Enhanced Investments - Financial Portal

Published: 2022-08-04

FINANCIAL

STATEMENTS

& NOTES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(unaudited)
($ mil ions)	June 30, 2022	December 31, 2021
Assets
Current assets
Cash and cash equivalents			71	43
Trade receivables and other			990	812
Inventory			285	376
Derivative financial instruments (Note 12)			55	14
Assets held for sale (Note 14)			3,112	—
			4,513	1,245
Non-current assets
Property, plant and equipment (Note 3)			15,530	18,193
Intangible assets and goodwil			6,025	6,238
Investments in equity accounted investees (Note 4)			4,538	4,622
Right-of-use assets			521	581
Finance lease receivable			222	211
Deferred tax assets			239	257
Derivative financial instruments and other assets (Note 12)			96	109
			27,171	30,211
Total assets			31,684	31,456
Liabilities and equity
Current liabilities
Trade payables and other			1,045	1,063
Loans and borrowings (Note 5)			1,475	1,000
Dividends payable			117	115
Lease liabilities			79	88
Contract liabilities (Note 8)			94	71
Derivative financial instruments (Note 12)			94	53
Liabilities related to assets held for sale (Note 14)			624	—
			3,528	2,390
Non-current liabilities
Loans and borrowings (Note 5)			9,071	9,645
Subordinated hybrid notes (Note 5)			595	594
Lease liabilities			600	635
Decommissioning provision (Note 6)			233	412
Contract liabilities (Note 8)			132	220
Deferred tax liabilities			2,578	3,011
Other liabilities			158	186
			13,367	14,703
Total liabilities			16,895	17,093
Equity
Attributable to shareholders			14,729	14,303
Attributable to non-control ing interest			60	60
Total equity			14,789	14,363
Total liabilities and equity			31,684	31,456
Subsequent events (note 5 and 14)See accompanying notes to the condensed consolidated interim financial statements
					Pembina Pipeline Corporation Second Quarter 2022 45

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME(unaudited)
	3 Months Ended June 30	6 Months Ended June 30
				2021			2021
($ mil ions, except per share amounts)			2022		(Restated Note 15)	2022		(Restated Note 15)
Revenue (Note 8)									3,095			1,902	6,133		3,918
Cost of sales (Note 10)									2,474			1,372	4,718		2,736
(Gain) Loss on commodity-related derivative financial
instruments (Note 12)									(16)	32		6	125
Share of profit from equity accounted investees (Note 4)									74	52		159	123
Gross profit									711	550	1,568			1,180
General and administrative									90	79		197	166
Other (income) expense									(18)	25		(10)	29
Impairment expense									—	23		—	35
Results from operating activities									639	423	1,381			950
Net finance costs (Note 9)									124	95		233	199
Earnings before income tax									515	328	1,148			751
Current tax expense									54	56		175	114
Deferred tax expense									43	18		74	63
Income tax expense									97	74		249	177
Earnings									418	254		899	574
Other comprehensive income (loss), net of tax (Note 11 & 12)
Exchange gain (loss) on translation of foreign operations									116	(59)		70	(122)
Impact of hedging activities									(8)	3		8	11
Total comprehensive income attributable to shareholders									526	198		977	463
Earnings attributable to common shareholders, net of
preferred share dividends									385	218		832	499
Earnings per common share – basic (dol ars)									0.70	0.39		1.51	0.91
Earnings per common share – diluted (dol ars)									0.69	0.39		1.50	0.91
Weighted average number of common shares (mil ions)
Basic									554	550		552	550
Diluted									557	551		555	551
See accompanying notes to the condensed consolidated interim financial statements
46	Pembina Pipeline Corporation Second Quarter 2022

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY(unaudited)
	Attributable to Shareholders of the Company
			Common	Preferred						Non-
		Total	Share		Share					Control ing
		Equity	($ mil ions)	Capital		Capital	Deficit	AOCI(1)	Total	Interest
December 31, 2021				15,678		2,517	(3,920)	28	14,303	60	14,363
Total comprehensive income
Earnings				—		—	899	—	899	—	899
Other comprehensive income (Note 11)				—		—	—	78	78	—	78
Total comprehensive income				—		—	899	78	977	—	977
Transactions with shareholders of the Company (Note 7)
Part VI.1 tax on preferred shares				—		(5)	—	—	(5)	—	(5)
Repurchase of common shares				(56)		—	(38)	—	(94)	—	(94)
Share-based payment transactions				307		—	—	—	307	—	307
Dividends declared – common				—		—	(696)	—	(696)	—	(696)
Dividends declared – preferred				—		—	(63)	—	(63)	—	(63)
Total transactions with shareholders of the Company				251		(5)	(797)	—	(551)	—	(551)
June 30, 2022				15,929		2,512	(3,818)	106	14,729	60	14,789
December 31, 2020				15,644		2,946	(3,637)	2	14,955	60	15,015
Total comprehensive income (loss)
Earnings				—		—	574	—	574	—	574
Other comprehensive loss (Note 11)				—		—	—	(111)	(111)	—	(111)
Total comprehensive income (loss)				—		—	574	(111)	463	—	463
Transactions with shareholders of the Company (Note 7)
Part VI.1 tax on preferred shares				—		(4)	—	—	(4)	—	(4)
Preferred shares redemption				—		(420)	—	—	(420)	—	(420)
Share-based payment transactions				17		—	—	—	17	—	17
Dividends declared – common				—		—	(693)	—	(693)	—	(693)
Dividends declared – preferred				—		—	(71)	—	(71)	—	(71)
Total transactions with shareholders of the Company				17		(424)	(764)	—	(1,171)	—	(1,171)
June 30, 2021				15,661		2,522	(3,827)	(109)	14,247	60	14,307
(1)	Accumulated Other Comprehensive Income (loss) ("AOCI").
See accompanying notes to the condensed consolidated interim financial statements
				Pembina Pipeline Corporation Second Quarter 2022 47

