAis$202million(2020:$207million)relatedtoAllianceand$111million(2020:$143million)relatedtoRuby.


1,5541,631

80

(27) (28)(47) (18) (37)

AdjustedEBITDAYTD2020

Conventionalrevenue

Transmissionrevenue

OilSandsrevenue

Operatingexpenses

G&Aandother





FinancialandOperationalOverview


2021 2020 2021 2020


GrossProfit


GrossProfit(3)


GrossProfit


GrossProfit(3)

AdjustedEBITDA(2)

Pipelines

Conventional 918 244 281 863 212 253 891 677 802 866 638 760

Transmission 595 64 154 661 121 210 651 241 542 666 354 623

OilSands 1,050 39 68 1,056 48 78 1,050 129 210 1,056 167 248

Total 2,563 347 503 2,580 381 541 2,592 1,047 1,554 2,588 1,159 1,631(1) Revenuevolumesinmboe/d.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.(3) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.

Projects&NewDevelopments(1)

Pipelinescontinuestofocusontheexecutionofvarioussystemexpansions.Theprojectsinthefollowingtablewererecently

placedintoservice.

SignificantProjects In-serviceDate

NEBCMontneyInfrastructure February2021

PhaseVIPeacePipelineExpansion June2020

WapitiCondensateLateral March2020

ThefollowingoutlinestheprojectsandnewdevelopmentswithinPipelines:

PhaseVIIPeacePipelineExpansion

CapitalBudget:$775million In-serviceDate:Firsthalfof2023Status:Aheadofscheduleandtrendingunderbudget

Thisexpansionincludesanew20-inch,approximately220kmpipelineandtwonewpumpstationsorterminalupgrades.PhaseVIIwilladdapproximately160mbpdofincrementalcapacityupstreamofFoxCreek,accessingcapacityavailableonthemainlinesdownstreamofFoxCreek.Constructionisunderwayandprogressingaccordingtoschedule.

PhaseIXPeacePipelineExpansion

CapitalBudget:$120million In-serviceDate:Secondhalfof2022 Status:Ontime,trendingonbudget

Thisexpansionwillincludenew6-inchand16-inchpipelinesdebottleneckingthecorridornorthofGordondale,Albertaaswellasupgradesatonepumpstation.Inaddition,thisexpansionwillseeexistingpipelines,whicharecurrentlybatching,convertedtosingleproductlines.PhaseIXalsoincludesapumpstationintheWapiti-to-KakwacorridorthatwaspreviouslypartofthePhaseVIIprojectscope.

ThepreviouslyannouncedPhaseVIIIPeacePipelineExpansionremainsdeferred.Initialcontractssupportingtheproject

remainintactandcustomerscontinuetosignalplanswhichwillnecessitatetheincrementalcapacity.Priortodeferral,Phase

VIIIhadanassociatedcapitalcostofapproximately$500millionbutPembinaexpectsthislevelofinvestmenttodecrease

givencostandscopeimprovements.ValueengineeringworkisongoingandPembinacontinuestoevaluatethisprojectin

discussionswithitsproducingcustomerswithareactivationdecisionexpectedinthefourthquarterof2021.

PhaseVIIIPeacePipelineExpansion Status:Deferred

Thisexpansionwillinclude10-inchand16-inchpipelinesintheGordondaletoLaGlacecorridoraswellassixnewpumpstationsorterminalupgradeslocatedbetweenGordondaleandFoxCreek.

(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitionsforcapitalizedtermsusedhereinthatarenototherwisedefined,refertoPembina'sAIFfortheyearendedDecember31,2020filedatwww.sedar.com(filedwiththeU.S.SecuritiesandExchangeCommissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.


Facilities



GasServicesnetrevenue(1)(2) 171 145 26 18

NGLServicesnetrevenue(1)(2) 169 163 6 4

Facilitiesnetrevenue(1)(2) 340 308 32 10


Shareofprofitfromequityaccountedinvestees 23 11 12 109

Realizedgainoncommodity-relatedderivativefinancialinstruments (2) — (2) 100

Unrealizedgainoncommodity-relatedderivativefinancialinstruments (45) (11) (34) 309




Volumes(mboe/d)(3) 848 871 (23) (3)

Distributionsfromequityaccountedinvestees 32 25 7 28

ChangesinResults

GasServicesnetrevenue(1)(2) ▲ IncreaselargelyduetoEmpressInfrastructureandDuvernayIIIbeingplacedintoserviceinthefourthquarterof2020,highervolumesatYoungerduetoaturnaroundinSeptember2020,andincreasedoperatingexpenserecoveriesasaresultofhigherpowercosts,combinedwiththeBurstallEthaneStorageFacility("Burstall")beingtransferredfromNGLServicestoGasServicesinJanuary2021.

NGLServicesnetrevenue(1)(2) ● Consistentwithpriorperiod.HigherrevenuefromthePrinceRupertTerminalbeingplacedintoserviceinMarch2021,combinedwithhigheroperatingexpenserecoveriesattheRedwaterComplex,werelargelyoffsetbythetransferofBurstalltoGasServicesandlowervolumesattheRedwaterComplex.

Operatingexpenses(1) ▼ Increaselargelyduetooperatingexpensesassociatedwiththeadditionalassetsplacedintoservice,discussedabove,combinedwithhigherpowerpoolpricesduringthethirdquarterof2021.


▲ IncreasemainlyduetothecontributionsfromtheVeresenMidstreamHytheDevelopmentsgoingintoserviceinMarch2021,combinedwithhighervolumesonVeresenMidstream'sDawsonAssets.


▲ CertaingasprocessingfeesaretiedtoAECOpricesandthesignificantincreaseintheAECOpricehasresultedinhigherunrealizedgainsforthethirdquarterof2021.


● Consistentwiththepriorperiod.$31million(2020:$23million)fromVeresenMidstreamand$1million(2020:$2million)fromFortCorp.

Volumes(mboe/d)(3) ▼ DecreaselargelyduetotakeorpayreliefprovidedtoRedwaterComplexcustomersfollowingthirdpartyoutagesduringSeptember2021,lowervolumesattheSaturnComplexduetohigherdeferredrevenuevolumesrecognizedinthethirdquarterof2020,combinedwithlowersupplyvolumesontheEastNGLSystem,whicharenowbeingprocessedbytheEmpressInfrastructure,partiallyoffsetbyhighervolumesatYounger,discussedabove,highervolumesontheDawsonAssetsandhighervolumesassociatedwithDuvernayIIIbeingplacedintoserviceinthefourthquarterof2020.Volumesinclude89mboe/d(2020:76mboe/d)relatedtoVeresenMidstream.

AdjustedEBITDA(2) ▲ Increaseprimarilyduetothecontributionfromnewassetsplacedintoservice,discussedabove,combinedwithhigherrevenueatYounger.IncludedinadjustedEBITDAis$52million(2020:$41million)relatedtoVeresenMidstream.


273

251

266

(22)

2

(1)

11


GasServices

netrevenue

NGLServices

netrevenue

Operatingexpenses

Realizedcommodity-related

derivatives

G&Aandother







GasServicesnetrevenue(1)(2) 496 424 72 17

NGLServicesnetrevenue(1)(2) 511 474 37 8

Facilitiesnetrevenue(1)(2) 1,007 898 109 12


Shareofprofitfromequityaccountedinvestees 59 41 18 44

Realizedgainoncommodity-relatedderivativefinancialinstruments (2) — (2) 100

Unrealizedgainoncommodity-relatedderivativefinancialinstruments (62) (14) (48) 343




Volumes(mboe/d)(3) 872 874 (2) —


ChangesinResults

GasServicesnetrevenue(1)(2) ▲ IncreaselargelyduetoEmpressinfrastructureandDuvernayIIIbeingplacedintoserviceinthefourthquarterof2020,increasedoperatingexpenserecoveriesasaresultofhigherpowercosts,BurstallbeingtransferredfromNGLServicestoGasServicesinJanuary2021,combinedwithhighervolumesatYoungerduetoaturnaroundinSeptember2020.

NGLServicesnetrevenue(1)(2) ▲ IncreaseprimarilyduetothePrinceRupertTerminalbeingplacedintoserviceinMarch2021,combinedwithhigheroperatingexpenserecoveriesattheRedwaterComplex,partiallyoffsetbythetransferofBurstalltoGasServices.

Operatingexpenses(1) ▼ Increaselargelyduetooperatingexpensesassociatedwiththeadditionalassetsplacedintoservice,discussedabove,combinedwithhigherpowerpoolpricesduringthefirstninemonthsof2021.


▲ IncreasemainlyduetothecontributionsfromtheVeresenMidstreamHytheDevelopmentsgoingintoserviceinMarch2021,combinedwithhighervolumesonVeresenMidstream'sDawsonAssets.


▲ CertaingasprocessingfeesaretiedtoAECOpricesandthesignificantincreaseintheAECOpricehasresultedinhigherunrealizedgainsforthefirstninemonthsof2021.


▲ $92million(2020:$72million)fromVeresenMidstreamand$3million(2020:$4million)fromFortCorp.Theincreaseindistributionsisduetothesamereasonsimpactingshareofprofitabove.

Volumes(mboe/d)(3) ● Consistentwithpriorperiod.LowersupplyvolumesontheEastNGLSystem,whicharenowbeingprocessedbytheEmpressInfrastructure,werelargelyoffsetbyhigherrevenuevolumesassociatedwithDuvernayIIIbeingplacedintoserviceinthefourthquarterof2020andhighervolumesatYounger.Volumesinclude86mboe/d(2020:81mboe/d)relatedtoVeresenMidstream.

AdjustedEBITDA(2) ▲ IncreaseprimarilyduetothecontributionfromEmpressInfrastructure,DuvernayIIIandthePrinceRupertTerminal,beingplacedintoservice,discussedabove,combinedwithhigherrevenueattheRedwaterComplex,andthecontributionfromVeresenMidstream'sDawsonAssets,andtheVeresenMidstreamHytheDevelopmentsgoingintoserviceinMarchof2021,partiallyoffsetbyhigheroperatingexpensesandhigherlong-termincentivecostsdrivenbyPembina'sincreasingsharepriceduringthefirstninemonthsof2021.IncludedinadjustedEBITDAis$148million(2020:$132million)relatedtoVeresenMidstream.


812757

7237

(63)

2

(7)

14


GasServices

netrevenue

NGLServices

netrevenue

Operatingexpenses

Realizedcommodity-related

derivatives

G&Aandother







2021 2020 2021 2020


GrossProfit


GrossProfit(3)


GrossProfit


GrossProfit(3)

AdjustedEBITDA(2)

Facilities

GasServices 660 150 160 657 95 138 666 363 468 664 270 420

NGLServices 188 83 113 214 87 113 206 265 344 210 253 337

Total 848 233 273 871 182 251 872 628 812 874 523 757(1) Revenuevolumesinmboe/d,withnaturalgasvolumesconvertedtomboe/dfromMMcf/data6:1ratio.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.(3) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.


Facilitiescontinuestobuild-outitsnaturalgasandNGLprocessingandfractionationassetstoservicecustomerdemand.The

projectsinthefollowingtablewererecentlyplacedintoservice.

SignificantProjects In-serviceDate

VancouverWharvesExpansion June2021

PrinceRupertTerminal March2021

DuvernayIII November2020

EmpressInfrastructure October2020

DuvernaySourTreatmentFacilities March2020

VeresenMidstream(2)

HytheDevelopments March2021

ThefollowingoutlinestheprojectsandnewdevelopmentswithinFacilities:

EmpressCo-generationFacility

CapitalBudget:$120million In-serviceDate:Fourthquarterof2022 Status:Aheadofschedule,onbudget

TheEmpressCo-generationFacilitywillusenaturalgastogenerateupto45megawattsofelectricalpower,therebyreducingoveralloperatingcostsbyprovidingpowerandheattotheexistingEmpressNGLExtractionFacility.Allthepowerwillbeconsumedonsite,therebysupplyingapproximately90percentofthesite'spowerrequirements.Further,thisprojectwillcontributetoannualgreenhousegasemissionreductionsattheEmpressNGLExtractionFacilitythroughtheutilizationoftheco-generationwasteheatandthelow-emissionpowergenerated.Pembinaanticipatesareductionofapproximately90,000tonnesofcarbondioxideequivalentperyearbasedonthecurrentenergydemandoftheEmpressNGLExtractionFacility.ConstructionisprogressingandthemechanicalcontractorisexpectedtomobilizetositeinNovember2021.

ThePrinceRupertTerminalExpansionremainsdeferred.EngineeringoftheexpansioniswelladvancedandPembinaexpects

tomakeafinalinvestmentdecisioninthefirstquarterof2022.

PrinceRupertTerminalExpansion Status:Deferred

ThePrinceRupertTerminalExpansionwillincreasetheexportcapacityofthePrinceRupertTerminal.(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitionsforcapitalizedtermsusedhereinthatarenototherwisedefined,refertoPembina'sAIFfortheyear

endedDecember31,2020filedatwww.sedar.com(filedwiththeU.S.SecuritiesandExchangeCommissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.

(2) VeresenMidstreamisanequityaccountedinvestee,inwhichPembinahada45percentinterestinasofSeptember30,2021.ResultsfromVeresenMidstreamimpactshareofprofitfromequityaccountedinvesteesandproportionallyconsolidatedmetrics.SeeNote5totheInterimFinancialStatements.


Marketing&NewVentures



Marketingrevenue(1) 1,393 752 641 85

Costofgoodssold(1) 1,268 720 548 76

Netrevenue(1)(3) 125 32 93 291

Shareofprofit(loss)fromequityaccountedinvestees 31 (5) 36 (720)

Realizedloss(gain)oncommodity-relatedderivativefinancialinstruments 45 (7) 52 (743)

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments (2) 17 (19) (112)


Grossprofit 100 5 95 1,900


Volumes(mboe/d)(4) 177 169 8 5

Distributionsfromequityaccountedinvestees 27 2 25 1,250

ChangeinResults

Netrevenue(1)(3) ▲ IncreaseduetohigherNGLandcrudeoilmarketprices,resultinginhighermargins,combinedwithhighermarketedNGLvolumes,discussedbelow,partiallyoffsetbyanincreaseincostofgoodssoldrelatedtoPrinceRupertTerminalandEmpressInfrastructurebeingplacedintoservice,andrailtransportationcoststore-positionpropanetoCorunnaforsaleinthefourthquarterof2021andfirstquarterof2022.

Shareofprofit(loss)fromequityaccountedinvestees

▲ IncreaselargelyduetohigherrevenuesatAuxSableasaresultofhigherNGLmarginsandawiderAECO-Chicagonaturalgaspricedifferential.


▼ RealizedlossduetohigherNGLmarketpricesduringthethirdquarterof2021,whichalsodrovehighermarginsonNGLsales,resultinginarealizedlossonNGL-basedderivativeinstrumentsfortheperiod,comparedtorealizedgainsonNGL-basedderivativeinstrumentsrecognizedduringthethirdquarterof2020.Pembinautilizesderivativeinstrumentstostabilizetheresultsofitsmarketingbusiness.

Unrealized(gain)lossoncommodity-relatedderivatives

▲ Unrealizedgainoncommodity-relatedderivativesprimarilyduetocontractsmaturingintheperiod,partiallyoffsetbytheincreaseintheforwardpricesforNGLandcrudeoilduringthethirdquarterof2021andnewlyaddedcontracts.


▲ $27million(2020:$2million)fromAuxSable.IncreaselargelyduetothehighermarginsatAuxSable,discussedabove.

Volumes(mboe/d)(4) ▲ MarketedNGLvolumesincreasedassalesreturnedtopre-pandemiclevelscomparedtothethirdquarterof2020whenPembinabuiltupstoragepositionsduetolowercommodityprices.Revenuevolumesincludes35mboe/d(2020:37mboe/d)relatedtoAuxSable.

