Pembina Pipeline acquired Provident, got new credit facility in Q1

By Lisa Kerner

Charlotte, N.C., May 4 - Pembina Pipeline Corp. chief executive officer Bob Michaleski called the company's 2012 first quarter a "milestone" that included strong results and preparation for the acquisition of Provident Energy Ltd. on April 2.

"Each of our businesses have progressed their expansion plans while simultaneously reporting higher operating and financial metrics in their existing operations," Michaleski said during the company's earnings conference call on Friday.

"All of this gives us tremendous confidence in our ability to enhance shareholder value in 2012 and beyond."

After acquiring Provident Energy, Pembina implemented its previously announced plan to increase its monthly dividend to C$0.135 per share per month from C$0.13 per share per month, a 3.8% increase.

Pembina also announced a new credit facility of C$1.5 billion, and its common shares began trading on the New York Stock Exchange under the symbol "PBA."

Earnings highlights

For the first quarter, Pembina reported cash flow from operating activities of C$65.3 million, or C$0.39 per share, compared with C$74.5 million, or C$0.45 per share, during the prior-year period.

Earnings were C$32.6 million during the first quarter of 2012, compared with C$42.5 million for the same period in 2011.

Revenue, net of product purchases, rose about 26% during the first quarter of 2012 to C$176.4 million.

For the first quarter, Provident had adjusted EBITDA of about C$61 million, consistent with the prior-year period, and total debt of C$532 million at March 31, up from C$510 million at year's end.

Calgary, Alta.-based Pembina, a wholly owned subsidiary of Pembina Pipeline Income Fund, provides a network of conventional liquids feeder pipelines to the western Canadian energy industry.

Provident Energy was a Calgary, Alta.-based owner and manager of a natural gas liquids midstream services and marketing business.

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