Enhanced Investments - Financial Portal

Published: 2021-08-05

Financial Statements & Notes

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(unaudited)
($ mil ions)	June 30, 2021	December 31, 2020
Assets
Current assets
Cash and cash equivalents			57	81
Trade receivables and other			751	662
Inventory			276	221
Derivative financial instruments (Note 13)			25	25
			1,109	989
Non-current assets
Property, plant and equipment (Note 4)			18,427	18,549
Intangible assets and goodwil			6,278	6,340
Investments in equity accounted investees (Note 5)			4,346	4,377
Right-of-use assets (Note 6)			652	651
Finance lease receivable (Note 6)			215	138
Deferred tax assets			303	322
Advances to related parties and other assets			66	50
			30,287	30,427
Total assets			31,396	31,416
Liabilities and equity
Current liabilities
Trade payables and other			820	780
Loans and borrowings (Note 7)			399	600
Dividends payable			116	115
Lease liabilities			92	99
Contract liabilities (Note 9)			80	62
Taxes payable			—	56
Derivative financial instruments (Note 13)			102	69
			1,609	1,781
Non-current liabilities
Loans and borrowings (Note 7)			10,405	10,276
Subordinated hybrid notes (Note 7)			594	—
Lease liabilities			666	675
Decommissioning provision			383	348
Contract liabilities (Note 9)			226	230
Deferred tax liabilities			2,979	2,925
Other liabilities			227	166
			15,480	14,620
Total liabilities			17,089	16,401
Equity
Attributable to shareholders			14,247	14,955
Attributable to non-control ing interest			60	60
Total equity			14,307	15,015
Total liabilities and equity			31,396	31,416
See accompanying notes to the condensed consolidated interim financial statements
					Pembina Pipeline Corporation Second Quarter 2021 37

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME(unaudited)
	3 Months Ended June 30	6 Months Ended June 30
				2020			2020
($ mil ions, except per share amounts)			2021		(Restated Note 2)	2021		(Restated Note 2)
Revenue (Note 9)									1,954			1,268	3,999		2,939
Cost of sales (Note 11)									1,424			809	2,817		1,957
Loss (gain) on commodity-related derivative financial instruments
(Note 13)									32	65		125	(61)
Share of profit from equity accounted investees (Note 5)									52	66		123	150
Gross profit									550	460	1,180			1,193
General and administrative									79	59		166	120
Other expense (income)									25	(20)		29	(3)
Impairment expense (Note 5)									23	—		35	—
Results from operating activities									423	421		950	1,076
Net finance costs (Note 10)									95	71		199	279
Earnings before income tax									328	350		751	797
Current tax expense									56	67		114	143
Deferred tax expense									18	25		63	77
Income tax expense									74	92		177	220
Earnings									254	258		574	577
Other comprehensive income (loss), net of tax (Note 12 & 13)
Exchange (loss) gain on translation of foreign operations									(59)	(212)		(122)	253
Impact of hedging activities									3	9		11	9
Re-measurement of defined benefit liability									—	—		—	14
Total comprehensive income attributable to shareholders									198	55		463	853
Earnings attributable to common shareholders, net of preferred
share dividends									218	219		499	499
Earnings per common share – basic and diluted (dol ars)									0.39	0.40		0.91	0.91
Weighted average number of common shares (mil ions)
Basic									550	550		550	549
Diluted									551	550		551	550
See accompanying notes to the condensed consolidated interim financial statements
38 Pembina Pipeline Corporation Second Quarter 2021