AdjustedEBITDA(3) ▲ IncreaselargelyduetohighermarginsonNGLandcrudeoilsalesasaresultofthehigherNGLandcrudeoilpricesduringthethirdquarterof2021andhighermarketedNGLvolumes,combinedwithahighercontributionfromAuxSable,discussedabove,partiallyoffsetbytherealizedlossoncommodity-relatedderivatives.IncludedinadjustedEBITDAis$36million(2020:$1million)relatedtoAuxSable.


109

34

93

(52)

2

32


Netrevenue Realizedcommodity-related

derivatives

G&Aandother

AdjustedEBITDAfromequityaccounted

investees


(1) Includesinter-segmenttransactions.SeeNote12oftheInterimFinancialStatements.(2) Comparative2020periodhasbeenrestated.See"RestatementofRevenueandCostofGoodsSold"andNote2totheInterimFinancialStatements.(3) Refertothe"Non-GAAPMeasures"section.(4) MarketedNGLvolumes.Seethe"Abbreviations"sectionfordefinition.




Marketingrevenue(1) 3,827 2,074 1,753 85

Costofgoodssold(1) 3,463 2,006 1,457 73

Netrevenue(1)(3) 364 68 296 435

Shareofprofit(loss)fromequityaccountedinvestees 44 (2) 46 (2,300)

Realizedloss(gain)oncommodity-relatedderivativefinancialinstruments 166 (60) 226 (377)

Unrealizedlossoncommodity-relatedderivativefinancialinstruments 19 12 7 58


Adjustedgrossprofit 185 77 108 140


Volumes(mboe/d)(4) 190 173 17 10


ChangeinResults

Netrevenue(1)(3) ▲ IncreaselargelyduetohighercrudeoilandNGLmarketprices,resultinginhighermargins,combinedwithhighermarketedNGLvolumes,discussedbelow,partiallyoffsetbyanincreaseincostofgoodssoldrelatedtoPrinceRupertTerminalandEmpressInfrastructurebeingplacedintoservice,andrailtransportationcoststore-positionpropanetoCorunnaforsaleinthefourthquarterof2021andfirstquarterof2022.

Shareofprofit(loss)fromequityaccountedinvestees

▲ IncreaselargelyduetohigherrevenuesatAuxSableasaresultofhigherNGLmarginsandawiderAECO-Chicagonaturalgaspricedifferential.


▼ RealizedlossduetohigherNGLandcrudeoilmarketpricesduringtheperiod,whichalsodrovehighermarginsonNGLandcrudesales,resultinginarealizedlossonNGL-andcrudeoil-basedderivativeinstrumentsfortheperiod,comparedtorealizedgainsrecognizedinthefirstninemonthsof2021.Pembinautilizesderivativeinstrumentstostabilizetheresultsofitsmarketingbusiness.

Unrealizedlossoncommodity-relatedderivatives

● Consistentwithpriorperiod.


▲ $63million(2020:$15million)fromAuxSable.IncreaselargelyduetothehighermarginsatAuxSable,discussedabove.

Volumes(mboe/d)(4) ▲ MarketedNGLvolumesincreasedasPembinamonetizedstoragepositionsduringthefirstquarterof2021,thatwerebuiltupduringthesecondandthirdquartersof2020,whencommoditypriceswerelower,whileincreasedNGLsupplyvolumescontributedtohighersalesvolumesinthesecondandthirdquarterof2021comparedtothesameperiodsin2020.Revenuevolumesincludes36mboe/d(2020:37mboe/d)relatedtoAuxSable.

AdjustedEBITDA(3) ▲ IncreaselargelyduetohighermarginsonNGLandcrudeoilsalesasaresultofthehigherNGLandcrudeoilpricesduringthefirstninemonthsof2021andhighermarketedNGLvolumes,combinedwithahighercontributionfromAuxSable,discussedabove,partiallyoffsetbytherealizedlossoncommodity-relatedderivativesduetohigherNGLmarketprices.IncludedinadjustedEBITDAis$62million(2020:$14million)relatedtoAuxSable.


237

118

296

(226)

49


Netrevenue Realizedcommodity-relatedderivatives

AdjustedEBITDAfromequityaccounted

investees


(1) Includesinter-segmenttransactions.SeeNote12oftheInterimFinancialStatements.(2) Comparative2020periodhasbeenrestated.See"RestatementofRevenueandCostofGoodsSold"andNote2totheInterimFinancialStatements.(3) Refertothe"Non-GAAPMeasures"section.(4) MarketedNGLvolumes.Seethe"Abbreviations"sectionfordefinition.




2021 2020 2021 2020


GrossProfit


GrossProfit


GrossProfit


GrossProfit

AdjustedEBITDA(2)

Marketing&NewVentures

Marketing 177 100 111 169 3 36 190 185 246 173 74 127

NewVentures(3) — — (2) — 2 (2) — — (9) — 3 (9)

Total 177 100 109 169 5 34 190 185 237 173 77 118(1) MarketedNGLvolumesinmboe/d.Seethe"Abbreviations"sectionfordefinition.(2) Refertothe"Non-GAAPMeasures"section.(3) AllNewVenturesprojectshavenotyetcommencedoperationsandthereforehavenovolumes.


Pembina'sNewVenturesgroupcontinuestoadvancebusinessopportunitiesinpetrochemicals,liquefiednaturalgas("LNG")

andlow-carbonenergy.NewVenturesisfocusedondevelopingopportunitiesthatintegrateintoPembina'scorebusinesses,

whileprogressingprojectsthatwillextendPembina'svalue-chainandbenefitstakeholders.Pembinahasformedastrategic

partnershipagreementwiththeHaislaFirstNationtodeveloptheproposedCedarLNGProject,afloatingLNGfacility

strategicallypositionedtoleverageCanada'sabundantnaturalgassupplyandBritishColumbia'sgrowingLNGinfrastructure

toproduceindustry-leadinglow‑carbon,low-costCanadianLNGforoverseasmarkets.TheCedarLNGProjectisexpectedto

bethelargestFirstNation-ownedinfrastructureprojectinCanadaandhaveoneofthecleanestenvironmentalprofilesinthe

world.Inaddition,PembinaandTCEnergyCorporationintendtojointlydeveloptheAlbertaCarbonGrid,aworld-scale

carbontransportationandsequestrationsystem,whichwillenableAlberta-basedindustriestoeffectivelymanagetheir

greenhousegasemissions,contributepositivelytoAlberta'slower-carboneconomyandcreatesustainablelong-termvalue

forPembinaandTCEnergystakeholders.

(1) ForfurtherdetailsonPembina'ssignificantassets,includingdefinitionsforcapitalizedtermsusedhereinthatarenototherwisedefined,refertoPembina'sAIFfortheyearendedDecember31,2020filedatwww.sedar.com(filedwiththeU.S.SecuritiesandExchangeCommissionatwww.sec.govunderForm40-F)andonPembina'swebsiteatwww.pembina.com.


4.LIQUIDITY&CAPITALRESOURCESAvailableSourcesofLiquidity

Workingcapital(1) (1,077) (792)

Variableratedebt(2)(3)

Bankdebt 1,443 1,534

Variableratedebtswappedtofixed (319) (318)

Totalvariablerateloansandborrowingsoutstanding(weightedaverageinterestrateof1.3%(2020:1.6%)) 1,124 1,216

Fixedratedebt(2)

Seniorunsecuredmedium-termnotes 9,050 9,300

Variableratedebtswappedtofixed 319 318

Totalfixedrateloansandborrowingsoutstanding(weightedaverageinterestrateof3.9%(2020:3.9%)) 9,369 9,618

Totalloansandborrowingsoutstanding 10,493 10,834

Cashandunutilizeddebtfacilities 2,008 2,685

Subordinatedhybridnotes(weightedaverageinterestrateof4.8%(2020:nil)) 600 —

($millions)September30,

2021December31,

2020

(1) AsatSeptember30,2021,workingcapitalincluded$900million(December31,2020:$600million)associatedwiththecurrentportionoflong-termdebt.(2) Facevalue.(3) IncludesU.S.$250millionvariableratedebtoutstandingatSeptember30,2021(December31,2020:U.S.$250million).

Pembinacurrentlyanticipatesthatitscashflowfromoperatingactivities,themajorityofwhichisderivedfromfee-based

contracts,willbemorethansufficienttomeetitsoperatingobligations,tofunditsdividendandtofunditscapital

investmentsintheshort-termandlong-term.Pembinaexpectstosourcefundsrequiredfordebtmaturitiesfromcash,its

creditfacilitiesandbyaccessingthecapitalmarkets,asrequired.Basedonitssuccessfulaccesstofinancinginthecapital

marketsoverthepastseveralyears,Pembinaexpectstocontinuetohaveaccesstoadditionalfundsasrequired.Referto

"RiskFactors–GeneralRiskFactors–AdditionalFinancingandCapitalResources"inPembina'sMD&Afortheyearended

December31,2020andNote27totheConsolidatedFinancialStatementsformoreinformation.Managementcontinuesto

monitorPembina'sliquiditysituationandremainssatisfiedthattheleverageemployedinPembina'scapitalstructureis

sufficientandappropriategiventhecharacteristicsandoperationsoftheunderlyingassetbase.

ManagementmayadjustPembina'scapitalstructureasaresultofchangesineconomicconditionsortheriskcharacteristics

oftheunderlyingassets.TomaintainormodifyPembina'scapitalstructureinthefuture,Pembinamayrenegotiatedebt

terms,repayexistingdebt,seeknewborrowings,issueadditionalequityorhybridsecuritiesand/orrepurchasecommonor

preferredshares.

AsatSeptember30,2021,Pembina'screditfacilitiesconsistedof:anunsecured$2.5billion(December31,2020:$2.5billion)

revolvingcreditfacility,whichincludesa$750million(December31,2020:$750million)accordionfeatureandmaturesin

June2026;anunsecured$500million(December31,2020:$500million)non-revolvingtermloan,whichmaturesinAugust

2022;anunsecuredU.S.$250million(December31,2020:U.S.$250million)non-revolvingtermloan,whichmaturesinMay

2025;andanoperatingfacilityof$20million(December31,2020:$20million),whichmaturesinMay2022andistypically

renewedonanannualbasis(collectively,the"CreditFacilities").Therearenomandatoryprincipalrepaymentsdueoverthe

termoftheCreditFacilities,withprincipalrepaymentnotdueuntilmaturity.OnMarch25,2021,Pembinacancelledits$800

millionrevolvingcreditfacility,whichwasenteredintoinApril2020toprovideadditionalliquidityandflexibilityinPembina’s

capitalstructuregivenmarketconditionsatthetime.Nobalancewasoutstandingonthecancellationdate.Pembinais

requiredtomeetcertainspecificandcustomaryaffirmativeandnegativefinancialcovenantsundertheindenturegoverning

itsmedium-termnotesandtheagreementsgoverningitsCreditFacilities,includingarequirementtomaintaincertain

financialratios.See"Liquidity&CapitalResources–Covenants"belowformoreinformation.Pembinaisalsosubjectto

customaryrestrictionsonitsoperationsandactivitiesundertheindenturegoverningitsmedium-termnotesandthe

agreementsgoverningitsCreditFacilities,includingrestrictionsonthegrantingofsecurity,incurringindebtednessandthe

saleofitsassets.


FinancingActivity

OnJanuary25,2021,Pembinacloseda$600millionofferingofFixed-to-FixedRateSubordinatedHybridNotes(the"Series1

SubordinatedNotes").TheSeries1SubordinatedNoteshaveafixed4.80percentinterestrate,payablesemi-annually,which

resetsonJanuary25,2031,andoneveryfifthanniversarythereafter,basedonthefive-yearGovernmentofCanadayield

plus:(i)4.17percentfortheperiodfrom,andincluding,January25,2031to,butexcludingJanuary25,2051;and(ii)4.92

percentfortheperiodfrom,andincluding,January25,2051to,butexcludingJanuary25,2081.Pembinausedthenet

proceedsoftheofferingoftheSeries1SubordinatedNotestofundtheredemptionofitsoutstandingCumulative

RedeemableMinimumRateResetClassAPreferredShares,Series11,itsoutstandingCumulativeRedeemableMinimumRate

ResetClassAPreferredShares,Series13,torepayoutstandingdebt,aswellasforgeneralcorporatepurposes.

OnApril30,2021,Pembinacompletedanextensiononits$2.5billionrevolvingcreditfacility,whichnowmaturesonJune1,

2026.

Covenants

Pembina'sfinancialcovenantsundertheindenturegoverningitsmedium-termnotesandtheagreementsgoverningthe

CreditFacilitiesincludethefollowing:

DebtInstrument FinancialCovenant(1) Ratio RatioasatSeptember30,2021

Seniorunsecuredmedium-termnotes FundedDebttoCapitalization Maximum0.70 0.41

CreditFacilities DebttoCapital Maximum0.70 0.42(1) Termsasdefinedinrelevantagreements.

Pembinawasincompliancewithallcovenantsunderthenoteindenturegoverningitsmedium-termnotesandthe

agreementsgoverningitsCreditFacilitiesasatSeptember30,2021(December31,2020:incompliance).

CreditRisk

Pembinacontinuestoactivelymonitorandreassessthecreditworthinessofitscounterparties.Whiletheglobaleconomic

slowdownhaseased,theoutlookfortheglobaleconomicrecoveryremainsuncertainandthepotentialforvolatilityin

demandforcrudeoilandothercommoditiesasaresultoftheongoingCOVID-19pandemiccouldincreasePembina's

counterpartyrisk,asuncertaintyandthepotentialforvolatilityinthedemandforcrudeoilcouldnegativelyimpactthe

financialpositionofPembina'scustomersandrelatedpartiesandtheiraccesstocredit,capitalmarketsandothersourcesof

liquidity.ThemajorityofPembina'screditexposureistoinvestmentgradeorsplit-investmentgradecounterparties.Pembina

assessesallcounterpartiesduringtheon-boardingprocessandactivelymonitorscreditlimitsandexposureacrossthe

business.Financialassurancestomitigateandreduceriskmayincludeguarantees,lettersofcreditandcash.Lettersofcredit

totaling$96million(December31,2020:$130million)wereheldasatSeptember30,2021,primarilyinrespectofcustomer

tradereceivables.


CreditRatings

ThefollowinginformationwithrespecttoPembina'screditratingsisprovidedassuchinformationrelatestoPembina's

financingcostsandliquidity.Specifically,creditratingsaffectPembina'sabilitytoobtainshort-termandlong-termfinancing

andthecostofsuchfinancing.AreductioninthecurrentratingsofPembina'sdebtbyitsratingagencies,particularlya

downgradebelowinvestment-graderatings,couldadverselyaffectPembina'scostoffinancinganditsaccesstosourcesof

liquidityandcapital.Inaddition,changesincreditratingsandtheassociatedcostsmayaffectPembina'sabilitytoenterinto

normalcoursederivativeorhedgingtransactions.Creditratingsareintendedtoprovideinvestorswithanindependent

measureofthecreditqualityofanyissuesofsecurities.Thecreditratingsassignedbytheratingagenciesarenot

recommendationstopurchase,holdorsellthesecurities,nordothecreditratingscommentonthemarketpriceorsuitability

foraparticularinvestor.Anycreditratingmaynotremainineffectforagivenperiodoftimeormayberevisedorwithdrawn

entirelybyaratingagencyinthefutureif,initsjudgment,circumstancessowarrant.

OnApril28,2021,DBRSLimited("DBRS")upgradeditsratingsforPembina'sseniorunsecuredmedium-termnotesto'BBB

(high)',to'BBB(low)'fortheSeries1SubordinatedNotesandto'Pfd-3(high)'foreachissuedseriesofPembina'sClassA

PreferredShares,otherthantheClassAPreferredShares,Series2021-A(the"Series2021-AClassAPreferredShares"),which

aredeliverabletotheholdersoftheSeries1SubordinatedNotesfollowingtheoccurrenceofcertainbankruptcyorinsolvency

eventsinrespectofPembina.