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(unaudited)
	3 Months Ended June 30	6 Months Ended June 30
($ mil ions)			2022	2021	2022	2021
Cash provided by (used in)Operating activitiesEarnings
							418	254	899	574
Adjustments for:
Share of profit from equity accounted investees							(74)	(52)	(159)	(123)
Distributions from equity accounted investees							145	112	300	227
Depreciation and amortization							198	188	375	363
Impairment expense							—	23	—	35
Unrealized (gain) loss on commodity-related derivative
financial instruments							(65)	(1)	(90)	4
Net finance costs (Note 9)							124	95	233	199
Net interest paid							(100)	(88)	(219)	(197)
Income tax expense							97	74	249	177
Taxes paid							(86)	(69)	(238)	(196)
Share-based compensation expense							25	29	72	57
Share-based compensation payment							—	—	(45)	(32)
Net change in contract liabilities							34	14	40	19
Other							(9)	3	(16)	10
Change in non-cash operating working capital							(103)	2	(142)	(77)
Cash flow from operating activities							604	584	1,259	1,040
Financing activities
Net increase in bank borrowings							105	289	21	186
Proceeds from issuance of long-term debt, net of issue costs			—	—	—	593
Repayment of long-term debt							(75)	—	(125)	(250)
Repayment of lease liability							(22)	(17)	(45)	(41)
Exercise of stock options							205	2	302	3
Repurchase of common shares							(66)	—	(94)	—
Redemption of preferred shares							—	(250)	—	(420)
Common share dividends paid							(349)	(347)	(696)	(693)
Preferred share dividends paid							(32)	(35)	(63)	(72)
Cash flow used in financing activities							(234)	(358)	(700)	(694)
Investing activities
Capital expenditures							(152)	(146)	(331)	(273)
Contributions to equity accounted investees							(6)	—	(25)	(12)
Acquisitions							—	(37)	—	(37)
Receipt of finance lease payments							3	3	6	6
Interest paid during construction							(7)	(5)	(15)	(14)
Recovery of assets or proceeds from sale of assets							25	12	25	12
Advances to related parties							—	—	—	(10)
Changes in non-cash investing working capital and other							(47)	(46)	(48)	(48)
Cash flow used in investing activities							(184)	(219)	(388)	(376)
Change in cash and cash equivalents							186	7	171	(30)
Cash transferred to assets held for sale (Note 14)							(147)	—	(147)	—
Effect of movement in exchange rates on cash held							4	5	4	6
Cash and cash equivalents, beginning of period							28	45	43	81
Cash and cash equivalents, end of period							71	57	71	57
See accompanying notes to the condensed consolidated interim financial statements
48	Pembina Pipeline Corporation Second Quarter 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. REPORTING ENTITY
Pembina Pipeline Corporation ("Pembina" or the "Company") is a Calgary-based, leading energy transportation and midstream service provider that has served North America's energy industry for more than 65 years. These condensed consolidated unaudited interim financial statements ("Interim Financial Statements") include the accounts of the Company, its subsidiary companies, partnerships and any investments in associates and joint arrangements as at and for the three and six months ended June 30, 2022.
Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain al ow it to offer a ful spectrum of midstream and marketing services to the energy sector.
These Interim Financial Statements and the notes hereto have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. The accounting policies applied are in accordance with International Financial Reporting Standards ("IFRS"), are consistent with the audited annual consolidated financial statements of the Company as at and for the year ended December 31, 2021 ("Consolidated Financial Statements"), except as noted below, and should be read in conjunction with those Consolidated Financial Statements. The Interim Financial Statements were authorized for issue by Pembina's Board of Directors on August 4, 2022.
Assets Held for Sale
Non-current assets, or disposal groups comprising of assets and liabilities, are classified as held-for-sale if it is highly probable that they wil be recovered primarily through sale rather than through continued use.
Such assets, or disposal groups, are general y measured at the lower of their carrying amount and fair value less costs to sel . Any impairment loss on a disposal group is al ocated first to goodwil , and then to the remaining assets and liabilities on a pro rata basis, except that no loss is al ocated to inventories, financial assets, deferred tax assets, or employee benefit assets, which continue to be measured in accordance with the Company's other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognized to earnings.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortized or depreciated.
Use of Estimates and Judgments
Management is required to make estimates and assumptions and use judgment in the application of accounting policies that could have a significant impact on the amounts recognized in the Interim Financial Statements. Actual results may differ from estimates and those differences may be material. By their nature, judgments and estimates may change in light of new facts and circumstances in the internal and external environment. There have been no material changes to Pembina's critical accounting estimates and judgments during the three and six months ended June 30, 2022.
	Pembina Pipeline Corporation Second Quarter 2022 49

2. DETERMINATION OF FAIR VALUES
A number of the Company's accounting policies and disclosures require the determination of fair value for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the methods set out in the Consolidated Financial Statements. These methods have been applied consistently to al periods presented in these Interim Financial Statements.
Impacts of Geopolitical Events in Eastern Europe and the Ongoing COVID-19 Pandemic
Measuring fair values using significant unobservable inputs has become more chal enging in the current environment, where the geopolitical events in Eastern Europe and continuing events and conditions related to the COVID-19 pandemic are driving significant volatility in commodity prices and currencies, disruption of business operations and a significant increase in economic uncertainty and inflation. Management applied its judgment in determining the impact of the significant uncertainties created by these events and conditions on the assessed fair values of assets and liabilities in the Interim Financial Statements.
3. PROPERTY, PLANT AND EQUIPMENT
				Cavern
	Land and		Facilities and	Storage and	Assets Under
($ mil ions)	Land Rights	Pipelines	Equipment	Other	Construction	Total
CostBalance at December 31, 2021
		456	9,279				9,384	2,084		915	22,118
Additions and transfers								20	605			116	47		(466)	322
Change in decommissioning provision								—	(20)			(100)	(25)		—	(145)
Disposals and other								—	(55)			(79)	(9)		—	(143)
Foreign exchange								1	15		7	—		—	23
Transfers to assets held for sale (Note 14)								(2)	(475)			(2,442)	(104)		(20)	(3,043)
Balance at June 30, 2022		475	9,349				6,886	1,993		429	19,132
DepreciationBalance at December 31, 2021
								26	2,015			1,421	463		—	3,925
Depreciation								3	96		125	40		—	264
Disposals and other								—	(41)			(36)	(3)		—	(80)
Transfers to assets held for sale (Note 14)								—	(85)			(384)	(38)		—	(507)
Balance at June 30, 2022								29	1,985			1,126	462		—	3,602
Carrying amountsBalance at December 31, 2021
		430	7,264				7,963	1,621		915	18,193
Balance at June 30, 2022		446	7,364				5,760	1,531		429	15,530
50	Pembina Pipeline Corporation Second Quarter 2022

4. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
		Share of Profit from Equity Accounted
			Investees
				Investments in Equity Accounted
	Ownership Interest (percent)				Investees	6 Months Ended June 30
($ mil ions)	June 30, 2022 December 31, 2021		2022				2021	June 30, 2022 December 31, 2021
Al iance								50	50	85				59	2,623			2,686
Aux Sable	42.7 - 50									42.7 - 50	32				13	354			377
Ruby(1)												—	—	—			13	—		—
Veresen Midstream								45	45	39				35	1,335			1,349
Cedar LNG								49.9		49.9	—				—	139			130
Other(2)								50 - 75		50 - 75	3				3	87			80
			159				123	4,538				4,622
(1)	Pembina owns a 50 percent convertible preferred interest in Ruby.
(2)	Other includes Pembina's interest in CKPC, Grand Val ey and Fort Corp.
At June 30, 2022, Pembina had U.S. $1.3 bil ion in investments in equity accounted investees held by entities whose functional currency is the U.S. dol ar. The resulting foreign exchange gains and losses are included in other comprehensive income. For the three and six months ended June 30, 2022, Pembina recognized a gain of $48 mil ion and a gain of $29 mil ion (2021: $23 mil ion loss and $43 mil ion loss), respectively.
Financing Activities for Equity Accounted Investees
Ruby Pipeline, L.L.C. ("Ruby Pipeline"), a whol y-owned subsidiary of Ruby, had U.S. $475 mil ion principal amount of unsecured notes that matured on April 1, 2022 (the "2022 Notes"). Although Ruby Pipeline has sufficient liquidity to operate its business, it lacked sufficient liquidity to satisfy its obligations under the 2022 Notes on the maturity date of April 1, 2022. Accordingly, on March 31, 2022, Ruby Pipeline filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The risks and uncertainties surrounding the Chapter 11 proceedings raise substantial doubt as to Ruby Pipeline's ability to continue as a going concern.
Pembina does not have any financial commitments or obligations in respect of the debts or obligations of Ruby Pipeline, including in respect of the 2022 Notes, nor is Pembina contractual y obligated to provide any further contributions or funding to Ruby.
			Pembina Pipeline Corporation Second Quarter 2022 51

5. LONG-TERM DEBT
This note provides information about the contractual terms of Pembina's interest-bearing long-term debt, which are measured at amortized cost.
Carrying Value, Terms and Conditions, and Debt Maturity Schedule
						Carrying Value
	Authorized at June		Nominal	Year of
($ mil ions)		30, 2022	Interest Rate	Maturity	June 30, 2022 December 31, 2021
Loans and borrowingsSenior unsecured credit facilities(1)(3)(4)
		3,267	2.87(2)	Various(1)		859	907
Senior unsecured medium-term notes series 2		450	3.77	2022		450	450
Senior unsecured medium-term notes series 3		450	4.75	2043		447	447
Senior unsecured medium-term notes series 4		600	4.81	2044		597	597
Senior unsecured medium-term notes series 5		450	3.54	2025		449	449
Senior unsecured medium-term notes series 6		500	4.24	2027		499	499
Senior unsecured medium-term notes series 7		600	3.71	2026		602	602
Senior unsecured medium-term notes series 8		650	2.99	2024		649	648
Senior unsecured medium-term notes series 9		550	4.74	2047		542	542
Senior unsecured medium-term notes series 10		650	4.02	2028		659	660
Senior unsecured medium-term notes series 11		800	4.75	2048		840	841
Senior unsecured medium-term notes series 12		650	3.62	2029		653	654
Senior unsecured medium-term notes series 13		700	4.54	2049		712	712
Senior unsecured medium-term notes series 14		600	2.56	2023		600	599
Senior unsecured medium-term notes series 15		600	3.31	2030		597	597
Senior unsecured medium-term notes series 16		400	4.67	2050		397	397
Senior unsecured medium-term notes series 17		500	3.53	2031		497	497
Senior unsecured medium-term notes series 18		500	4.49	2051		497	497
Senior unsecured medium-term notes series 3A								—	5.05	2022		—	50
Total loans and borrowings										10,546	10,645
Less current portion loans and borrowings										(1,475)	(1,000)
Total non-current loans and borrowings										9,071	9,645
Subordinated hybrid notesSubordinated notes, series 1
		600	4.80	2081		595	594
(1)	Pembina's unsecured credit facilities include a $2.5 bil ion revolving facility that matures in June 2026, a $425 mil ion non-revolving term loan that matures in August 2022, a
U.S. $250 mil ion non-revolving term loan that matures in May 2025 and a $20 mil ion operating facility that matures in May 2023, which is typical y renewed on an annual
basis.
(2)	The nominal interest rate is the weighted average of al drawn credit facilities based on Pembina's credit rating at June 30, 2022. Borrowings under the credit facilities bear
interest at prime, Bankers' Acceptance, or LIBOR rates, plus applicable margins.
(3)	Includes U.S. $250 mil ion variable rate debt outstanding at June 30, 2022 (December 31, 2021: U.S. $250 mil ion).
(4)	The U.S. dol ar denominated non-revolving term loan is designated as a hedge of the Company’s net investment in selected foreign operations with a U.S. dol ar functional
currency. Refer to Note 12 for foreign exchange risk management.
On March 14, 2022, Pembina's $50 mil ion senior unsecured medium term notes, series 3A, matured and were ful y repaid.
On June 24, 2022, Pembina repaid $75 mil ion on its non-revolving term loan. As at June 30, 2022 the non-revolving term loan has an outstanding balance of $425 mil ion.
52	Pembina Pipeline Corporation Second Quarter 2022