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY(unaudited)
	Attributable to Shareholders of the Company
		Total
		Equity	Common	Preferred			Deficit		Total	Non-
		(Restated	Share		Share	(Restated		(Restated		Control ing
		Note 2)	($ mil ions)	Capital		Capital	Note 2)	AOCI(1)	Note 2)	Interest
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 12)				—		—	—	(111)	(111)	—	(111)
Total comprehensive income (loss)				—		—	574	(111)	463	—	463
Transactions with shareholders of the Company
Part VI.1 tax on preferred shares (Note 8)				—		(4)	—	—	(4)	—	(4)
Preferred shares redemption (Note 8)				—		(420)	—	—	(420)	—	(420)
Share-based payment transactions (Note 8)				17		—	—	—	17	—	17
Dividends declared – common (Note 8)				—		—	(693)	—	(693)	—	(693)
Dividends declared – preferred (Note 8)				—		—	(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
Opening value January 1, 2020				15,539		2,956	(1,785)	98	16,808	60	16,868
Total comprehensive income (loss)
Earnings				—		—	577	—	577	—	577
Other comprehensive income
Exchange gain on translation of foreign operations				—		—	—	262	262	—	262
Remeasurements of defined benefit liability, net of
tax				—		—	—	14	14	—	14
Total comprehensive income				—		—	577	276	853	—	853
Transactions with shareholders of the Company
Part VI.1 tax on preferred shares				—		(4)	—	—	(4)	—	(4)
Share-based payment transactions				90		—	—	—	90	—	90
Dividends declared – common				—		—	(693)	—	(693)	—	(693)
Dividends declared – preferred				—		—	(75)	—	(75)	—	(75)
Total transactions with shareholders of the Company				90		(4)	(768)	—	(682)	—	(682)
June 30, 2020				15,629		2,952	(1,976)	374	16,979	60	17,039
(1)	Accumulated Other Comprehensive Income (loss) ("AOCI").
See accompanying notes to the condensed consolidated interim financial statements
				Pembina Pipeline Corporation Second Quarter 2021 39

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(unaudited)
	3 Months Ended June 30	6 Months Ended June 30
				2020			2020
($ mil ions)			2021		(Restated Note 2)	2021		(Restated Note 2)
Cash provided by (used in)Operating activitiesEarnings
									254	258		574	577
Adjustments for:
Share of profit from equity accounted investees									(52)	(66)		(123)	(150)
Distributions from equity accounted investees									112	116		227	239
Depreciation and amortization									188	172		363	345
Impairment expense									23	—		35	—
Unrealized (gain) loss on commodity-related derivative financial
instruments									(1)	101		4	(8)
Net finance costs (Note 10)									95	71		199	279
Net interest paid									(88)	(74)		(197)	(173)
Income tax expense									74	92		177	220
Taxes paid									(69)	(14)		(196)	(200)
Share-based compensation expense									29	9		57	4
Share-based compensation payment									—	—		(32)	(44)
Net change in contract liabilities									14	25		19	42
Other									3	(10)		10	—
Change in non-cash operating working capital									2	(38)		(77)	(79)
Cash flow from operating activities									584	642	1,040			1,052
Financing activities
Net increase (decrease) in bank borrowings									289	(299)		186	(904)
Proceeds from issuance of long-term debt, net of issue costs									—	498		593	1,567
Repayment of long-term debt									—	(73)		(250)	(73)
Repayment of lease liability									(17)	(17)		(41)	(43)
Exercise of stock options									2	1		3	83
Redemption of preferred shares									(250)	—		(420)	—
Dividends paid									(382)	(384)		(765)	(762)
Cash flow used in financing activities									(358)	(274)		(694)	(132)
Investing activities
Capital expenditures									(146)	(211)		(273)	(694)
Contributions to equity accounted investees									—	(2)		(12)	(174)
Acquisitions (Note 5)									(37)	—		(37)	—
Receipt of finance lease payments									3	(9)		6	5
Interest paid during construction									(5)	(12)		(14)	(26)
Recovery of assets or proceeds from sale									12	(2)		12	—
Advances to related parties									—	(11)		(10)	(22)
Changes in non-cash investing working capital and other									(46)	(165)		(48)	(57)
Cash flow used in investing activities									(219)	(412)		(376)	(968)
Change in cash and cash equivalents									7	(44)		(30)	(48)
Effect of movement in exchange rates on cash held									5	(15)		6	(8)
Cash and cash equivalents, beginning of period									45	132		81	129
Cash and cash equivalents, end of period									57	73		57	73
See accompanying notes to the condensed consolidated interim financial statements
40 Pembina Pipeline Corporation Second Quarter 2021