Thelong-termcorporatecreditratingassignedbyS&PGlobalRatings("S&P")onPembinais'BBB'.S&Phasalsoassigneda

debtratingof'BBB'toPembina'sseniorunsecuredmedium-termnotes,adebtratingof'BB+'totheSeries1Subordinated

Notes,andaratingof'P-3(High)'toeachissuedseriesofPembina'sClassAPreferredShares,otherthantheSeries2021-A

ClassAPreferredShares.S&PaffirmedPembina'screditratingduringthesecondquarterof2021.

Referto"DescriptionoftheCapitalStructureofPembina–CreditRatings"intheAIFforfurtherinformation.


ContractualObligationsandOff-BalanceSheetArrangements

ContractualObligations

PembinahadthefollowingcontractualobligationsoutstandingatSeptember30,2021:

ContractualObligations(1) PaymentsDueByPeriod

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

Leases(2) 1,010 118 186 155 551

Long-termdebt(3) 16,523 1,366 2,382 2,609 10,166

Constructioncommitments(4) 892 335 48 29 480

Other 543 91 127 68 257

Totalcontractualobligations 18,968 1,910 2,743 2,861 11,454

(1) Pembinaentersintoproductpurchaseagreementsandpowerpurchaseagreementstosecuresupplyforfutureoperations.PurchasepricesofbothNGLandpoweraredependentoncurrentmarketprices.VolumesandpricesforNGLandpowercontractscannotbereasonablydetermined,andtherefore,anamounthasnotbeenincludedinthecontractualobligationsschedule.Productpurchaseagreementsrangefromoneto8yearsandinvolvethepurchaseofNGLproductsfromproducers.Assumingproductisavailable,Pembinahassecuredbetween12and138mbpdofNGLeachyearuptoandincluding2029.Powerpurchaseagreementsrangefromoneto24yearsandinvolvethepurchaseofpowerfromelectricalserviceproviders.Pembinahassecuredupto81megawattsperdayeachyearuptoandincluding2045.

(2) Includesterminals,rail,officespace,landandvehicleleases.(3) Includesloansandborrowings,subordinatedhybridnotesandinterestpaymentsonPembina'sseniorunsecuredmedium-termnotesandsubordinatedhybridnotes.

Excludesdeferredfinancingcosts.(4) Excludingsignificantprojectsthatareawaitingregulatoryapproval,projectswhichPembinaisnotcommittedtoconstruct,andprojectsthatareexecutedbyequity

accountedinvestees.

Off-BalanceSheetArrangements

AsatSeptember30,2021,Pembinadoesnothaveanyoff-balancesheetarrangementsthathave,orarereasonablylikelyto

have,acurrentorfutureeffectonPembina'sfinancialcondition,resultsofoperations,liquidityorcapitalinvestments.

LettersofCredit

Pembinahasprovidedlettersofcredittovariousthirdpartiesinthenormalcourseofconductingbusiness.Thelettersof

creditincludefinancialguaranteestocounterpartiesforproductpurchasesandsales,transportationservices,utilities,

engineeringandconstructionservices.Thelettersofcredithavenothadandarenotexpectedtohaveamaterialimpacton

Pembina'sfinancialposition,earnings,liquidityorcapitalresources.AsatSeptember30,2021,Pembinahad$166million

(December31,2020:$91million)inlettersofcreditissued.


5.SHARECAPITALCommonShares

OnFebruary25,2021,theTorontoStockExchange("TSX")acceptedtheCompany'snoticeofintentiontocommenceanormal

courseissuerbid("NCIB")thatallowstheCompanytorepurchase,atitsdiscretion,uptoapproximately27.5millioncommon

sharesthroughthefacilitiesoftheTSX,theNewYorkStockExchangeand/oralternativeCanadiantradingsystemsoras

otherwisepermittedbyapplicablesecuritieslaw,subjecttocertainrestrictionsonthenumberofcommonsharesthatmaybe

purchasedonasingleday.CommonsharespurchasedbytheCompanywillbecancelled.TheprogramcommencedMarch2,

2021andwillterminateonMarch1,2022oronsuchearlierdateastheCompanycompletesitspurchasespursuanttothe

noticeofintention.NocommonshareswerepurchasedbyPembinaduringthefirstninemonthsof2021.

CommonShareDividends

Commonsharedividendsarepayableif,asandwhendeclaredbyPembina'sBoardofDirectors.Theamountandfrequencyof

dividendsdeclaredandpayableisatthediscretionofPembina'sBoardofDirectors,whichconsidersearnings,cashflow,

capitalrequirements,thefinancialconditionofPembinaandotherrelevantfactorswhenmakingitsdividenddetermination.

PreferredShares

OnJanuary25,2021inconnectionwiththeofferingoftheSeries1SubordinatedNotes,Pembinaissued600,000Series2021-

AClassAPreferredShares,toComputershareTrustCompanyofCanada,tobeheldintrustastreasurysharestosatisfy

Pembina'sobligationsundertheindenturegoverningtheSeries1SubordinatedNotes.

OnMarch1,2021,Pembinaredeemedallofthe6.8millionissuedandoutstandingCumulativeRedeemableMinimumRate

ResetClassAPreferredShares,Series11(the"Series11ClassAPreferredShares")foraredemptionpriceequalto$25.00per

Series11ClassAPreferredShare,lesstaxesrequiredtobedeductedorwithheldbytheCompany.

OnJune1,2021,Pembinaredeemedallofthe10millionissuedandoutstandingCumulativeRedeemableMinimumRate


Series13ClassAPreferredShares,lesstaxesrequiredtobedeductedorwithheldbytheCompany.

PreferredShareDividends

OtherthaninrespectoftheSeries2021-AClassAPreferredShares,theholdersofPembina'sClassAPreferredSharesare

entitledtoreceivefixedcumulativedividends.DividendsontheSeries1,3,5,7,9and21ClassAPreferredSharesarepayable

quarterlyonthefirstdayofMarch,June,SeptemberandDecember,if,asandwhendeclaredbytheBoardofDirectorsof

Pembina.DividendsontheSeries15,17and19ClassAPreferredSharesarepayableonthelastdayofMarch,June,

SeptemberandDecemberineachyear,if,asandwhendeclaredbytheBoardofDirectorsofPembina.Dividendsonthe

Series23and25ClassAPreferredSharesarepayableonthe15thdayofFebruary,May,AugustandNovemberineachyear,if,

asandwhendeclaredbytheBoardofDirectorsofPembina.

DividendsarenotpayableontheSeries2021-AClassAPreferredShares,norshallanydividendsaccumulateoraccrue,prior

todeliverytotheholdersoftheSeries1SubordinatedNotesfollowingtheoccurrenceofcertainbankruptcyorinsolvency

eventsinrespectofPembina.Thereafter,dividendsontheSeries2021-AClassAPreferredSharesarepayableonthe25thday

ofJanuaryandJulyineachyear,if,asandwhendeclaredbytheBoardofDirectors.


OutstandingShareData

Issuedandoutstanding(thousands)(1) October29,2021

Commonshares 550,255

Stockoptions 21,345

Stockoptionsexercisable 12,049

Series1ClassAPreferredshares 10,000

Series3ClassAPreferredShares 6,000









Series25ClassAPreferredShares 10,000(1) Pembinaissued600,000Series2021-AClassAPreferredsharestotheComputershareTrustCompanyofCanada,tobeheldintrusttosatisfyitsobligationsunderthe

indenturegoverningtheSeries1SubordinatedNotes,inconnectionwiththeissuanceoftheSeries1SubordinatedNotes.

6.CAPITALINVESTMENTSCapitalInvested


($millions) 2021 2020 2021 2020

Pipelines 174 53 352 511

Facilities 26 98 102 296

Marketing&NewVentures 3 10 15 34

Corporateandotherprojects 6 13 13 27

Totalcapitalinvested(1)(2) 209 174 482 868(1) Includes$19millionforthethreemonthsendedSeptember30,2021(2020:$29million)relatedtonon-recoverablesustainmentactivities.(2) Includes$49millionfortheninemonthsendedSeptember30,2021(2020:$76million)relatedtonon-recoverablesustainmentactivities.

Inboth2021and2020,PipelinecapitalinvestmentscontinuedtobeprimarilyrelatedtoPembina'sPeacePipelinesystem

expansionprojectswithincreasedspendingontheNEBCTownTerminalProjectin2021.In2021,Facilitiescapitalinvestments

werelargelyrelatedtocontinuedexpansionatEmpress,thePrinceRupertTerminalandVancouverWharves.In2020,

FacilitiescapitalinvestmentsincludedconstructiononDuvernayIII,EmpressExpansionandthePrinceRupertTerminal.

Marketing&NewVentureshadcapitalinvestmentsprimarilyrelatedtooffshoreLNGprojectsin2021andtheJordanCove

LNGprojectin2020.

ContributionstoEquityAccountedInvestees


($millions) 2021 2020 2021 2020

AuxSable — — 1 3

VeresenMidstream 18 28 29 69

CKPC — — — 152

Total 18 28 30 224

ContributionsmadetoVeresenMidstreamduringboth2021and2020werelargelyrelatedtotheconstructionoftheHythe

Developments.

TherewerenocontributionsmadetoCKPCduring2021,followingtheindefinitesuspensionofthepropanedehydration

("PDH")plantandpolypropyleneupgradingfacility("PDH/PPFacility")announcedinthefourthquarterof2020.


7.SELECTEDQUARTERLYINFORMATIONSelectedQuarterlyOperatingInformation

(mboe/d) 2021 2020 2019

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Volumes(1)(2)

Pipelines

ConventionalPipelines 918 892 862 993 863 834 902 958

TransmissionPipelines 595 685 674 684 661 668 668 646

OilSandsPipelines 1,050 1,050 1,051 1,053 1,056 1,053 1,059 1,063

Facilities

GasServices 660 662 677 673 657 658 678 690

NGLServices 188 211 218 211 214 214 201 220

Total 3,411 3,500 3,482 3,614 3,451 3,427 3,508 3,577(1) Revenuevolumes.Seethe"Abbreviations"sectionfordefinition.(2) IncludesPembina'sproportionateshareofvolumesfromequityaccountedinvestees.

DeferredTake-or-payRevenue

($millions) 2021 2020 2019

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Pipelines

Openingbalance 32 22 3 42 45 22 8 17

Revenuedeferred 48 45 42 52 66 53 40 31

Revenuerecognized (59) (35) (23) (91) (69) (30) (26) (40)

Endingtake-or-paycontractliabilitybalance 21 32 22 3 42 45 22 8

Facilities

Openingbalance 3 1 — — 2 1 — —

Revenuedeferred — 2 1 — 1 1 1 —

Revenuerecognized (3) — — — (3) — — —

Endingtake-or-paycontractliabilitybalance — 3 1 — — 2 1 —

QuarterlySegmentedAdjustedEBITDA($millions)(1)

787 830789 796

866 835778

850

Pipeline Facilities Marketing&NewVentures

Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321

(1) Refertothe"Non-GAAPMeasures"section.


QuarterlyFinancialInformation

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Revenue 2,149 1,902 2,016 1,680 1,496 1,229 1,548 1,668

Netrevenue(1) 961 894 999 954 849 776 865 837

Operatingexpenses 187 186 182 201 178 154 179 177

Realizedloss(gain)oncommodity-relatedderivativefinancialinstruments 43 33 88 6 (7) (36) (17) (8)

Shareofprofit(loss)fromequityaccountedinvestees 75 52 71 (244) 62 66 84 89

Grossprofit 682 550 630 247 568 460 733 605

Earnings(loss) 588 254 320 (1,216) 323 258 319 150

Earnings(loss)percommonshare–basicanddiluted(dollars) 1.01 0.39 0.51 (2.28) 0.52 0.40 0.51 0.22

Cashflowfromoperatingactivities 913 584 456 766 434 642 410 728

Cashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 1.66 1.06 0.83 1.39 0.78 1.17 0.75 1.41

Adjustedcashflowfromoperatingactivities(1) 786 538 582 603 524 586 576 576

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars)(1) 1.43 0.98 1.06 1.10 0.95 1.07 1.05 1.11

Commonsharesoutstanding(millions):

Weightedaverage–basic 550 550 550 550 550 550 549 518

Weightedaverage–diluted 551 551 550 550 550 550 549 519

Endofperiod 550 550 550 550 550 550 550 548

Commonsharedividendsdeclared 347 347 346 346 346 347 346 314

Dividendspercommonshare 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.60

Preferredsharedividendsdeclared 31 35 36 38 38 37 38 34

Capitalinvestments 209 146 127 161 174 211 483 429

Contributionstoequityaccountedinvestees 18 — 12 — 28 2 194 120

Distributionsfromequityaccountedinvestees 106 112 115 109 111 116 123 123

AdjustedEBITDA(1) 850 778 835 866 796 789 830 787

($millions,exceptwherenoted) 2021(2) 2020(2) 2019(2)

(1) Refertothe"Non-GAAPMeasures"section.(2) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy","RestatementofRevenueandCostofGoodsSold"andNote2totheInterim

FinancialStatements.Therestatementreducesrevenueandcostofgoodssoldforallquarterlycomparativeperiods,includingQ22021:$52million,Q12021:$29million,Q42020:$14million,Q32020:$73million,Q22020:$39million,Q12020:$123million,andQ42019:$86million.

Duringtheperiodsinthetableabove,Pembina'sfinancialandoperatingresultswereimpactedbythefollowingfactorsandtrends:• ImpairmentsrecognizedonPembina'sinterestsinRuby,CKPCandtheassetsassociatedwithJordanCoveinthefourth

quarterof2020andthepartialimpairmentofPembina'sinterestinRubyinthefourthquarterof2019;• TheKinderAcquisition,whichwascompletedonDecember16,2019;• TheCOVID-19pandemicandtheresultingdecreaseindemandforcommoditiesstartinginthesecondquarterof2020,

whichledtoasignificantdeclineinglobalenergypricesandareductionincapitalspendingbudgetsbyPembinaanditscustomersin2020,andthesubsequentrecoveryindemandforcommoditiesandglobalenergypricesin2021;

• VolatilityintheAECO-Chicagonaturalgaspricedifferential,powerpoolpricesandforeignexchangeratesimpactingoperatingresults;

• Newlarge-scalegrowthprojectsacrossPembina'sbusinessbeingplacedintoservice;• Volatilityincommoditymarketpricesimpactingmarginswithinthemarketingbusiness,partiallymitigatedthrough

Pembina'sriskmanagementprogram;• Highernetfinancecostsimpactingearningsassociatedwithdebtrelatedtofinancingacquisitions,growthprojects,

volatilityinforeignexchangeratesandvolatilityinPembina'ssharepriceimpactingincentivecosts;• IncreasedcommonandpreferredsharesoutstandingandcorrespondingdividendsduetotheKinderAcquisition;• Contractexpiriesoncertainassets;and

• ThereceiptoftheArrangementTerminationPayment.


8.SELECTEDEQUITYACCOUNTEDINVESTEEINFORMATIONLoansandBorrowingsofEquityAccountedInvestees

Underequityaccounting,theassetsandliabilitiesofaninvestmentarenetintoasinglelineitemintheConsolidated

StatementofFinancialPosition,"InvestmentsinEquityAccountedInvestees".Toassistreaders'understandingandto

evaluatethecapitalizationofPembina'sinvestments,loansandborrowingsassociatedwithinvestmentsinequityaccounted

investeesarepresentedbelowbasedonPembina'sproportionateownershipinsuchinvestments,asatSeptember30,2021.

Inaddition,certainoftheequityaccountedinvesteeshaveborrowingarrangementswithanamortizationstructure,thereby

necessitatingperiodicrepaymentsofprincipal.Theserepaymentsoccurpriortothedistributionofresidualcashflowto

Pembina.Theloansandborrowingsandamortizationschedulesarepresentedbelowandclassifiedbythedivisioninwhich

theresultsfortheinvestmentarereported.Pleaserefertothe"Abbreviations"sectionforasummaryofPembina's

investmentsinequityaccountedinvesteesandthedivisioninwhichtheirresultsarereported.