Fol owing the second quarter of 2022, on July 27, 2022, Pembina's $2.5 bil ion unsecured revolving credit facility (the "Revolving Facility") was replaced with two credit facilities: an unsecured $1.0 bil ion sustainability linked revolving credit facility (the "SLL Credit Facility") and an amendment and restatement of the Revolving Facility into an unsecured $1.5 bil ion revolving credit facility, which includes a $750 mil ion accordion feature and matures in June 2027 (the "New Revolving Facility"). The SLL Credit Facility contains pricing adjustments that reduce or increase borrowing costs based on Pembina's performance relative to a greenhouse gas ("GHG") emissions intensity reduction performance target. Previously, Pembina announced its commitment to reduce its GHG emissions intensity by 30 percent by 2030, relative to baseline 2019 levels. The specific terms of the SLL Credit Facility include annual intermediate targets that align with Pembina's trajectory towards its 2030 goal. The SLL Credit Facility has a term of four years, maturing June 1, 2026.
With the exception of the sustainability linked adjustments to borrowing costs, the terms and conditions of the SLL Credit Facility and the New Revolving Facility, including financial covenants, are substantial y similar to each other and are substantial y similar to the Revolving Facility.
6. DECOMMISSIONING PROVISION
($ mil ions)	2022
Balance at January 1		412
Unwinding of discount rate		8
Change in rates		(185)
Transfers to liabilities related to assets held for sale (Note 14)		(20)
Change in cost estimates and other		18
Balance at June 30		233
Pembina's decommissioning provision decreased by $179 mil ion for the six months ended June 30, 2022 primarily due to an increase in the credit-adjusted risk free rates of 5.8 percent to 6.8 percent (December 31, 2021: 3.3 percent to 4.7 percent) and a change to inflation of 2.0 percent (December 31, 2021: 1.8 percent).
		Pembina Pipeline Corporation Second Quarter 2022 53

7. SHARE CAPITAL
Common Share Capital
	Number of
	Common Shares	Common
($ mil ions, except as noted)	(mil ions)	Share Capital
Balance at December 31, 2021				550	15,678
Share-based payment transactions				7	307
Repurchased				(2)	(56)
Balance at June 30, 2022				555	15,929
Share Repurchase ProgramOn March 8, 2022, the Toronto Stock Exchange ("TSX") accepted the renewal of Pembina's normal course issuer bid (the "NCIB") that al ows the Company to repurchase, at its discretion, up to five percent of the Company's outstanding common shares (representing approximately 27.5 mil ion common shares) through the facilities of the TSX, the New York Stock Exchange and/or alternative Canadian trading systems or as otherwise permitted by applicable securities law, subject to certain restrictions on the number of common shares that may be purchased on a single day. Common shares purchased by the Company under the NCIB wil be cancel ed. The NCIB commenced on March 10, 2022 and wil terminate on March 9, 2023 or on such earlier date as the Company has purchased the maximum number of common shares permitted pursuant to the notice of intention under the NCIB or at such time Pembina determines to no longer make purchases thereunder.
The fol owing table summarizes Pembina's share repurchases under its NCIB:
(mil ions, except as noted)	June 30, 2022				December 31, 2021
Number of common shares repurchased for cancel ation (thousands)				1,975	450
Average price per share	$47.73	$37.77
Total cost(1)				94		17
(1)	Total cost includes $56 mil ion (2021: $13 mil ion) charged to share capital and $38 mil ion (2021: $4 mil ion) charged to deficit.
Preferred Share Capital
			Number of Preferred
	Shares	Preferred
($ mil ions, except as noted)	(mil ions)	Share Capital
Balance at December 31, 2021				105	2,517
Part VI.1 tax				—		(5)
Balance at June 30, 2022				105	2,512
54	Pembina Pipeline Corporation Second Quarter 2022

Dividends
The fol owing dividends were declared by Pembina:
6 Months Ended June 30($ mil ions)
	2022	2021
Common shares
$1.26 per common share (2021: $1.26)	696	693
Class A preferred shares
$0.61 per Series 1 Class A Preferred Share (2021: $0.61)	6	6
$0.56 per Series 3 Class A Preferred Share (2021: $0.56)	3	3
$0.57 per Series 5 Class A Preferred Share (2021: $0.57)	6	6
$0.54 per Series 7 Class A Preferred Share (2021: $0.54)	5	5
$0.53 per Series 9 Class A Preferred Share (2021: $0.53)	5	5
nil per Series 11 Class A Preferred Share (2021: $0.24)			—	2
nil per Series 13 Class A Preferred Share (2021: $0.59)			—	6
$0.56 per Series 15 Class A Preferred Share (2021: $0.56)			4	4
$0.60 per Series 17 Class A Preferred Share (2021: $0.60)			4	4
$0.59 per Series 19 Class A Preferred Share (2021: $0.59)			5	5
$0.61 per Series 21 Class A Preferred Share (2021: $0.61)			10	10
$0.66 per Series 23 Class A Preferred Share (2021: $0.66)			8	8
$0.65 per Series 25 Class A Preferred Share (2021: $0.65)			7	7
	63	71
On July 6, 2022, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share in the total amount of $117 mil ion, payable on August 15, 2022 to shareholders of record on July 25, 2022.
Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares on July 6, 2022 as outlined in the fol owing table:
						Dividend Amount
Series			Record Date	Payable Date	Per Share Amount		($ mil ions)
Series 1			August 2, 2022	September 1, 2022	$0.306625	3
Series 3			August 2, 2022	September 1, 2022	$0.279875	2
Series 5			August 2, 2022	September 1, 2022	$0.285813	3
Series 7			August 2, 2022	September 1, 2022	$0.273750	3
Series 9			August 2, 2022	September 1, 2022	$0.268875	2
Series 15								September 15, 2022	October 3, 2022	$0.279000	2
Series 17								September 15, 2022	October 3, 2022	$0.301313	2
Series 19								September 15, 2022	October 3, 2022	$0.292750	2
Series 21			August 2, 2022	September 1, 2022	$0.306250	5
Series 23			August 2, 2022	August 15, 2022	$0.328125	4
Series 25			August 2, 2022	August 15, 2022	$0.325000	3
				Pembina Pipeline Corporation Second Quarter 2022 55