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
1. REPORTING ENTITY
Pembina Pipeline Corporation ("Pembina" or the "Company") is a Calgary-based, leading transportation and midstream service provider serving North America's energy industry. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Pembina also owns gas gathering and processing facilities and an oil and natural gas liquids infrastructure, storage and logistics business; and is growing an 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 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, 2021. These Interim Financial Statements and the notes hereto have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"), as issued by the International Accounting Standards Board ("IASB"). The accounting policies applied are in accordance with International Financial Reporting Standards (“IFRS”) and are consistent with the audited annual consolidated financial statements of the Company as at and for the year ended December 31, 2020 ("Consolidated Financial Statements"), 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 5, 2021.
Certain insignificant comparative amounts have been reclassified to conform to the presentation adopted in the current year.
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, 2021, including to ongoing impact of significant uncertainties created by the coronavirus ("COVID-19") pandemic, as discussed below.
Ongoing Impact of the COVID-19 Pandemic
Fol owing the World Health Organization declaring the COVID-19 outbreak to be a pandemic, many governments have imposed restrictions on individuals and businesses, resulting in a significant slowdown of the global economy. While there have been positive signals into the first six months of 2021 in commodity prices, demand recovery remains affected by the on-going COVID-19 pandemic. Although restrictions have been relaxed in certain jurisdictions and vaccination programs are underway, there remains significant uncertainty as to the global economic outlook and there remains the potential for volatility in the global economy as a result of the COVID-19 pandemic. Management considered these uncertainties when applying judgment to estimates and assumptions in the Interim Financial Statements.
	Pembina Pipeline Corporation Second Quarter 2021 41

2. CHANGES IN ACCOUNTING POLICIES
Voluntary change in accounting policy
As detailed in Note 3 of the Consolidated Financial Statements, as at December 31, 2020, Pembina voluntarily changed its accounting policy for the measurement of decommissioning liabilities to utilize a credit-adjusted risk-free interest rate instead of a risk-free interest rate to determine the present value of the liability at each statement of financial position date. This accounting policy change was applied retrospectively, including the restatement of certain comparative amounts in the Interim Financial Statements, as summarized below.
i.	Reconciliation of the Condensed Consolidated Interim Statements of Earnings and Comprehensive Income
	3 Months Ended June 30, 2020	6 Months Ended June 30, 2020
	Previously	Previously
($ mil ions)	reported Adjustments		Restated	reported Adjustments		Restated
Cost of sales		813		(4)	809	1,965		(8)	1,957
Share of profit from equity accounted investees		65		1		66	148		2	150
Gross profit		455		5	460	1,183		10	1,193
Net finance costs		72		(1)		71	281		(2)	279
Earnings before income tax		344		6	350	785		12	797
Deferred tax expense		24		1		25	75		2		77
Earnings attributable to shareholders		253		5	258	567		10	577
Total comprehensive income attributable to shareholders		50		5		55	843		10	853
Earnings attributable to common shareholders, net of preferred
share dividends		214		5	219	489		10	499
Earnings per common share - basic and diluted	0.39						0.01	0.40	0.89			0.02	0.91
i . Reconciliation of the Condensed Consolidated Interim Statement of Cash Flows
	3 Months Ended June 30, 2020	6 Months Ended June 30, 2020
	Previously	Previously
($ mil ions)	reported Adjustments		Restated	reported Adjustments		Restated
Earnings		253		5	258	567		10	577
Share of profit from equity accounted investees		(65)		(1)	(66)	(148)		(2)	(150)
Adjustments for depreciation and amortization		176		(4)	172	353		(8)	345
Adjustments for net finance costs		72		(1)		71	281		(2)	279
Adjustments for income tax expense		91		1		92	218		2	220
Cash flow from operating activities		642		—	642	1,052		—	1,052
3. 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 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.
Ongoing Impact of the COVID-19 Pandemic
Measuring fair values using significant unobservable inputs has become more chal enging in the current environment, where events and conditions related to the COVID-19 pandemic are driving significant disruption of business operations and a significant increase in economic uncertainty. 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.
42 Pembina Pipeline Corporation Second Quarter 2021