($millions)(1) September30,2021 December31,2020

Pipelines 877 926

Facilities 1,198 1,200

Total 2,075 2,126(1) BalancesreflectPembina'sownershippercentageoftheoutstandingbalancefacevalue.

AmortizationScheduleofLoansandBorrowingsofEquityAccountedInvestees

9MonthsEnded Remainderof

($millions)(1)September30,

2021 2021 2022 2023 2024 2025+

Pipelines 87 33 623 62 67 92

Facilities 2 12 36 36 1,114 —

Total 89 45 659 98 1,181 92(1) BalancesreflectPembina'sownershippercentageoftheoutstandingbalancefacevalue.

FinancingActivitiesforEquityAccountedInvestees

OnApril19,2021,Rubyfullyrepaidthe$16millionoutstandingonitstermloan.

CommitmentstoEquityAccountedInvestees

Pembinahascommitmentstoprovidecontributionstocertainequityaccountedinvesteesbasedonannualbudgetsapproved

bythejointventurepartnersandcontractualagreements.

CreditRiskforEquityAccountedInvestees

AtSeptember30,2021,Pembina'svariousequityaccountedinvesteesheldlettersofcredittotaling$73million(December31,

2020:$105million)primarilyinrespectofcustomertradereceivables.

CedarLNGAcquisition

OnJune4,2021,Pembinaacquireda49.9percentinterestinajointventurewiththeHaislaNationtodeveloptheCedarLNG

Project,aLNGfacilitylocatedonthecoastofBritishColumbiawithintheDouglasChannelonHaisla-ownedland.Pembina's

investmentof$129millionatSeptember30,2021included$76millionofaccruedcontingentconsiderationpayableon

achievementofcertainconditions.Underthetermsoftheagreement,Pembinahascommitmentstomakeadditional

paymentsonapositivefinalinvestmentdecisionaswellascontributionstofunddevelopmentcostsandannualoperating

budgets.


9.OTHER

RelatedPartyTransactions

Pembinaentersintotransactionswithrelatedpartiesinthenormalcourseofbusinessandontermsequivalenttothosethat

prevailinarm'slengthtransactions,unlessotherwisenoted.PembinacontractscapacityfromAllianceandVeresen

Midstream,itsequityaccountedinvestees,andadvancesfundstosupportoperationsandprovidesservices,onacost

recoverybasis,toequityaccountedinvestees.

OnJanuary6,2021,PembinaadvancedU.S.$8milliontoRubyPipelineL.L.C.,whichwassubsequentlyimpaired.

ForthethreeandninemonthsendedSeptember30,2021,Pembinahadnoothertransactionswith"relatedparties"(as

definedinIAS24RelatedPartyDisclosures)exceptthosepertainingtocontributionstoPembina'sdefinedbenefitpension

planandremunerationofkeymanagementpersonnelandtheBoardofDirectorsofPembina,intheordinarycourseoftheir

employmentordirectorshipagreements,respectively.

RiskManagement

Pembina'sriskmanagementstrategies,policiesandlimits,ensurerisksandexposuresarealignedtoitsbusinessstrategyand

risktolerance.Pembina'sBoardofDirectorsisresponsibleforprovidingriskmanagementoversightatPembinaandoversees

howmanagementmonitorscompliancewithPembina'sriskmanagementpoliciesandproceduresandreviewstheadequacy

ofthisriskframeworkinrelationtotherisksfacedbyPembina.

Pembina'sfinancialrisksareconsistentwiththosediscussedinNote27oftheConsolidatedFinancialStatements.Pembina

hasexposuretocounterpartycreditrisk,liquidityriskandmarketrisk.AsatSeptember30,2021,theCompanyhasentered

intocertainfinancialderivativecontractsinordertomanagecommodityprice,foreignexchangeandinterestraterisk.These

instrumentsarenotusedfortradingorspeculativepurposes.FormoreinformationonPembina'sderivativeinstruments,

refertoNote14totheInterimFinancialStatements.


DisclosureControlsandProceduresandInternalControloverFinancialReporting

DisclosureControlsandProcedures

Pembinamaintainsdisclosurecontrolsandprocedures("DC&P")designedtoprovidereasonableassurancethatinformation

requiredtobedisclosedinPembina'sannualfilings,interimfilingsandotherreportsfiledorsubmittedbyitundersecurities

lawsisrecorded,processed,summarizedandreportedaccuratelyandinthetimeperiodsspecifiedundersuchsecuritieslaws,

andincludecontrolsandproceduresdesignedtoensuresuchinformationisaccumulatedandcommunicatedtoPembina's

management,includingitscertifyingofficers,asappropriatetoallowtimelydecisionsregardingrequireddisclosure.Asat

September30,2021,thePresidentandChiefExecutiveOfficer("CEO")andtheSeniorVicePresidentandChiefFinancial

Officer("CFO")haveconcludedthatPembina'sDC&Pwerenoteffectiveasatthatdateasaresultofthematerialweakness

describedbelow.

Management'sReportonInternalControlOverFinancialReporting

Pembinamaintainsinternalcontroloverfinancialreporting("ICFR")whichisdesignedtoprovidereasonableassurance

regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordance

withIFRS,andincludepoliciesandproceduresthat:(a)pertaintothemaintenanceofrecordsthatinreasonabledetail

accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofPembina;(b)aredesignedtoprovidereasonable

assurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithIFRS,

andthatreceiptsandexpendituresofPembinaarebeingmadeonlyinaccordancewithauthorizationsofmanagementand

directorsofPembina;and(c)aredesignedtoprovidereasonableassuranceregardingpreventionortimelydetectionof

unauthorizedacquisition,useordispositionofPembina'sassetsthatcouldhaveamaterialeffectonPembina'sfinancial

statements.ManagementisresponsibleforestablishingandmaintainingDC&PandICFR,asdefinedinNationalInstrument

52-109CertificationofDisclosureinIssuers'AnnualandInterimFilingsandRule13a–15(e)and15(d)–15(e)underthe

UnitedStatesSecuritiesExchangeActof1934.

UnderthesupervisionandwiththeparticipationofourCEOandourCFO,managementhasdesignedinternalcontrolover

financialreportingbasedontheframeworksetforthinInternalControl–IntegratedFrameworkissuedin2013bythe

CommitteeofSponsoringOrganizationsoftheTreadwayCommission.Amaterialweaknessisadeficiency,oracombination

ofdeficiencies,inICFR,suchthatthereisareasonablepossibilitythatamaterialmisstatementoftheannualfinancial

statements,orinterimfinancialstatements,willnotbepreventedordetectedonatimelybasis.AsatSeptember30,2021,

theCompanyhasidentifieda"materialweakness"relatedtocontrolsovercontractassessmentinitsMarketingbusiness.

Specifically,wedidnothavecontrolstoidentifyallcontractswhereanaccountingassessmentwasrequiredandasaresult

lackedanalysisofallrelevantcontracttermsrequiredtomaketheassessmentintheMarketingbusiness.Becauseofthe

deficiency,theCompanypresentedrevenueandcostofgoodssoldforcertaincrudecontractsinMarketingandNew

Venturesonagrossbasisthatshouldhavebeenrecordedonanetbasis.Managementhasappropriatelyrecognizedrevenue

andcostofgoodssoldforthesetransactionsonanetbasisforthethreeandninemonthperiodsendedSeptember30,2021

andhasrestatedrevenueandcostofgoodssoldforthethreeandninemonthperiodsendedSeptember30,2020withno

impactonearnings,cashflowsorfinancialposition.Refertonote2oftheInterimFinancialStatementsfordetailsofthe

restatement.


RemediationofMaterialWeakness

Thecontroldeficiencydescribedabovewasdetectedbymanagementduringthethirdquarterof2021priortothefilingof

Pembina'sInterimFinancialStatements.TheCompanyhasprioritizedtheremediationofthematerialweaknessdescribed

aboveandisworkingundertheoversightoftheAuditCommitteetoresolvetheissue.

Specificactionstoremediatethismaterialweaknessincludethefollowing:

i. Revisionoftheprocessofidentifyingcontractstoconsultwithinternalexpertstoassistintheevaluationoftechnical

accountingmatters;and

ii. Enhancecontractanalysis,includingrevisionoftheprocessusedtoassessaccountingimplicationsforcomplex

contracts.

AstheconclusionregardingthematerialweaknessinICFRwasreachedinlateOctober2021,Pembinahasnothadadequate

timetoimplementandevaluatethecontrolsandproceduresdescribedabove,aslimitedcomplexandmaterialtransactions

requiringanapplicationoftheforegoingremediationactionshaveoccurredinthisperiod.Pembinahas,therefore,nothad

adequatetimeoropportunitytoapplyitsproposedremediationactionstoevidencetheremediationofthematerial

weaknessdescribedaboveandthematerialweaknesswillcontinuetobeaddressedthroughouttheremainderof2021.

ChangesinInternalControlOverFinancialReporting

Otherthanthematerialweaknessdescribedabove,therewerenochangesinthethirdquarterof2021thathadorarelikely

tohaveamaterialimpactonPembina'sICFR.


10.ACCOUNTINGPOLICIES&ESTIMATESChangesinAccountingPolicies&Restatement

TheaccountingpoliciesusedinpreparingtheInterimFinancialStatementsaredescribedinNote5ofPembina'sConsolidated

FinancialStatements.Therewerenonewaccountingstandardsoramendmentstoexistingstandardsadoptedinthefirstnine

monthsof2021thatareexpectedtohaveamaterialimpactonPembina'sfinancialstatements.

Voluntarychangeinaccountingpolicy

AsdetailedinNote3oftheConsolidatedFinancialStatements,Pembinavoluntarilychangeditsaccountingpolicyforthe

measurementofdecommissioningliabilitiestoutilizeacredit-adjustedrisk-freeinterestrateinsteadofarisk-freeinterest

ratetodeterminethepresentvalueoftheliabilityateachstatementoffinancialpositiondate.Thisaccountingpolicychange

wasappliedretrospectively,includingtherestatementofcertaincomparativeamountsintheInterimFinancialStatements,as

summarizedbelow.

Restatementofrevenueandcostofgoodssold

DuringthethirdquarterPembinaidentifiedcertaincrudecontractsthatwererecordedincorrectlywithinMarketing&New

Ventures.Revenueandcostofgoodssoldassociatedwiththecontractswererecordedonagrossbasisbutshouldhavebeen

recordedonanetbasis.AsaresultPembinarestatedcomparativeperiodsdecreasingrevenueandcostofgoodssold,withno

impacttoearnings,cashflowsorfinancialposition.

i. ReconciliationoftheCondensedConsolidatedInterimStatementsofEarningsandComprehensiveIncome

($millions)

3MonthsEndedSeptember30,2020 9MonthsEndedSeptember30,2020

Previouslyreported

Policychange

Restatementadjustments Restated

Previouslyreported

Policychange


Revenue 1,569 — (73) 1,496 4,508 — (235) 4,273

Costofsales 1,068 (4) (73) 991 3,033 (12) (235) 2,786

Shareofprofitfromequityaccountedinvestees 61 1 — 62 209 3 — 212

Grossprofit 563 5 — 568 1,746 15 — 1,761

Netfinancecosts 83 (1) — 82 364 (3) — 361

Earningsbeforeincometax 428 6 — 434 1,213 18 — 1,231

Deferredtaxexpense 58 1 — 59 133 3 — 136

Earningsattributabletoshareholders 318 5 — 323 885 15 — 900

Totalcomprehensiveincomeattributabletoshareholders 214 5 — 219 1,057 15 — 1,072

Earningsattributabletocommonshareholders,netofpreferredsharedividends 279 5 — 284 768 15 — 783

Earningspercommonshare-basicanddiluted 0.51 0.01 — 0.52 1.39 0.03 — 1.42

ii. ReconciliationoftheCondensedConsolidatedInterimStatementofCashFlows

($millions)


Previouslyreported

Policychange Restated

Previouslyreported


Earnings 318 5 323 885 15 900

Shareofprofitfromequityaccountedinvestees (61) (1) (62) (209) (3) (212)

Adjustmentsfordepreciationandamortization 179 (4) 175 532 (12) 520

Adjustmentsfornetfinancecosts 83 (1) 82 364 (3) 361

Adjustmentsforincometaxexpense 110 1 111 328 3 331

Cashflowfromoperatingactivities 434 — 434 1,486 — 1,486


CriticalAccountingJudgments&Estimates

CriticalaccountingjudgmentsandestimatesusedinpreparingtheInterimFinancialStatementsaredescribedinNote2of

Pembina'sConsolidatedFinancialStatements.ThepreparationofconsolidatedfinancialstatementsinconformitywithIFRS

requiresmanagementtomakebothjudgmentsandestimatesthatcouldmateriallyaffecttheamountsrecognizedinthe

financialstatements.Bytheirnature,judgmentsandestimatesmaychangeinlightofnewfactsandcircumstancesinthe

internalandexternalenvironment.TherehavebeennomaterialchangestoPembina'scriticalaccountingestimatesand

judgmentsduringthethreeandninemonthsendedSeptember30,2021,includingtotheongoingimpactofsignificant

uncertaintiescreatedbytheCOVID-19pandemic,asdiscussedbelow.

OngoingImpactoftheCOVID-19Pandemic

FollowingtheWorldHealthOrganizationdeclaringtheCOVID-19outbreaktobeapandemic,manygovernmentsimposed

restrictionsonindividualsandbusinesses,whichresultedinasignificantslowdownoftheglobaleconomy.Whiletherehave

beenpositivesignalsintothefirstninemonthsof2021incommodityprices,demandrecoveryremainsaffectedbytheon-

goingCOVID-19pandemic.Althoughrestrictionshavebeenrelaxedincertainjurisdictionsandvaccinationprogramsare

underway,thereremainssignificantuncertaintyastotheglobaleconomicoutlookandthereremainsthepotentialfor

volatilityintheglobaleconomyasaresultoftheCOVID-19pandemic.Managementconsideredtheseuncertaintieswhen

applyingjudgmenttoestimatesandassumptionsintheInterimFinancialStatements.


11.RISKFACTORSManagementhasidentifiedtheprimaryriskfactorsthatcouldpotentiallyhaveamaterialimpactonthefinancialresultsand

operationsofPembina.Withtheexceptionoftherisksnotedbelow,therehavebeennomaterialchangestotheriskfactors

presentedinPembina'sMD&AandAIFfortheyearendedDecember31,2020.Pembina'sMD&AandAIFareavailableat

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


COVID-19RelatedImpacts

Pembina'sbusinessandoperationshavebeenandmaycontinuetobemateriallyadverselyaffectedbytheCOVID-19

pandemic,includingongoinguncertaintywithrespecttotheextentanddurationofthepandemic.In2020,theCOVID-19

pandemicresultedin,amongotherthings,anoverallslowdownintheglobaleconomyandadecreaseinglobalenergy

demand.TheongoingCOVID-19pandemic,andactionsthathave,andmaybe,takenbygovernmentalauthoritiesinresponse

theretohasalsoresulted,andmaycontinuetoresultin,amongotherthings:increasedvolatilityinfinancialandcommodity

markets;disruptionstoglobalsupplychains;labourshortages;significantimpactstotheworkforce;includingasaresultof

theimplementationofvaccinemandatesandvaccinerecommendations;reductionsintradevolumes;temporaryoperational

restrictionsandrestrictionsongatheringsofindividuals,aswellasshelter-in-placedeclarationsandquarantineorders;

businessclosuresandtravelbans;politicalandeconomicinstability;andcivilunrest.TheongoingspreadoftheCOVID-19

virus,includingnewvariantsthereof,incertaingeographicareas,includingcertainareasinwhichPembinahasoperations,

andthepossibilitythataresurgenceoftheCOVID-19virusorthespreadofsuchneworpotentialfuturevariantsthereofmay

occurinotherareas,mayresultinthere-impositionofcertainoftheforegoingrestrictionsorfurtherrestrictionsby

governmentalauthoritiesincertainjurisdictions,includingcertainjurisdictionsinwhichPembinahasoperations.Thisfurther

increasestheriskanduncertaintyastotheextentanddurationoftheCOVID-19pandemicanditsultimateimpactonthe

globaleconomyandotheritemsnotedabove.