8. REVENUE
Revenue has been disaggregated into categories to reflect how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.
a. Revenue Disaggregation
	2022	2021
	Marketing	Marketing
3 Months Ended June 30
					& New			& New
			Pipelines	Facilities	Ventures					Total Pipelines	Facilities	Ventures							Total	($ mil ions)Take-or-pay(1)
				413	195				—	608				389	180						—	569
Fee-for-service(1)				111	32				—	143				93	36						—	129
Product sales(2)(3)											—	—				2,300	2,300				—	—			1,163	1,163
Revenue from contracts with customers				524	227				2,300	3,051				482	216						1,163	1,861
Operational finance lease income				6	—				—	6	4	—						—	4
Fixed operating lease income											29	9				—	38				28	9			—	37
Total external revenue				559	236				2,300	3,095				514	225						1,163	1,902
(1)	Revenue recognized over time.
(2)	Revenue recognized at a point in time.
(3)	Comparative 2021 period has been restated. See Note 15 to the Interim Financial Statements for further details.
	2022	2021
	Marketing	Marketing
6 Months Ended June 30
					& New			& New
			Pipelines	Facilities	Ventures					Total Pipelines	Facilities	Ventures							Total	($ mil ions)Take-or-pay(1)
				801	390				—	1,191				788	364						—	1,152
Fee-for-service(1)				216	65				—	281				172	76						—	248
Product sales(2)(3)											—	—				4,571	4,571				—	—			2,434	2,434
Revenue from contracts with customers				1,017	455				4,571	6,043				960	440						2,434	3,834
Operational finance lease income											13	1				—	14	8	—				—	8
Fixed operating lease income											58	18				—	76				58	18			—	76
Total external revenue				1,088	474				4,571	6,133				1,026	458						2,434	3,918
(1)	Revenue recognized over time.
(2)	Revenue recognized at a point in time.
(3)	Comparative 2021 period has been restated. See Note 15 to the Interim Financial Statements for further details.
b. Contract Liabilities
Significant changes in the contract liabilities balances during the period are as fol ows:
				6 Months Ended June 30, 2022						12 Months Ended December 31, 2021
	Other					Total	Other							Total
	Contract					Contract	Contract							Contract
($ mil ions)			Take-or-Pay	Liabilities					Liabilities				Take-or-Pay	Liabilities							Liabilities
Opening balance				3	288	291	3	289	292
Additions (net in the period)				27	66	93	—	64	64
Revenue recognized from contract liabilities(1)				—	(63)	(63)	—	(65)	(65)
Transfers to liabilities related to assets held for sale
(Note 14)				(3)	(92)	(95)	—	—	—
Closing balance				27	199	226	3	288	291
Less current portion(2)				(27)	(67)	(94)	(3)	(68)	(71)
Ending balance				—	132	132	—	220	220
(1)	Recognition of revenue related to performance obligations satisfied in the current period that were included in the opening balance of contract liabilities.
(2)	As at June 30, 2022, the balance includes $27 mil ion of cash col ected under take-or-pay contracts which wil be recognized within one year as the customer chooses to ship,
process, or otherwise forego the associated service.
56	Pembina Pipeline Corporation Second Quarter 2022

Contract liabilities depict Pembina's obligation to perform services in the future for cash and non-cash consideration which have been received from customers. Contract liabilities include up-front payments or non-cash consideration received from customers for future transportation, processing and storage services. Contract liabilities also include consideration received from customers for take-or-pay commitments where the customer has a make-up right to ship or process future volumes under a firm contract. These amounts are non-refundable should the customer not use its make-up rights.
In al instances where goods or services have been transferred to a customer in advance of the receipt of customer consideration, Pembina's right to consideration is unconditional and has therefore been presented as a receivable.
9. NET FINANCE COSTS
	3 Months Ended June 30	6 Months Ended June 30
($ mil ions)			2022	2021	2022	2021
Interest expense on financial liabilities measured at amortized cost:
Loans and borrowings			95	91	189	182
Subordinated hybrid notes			8	8	15	13
Leases			8	9	16	18
Unwinding of discount rate			4	4	8	8
Loss in fair value of non-commodity-related derivative financial
instruments			8	4	3	8
Foreign exchange losses (gains) and other			1	(21)	2	(30)
Net finance costs			124	95	233	199
	Pembina Pipeline Corporation Second Quarter 2022 57

10. OPERATING SEGMENTS
Pembina's operating segments are organized by three divisions: Pipelines, Facilities and Marketing & New Ventures.
				Corporate &
3 Months Ended June 30, 2022
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total	($ mil ions)
Revenue from external customers						559	236				2,300	—	3,095
Inter-segment revenue						45	124				—	(169)	—
Total revenue(3)						604	360				2,300	(169)	3,095
Operating expenses						156	141				—	(86)	211
Cost of goods sold, including product purchases						—		2	2,157	(84)	2,075
Depreciation and amortization included in operations						96		80	11	1	188
Cost of sales						252	223				2,168	(169)	2,474
Realized (gain) loss on commodity-related derivative
financial instruments						—	(10)				59	—	49
Share of profit from equity accounted investees						48		20	6	—	74
Unrealized loss (gain) on commodity-related
derivative financial instruments						—		9	(74)	—	(65)
Gross profit						400	158				153	—	711
Depreciation included in general and administrative						—		—	—	10	10
Other general and administrative						10		5	10	55	80
Other income						—		(1)	(3)	(14)	(18)
Reportable segment results from operating activities						390	154				146	(51)	639
Net finance costs						8		11	7	98	124
Reportable segment earnings (loss) before tax						382	143				139	(149)	515
Capital expenditures(4)						75		48	17	12	152
Contributions to equity accounted investees						—		—	6	—	6
3 Months Ended June 30, 2021
				Corporate &
(Restated Note 15)($ mil ions)
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total
Revenue from external customers						514	225				1,163	—	1,902
Inter-segment revenue						40	109				—	(149)	—
Total revenue(3)						554	334				1,163	(149)	1,902
Operating expenses						132	112				—	(58)	186
Cost of goods sold, including product purchases						—		2	1,098	(92)	1,008
Depreciation and amortization included in operations						108		56	12	2	178
Cost of sales						240	170				1,110	(148)	1,372
Realized loss on commodity-related derivative
financial instruments						—		—	33	—	33
Share of profit from equity accounted investees						27		18	7	—	52
Unrealized (gain) loss on commodity-related
derivative financial instruments						—	(16)				15	—	(1)
Gross profit						341	198				12	(1)	550
Depreciation included in general and administrative						—		—	—	10	10
Other general and administrative						7		2	8	52	69
Other expense (income)						7		1	(1)	18	25
Impairment expense						—		22	1	—	23
Reportable segment results from operating activities						327	173				4	(81)	423
Net finance costs (income)						2		12	(5)	86	95
Reportable segment earnings (loss) before tax						325	161				9	(167)	328
Capital expenditures						95		36	10	5	146
Contributions to equity accounted investees						—		—	—	—	—
(1)	Pipelines transportation revenue includes $55 mil ion (2021: $55 mil ion) associated with U.S. pipeline revenue.
(2)	Marketing & New Ventures includes revenue of $89 mil ion (2021: $40 mil ion) associated with U.S. midstream sales.
(3)	During 2022 and 2021, no one customer accounted for 10 percent or more of total revenues reported throughout al segments.
(4)	Includes capital expenditures related to assets held for sale of $6 mil ion.
58	Pembina Pipeline Corporation Second Quarter 2022