4. PROPERTY, PLANT AND EQUIPMENT
				Cavern
	Land and		Facilities and	Storage and	Assets Under
($ mil ions)	Land Rights	Pipelines	Equipment	Other	Construction(1)(2)	Total
CostBalance at December 31, 2020
		429	9,206				8,907	1,993		1,109	21,644
Additions and transfers								12	75		430	122		(465)	174
Change in decommissioning provision								—	4		6	5		—	15
Disposals and other								(1)	(20)			(13)	(22)		—	(56)
Foreign exchange								(2)	(23)			(6)	—		—	(31)
Balance at June 30, 2021		438	9,242				9,324	2,098		644	21,746
DepreciationBalance at December 31, 2020
								21	1,547			1,118	409		—	3,095
Depreciation								2	96		115	42		—	255
Disposals and other								—	(9)		(11)	(11)		—	(31)
Balance at June 30, 2021								23	1,634			1,222	440		—	3,319
Carrying amountsBalance at December 31, 2020
		408	7,659				7,789	1,584		1,109	18,549
Balance at June 30, 2021		415	7,608				8,102	1,658		644	18,427
Assets subject to operating leasesDecember 31, 2020
								8	300			496	170		—	974
June 30, 2021								8	299			485	166		—	958
(1)	Includes capitalized borrowing costs.
(2)	At June 30, 2021, the movement in Assets Under Construction includes $89 mil ion in assets transferred to net investment lease.
			Pembina Pipeline Corporation Second Quarter 2021 43

5. 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
							2020
($ mil ions)	June 30, 2021 December 31, 2020		2021					(Restated Note 2)	June 30, 2021 December 31, 2020
Al iance									50	50	59			58	2,408		2,498
Aux Sable	42.7 - 50										42.7 - 50	13			2	367		401
Ruby(1)									—	—	13			61	—		—
Veresen Midstream									45	45	35			27	1,360		1,374
CKPC									50	50	—			1	—		—
Cedar LNG									49.9	—	—			—	129		—
Other(2)									50 - 75		50 - 75	3			1	82		104
			123				150	4,346					4,377
(1)	Pembina owns a 50 percent convertible preferred interest in Ruby.
(2)	Other includes Pembina's interest in Grand Val ey and Fort Corp.
At June 30, 2021, 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, 2021, Pembina recognized a loss of $23 mil ion and a loss of $43 mil ion (2020: $110 mil ion loss and $138 mil ion gain), respectively.
Cedar LNG Acquisition
On June 4, 2021, Pembina acquired a 49.9 percent interest in a joint venture with the Haisla Nation to develop the Cedar LNG Project, a LNG facility located on the coast of British Columbia within the Douglas Channel on Haisla owned land. Pembina's investment of $129 mil ion at June 30, 2021 included $76 mil ion of accrued contingent consideration payable on achievement of certain conditions. Under the terms of the agreement, 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.
Impairment of Equity Accounted Investees
During the six months ended June 30, 2021, Pembina recognized U.S. $8 mil ion in impairment associated with an advance made to Ruby in January of 2021and during June 2021, Pembina recognized an impairment charge of $22 mil ion on its interest in Fort Corp. The impairment charge was the result of an assessment triggered by a reduction in the contracted capacity by a key customer on certain Fort Corp assets.
Financing Activities for Equity Accounted Investees
On April 19, 2021, Ruby ful y repaid the $16 mil ion outstanding on its term loan.
44 Pembina Pipeline Corporation Second Quarter 2021

6. LEASES
Lessee Leases
Pembina enters into arrangements to secure access to assets necessary for operating the business. Leased (right-of-use) assets include terminals, rail, buildings, land and other assets. Total cash outflows related to leases were $31 mil ion and $65 mil ion, respectively, for the three and six months ended June 30, 2021 (2020: $33 mil ion and $64 mil ion).
Right-of-Use Assets
($ mil ions)	Terminals	Rail	Buildings Land & Other	Total
Balance at December 31, 2020					213	221				121	96	651
Additions and adjustments					—	—				39	17	56
Disposals and other					—	(4)				(1)	(8)	(13)
Amortization					(6)	(21)				(9)	(6)	(42)
Balance at June 30, 2021					207	196				150	99	652
Lessor Leases
Pembina has entered into contracts for the use of its assets that have resulted in lease treatment for accounting purposes. Assets under operating leases include pipelines, terminals and storage assets. See Note 4 for carrying value of property, plant and equipment under operating leases. Assets under finance leases include pipelines, terminals, storage assets and office sub-leases.
Maturity of Lease Receivables
As at June 30, 2021($ mil ions)
			Operating Leases				Finance Leases
Less than one year								144	32
One to two years								142	31
Two to three years								130	31
Three to four years								114	31
Four to five years								108	32
More than five years								780	334
Total undiscounted lease receipts								1,418	491
Unearned finance income on lease receipts								(281)
Discounted unguaranteed residual value								14
Finance lease receivable								224
Less current portion(1)								(9)
Total non-current								215
(1)	Included in trade receivables and other on the Condensed Consolidated Interim Statement of Financial Position.
					Pembina Pipeline Corporation Second Quarter 2021 45