TheriskstoPembinaoftheongoingCOVID-19pandemicinclude,amongotherthings:riskstothehealthandsafetyof

Pembina'semployees;aslowdownortemporarysuspensionofoperationsincertaingeographiclocationsinwhichPembina

operates;delaysinthecompletion,oradditionaldeferrals,ofPembina'sgrowthandexpansionprojects;disruptionsin

Pembina'sworkforce,includingasaresultofvaccinemandates;andsupplychaindisruptions,alloranyofwhichcould

materiallyadverselyimpactPembina'sbusinessoperationsandfinancialresults.

ThefullextentandimpactoftheCOVID-19pandemiccontinuestobeunknownatthistimeandthedegreetowhichitmay

impactPembina'sbusinessoperationsandfinancialresultswilldependonfuturedevelopments,whichcannotbepredicted

withanydegreeofcertainty,including:theduration,severityandgeographicspreadoftheCOVID-19virusandvariants

thereof,includinginrespectoftheongoingspreadoftheCOVID-19virus,andnewvariantsthereof,incertaingeographic

areas,includingcertainareasinwhichPembinaoperates;furtheractionsthatmaybetakenbygovernmentalauthorities,

includinginrespectoftheimplementationofvaccinemandatesandongoingandfutureoperationalrestrictionsand

restrictionsontravel;theeffectivenessandtimingofactionstakentocontainandtreattheCOVID-19virusandvariants

thereof,includingthevaccinesdevelopedinresponsethereto;andhowquicklyandtowhatextentnormaleconomicand

operatingconditionswillresume.

ImpactonGeneralRisks

DependingontheextentanddurationoftheCOVID-19pandemic,itmayalsohavetheeffectofheighteningmanyofthe

otherrisksdescribedinPembina'sotherdisclosuredocuments,includingPembina'sMD&AandAIFfortheyearended

December31,2020,suchasrisksrelatingtoPembina'sexposuretocommodityprices;thesuccessfulcompletionofPembina's

growthandexpansionprojects,includingtheexpectedreturnoninvestmentthereof;Pembina'sabilitytomaintainitscredit

ratings;restrictedaccesstocapitalandincreasedborrowingcosts;Pembina'sabilitytopaydividendsandserviceobligations

underitsdebtsecuritiesandotherdebtobligations;andotherwisecomplyingwiththecovenantscontainedinthe

agreementsthatgovernPembina'sexistingindebtedness.


12.NON-GAAPMEASURESThroughoutthisMD&A,PembinahasusedfinancialmeasuresthatarenotdefinedbyGAAPbutareusedbymanagementto

evaluatetheperformanceofPembinaanditsbusinesses.Sincenon-GAAPmeasuresdonothaveastandardizedmeaning

prescribedbyIFRSandarethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies,non-GAAP

measuresmustbeclearlydefined,qualifiedandreconciledtothemostdirectlycomparableGAAPmeasure.Thesenon-GAAP

measuresarecalculatedanddisclosedonaconsistentbasisfromperiodtoperiod.

Theintentofthenon-GAAPmeasuresusedthroughoutthisMD&Aistoprovideadditionalusefulinformationwithrespectto

Pembina'sfinancialperformancetoinvestorsandanalysts,thoughthemeasuresdonothaveanystandardizedmeaning

underIFRS.Themeasuresshouldnot,therefore,beconsideredinisolationorusedinsubstituteformeasuresofperformance

preparedinaccordancewithIFRS.Otherissuersmaycalculatethesenon-GAAPmeasuresdifferentlyorusedifferentnon-

GAAPmeasures.

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

consecutiveresultsinMarketing&NewVenturesandFacilities,toaggregaterevenuegeneratedbyeachoftheCompany's

divisionsandtosetcomparableobjectives.

3MonthsEndedSeptember30

Pipelines FacilitiesMarketing&

NewVentures(1)

Corporate&Inter-segmentEliminations Total(1)($millions)

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Revenue 566 557 341 311 1,393 752 (151) (124) 2,149 1,496

Costofgoodssold,includingproductpurchases — — 1 3 1,268 720 (81) (76) 1,188 647

Netrevenue 566 557 340 308 125 32 (70) (48) 961 849(1) Comparative2020periodhasbeenrestated.See"RestatementofRevenueandCostofGoodsSold"andNote2totheInterimFinancialStatements.



Pipelines FacilitiesMarketing&

NewVentures(1)

Corporate&Inter-segmentEliminations Total(1)($millions)

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Revenue 1,673 1,648 1,014 905 3,827 2,074 (447) (354) 6,067 4,273

Costofgoodssold,includingproductpurchases — — 7 7 3,463 2,006 (257) (230) 3,213 1,783

Netrevenue 1,673 1,648 1,007 898 364 68 (190) (124) 2,854 2,490(1) Comparative2020periodhasbeenrestated.See"RestatementofRevenueandCostofGoodsSold"andNote2totheInterimFinancialStatements.

AdjustedEarningsBeforeInterest,Taxes,DepreciationandAmortization("adjustedEBITDA")

AdjustedEBITDAisanon-GAAPmeasureandiscalculatedasearningsbeforenetfinancecosts,incometaxes,depreciation

andamortization(includedinoperationsandgeneralandadministrativeexpense)andunrealizedgainsorlosseson

commodity-relatedderivativefinancialinstruments.Theexclusionofunrealizedgainsorlossesoncommodity-related

derivativefinancialinstrumentseliminatesthenon-cashimpactofsuchgainsorlosses.

AdjustedEBITDAalsoincludesadjustmentstoearningsforlosses(gains)ondisposalofassets,transactioncostsincurredin

respectofacquisitions,dispositionsandrestructuring,impairmentchargesorreversalsinrespectofgoodwill,intangible

assets,investmentsinequityaccountedinvesteesandproperty,plantandequipment,certainnon-cashprovisionsandother

amountsnotreflectiveofongoingoperations.Theadjustmentsmadetoearningsarealsomadetoshareofprofitfrom

investmentsinequityaccountedinvestees.Inaddition,Pembina'sproportionateshareofresultsfrominvestmentsinequity

accountedinvesteeswithapreferredinterestispresentedinadjustedEBITDAasa50percentcommoninterest.These

additionaladjustmentsaremadetoexcludevariousnon-cashandotheritemsthatarenotreflectiveofongoingoperations.

ManagementbelievesthatadjustedEBITDAprovidesusefulinformationtoinvestorsasitisanimportantindicatorofan

issuer'sabilitytogenerateliquiditythroughcashflowfromoperatingactivitiesandequityaccountedinvestees.Management

alsobelievesthatadjustedEBITDAprovidesanindicatorofoperatingincomegeneratedfromcapitalinvested,whichincludes

operationalfinanceincomefromlessorleasearrangements.AdjustedEBITDAisalsousedbyinvestorsandanalystsfor

assessingfinancialperformanceandforthepurposeofvaluinganissuer,includingcalculatingfinancialandleverageratios.

ManagementutilizesadjustedEBITDAtosetobjectivesandasakeyperformanceindicatoroftheCompany'ssuccess.

PembinapresentsadjustedEBITDAasmanagementbelievesitisameasurefrequentlyusedbyanalysts,investorsandother

stakeholdersinevaluatingtheCompany'sfinancialperformance.


Pipelines FacilitiesMarketing&NewVentures

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

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Earningsbeforeincometax(1) 329 371 207 175 91 2 154 (114) 781 434

Adjustmentstoshareofprofitfromequityaccountedinvesteesandother(1) 65 58 33 34 5 9 — — 103 101

Netfinancecosts(1) 8 8 12 5 2 (7) 122 76 144 82

Depreciationandamortization(1) 100 103 56 49 13 12 11 11 180 175

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — — (45) (11) (2) 17 — — (47) 6

CanadianEmergencyWageSubsidy — — — — — — 8 (9) 8 (9)

Transformationandrestructuringcosts — — — — — — 11 — 11 —

Transactioncostsincurredinrespectofacquisitions — — — — — — 8 6 8 6

ArrangementTerminationPayment — — — — — — (350) — (350) —

Impairmentchargesandnon-cashprovisions 1 1 10 (1) — 1 1 — 12 1

AdjustedEBITDA 503 541 273 251 109 34 (35) (30) 850 796

AdjustedEBITDApercommonshare–basic(dollars) 1.55 1.45(1) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.



Pipelines FacilitiesMarketing&NewVentures

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

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Earningsbeforeincometax(1) 987 1,120 555 499 167 38 (177) (426) 1,532 1,231

Adjustmentstoshareofprofitfromequityaccountedinvesteesandother(1) 221 180 99 103 18 15 — — 338 298

Netfinancecosts(1) 23 24 30 16 (7) 2 297 319 343 361

Depreciationandamortization(1) 312 300 158 149 38 37 35 34 543 520

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — — (62) (14) 19 12 — — (43) (2)

CanadianEmergencyWageSubsidy — — — — — — 3 (37) 3 (37)

Transformationandrestructuringcosts — 3 — 2 — 1 26 4 26 10

Transactioncostsincurredinrespectofacquisitions — — — — — — 26 16 26 16

ArrangementTerminationPayment — — — — — — (350) — (350) —

Impairmentchargesandnon-cashprovisions 11 4 32 2 2 13 — (1) 45 18

AdjustedEBITDA 1,554 1,631 812 757 237 118 (140) (91) 2,463 2,415

AdjustedEBITDApercommonshare–basic(dollars) 4.48 4.39(1) Comparative2020periodhasbeenrestated.See"VoluntaryChangeinAccountingPolicy"andNote2totheInterimFinancialStatements.

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) 2021 2020 2021 2020

Cashflowfromoperatingactivities 913 434 1,953 1,486

Cashflowfromoperatingactivitiespercommonshare–basic(dollars) 1.66 0.78 3.55 2.70

Add(deduct):

Changeinnon-cashoperatingworkingcapital (7) 89 70 168

Currenttaxexpense (141) (52) (255) (195)

Taxespaid,netofforeignexchange 68 89 265 289

Accruedshare-basedpayments (16) 1 (56) 6

Share-basedpayments — 1 32 45

Preferredsharedividendspaid (31) (38) (103) (113)

Adjustedcashflowfromoperatingactivities 786 524 1,906 1,686

Adjustedcashflowfromoperatingactivitiespercommonshare–basic(dollars) 1.43 0.95 3.47 3.07


13.ABBREVIATIONSThefollowingisalistofabbreviationsthatmaybeusedinthisMD&A:

Other

AECO AlbertaEnergyCompanybenchmarkpricefornaturalgas

B.C. BritishColumbia

GAAP Canadiangenerallyacceptedaccountingprinciples

IFRS InternationalFinancialReportingStandards

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

bpd barrelsperday

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 50percentinterestinbothAlliancePipelineLimitedPartnershipandAlliancePipelineL.P.

Ruby 50percentconvertible,cumulativepreferredinterestintheRubyPipelineHoldingCompanyL.L.C.

GrandValley 75percentjointlycontrolledinterestinGrandValley1LimitedPartnershipwindfarm("GrandValley")

Facilities:

VeresenMidstream 45percentinterestinVeresenMidstreamLimitedPartnership,whichownsassetsinwesternCanadaservingtheMontneygeologicalplayinnorthwesternAlbertaandnortheasternB.C.includinggasprocessingplantsandgasgatheringpipelinesandcompression

FortCorp 50percentinterestinFortSaskatchewanEthyleneStorageLimitedPartnershipandFortSaskatchewanEthyleneCorporation

Marketing&NewVentures:

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

CKPC 50percentinterestinthePDH/PPFacility

CedarLNG 49.9percentinterestinthefloatingLNGfacilityinKitimat,BritishColumbia,Canada

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:

• futurelevelsandsustainabilityofcashdividendsthatPembinaintendstopaytoitsshareholdersandthedividendpaymentdates;

• 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;

• expectedreductionsincarbondioxidelevels;• treatmentundergovernmentalregulatoryregimesinCanadaandtheU.S.,including

taxesandtaxregimes,environmentalandgreenhousegasregulationsandrelatedabandonmentandreclamationobligations,andIndigenous,landownerandotherstakeholderconsultationrequirements;

• Pembina'sstrategyandthedevelopmentandexpectedtimingofnewbusinessinitiativesandgrowthopportunitiesandtheimpactthereof;

• increasedthroughputpotential,processingcapacityandfractionationcapacityduetoincreasedoilandgasindustryactivityandnewconnectionsandotherinitiativesonPembina'spipelinesandPembina'sfacilities;

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

• Pembina'scapitalstructure,includingthesufficiencyoftheamountofleverageemployedthereinandfutureactionsthatmaybetakenwithrespectthereto,includingexpectationsregardingtherepurchaseorredemptionofcommonsharesandthetimingthereof;

• Pembina'sexpectationsregardingthecreditworthinessofitscounterparties;• currentratingstargetsonPembina'sdebtandthelikelihoodofadowngradebelow

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

commitmentsandcontracts;• operatingrisks(includingtheamountoffutureliabilitiesrelatedtopipelinesspills

andotherenvironmentalincidents)andrelatedinsurancecoverageandinspectionandintegrityprograms;

• theexpecteddemandfor,andpricesandinventorylevelsof,crudeoilandotherpetroleumproducts,includingNGL;

• thepotentialimpactsoftheCOVID-19pandemiconPembina,andPembina'sresponsethereto;and

• theimpactofcurrentmarketconditionsonPembina.

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

• oilandgasindustryexplorationanddevelopmentactivitylevelsandthegeographicregionofsuchactivity;

• thesuccessofPembina'soperations;• prevailingcommodityprices,interestratesandexchangerates;• theabilityofPembinatomaintaincurrentcreditratings;• 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:

• theregulatoryenvironmentanddecisionsandIndigenousandlandownerconsultationrequirements;

• theimpactofcompetitiveentitiesandpricing;• labourandmaterialshortages;• relianceonthirdpartiestosuccessfullyoperateandmaintaincertainassets;• 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-19pandemic;

• constraintson,ortheunavailabilityofadequateinfrastructure;• thepoliticalenvironment,inNorthAmericaandelsewhere,andpublicopinion;• abilitytoaccessvarioussourcesofdebtandequitycapital;• changesincreditratings;• technologyandsecurityrisks;• naturalcatastrophes;and• theotherfactorsdiscussedunder"RiskFactors"hereinandinPembina'sMD&Aand

AIFfortheyearendedDecember31,2020,whichareavailableatwww.sedar.com,www.sec.govandthroughPembina'swebsiteatwww.pembina.com.