				Corporate &
6 Months Ended June 30, 2022
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total	($ mil ions)
Revenue from external customers		1,088	474				4,571	—	6,133
Inter-segment revenue								89	243				—	(332)	—
Total revenue(3)		1,177	717				4,571	(332)	6,133
Operating expenses								297	275				—	(168)	404
Cost of goods sold, including product purchases								—	2	4,124	(167)	3,959
Depreciation and amortization included in operations								195	135				22	3	355
Cost of sales								492	412				4,146	(332)	4,718
Realized (gain) loss on commodity-related derivative
financial instruments								—	(17)				113	—	96
Unrealized gain on commodity-related derivative
financial instruments								—	(51)				(39)	—	(90)
Share of profit from equity accounted investees								88	44	27	—	159
Gross profit								773	417				378	—	1,568
Depreciation included in general and administrative								—	—	—	20	20
Other general and administrative								24	12	20	121	177
Other (income) expense								(9)	(1)	(3)	3	(10)
Reportable segment results from operating activities								758	406				361	(144)	1,381
Net finance costs								15	17	1	200	233
Reportable segment earnings (loss) before tax								743	389				360	(344)	1,148
Capital expenditures(4)								189	78	46	18	331
Contributions to equity accounted investees								—	13	12	—	25
6 Months Ended June 30, 2021
				Corporate &
(Restated Note 15)($ mil ions)
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total
Revenue from external customers		1,026	458				2,434	—	3,918
Inter-segment revenue								81	215				—	(296)	—
Total revenue(3)		1,107	673				2,434	(296)	3,918
Operating expenses								269	223				—	(124)	368
Cost of goods sold, including product purchases								—	6	2,195	(176)	2,025
Depreciation and amortization included in operations								212	102				25	4	343
Cost of sales								481	331				2,220	(296)	2,736
Realized loss on commodity-related derivative financial
instruments								—	—	121	—	121
Unrealized (gain) loss on commodity-related derivative
financial instruments								—	(17)				21	—	4
Share of profit from equity accounted investees								74	36	13	—	123
Gross profit								700	395				85	—	1,180
Depreciation included in general and administrative								—	—	—	20	20
Other general and administrative								16	7	15	108	146
Other expense								1	—	—	28	29
Impairment expense								10	22	3	—	35
Reportable segment results from operating activities								673	366				67	(156)	950
Net finance costs (income)								15	18	(9)	175	199
Reportable segment earnings (loss) before tax								658	348				76	(331)	751
Capital expenditures								178	76	12	7	273
Contributions to equity accounted investees								—	11	1	—	12
(1)	Pipelines transportation revenue includes $107 mil ion (2021: $106 mil ion) associated with U.S. pipeline revenue.
(2)	Marketing & New Ventures includes revenue of $177 mil ion (2021: $123 mil ion) associated with U.S. midstream sales.
(3)	During 2022 and 2021, no one customer accounted for 10 percent or more of total revenues reported throughout al segments.
(4)	Includes capital expenditures related to assets held for sale of $6 mil ion.
		Pembina Pipeline Corporation Second Quarter 2022 59

11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
			Pension and
			other Post-
	Currency	Cash Flow	Retirement
	Translation	Hedge	Benefit Plan
($ mil ions)	Reserve	Reserve	Adjustments(2)	Total
Balance at December 31, 2020					48	—	(46)	2
Other comprehensive loss before hedging activities					(122)				—	—	(122)
Other comprehensive gain resulting from hedging activities(1)					7	4	—	11
Balance at June 30, 2021					(67)				4	(46)	(109)
Balance at December 31, 2021					32	8	(12)	28
Other comprehensive gain before hedging activities					70	—	—	70
Other comprehensive (loss) gain resulting from hedging activities(1)					(6)	14	—	8
Balance at June 30, 2022					96	22	(12)	106
(1)	Amounts relate to hedges of the Company's net investment in foreign operations (reported in Currency Translation Reserve) and interest rate derivatives designated as cash
flow hedges (reported in Cash Flow Hedge Reserve) (Note 12).
(2)	Pension and other Post-Retirement Benefit Plan Adjustments wil not be reclassified into earnings.
12. FINANCIAL INSTRUMENTS & RISK MANAGEMENT
Risk Management
Pembina's risk management strategies, policies and limits, ensure risks and exposures are aligned to its business strategy and risk tolerance. Pembina's Board of Directors is responsible for providing risk management oversight at Pembina and oversees how management monitors compliance with Pembina's risk management policies and procedures and reviews the adequacy of this risk framework in relation to the risks faced by Pembina.
Pembina has exposure to counterparty credit risk, liquidity risk and market risk. Pembina utilizes derivative instruments to stabilize the results of its marketing business and, as at June 30, 2022, the Company has entered into certain financial derivative contracts in order to manage commodity price, foreign exchange and interest rate risk. These instruments are not used for trading or speculative purposes.
Pembina's Canadian dol ar drawings on its Credit Facilities have variable rate components that reference the Canadian Dol ar Offered Rate ("CDOR"). CDOR rates wil cease to be published at the end of June 2024. CDOR is expected to be replaced by the Canadian Overnight Repo Rate Average ("CORRA"). Pembina wil continue to monitor developments and the potential impact on the business.
Fair Values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the condensed consolidated interim statements of financial position, are shown in the table below. Certain non-derivative financial instruments measured at amortized cost including cash and cash equivalents, trade receivables and other, finance lease receivables, advances to related parties, trade payables and other, and other liabilities have been excluded because they have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. These instruments would be classified in Level 2 of the fair value hierarchy.
60	Pembina Pipeline Corporation Second Quarter 2022