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


CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFFINANCIALPOSITION(unaudited)

($millions) September30,2021 December31,2020

AssetsCurrentassets

Cashandcashequivalents 112 81

Tradereceivablesandother 826 662

Inventory 310 221

Derivativefinancialinstruments(Note14) 30 25

1,278 989

Non-currentassets

Property,plantandequipment(Note4) 18,535 18,549

Intangibleassetsandgoodwill 6,284 6,340

Investmentsinequityaccountedinvestees(Note5) 4,379 4,377

Right-of-useassets(Note6) 630 651

Financeleasereceivable(Note6) 213 138

Deferredtaxassets 305 322

Advancestorelatedpartiesandotherassets 115 50

30,461 30,427

Totalassets 31,739 31,416

LiabilitiesandequityCurrentliabilities

Tradepayablesandother 1,008 780

Loansandborrowings(Note7) 900 600

Dividendspayable 116 115

Leaseliabilities 90 99

Contractliabilities(Note9) 78 62

Taxespayable 51 56

Derivativefinancialinstruments(Note14) 112 69

2,355 1,781

Non-currentliabilities

Loansandborrowings(Note7) 9,634 10,276

Subordinatedhybridnotes(Note7) 594 —

Leaseliabilities 655 675

Decommissioningprovision 388 348

Contractliabilities(Note9) 220 230

Deferredtaxliabilities 3,021 2,925

Otherliabilities 230 166

14,742 14,620

Totalliabilities 17,097 16,401

Equity

Attributabletoshareholders 14,582 14,955

Attributabletonon-controllinginterest 60 60

Totalequity 14,642 15,015

Totalliabilitiesandequity 31,739 31,416

Seeaccompanyingnotestothecondensedconsolidatedinterimfinancialstatements


CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFEARNINGSANDCOMPREHENSIVEINCOME(unaudited)


($millions,exceptpershareamounts) 20212020

(RestatedNote2) 20212020

(RestatedNote2)

Revenue(Note9) 2,149 1,496 6,067 4,273

Costofsales(Note12) 1,546 991 4,282 2,786

(Gain)lossoncommodity-relatedderivativefinancialinstruments(Note14) (4) (1) 121 (62)

Shareofprofitfromequityaccountedinvestees(Note5) 75 62 198 212

Grossprofit 682 568 1,862 1,761

Generalandadministrative 68 56 234 176

Otherincome(Note10) (311) (4) (282) (7)

Impairmentexpense(Note5) — — 35 —

Resultsfromoperatingactivities 925 516 1,875 1,592

Netfinancecosts(Note11) 144 82 343 361

Earningsbeforeincometax 781 434 1,532 1,231

Currenttaxexpense 141 52 255 195

Deferredtaxexpense 52 59 115 136

Incometaxexpense 193 111 370 331

Earnings 588 323 1,162 900

Othercomprehensiveincome(loss),netoftax(Note13&14)

Exchangegain(loss)ontranslationofforeignoperations 126 (110) 4 143

Impactofhedgingactivities 4 6 4 15

Re-measurementofdefinedbenefitliability — — — 14

Totalcomprehensiveincomeattributabletoshareholders 718 219 1,170 1,072

Earningsattributabletocommonshareholders,netofpreferredsharedividends 554 284 1,054 783

Earningspercommonshare–basic(dollars) 1.01 0.52 1.92 1.42

Earningspercommonshare–diluted(dollars) 1.01 0.52 1.91 1.42

Weightedaveragenumberofcommonshares(millions)

Basic 550 550 550 550

Diluted 551 550 551 550



CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFCHANGESINEQUITY(unaudited)

AttributabletoShareholdersoftheCompany TotalEquity

(RestatedNote2)($millions)

CommonShareCapital

PreferredShareCapital

Deficit(RestatedNote2) AOCI(1)

Total(RestatedNote2)

Non-Controlling

Interest

December31,2020 15,644 2,946 (3,637) 2 14,955 60 15,015

Totalcomprehensiveincome

Earnings — — 1,162 — 1,162 — 1,162

Othercomprehensiveincome(Note13) — — — 8 8 — 8

Totalcomprehensiveincome — — 1,162 8 1,170 — 1,170

TransactionswithshareholdersoftheCompany

PartVI.1taxonpreferredshares(Note8) — (7) — — (7) — (7)

Preferredsharesredemption(Note8) — (420) — — (420) — (420)

Share-basedpaymenttransactions(Note8) 26 — — — 26 — 26

Dividendsdeclared–common(Note8) — — (1,040) — (1,040) — (1,040)

Dividendsdeclared–preferred(Note8) — — (102) — (102) — (102)

TotaltransactionswithshareholdersoftheCompany 26 (427) (1,142) — (1,543) — (1,543)

September30,2021 15,670 2,519 (3,617) 10 14,582 60 14,642

OpeningvalueJanuary1,2020 15,539 2,956 (1,785) 98 16,808 60 16,868

Totalcomprehensiveincome

Earnings — — 900 — 900 — 900

Othercomprehensiveincome

Exchangegainontranslationofforeignoperations — — — 158 158 — 158

Remeasurementsofdefinedbenefitliability,netoftax — — — 14 14 — 14

Totalcomprehensiveincome — — 900 172 1,072 — 1,072

TransactionswithshareholdersoftheCompany

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

Share-basedpaymenttransactions 99 — — — 99 — 99

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

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

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

September30,2020 15,638 2,951 (2,037) 270 16,822 60 16,882(1) AccumulatedOtherComprehensiveIncome(loss)("AOCI").



CONDENSEDCONSOLIDATEDINTERIMSTATEMENTSOFCASHFLOWS(unaudited)


($millions) 20212020

(RestatedNote2) 20212020

(RestatedNote2)

Cashprovidedby(usedin)

Operatingactivities

Earnings 588 323 1,162 900

Adjustmentsfor:

Shareofprofitfromequityaccountedinvestees (75) (62) (198) (212)


Depreciationandamortization 180 175 543 520

Impairmentexpense — — 35 —

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments (47) 6 (43) (2)

Netfinancecosts(Note11) 144 82 343 361

Netinterestpaid (136) (124) (333) (297)

Incometaxexpense 193 111 370 331

Taxespaid (69) (90) (265) (290)

Share-basedcompensationexpense 20 4 77 8

Share-basedcompensationpayment — (1) (32) (45)

Netchangeincontractliabilities (9) (7) 10 35

Other 11 (5) 21 (5)

Changeinnon-cashoperatingworkingcapital 7 (89) (70) (168)

Cashflowfromoperatingactivities 913 434 1,953 1,486

Financingactivities

Net(decrease)increaseinbankborrowings (278) 432 (92) (472)

Proceedsfromissuanceoflong-termdebt,netofissuecosts — — 593 1,567

Repaymentoflong-termdebt — (200) (250) (273)

Repaymentofleaseliability (23) (26) (64) (69)

Exerciseofstockoptions 3 5 6 88

Redemptionofpreferredshares — — (420) —

Dividendspaid (377) (384) (1,142) (1,146)

Cashflowusedinfinancingactivities (675) (173) (1,369) (305)

Investingactivities

Capitalexpenditures (209) (174) (482) (868)

Contributionstoequityaccountedinvestees (18) (28) (30) (202)

Acquisitions(Note5) (4) — (41) —

Receiptoffinanceleasepayments 2 2 8 7

Interestpaidduringconstruction (5) (10) (19) (36)

Recoveryofassetsorproceedsfromsale — (1) 12 1

Advancestorelatedparties 1 (10) (9) (32)

Changesinnon-cashinvestingworkingcapitalandother 47 (81) (1) (140)

Cashflowusedininvestingactivities (186) (302) (562) (1,270)

Changeincashandcashequivalents 52 (41) 22 (89)

Effectofmovementinexchangeratesoncashheld 3 (1) 9 (9)

Cashandcashequivalents,beginningofperiod 57 73 81 129

Cashandcashequivalents,endofperiod 112 31 112 31



NOTESTOTHECONDENSEDCONSOLIDATEDUNAUDITEDINTERIMFINANCIALSTATEMENTS

1.REPORTINGENTITY

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

serviceproviderservingNorthAmerica'senergyindustry.Pembinaownsanintegratedsystemofpipelinesthattransport

varioushydrocarbonliquidsandnaturalgasproductsproducedprimarilyinwesternCanada.Pembinaalsoownsgasgathering

andprocessingfacilitiesandanoilandnaturalgasliquidsinfrastructure,storageandlogisticsbusiness;andisgrowingan

exportterminalsbusiness.Pembina'sintegratedassetsandcommercialoperationsalongthemajorityofthehydrocarbon

valuechain,allowittoofferafullspectrumofmidstreamandmarketingservicestotheenergysector.

Thesecondensedconsolidatedunauditedinterimfinancialstatements("InterimFinancialStatements")includetheaccounts

oftheCompany,itssubsidiarycompanies,partnershipsandanyinvestmentsinassociatesandjointarrangementsasatand

forthethreeandninemonthsendedSeptember30,2021.TheseInterimFinancialStatementsandthenotesheretohave

beenpreparedinaccordancewithInternationalAccountingStandard34,InterimFinancialReporting("IAS34"),asissuedby

theInternationalAccountingStandardsBoard("IASB").TheaccountingpoliciesappliedareinaccordancewithInternational

FinancialReportingStandards("IFRS")andareconsistentwiththeauditedannualconsolidatedfinancialstatementsofthe

CompanyasatandfortheyearendedDecember31,2020("ConsolidatedFinancialStatements")andshouldbereadin

conjunctionwiththoseConsolidatedFinancialStatements.TheInterimFinancialStatementswereauthorizedforissueby

Pembina'sBoardofDirectorsonNovember4,2021.

Certaininsignificantcomparativeamountshavebeenreclassifiedtoconformtothepresentationadoptedinthecurrentyear.

UseofEstimatesandJudgments

Managementisrequiredtomakeestimatesandassumptionsandusejudgmentintheapplicationofaccountingpoliciesthat

couldhaveasignificantimpactontheamountsrecognizedintheInterimFinancialStatements.Actualresultsmaydifferfrom

estimatesandthosedifferencesmaybematerial.Bytheirnature,judgmentsandestimatesmaychangeinlightofnewfacts

andcircumstancesintheinternalandexternalenvironment.TherehavebeennomaterialchangestoPembina'scritical

accountingestimatesandjudgmentsduringthethreeandninemonthsendedSeptember30,2021,includingtotheongoing

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


FollowingtheWorldHealthOrganizationdeclaringtheCOVID-19outbreaktobeapandemic,manygovernmentsimposed

restrictionsonindividualsandbusinesses,whichresultedinasignificantslowdownoftheglobaleconomy.Whiletherehave

beenpositivesignalsintothefirstninemonthsof2021incommodityprices,demandrecoveryremainsaffectedbytheon-

goingCOVID-19pandemic.Althoughrestrictionshavebeenrelaxedincertainjurisdictionsandvaccinationprogramsare

underway,thereremainssignificantuncertaintyastotheglobaleconomicoutlookandthereremainsthepotentialfor

volatilityintheglobaleconomyasaresultoftheCOVID-19pandemic.Managementconsideredtheseuncertaintieswhen

applyingjudgmenttoestimatesandassumptionsintheInterimFinancialStatements.


2.CHANGESINACCOUNTINGPOLICIES&RESTATEMENT

Voluntarychangeinaccountingpolicy

AsdetailedinNote3oftheConsolidatedFinancialStatements,Pembinavoluntarilychangeditsaccountingpolicyforthe

measurementofdecommissioningliabilitiestoutilizeacredit-adjustedrisk-freeinterestrateinsteadofarisk-freeinterest

ratetodeterminethepresentvalueoftheliabilityateachstatementoffinancialpositiondate.Thisaccountingpolicychange

wasappliedretrospectively,includingtherestatementofcertaincomparativeamountsintheInterimFinancialStatements,as

summarizedbelow.

Restatementofrevenueandcostofgoodssold

DuringthethirdquarterPembinaidentifiedcertaincrudecontractsthatwererecordedincorrectlywithinMarketing&New

Ventures.Revenueandcostofgoodssoldassociatedwiththecontractswererecordedonagrossbasisbutshouldhavebeen

recordedonanetbasis.AsaresultPembinarestatedcomparativeperiodsdecreasingrevenueandcostofgoodssold,withno

impacttoearnings,cashflowsorfinancialposition.

i. ReconciliationoftheCondensedConsolidatedInterimStatementsofEarningsandComprehensiveIncome

($millions)


Previouslyreported

Policychange


Previouslyreported

Policychange


Revenue 1,569 — (73) 1,496 4,508 — (235) 4,273

Costofsales 1,068 (4) (73) 991 3,033 (12) (235) 2,786

Shareofprofitfromequityaccountedinvestees 61 1 — 62 209 3 — 212

Grossprofit 563 5 — 568 1,746 15 — 1,761

Netfinancecosts 83 (1) — 82 364 (3) — 361

Earningsbeforeincometax 428 6 — 434 1,213 18 — 1,231

Deferredtaxexpense 58 1 — 59 133 3 — 136

Earningsattributabletoshareholders 318 5 — 323 885 15 — 900

Totalcomprehensiveincomeattributabletoshareholders 214 5 — 219 1,057 15 — 1,072

Earningsattributabletocommonshareholders,netofpreferredsharedividends 279 5 — 284 768 15 — 783

Earningspercommonshare-basicanddiluted 0.51 0.01 — 0.52 1.39 0.03 — 1.42

ii. ReconciliationoftheCondensedConsolidatedInterimStatementofCashFlows

($millions)


Previouslyreported


Previouslyreported


Earnings 318 5 323 885 15 900

Shareofprofitfromequityaccountedinvestees (61) (1) (62) (209) (3) (212)

Adjustmentsfordepreciationandamortization 179 (4) 175 532 (12) 520

Adjustmentsfornetfinancecosts 83 (1) 82 364 (3) 361

Adjustmentsforincometaxexpense 110 1 111 328 3 331

Cashflowfromoperatingactivities 434 — 434 1,486 — 1,486


3.DETERMINATIONOFFAIRVALUES

AnumberoftheCompany'saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalueforbothfinancialand

non-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbasedon

themethodssetoutintheConsolidatedFinancialStatements.Thesemethodshavebeenappliedconsistentlytoallperiods

presentedintheseInterimFinancialStatements.


Measuringfairvaluesusingsignificantunobservableinputshasbecomemorechallenginginthecurrentenvironment,where

eventsandconditionsrelatedtotheCOVID-19pandemicaredrivingsignificantdisruptionofbusinessoperationsanda

significantincreaseineconomicuncertainty.Managementapplieditsjudgmentindeterminingtheimpactofthesignificant

uncertaintiescreatedbytheseeventsandconditionsontheassessedfairvaluesofassetsandliabilitiesintheInterim

FinancialStatements.

4.PROPERTY,PLANTANDEQUIPMENT

($millions)Landand

LandRights PipelinesFacilitiesandEquipment

CavernStorageand

OtherAssetsUnder

Construction(1)(2) Total

Cost

BalanceatDecember31,2020 429 9,206 8,907 1,993 1,109 21,644

Additionsandtransfers 12 98 445 128 (300) 383

Changeindecommissioningprovision — 4 6 5 — 15

Disposalsandother (1) (20) (14) (23) (9) (67)

Foreignexchange — 3 5 — — 8

BalanceatSeptember30,2021 440 9,291 9,349 2,103 800 21,983

Depreciation

BalanceatDecember31,2020 21 1,547 1,118 409 — 3,095

Depreciation 4 143 171 62 — 380

Disposalsandother — (7) (10) (10) — (27)

BalanceatSeptember30,2021 25 1,683 1,279 461 — 3,448

Carryingamounts

BalanceatDecember31,2020 408 7,659 7,789 1,584 1,109 18,549

BalanceatSeptember30,2021 415 7,608 8,070 1,642 800 18,535

Assetssubjecttooperatingleases

December31,2020 8 300 496 170 — 974

September30,2021 8 298 466 163 — 935(1) Includescapitalizedborrowingcosts.(2) AtSeptember30,2021,themovementinAssetsUnderConstructionincludes$89millioninassetstransferredtonetinvestmentlease.


5.INVESTMENTSINEQUITYACCOUNTEDINVESTEES

OwnershipInterest(percent)

ShareofProfitfromEquityAccountedInvestees

InvestmentsinEquityAccountedInvestees9MonthsEndedSeptember30

($millions) September30,2021 December31,2020 20212020

(RestatedNote2) September30,2021 December31,2020

Alliance 50 50 81 82 2,421 2,498

AuxSable 42.7-50 42.7-50 44 (5) 381 401

Ruby(1) — — 13 93 — —

VeresenMidstream 45 45 57 37 1,368 1,374

CKPC 50 50 — 3 — —

CedarLNG 49.9 — — — 129 —

Other(2) 50-75 50-75 3 2 80 104

198 212 4,379 4,377(1) Pembinaownsa50percentconvertiblepreferredinterestinRuby.(2) OtherincludesPembina'sinterestinGrandValleyandFortCorp.

AtSeptember30,2021,PembinahadU.S.$1.3billionininvestmentsinequityaccountedinvesteesheldbyentitieswhose

functionalcurrencyistheU.S.dollar.Theresultingforeignexchangegainsandlossesareincludedinothercomprehensive

income.ForthethreeandninemonthsendedSeptember30,2021,Pembinarecognizedagainof$48millionandagainof$5

million(2020:$60millionlossand$78milliongain),respectively.

CedarLNGAcquisition

OnJune4,2021,Pembinaacquireda49.9percentinterestinajointventurewiththeHaislaNationtodeveloptheCedarLNG

Project,aLNGfacilitylocatedonthecoastofBritishColumbiawithintheDouglasChannelonHaisla-ownedland.Pembina's

investmentof$129millionatSeptember30,2021included$76millionofaccruedcontingentconsiderationpayableon

achievementofcertainconditions.Underthetermsoftheagreement,Pembinahascommitmentstomakeadditional

paymentsonapositivefinalinvestmentdecisionaswellascontributionstofunddevelopmentcostsandannualoperating

budgets.

ImpairmentofEquityAccountedInvestees

DuringtheninemonthsendedSeptember30,2021,PembinarecognizedU.S.$8millioninimpairmentassociatedwithan

advancemadetoRubyinJanuaryof2021andduringJune2021,Pembinarecognizedanimpairmentchargeof$22millionon

itsinterestinFortCorp.Theimpairmentchargewastheresultofanassessmenttriggeredbyareductioninthecontracted

capacitybyakeycustomeroncertainFortCorpassets.

FinancingActivitiesforEquityAccountedInvestees

OnApril19,2021,Rubyfullyrepaidthe$16millionoutstandingonitstermloan.


6.LEASES

LesseeLeases

Pembinaentersintoarrangementstosecureaccesstoassetsnecessaryforoperatingthebusiness.Leased(right-of-use)

assetsincludeterminals,rail,buildings,landandotherassets.Totalcashoutflowsrelatedtoleaseswere$31millionand$96

million,respectively,forthethreeandninemonthsendedSeptember30,2021(2020:$34millionand$98million).

Right-of-UseAssets

($millions) Terminals Rail Buildings Land&Other Total

BalanceatDecember31,2020 213 221 121 96 651

Additionsandadjustments 2 1 39 18 60

Disposalsandother — (3) — (8) (11)

Amortization (16) (31) (14) (9) (70)

BalanceatSeptember30,2021 199 188 146 97 630

LessorLeases

Pembinahasenteredintocontractsfortheuseofitsassetsthathaveresultedinleasetreatmentforaccountingpurposes.

Assetsunderoperatingleasesincludepipelines,terminalsandstorageassets.SeeNote4forcarryingvalueofproperty,plant

andequipmentunderoperatingleases.Assetsunderfinanceleasesincludepipelines,terminals,storageassetsandofficesub-

leases.

MaturityofLeaseReceivables

AsatSeptember30,2021

($millions) OperatingLeases FinanceLeases

Lessthanoneyear 145 32

Onetotwoyears 142 31

Twotothreeyears 125 31

Threetofouryears 110 31

Fourtofiveyears 108 31

Morethanfiveyears 752 327

Totalundiscountedleasereceipts 1,382 483

Unearnedfinanceincomeonleasereceipts (276)

Discountedunguaranteedresidualvalue 15

Financeleasereceivable 222

Lesscurrentportion(1) (9)

Totalnon-current 213(1) IncludedintradereceivablesandotherontheCondensedConsolidatedInterimStatementofFinancialPosition.


7.LONG-TERMDEBT

ThisnoteprovidesinformationaboutthecontractualtermsofPembina'sinterest-bearinglong-termdebt,whichare

measuredatamortizedcost.

CarryingValue,TermsandConditions,andDebtMaturitySchedule

($millions)Authorizedat

September30,2021Nominal

InterestRateYearof

Maturity September30,2021 December31,2020

Loansandborrowings

Seniorunsecuredcreditfacilities(1)(3)(4) 3,339 1.26(2) Various(1) 1,440 1,530

Seniorunsecuredmedium-termnotesseries1 — 4.89 2021 — 250

Seniorunsecuredmedium-termnotesseries2 450 3.77 2022 450 449















Seniorunsecuredmedium-termnotesseries3A 50 5.05 2022 50 51

Seniorunsecuredmedium-termnotesseries5A 350 3.43 2021 350 350

Totalloansandborrowings 10,534 10,876

Lesscurrentportionloansandborrowings (900) (600)

Totalnon-currentloansandborrowings 9,634 10,276

Subordinatedhybridnotes

Subordinatednotes,series1 600 4.80 2081 594 —

CarryingValue

(1) Pembina'sunsecuredcreditfacilitiesincludea$2.5billionrevolvingfacilitythatmaturesinJune2026,a$500millionnon-revolvingtermloanthatmaturesinAugust2022,aU.S.$250millionnon-revolvingtermloanthatmaturesinMay2025anda$20millionoperatingfacilitythatmaturesinMay2022,whichistypicallyrenewedonanannualbasis.

(2) ThenominalinterestrateistheweightedaverageofalldrawncreditfacilitiesbasedonPembina'screditratingatSeptember30,2021.Borrowingsunderthecreditfacilitiesbearinterestatprime,Bankers'Acceptance,orLIBORrates,plusapplicablemargins.

(3) IncludesU.S.$250millionvariableratedebtoutstandingatSeptember30,2021(December31,2020:U.S.$250million).(4) TheU.S.dollardenominatednon-revolvingtermloanisdesignatedasahedgeoftheCompany’snetinvestmentinselectedforeignoperationswithaU.S.dollarfunctional

currency.RefertoNote14forforeignexchangeriskmanagement.

OnJanuary25,2021,Pembinacloseda$600millionofferingofFixed-to-FixedRateSubordinatedHybridNotes(the"Series1

SubordinatedNotes").TheSeries1SubordinatedNoteshaveafixed4.80percentinterestrate,payablesemi-annually,which

resetsonJanuary25,2031,andoneveryfifthanniversarythereafter,basedonthefive-yearGovernmentofCanadayield

plus:(i)4.17percentfortheperiodfrom,andincluding,January25,2031to,butexcludingJanuary25,2051;and(ii)4.92

percentfortheperiodfrom,andincluding,January25,2051to,butexcludingJanuary25,2081.TheSeries1Subordinated

NotesaresubjecttooptionalredemptionbyPembinafromOctober25,2030toJanuary25,2031andonanyinterest

paymentdateoranyinterestresetdate,asapplicable.PembinamayalsoredeemtheSeries1SubordinatedNotesincertain

otherlimitedcircumstances.FollowingtheoccurrenceofcertainbankruptcyorinsolvencyeventsinrespectofPembina,

subjecttocertainexceptions,theSeries2021-AClassAPreferredShares(asdefinedbelow)willbedeliveredtotheholdersof

theSeries1SubordinatedNotestosatisfyPembina'sobligationsundertheindenturegoverningtheSeries1Subordinated

Notes.UpondeliveryoftheSeries2021-AClassAPreferredShares,theSeries1SubordinatedNoteswillbeimmediatelyand

automaticallysurrenderedandcancelledandallrightsofanyholdersoftheSeries1SubordinatedNoteswillautomatically

cease.Thefairvalueoftheautomaticdeliveryfeaturewasassessedasnominalatinception.


OnApril30,2021,Pembinacompletedanextensiononits$2.5billionrevolvingcreditfacility,whichnowmaturesonJune1,

2026.

8.SHARECAPITAL

CommonShareCapital

($millions,exceptasnoted)

NumberofCommonShares

(millions)Common

ShareCapital

BalanceatDecember31,2020 550 15,644

Share-basedpaymenttransactions — 26

BalanceatSeptember30,2021 550 15,670

OnFebruary25,2021,theTorontoStockExchange("TSX")acceptedtheCompany'snoticeofintentiontocommenceanormal

courseissuerbid("NCIB")thatallowstheCompanytorepurchase,atitsdiscretion,uptoapproximately27.5millioncommon

sharesthroughthefacilitiesoftheTSX,theNewYorkStockExchangeand/oralternativeCanadiantradingsystemsoras

otherwisepermittedbyapplicablesecuritieslaw,subjecttocertainrestrictionsonthenumberofcommonsharesthatmaybe

purchasedonasingleday.CommonsharespurchasedbytheCompanywillbecancelled.TheprogramcommencedMarch2,

2021andwillterminateonMarch1,2022oronsuchearlierdateastheCompanycompletesitspurchasespursuanttothe

noticeofintention.NocommonshareswerepurchasedbyPembinaduringtheninemonthsendedSeptember30,2021.

PreferredShareCapital

($millions,exceptasnoted)

NumberofPreferredShares

(millions)Preferred

ShareCapital

BalanceatDecember31,2020 122 2,946

ClassA,Series11Preferredsharesredeemed,netofissuecosts (7) (170)

ClassA,Series13Preferredsharesredeemed,netofissuecosts (10) (250)

PartVI.1tax — (7)

BalanceatSeptember30,2021 105 2,519

OnJanuary25,2021inconnectionwiththeofferingoftheSeries1SubordinatedNotes,Pembinaissued600,000Series2021-

AClassAPreferredShares,toComputershareTrustCompanyofCanada,tobeheldintrustastreasurysharestosatisfy

Pembina'sobligationsundertheindenturegoverningtheSeries1SubordinatedNotes.

OnMarch1,2021,Pembinaredeemedallofthe6.8millionissuedandoutstandingCumulativeRedeemableMinimumRate


Series11ClassAPreferredShare.

OnJune1,2021,Pembinaredeemedallofthe10millionissuedandoutstandingCumulativeRedeemableMinimumRate


Series13ClassAPreferredShares.


Dividends

ThefollowingdividendsweredeclaredbyPembina:


($millions) 2021 2020

Commonshares

$1.89percommonshare(2020:$1.89) 1,040 1,039

ClassApreferredshares

$0.92perSeries1ClassAPreferredShare(2020:$0.92) 9 9













102 113

OnOctober5,2021,PembinaannouncedthatitsBoardofDirectorshaddeclaredamonthlydividendof$0.21percommon

shareinthetotalamountof$116million,payableonNovember15,2021toshareholdersofrecordonOctober25,2021.

Pembina'sBoardofDirectorsalsodeclaredquarterlydividendsforPembina'sClassApreferredsharesasoutlinedinthe

followingtable:

Series RecordDate PayableDate PerShareAmountDividendAmount

($millions)

Series1 November1,2021 December1,2021 $0.306625 3





Series15 December15,2021 December31,2021 $0.279000 2




Series23 November1,2021 November15,2021 $0.328125 4

Series25 November1,2021 November15,2021 $0.325000 3


9.REVENUE

Revenuehasbeendisaggregatedintocategoriestoreflecthowthenature,timinganduncertaintyofrevenueandcashflows

areaffectedbyeconomicfactors.

a. RevenueDisaggregation

2021 2020


Pipelines Facilities

Marketing&New

Ventures Total Pipelines Facilities

Marketing&New

Ventures Total($millions)

Take-or-pay(1) 419 183 — 602 428 197 — 625

Fee-for-service(1) 76 36 — 112 55 22 — 77

Productsales(2)(3) — — 1,393 1,393 — — 752 752

Revenuefromcontractswithcustomers 495 219 1,393 2,107 483 219 752 1,454

Operationalfinanceleaseincome 5 1 — 6 3 — — 3

Fixedoperatingleaseincome 27 9 — 36 31 8 — 39

Totalexternalrevenue 527 229 1,393 2,149 517 227 752 1,496(1) Revenuerecognizedovertime.(2) Revenuerecognizedatapointintime.(3) Comparative2020periodhasbeenrestated.SeeNote2totheInterimFinancialStatements.

2021 2020


Pipelines Facilities

Marketing&New

Ventures Total Pipelines Facilities

Marketing&New

Ventures Total($millions)

Take-or-pay(1) 1,207 547 — 1,754 1,206 556 — 1,762

Fee-for-service(1) 248 112 — 360 220 80 — 300

Productsales(2)(3) — — 3,827 3,827 — — 2,074 2,074

Revenuefromcontractswithcustomers 1,455 659 3,827 5,941 1,426 636 2,074 4,136

Operationalfinanceleaseincome 13 1 — 14 11 — — 11

Fixedoperatingleaseincome 85 27 — 112 100 26 — 126

Totalexternalrevenue 1,553 687 3,827 6,067 1,537 662 2,074 4,273(1) Revenuerecognizedovertime.(2) Revenuerecognizedatapointintime.(3) Comparative2020periodhasbeenrestated.SeeNote2totheInterimFinancialStatements.

b. ContractLiabilities

Significantchangesinthecontractliabilitiesbalancesduringtheperiodareasfollows:

9MonthsEndedSeptember30,2021 12MonthsEndedDecember31,2020

($millions) Take-or-Pay

OtherContractLiabilities

TotalContractLiabilities Take-or-Pay

OtherContractLiabilities

TotalContractLiabilities

Openingbalance 3 289 292 8 223 231

Additions(netintheperiod) 18 45 63 3 117 120

Revenuerecognizedfromcontractliabilities(1) — (57) (57) (8) (51) (59)

Closingbalance 21 277 298 3 289 292

Lesscurrentportion(2) (21) (57) (78) (3) (59) (62)

Endingbalance — 220 220 — 230 230(1) Recognitionofrevenuerelatedtoperformanceobligationssatisfiedinthecurrentperiodthatwereincludedintheopeningbalanceofcontractliabilities.(2) AsatSeptember30,2021,thebalanceincludes$21millionofcashcollectedundertake-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.

10.OTHERINCOME

ForthethreeandninemonthsendedSeptember30,2021,otherincomeincludes$350millionassociatedwithPembina's

terminationofthearrangementagreementprovidingfortheproposedacquisitionbyPembinaofInterPipelineLtd.

11.NETFINANCECOSTS


($millions) 20212020(Restated

Note2) 2021

2020(RestatedNote

2)

Interestexpenseonfinancialliabilitiesmeasuredatamortizedcost:

Long-termdebt 97 91 292 269

Leases 9 9 27 29

Unwindingofdiscountrate 4 4 12 11

Loss(gain)infairvalueofnon-commodity-relatedderivativefinancialinstruments 8 (11) 16 11

Foreignexchangelosses(gains)andother 26 (11) (4) 41

Netfinancecosts 144 82 343 361


12.OPERATINGSEGMENTS

Pembina'soperatingsegmentsareorganizedbythreedivisions:Pipelines,FacilitiesandMarketing&NewVentures.

3MonthsEndedSeptember30,2021

Pipelines(1) FacilitiesMarketing&

NewVentures(2)

Corporate&Inter-segmentEliminations Total($millions)

Revenuefromexternalcustomers 527 229 1,393 — 2,149

Inter-segmentrevenue 39 112 — (151) —

Totalrevenue(3) 566 341 1,393 (151) 2,149

Operatingexpenses 140 121 — (74) 187

Costofgoodssold,includingproductpurchases — 1 1,268 (81) 1,188

Depreciationandamortizationincludedinoperations 100 56 13 2 171

Costofsales 240 178 1,281 (153) 1,546

Realized(gain)lossoncommodity-relatedderivativefinancialinstruments — (2) 45 — 43

Shareofprofitfromequityaccountedinvestees 21 23 31 — 75

Unrealizedgainoncommodity-relatedderivativefinancialinstruments — (45) (2) — (47)

Grossprofit 347 233 100 2 682

Depreciationincludedingeneralandadministrative — — — 9 9

Othergeneralandadministrative 9 4 7 39 59

Otherexpense(income) 1 10 — (322) (311)

Impairmentexpense — — — — —

Reportablesegmentresultsfromoperatingactivities 337 219 93 276 925

Netfinancecosts 8 12 2 122 144

Reportablesegmentearningsbeforetax 329 207 91 154 781

Capitalexpenditures 174 26 3 6 209

Contributionstoequityaccountedinvestees — 18 — — 18



NewVentures(2)

Corporate&Inter-segmentEliminations Total

(RestatedNote2)

($millions)

Revenuefromexternalcustomers 517 227 752 — 1,496


Totalrevenue(3) 557 311 752 (124) 1,496


Costofgoodssold,includingproductpurchases — 3 720 (76) 647


Costofsales 232 151 732 (124) 991

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

Shareofprofit(loss)fromequityaccountedinvestees 56 11 (5) — 62

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

Grossprofit 381 182 5 — 568



Other(income)expense (4) — 1 (1) (4)

Reportablesegmentresultsfromoperatingactivities 379 180 (5) (38) 516

Netfinancecosts(income) 8 5 (7) 76 82

Reportablesegmentearnings(loss)beforetax 371 175 2 (114) 434


Contributionstoequityaccountedinvestees — 28 — — 28(1) Pipelinestransportationrevenueincludes$48million(2020:$62million)associatedwithU.S.pipelinerevenue.(2) Marketing&NewVenturesincludesrevenueof$57million(2020:$33million)associatedwithU.S.midstreamsales.(3) DuringthethreemonthsendedSeptember30,2021and2020,noonecustomeraccountedfor10percentormoreoftotalrevenuesreportedthroughoutallsegments.