June 30, 2022	December 31, 2021
			Fair Value(1)		Fair Value(1)
		Carrying		Carrying
		Value		Value		($ mil ions)	Level 1			Level 2				Level 3	Level 1				Level 2		Level 3
						Financial assets carried at fair valueDerivative financial instruments(3)(4)
			232	—									184	48	95				—				84	11
						Financial liabilities carried at fair valueDerivative financial instruments(3)
			96	—									96	—	59				—				59	—
						Contingent consideration(5)		61	—									26	35	70			—					35	35
						Financial liabilities carried at amortized costLong-term debt(2)
		11,141	—			9,983	— 11,239	— 11,814			—
						(1)	The basis for determining fair value is disclosed in Note 2.
						(2)	Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes.
						(3)	At June 30, 2022 al derivative financial instruments are carried at fair value through earnings, except for $22 mil ion in interest rate derivative financial assets that have been
						designated as cash flow hedges.
						(4)	Includes $115 mil ion transferred to assets held for sale for the six months ended June 30, 2022.
						(5)	Included in trade payables and other and other liabilities. Under the terms of the agreements on Pembina’s investment in the Cedar LNG Project, Pembina has commitments
						to make additional payments on a positive final investment decision as wel as contributions to fund development costs and annual operating budgets.
						Level 2
						Pembina's Level 2 financial instruments carried at fair value are valued using inputs that include quoted forward prices for commodities, time value and volatility factors, which can be substantial y observed or corroborated in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter physical forwards and options, including those that have prices similar to quoted market prices. Pembina obtains quoted market prices for its inputs from information sources including banks, Bloomberg Terminals and Natural Gas Exchange.
						Level 3
						Changes in fair value of the derivative assets classified as Level 3 in the fair value hierarchy were as fol ows:
						($ mil ions)		2022
						Level 3 derivative asset at January 1				11
						Total gain (loss):Included in earnings
								37
						Level 3 derivative asset at June 30				48
						There were no transfers into or out of Level 3 during the three and six months ended June 30, 2022.Derivative instruments
						Pembina enters into derivative instruments to hedge future cash flows associated with interest rate, commodity, and foreign exchange exposures. Derivatives are considered effective hedges to the extent that they offset the changes in value of the hedged item or transaction resulting from a specified risk factor. In some cases, even though the derivatives are considered to be effective economic hedges, they do not meet the specific criteria for hedge accounting treatment and are classified as held at fair value through profit or loss ("FVTPL").
						The fol owing table is a summary of the net derivative financial instruments:
											June 30, 2022	December 31, 2021
											Non-	Non-				Non-	Non-
												Current	Current	Current											Current	Current	Current	Current			Current
						($ mil ions)						Asset(1)	Asset(2)	Liability(1)			Liability	Total			Asset(1)	Asset	Liability(1)				Liability			Total
						Commodity financial
						instruments							47	163	(86)	(3)			121			13	73	(48)								(6)	32
						Interest rate							8	14	—	—			22			1	8	—								—	9
						Foreign exchange							—	—	(8)	—			(8)			—	—	(5)								—	(5)
						Net derivative financial
						instruments							55	177	(94)	(3)			135			14	81	(53)								(6)	36
						(1)	At June 30, 2022 the derivative financial instruments were offset by $3 mil ion (2021: $11 mil ion) when determining the net amounts presented on the condensed
						consolidated interim statement of financial position.
						(2)	Includes $115 mil ion transferred to assets held for sale for the six months ended June 30, 2022.
			Pembina Pipeline Corporation Second Quarter 2022 61

Notional and Maturity Summary
The maturity and notional amount or quantity outstanding related to Pembina's derivative instruments are as fol ows:
	Liquids	Natural Gas		Power	Foreign	Interest
($ mil ions)	(bpd)		(GJ/d)	(GWh)	Exchange	Rate
As at June 30, 2022Purchases(1)
		326	73,958		11,340	—	—
Sales(1)		16,693		—	—	—	—
Mil ions of U.S. dol ars		—		—	—	309	250
Maturity dates	2023		2023	2040	2023	2025
As at December 31, 2021Purchases(1)
		—	62,615		6,166	—	—
Sales(1)		16,550		—	—	—	—
Mil ions of U.S. dol ars		—		—	—	272	250
Maturity dates	2022		2022	2040	2022	2025
(1)	Barrels per day ("bpd"), gigajoules per day ("GJ/d") and gigawatt hours ("GWh").
Gains and Losses on Derivative Instruments
Realized and unrealized losses (gains) on derivative instruments are as fol ows:
	3 Months Ended June 30						6 Months Ended June 30
($ mil ions)		2022		2021	2022	2021
Derivative instruments held at FVTPL(1)Realized (gain) loss
Commodity-related		49		33	96	121
Foreign exchange		2		(3)	3	(8)
Unrealized (gain) loss
Commodity-related		(65)		(1)	(90)			4
Foreign exchange		8		4	3			8
Derivative instruments in hedging relationships(2)Unrealized gain
Interest rate		(2)		1	(14)	(4)
(1)	Realized and unrealized losses (gains) on commodity derivative instruments held at FVTPL are included in loss (gain) on commodity-related derivative financial instruments in
the Interim Financial Statements. Realized and unrealized losses (gains) on foreign exchange derivative instruments held at FVTPL are included in net finance costs in the
Interim Financial Statements.
(2)	Unrealized gains on derivatives in designated cash flow hedging relationships are recognized in the cash flow hedge reserve in accumulated other comprehensive income,
with realized (gains) losses being reclassified to net finance costs. Refer to Note 11 for amounts reclassified. No (gains) losses have been recognized in net income relating to
discontinued cash flow hedges.
Non-Derivative Instruments Designated as Net Investment Hedges
Pembina has designated certain U.S. dol ar denominated debt as a hedge of the Company's net investment in U.S. dol ar denominated subsidiaries and investments in equity accounted investees. The designated debt has been assessed as having no ineffectiveness as the U.S. dol ar debt has an equal and opposite exposure to U.S. dol ar fluctuations. As a result, al foreign exchange gains or losses on the debt are reported directly in other comprehensive income.
The fol owing balances of U.S. dol ar debt had been designated as hedges:
($ mil ions)				June 30, 2022	December 31, 2021
Notional amount of U.S. debt designated (in U.S. dol ars)					250	250
Carrying value of U.S. debt designated					321	316
Maturity date							2025	2025
62	Pembina Pipeline Corporation Second Quarter 2022

13. COMMITMENTS AND CONTINGENCIES
Commitments
Pembina had the fol owing contractual obligations outstanding as at June 30, 2022:
Contractual Obligations(1)	Payments Due by Period
($ mil ions)		Total	Less than 1 Year	1 – 3 Years	3 – 5 Years	After 5 Years
Leases(2)							920	102			174	143	501
Long-term debt(3)							17,103	1,983	2,151	1,888			11,081
Construction commitments(4)(5)							1,205	372			265	37	531
Other							538	81			121	75	261
Total contractual obligations							19,766	2,538	2,711	2,143			12,374
(1)	Pembina enters into product purchase agreements and power purchase agreements to secure supply for future operations. Purchase prices of both NGL and power are
dependent on current market prices. Volumes and prices for NGL and power contracts cannot be reasonably determined, and therefore, an amount has not been included in
the contractual obligations schedule. Product purchase agreements range from one to 9 years and involve the purchase of NGL products from producers. Assuming product
is available, Pembina has secured between 40 and 190 mbpd of NGL each year up to and including 2030. Power purchase agreements range from one to 24 years and involve
the purchase of power from electrical service providers. Pembina has secured up to 78 megawatts per day each year up to and including 2046.
(2)	Includes terminals, rail, office space, land and vehicle leases.
(3)	Includes loans and borrowings, subordinated hybrid notes and interest payments on Pembina's senior unsecured medium-term notes and subordinated hybrid notes.
Excludes deferred financing costs.
(4)	Excluding significant projects that are awaiting regulatory approval, projects which Pembina is not committed to construct, and projects that are executed by equity
accounted investees.
(5)	Includes construction commitments related to assets held for sale of $264 mil ion as at June 30, 2022; $6 mil ion related to payments due in less than 1 year, $15 mil ion 1–3
years, $12 mil ion 3–5 years, and $231 mil ion after 5 years.
Commitments to Equity Accounted Investees
Pembina has commitments to provide contributions to certain equity accounted investees based on annual budgets approved by the joint venture partners and contractual agreements.
Contingencies
Pembina, including its subsidiaries and its investments in equity accounted investees, are subject to various legal and regulatory and tax proceedings, actions and audits arising in the normal course of business. We represent our interests vigorously in al proceedings in which we are involved. Legal and administrative proceedings involving possible losses are inherently complex, and we apply significant judgment in estimating probable outcomes. Of most significance is a claim filed against Aux Sable by a counterparty to an NGL supply agreement. Aux Sable has filed Statements of Defense responding to the claim. While the final outcome of such actions and proceedings cannot be predicted with certainty, at this time management believes that the resolutions of such actions and proceedings wil not have a material impact on Pembina's financial position or results of operations.
Letters of Credit
Pembina has provided letters of credit to various third parties in the normal course of conducting business. The letters of credit include financial guarantees to counterparties for product purchases and sales, transportation services, utilities, engineering and construction services. The letters of credit have not had and are not expected to have a material impact on Pembina's financial position, earnings, liquidity or capital resources. As at June 30, 2022, Pembina had $173 mil ion (December 31, 2021: $135 mil ion) in letters of credit issued.
	Pembina Pipeline Corporation Second Quarter 2022 63

14. ASSETS HELD FOR SALEOn March 1, 2022, Pembina announced that it has entered into definitive agreements with affiliates of KKR & Co., Inc. (col ectively, "KKR") to combine their respective western Canadian natural gas processing assets into a single, new joint venture entity ("Newco"). Pembina wil hold a 60 percent interest in Newco and serve as its operator and manager, while KKR's global infrastructure funds wil hold the remaining 40 percent interest in Newco.
Pembina committed to a plan to sel its field-based gas processing assets, which include the Cutbank Complex, the Saturn Complex, the Resthaven Facility, the Duvernay Complex and the Saskatchewan Ethane Extraction Plant, which are al reported within the Facilities operating segment. Based on facts and circumstances, management has determined that these assets should be presented as a disposal group held for sale as at June 30, 2022. Pembina wil retain its 45 percent interest in Veresen Midstream post transaction and as such Pembina's carrying amount for Veresen Midstream wil continue to be recovered through continuing use and no reclassification to held for sale is required.
The table below details the assets and liabilities held for sale measured at their carrying amount as at June 30, 2022:
($ mil ions)	June 30, 2022
Cash and cash equivalents		147
Trade receivables and other		91
Inventory		18
Property, plant and equipment (Note 3)		2,536
Intangible assets and goodwil		205
Derivative financial instruments (Note 12)		115
Total assets held for sale		3,112
Trade payables and other		26
Decommissioning provision (Note 6)		20
Contract liabilities (Note 8)		95
Deferred tax liabilities		483
Total liabilities related to assets held for sale		624
On July 27, 2022, the Canadian Competition Bureau issued a no action letter for the joint venture transaction. Issuance of the no action letter al ows Pembina and KKR to proceed with next steps on closing the transaction, which is expected to occur in August 2022 subject to the satisfaction of the remaining conditions. Pursuant to an agreement with the Canadian Competition Bureau, and consistent with Pembina and KKR's intention to divest upon announcing their joint venture, Pembina and KKR's global infrastructure funds wil divest the 50 percent, non-operated interest in the Key Access Pipeline System which wil be contributed into Newco as part of the transaction.
15. RESTATEMENT
During the third quarter of 2021 Pembina identified certain crude contracts that were recorded incorrectly within Marketing & New Ventures. Revenue and cost of goods sold associated with the contracts were recorded on a gross basis but should have been recorded on a net basis. The restatement reduced revenue and cost of goods sold for the three and six months ended June 30, 2021 by $52 mil ion and $81 mil ion, respectively, with no impact on earnings, cash flows or financial position.
64	Pembina Pipeline Corporation Second Quarter 2022

	HEAD OFFICEPembina Pipeline CorporationSuite 4000, 585 – 8th Avenue SWCalgary, Alberta T2P 1G1
	AUDITORSKPMG LLPChartered AccountantsCalgary, Alberta
	TRUSTEE, REGISTRAR & TRANSFER AGENTComputershare Trust Company of CanadaSuite 600, 530 – 8th Avenue SWCalgary, Alberta T2P 3S81.800.564.6253
	STOCK EXCHANGEPembina Pipeline Corporation
	Toronto Stock Exchange listing symbols for:COMMON SHARES PPLPREFERRED SHARES PPL.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.C and PPL.PF.E
	New York Stock Exchange listing symbol for:COMMON SHARES PBA
	INVESTOR INQUIRIESPhone 403.231.3156Fax 403.237.0254Toll Free 1.855.880.7404Email investor-relations@pembina.comWebsite www.pembina.com
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