NewVentures(2)

Corporate&Inter-segmentEliminations Total($millions)

Revenuefromexternalcustomers 1,553 687 3,827 — 6,067


Totalrevenue(3) 1,673 1,014 3,827 (447) 6,067




Costofsales 721 509 3,501 (449) 4,282

Realized(gain)lossoncommodity-relatedderivativefinancialinstruments — (2) 166 — 164

Shareofprofitfromequityaccountedinvestees 95 59 44 — 198

Unrealized(gain)lossoncommodity-relatedderivativefinancialinstruments — (62) 19 — (43)

Grossprofit 1,047 628 185 2 1,862



Otherexpense(income) 2 10 — (294) (282)

Impairmentexpense 10 22 3 — 35

Reportablesegmentresultsfromoperatingactivities 1,010 585 160 120 1,875

Netfinancecosts(income) 23 30 (7) 297 343

Reportablesegmentearnings(loss)beforetax 987 555 167 (177) 1,532


Contributionstoequityaccountedinvestees — 29 1 — 30



NewVentures(2)

Corporate&Inter-segmentEliminations Total

(RestatedNote2)

($millions)

Revenuefromexternalcustomers 1,537 662 2,074 — 4,273


Totalrevenue(3) 1,648 905 2,074 (354) 4,273




Costofsales 662 437 2,043 (356) 2,786

Realizedgainoncommodity-relatedderivativefinancialinstruments — — (60) — (60)

Shareofprofit(loss)fromequityaccountedinvestees 173 41 (2) — 212

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

Grossprofit 1,159 523 77 2 1,761



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

Reportablesegmentresultsfromoperatingactivities 1,144 515 40 (107) 1,592

Netfinancecosts 24 16 2 319 361

Reportablesegmentearnings(loss)beforetax 1,120 499 38 (426) 1,231


Contributionstoequityaccountedinvestees — 69 155 — 224(1) Pipelinestransportationrevenueincludes$154million(2020:$170million)associatedwithU.S.pipelinerevenue.(2) Marketing&NewVenturesincludesrevenueof$181million(2020:$98million)associatedwithU.S.midstreamsales.(3) DuringtheninemonthsendedSeptember30,2021and2020,noonecustomeraccountedfor10percentormoreoftotalrevenuesreportedthroughoutallsegments.


13.ACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)

($millions)

CurrencyTranslation

Reserve

CashFlowHedge

Reserve

PensionandotherPost-RetirementBenefitPlan

Adjustments(2) Total

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

BalanceatDecember31,2020 48 — (46) 2

Othercomprehensivegainbeforehedgingactivities 4 — — 4

Othercomprehensive(loss)gainresultingfromhedgingactivities(1) (1) 5 — 4

BalanceatSeptember30,2021 51 5 (46) 10(1) AmountsrelatetohedgesoftheCompany'snetinvestmentinforeignoperations(reportedinCurrencyTranslationReserve)andinterestratederivativesdesignatedascash

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

14.FINANCIALINSTRUMENTS&RISKMANAGEMENT

RiskManagement

Pembina'sriskmanagementstrategies,policiesandlimits,ensurerisksandexposuresarealignedtoitsbusinessstrategyand

risktolerance.Pembina'sBoardofDirectorsisresponsibleforprovidingriskmanagementoversightatPembinaandoversees

howmanagementmonitorscompliancewithPembina'sriskmanagementpoliciesandproceduresandreviewstheadequacy

ofthisriskframeworkinrelationtotherisksfacedbyPembina.

Pembina'sfinancialrisksareconsistentwiththosediscussedinNote27oftheConsolidatedFinancialStatements.Pembina

hasexposuretocounterpartycreditrisk,liquidityriskandmarketrisk.AsatSeptember30,2021,theCompanyhasentered

intocertainfinancialderivativecontractsinordertomanagecommodityprice,foreignexchangeandinterestraterisk.These

instrumentsarenotusedfortradingorspeculativepurposes.

FairValues

Thefairvaluesoffinancialassetsandliabilities,togetherwiththecarryingamountsshowninthecondensedconsolidated

interimstatementsoffinancialposition,areshowninthetablebelow.Certainnon-derivativefinancialinstrumentsmeasured

atamortizedcostincludingcashandcashequivalents,tradereceivablesandother,financeleasereceivables,advancesto

relatedpartiesandtradepayablesandotherhavebeenexcludedbecausetheyhavecarryingamountsthatapproximatetheir

fairvalueduetothenatureoftheitemortheshorttimetomaturity.TheseinstrumentswouldbeclassifiedinLevel2ofthe

fairvaluehierarchy.

September30,2021 December31,2020

CarryingValue

FairValue(1) CarryingValue

FairValue(1)

($millions) Level1 Level2 Level3 Level1 Level2 Level3

Financialassetscarriedatfairvalue

Derivativefinancialinstruments(3) 129 — 129 — 53 — 53 —

Financialliabilitiescarriedatfairvalue

Derivativefinancialinstruments(3) 124 — 124 — 69 — 69 —

Financialliabilitiescarriedatamortizedcost

Long-termdebt(2) 11,128 — 11,688 — 10,876 — 11,902 —(1) ThebasisfordeterminingfairvalueisdisclosedinNote3.(2) Carryingvalueofcurrentandnon-currentbalances.Includesloansandborrowingsandsubordinatedhybridnotes.(3) AtSeptember30,2021allderivativefinancialinstrumentsarecarriedatfairvaluethroughearnings,exceptfor$5millionininterestratederivativefinancialassetsthathave

beendesignatedascashflowhedges.


Pembina'sfinancialinstrumentsclassifiedinlevel2ofthefairvaluehierarchyarevaluedusinginputsthatincludequoted

forwardpricesforcommodities,timevalueandvolatilityfactors,whichcanbesubstantiallyobservedorcorroboratedinthe

marketplace.Instrumentsinthiscategoryincludenon-exchangetradedderivativessuchasover-the-counterphysical

forwardsandoptions,includingthosethathavepricessimilartoquotedmarketprices.Pembinaobtainsquotedmarketprices

foritsinputsfrominformationsourcesincludingbanks,BloombergTerminalsandNaturalGasExchange.

Derivativeinstruments

Pembinaentersintoderivativeinstrumentstohedgefuturecashflowsassociatedwithinterestrate,commodity,andforeign

exchangeexposures.Derivativesareconsideredeffectivehedgestotheextentthattheyoffsetthechangesinvalueofthe

hedgeditemortransactionresultingfromaspecifiedriskfactor.Insomecases,eventhoughthederivativesareconsideredto

beeffectiveeconomichedges,theydonotmeetthespecificcriteriaforhedgeaccountingtreatmentandareclassifiedasheld

atfairvaluethroughprofitorloss("FVTPL").

Thefollowingtableisasummaryofthenetderivativefinancialinstruments,whichisconsistentwiththegrossbalances:

September30,2021 December31,2020

($millions)CurrentAsset

Non-CurrentAsset

CurrentLiability

Non-CurrentLiability Total

CurrentAsset

Non-CurrentAsset

CurrentLiability Total

Commodity,power,storageandrailfinancialinstruments 28 94 (109) (11) 2 11 27 (68) (30)

Interestrate — 5 — — 5 — 1 (1) —

Foreignexchange 2 — (3) (1) (2) 14 — — 14

Netderivativefinancialinstruments 30 99 (112) (12) 5 25 28 (69) (16)

NotionalandMaturitySummary

ThematurityandnotionalamountorquantityoutstandingrelatedtoPembina'sderivativeinstrumentsareasfollows:

($millions)Liquids(bpd)

NaturalGas(GJ/d)

Power(GWh)

ForeignExchange

InterestRate

AsatSeptember30,2021

Purchases(1) — 45,918 6,184 — —

Sales(1) 10,113 — — — —

MillionsofU.S.dollars — — — 172 250

Maturitydates 2022 2022 2040 2022 2025

AsatDecember31,2020

Purchases(1)(2) 1,756 73,557 — — —

Sales(1) 25,284 — — — —

MillionsofU.S.dollars — — — 260 250

Maturitydates 2021 2021 2021 2021 2025(1) Barrelsperday("bpd"),gigajoulesperday("GJ/d")andgigawatthours("GWh").(2) AsatDecember31,2020Pembinahadoutstandingpowerpurchasederivativesrepresentingapproximately6megawatthours.


GainsandLossesonDerivativeInstruments

Realizedandunrealizedlosses(gains)onderivativeinstrumentsareasfollows:


($millions) 2021 2020 2021 2020

DerivativeinstrumentsheldatFVTPL(1)

Realizedloss(gain)

Commodity-related 43 (7) 164 (60)

Foreignexchange (2) — (10) 4

Unrealized(gain)loss

Commodity-related (47) 6 (43) (2)

Foreignexchange 8 (11) 16 11

Derivativeinstrumentsinhedgingrelationships(2)

Unrealized(gain)loss

Interestrate (1) — (5) 1(1) Realizedandunrealizedlosses(gains)oncommodityderivativeinstrumentsheldatFVTPLareincludedinloss(gain)oncommodity-relatedderivativefinancialinstrumentsin

theInterimFinancialStatements.Realizedandunrealizedlosses(gains)onforeignexchangederivativeinstrumentsheldatFVTPLareincludedinnetfinancecostsintheInterimFinancialStatements.

(2) Unrealizedlosses(gains)onderivativesindesignatedcashflowhedgingrelationshipsarerecognizedinthecashflowhedgereserveinaccumulatedothercomprehensiveincome,withrealized(gains)lossesbeingreclassifiedtonetfinancecosts.RefertoNote13foramountsreclassified.No(gains)losseshavebeenrecognizedinnetincomerelatingtodiscontinuedcashflowhedges.

Non-DerivativeInstrumentsDesignatedasNetInvestmentHedges

PembinahasdesignatedcertainU.S.dollardenominateddebtasahedgeoftheCompany'snetinvestmentinU.S.dollar

denominatedsubsidiariesandinvestmentsinequityaccountedinvestees.Thedesignateddebthasbeenassessedashaving

noineffectivenessastheU.S.dollardebthasanequalandoppositeexposuretoU.S.dollarfluctuations.Asaresult,allforeign

exchangegainsorlossesonthedebtarereporteddirectlyinothercomprehensiveincome.

ThefollowingbalancesofU.S.dollardebthadbeendesignatedashedges:

($millions) September30,2021 December31,2020

NotionalamountofU.S.debtdesignated(inU.S.dollars) 250 250

CarryingvalueofU.S.debtdesignated 318 317

Maturitydate 2025 2025


15.COMMITMENTSANDCONTINGENCIES

Commitments

PembinahadthefollowingcontractualobligationsoutstandingatSeptember30,2021:

ContractualObligations(1) PaymentsDuebyPeriod

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

Leases(2) 1,010 118 186 155 551

Long-termdebt(3) 16,523 1,366 2,382 2,609 10,166

Constructioncommitments(4) 892 335 48 29 480

Other 543 91 127 68 257

Totalcontractualobligations 18,968 1,910 2,743 2,861 11,454

(1) Pembinaentersintoproductpurchaseagreementsandpowerpurchaseagreementstosecuresupplyforfutureoperations.PurchasepricesofbothNGLandpoweraredependentoncurrentmarketprices.VolumesandpricesforNGLandpowercontractscannotbereasonablydetermined,andtherefore,anamounthasnotbeenincludedinthecontractualobligationsschedule.Productpurchaseagreementsrangefromoneto8yearsandinvolvethepurchaseofNGLproductsfromproducers.Assumingproductisavailable,Pembinahassecuredbetween12and138mbpdofNGLeachyearuptoandincluding2029.Powerpurchaseagreementsrangefromoneto24yearsandinvolvethepurchaseofpowerfromelectricalserviceproviders.Pembinahassecuredupto81megawattsperdayeachyearuptoandincluding2045.

(2) Includesterminals,rail,officespace,landandvehicleleases.(3) Includesloansandborrowings,subordinatedhybridnotesandinterestpaymentsonPembina'sseniorunsecuredmedium-termnotesandsubordinatedhybridnotes.

Excludesdeferredfinancingcosts.(4) Excludingsignificantprojectsthatareawaitingregulatoryapproval,projectswhichPembinaisnotcommittedtoconstruct,andprojectsthatareexecutedbyequity

accountedinvestees.

CommitmentstoEquityAccountedInvestees

Pembinahascommitmentstoprovidecontributionstocertainequityaccountedinvesteesbasedonannualbudgetsapproved

bythejointventurepartnersandcontractualagreements.

Contingencies

Pembina,includingitssubsidiariesanditsinvestmentsinequityaccountedinvestees,aresubjecttovariouslegaland

regulatoryandtaxproceedings,actionsandauditsarisinginthenormalcourseofbusiness.Werepresentourinterests

vigorouslyinallproceedingsinwhichweareinvolved.Legalandadministrativeproceedingsinvolvingpossiblelossesare

inherentlycomplex,andweapplysignificantjudgmentinestimatingprobableoutcomes.Ofmostsignificanceisaclaimfiled

againstAuxSablebyacounterpartytoanNGLsupplyagreement.AuxSablehasfiledStatementsofDefenserespondingto

theclaim.Whilethefinaloutcomeofsuchactionsandproceedingscannotbepredictedwithcertainty,atthistime

managementbelievesthattheresolutionsofsuchactionsandproceedingswillnothaveamaterialimpactonPembina's

financialpositionorresultsofoperations.

LettersofCredit

Pembinahasprovidedlettersofcredittovariousthirdpartiesinthenormalcourseofconductingbusiness.Thelettersof

creditincludefinancialguaranteestocounterpartiesforproductpurchasesandsales,transportationservices,utilities,

engineeringandconstructionservices.Thelettersofcredithavenothadandarenotexpectedtohaveamaterialimpacton

Pembina'sfinancialposition,earnings,liquidityorcapitalresources.AsatSeptember30,2021,Pembinahad$166million

(December31,2020:$91million)inlettersofcreditissued.


HEADOFFICEPembinaPipelineCorporation

Suite4000,585-8thAvenueSW

Calgary,AlbertaT2P1G1

AUDITORSKPMGLLP

CharteredProfessionalAccountants

Calgary,Alberta

TRUSTEE,REGISTRAR&TRANSFERAGENTComputershareTrustCompanyofCanada

Suite600,530-8thAvenueSW

Calgary,AlbertaT2P3S8

1.800.564.6253

STOCKEXCHANGEPembinaPipelineCorporation

TorontoStockExchangelistingsymbolsfor:COMMONSHARESPPL

PREFERREDSHARESPPL.PR.A,PPL.PR.C,PPL.PR.E,PPL.PR.G,PPL.PR.I,PPL.PR.O,PPL.PR.Q,PPL.PR.S,PPL.PF.A,PPL.PF.CandPPL.PF.E

NewYorkStockExchangelistingsymbolfor:COMMONSHARESPBA

INVESTORINQUIRIESPHONE403.231.3156

FAX403.237.0254

TOLLFREE1.855.880.7404EMAILinvestor-relations@pembina.comWEBSITEwww.pembina.com

Documents

Q3 2021 Interim Report