7. 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	Nominal	Year of
($ mil ions)	June 30, 2021	Interest Rate	Maturity	June 30, 2021	December 31, 2020
Loans and borrowingsSenior unsecured credit facilities(1)(3)(4)
						3,330	1.27(2)	Various(1)			1,708	1,530
Senior unsecured medium-term notes series 1						—	4.89	2021			—	250
Senior unsecured medium-term notes series 2						450	3.77	2022			450	449
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	498
Senior unsecured medium-term notes series 7						600	3.71	2026			603	603
Senior unsecured medium-term notes series 8						650	2.99	2024			648	647
Senior unsecured medium-term notes series 9						550	4.74	2047			542	542
Senior unsecured medium-term notes series 10						650	4.02	2028			660	661
Senior unsecured medium-term notes series 11						800	4.75	2048			842	842
Senior unsecured medium-term notes series 12						650	3.62	2029			654	654
Senior unsecured medium-term notes series 13						700	4.54	2049			713	713
Senior unsecured medium-term notes series 14						600	2.56	2023			599	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 3A						50	5.05	2022			49	51
Senior unsecured medium-term notes series 5A						350	3.43	2021			350	350
Total loans and borrowings									10,804	10,876
Less current portion loans and borrowings									(399)	(600)
Total non-current loans and borrowings									10,405	10,276
Subordinated hybrid notesSubordinated notes, series 1
						600	4.80	2081			594	—
(1)	Pembina's unsecured credit facilities include a $2.5 bil ion revolving facility that matures in June 2026, a $500 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 2022, 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, 2021. 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, 2021 (December 31, 2020: 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 13 for foreign exchange risk management.
On January 25, 2021, Pembina closed a $600 mil ion offering of Fixed-to-Fixed Rate Subordinated Hybrid Notes (the "Series 1 Subordinated Notes"). The Series 1 Subordinated Notes have a fixed 4.80 percent interest rate, payable semi-annual y, which resets on January 25, 2031, and on every fifth anniversary thereafter, based on the five-year Government of Canada yield plus: (i) 4.17 percent for the period from, and including, January 25, 2031 to, but excluding January 25, 2051; and (i ) 4.92 percent for the period from, and including, January 25, 2051 to, but excluding January 25, 2081. The Series 1 Subordinated Notes are subject to optional redemption by Pembina from October 25, 2030 to January 25, 2031 and on any interest payment date or any interest reset date, as applicable. Pembina may also redeem the Series 1 Subordinated Notes in certain other limited circumstances. Fol owing the occurrence of certain bankruptcy or insolvency events in respect of Pembina, subject to certain exceptions, the Series 2021-A Class A Preferred Shares (as defined below) wil be delivered to the holders of the Series 1 Subordinated Notes to satisfy Pembina's obligations under the indenture governing the Series 1 Subordinated Notes. Upon delivery of the Series 2021-A Class A Preferred Shares, the Series 1 Subordinated Notes wil be immediately and automatical y surrendered and cancel ed and al rights of any holders of the Series 1 Subordinated Notes wil automatical y cease. The fair value of the automatic delivery feature was assessed as nominal at inception.
46 Pembina Pipeline Corporation Second Quarter 2021

On April 30, 2021, Pembina completed an extension on its $2.5 bil ion revolving credit facility, which now matures on June 1, 2026.
8. SHARE CAPITAL
Common Share Capital
	Number of
	Common Shares	Common
($ mil ions, except as noted)	(mil ions)	Share Capital
Balance at December 31, 2020				550	15,644
Share-based payment transactions				—	17
Balance at June 30, 2021				550	15,661
On February 25, 2021, the Toronto Stock Exchange ("TSX") accepted the Company's notice of intention to commence a normal course issuer bid ("NCIB") that al ows the Company to repurchase, at its discretion, up to 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 wil be cancel ed. The program commenced March 2, 2021 and wil terminate on March 1, 2022 or on such earlier date as the Company completes its purchases pursuant to the notice of intention. No common shares were purchased by Pembina during the six months ended June 30, 2021.
Preferred Share Capital
			Number of Preferred
	Shares	Preferred
($ mil ions, except as noted)	(mil ions)	Share Capital
Balance at December 31, 2020				122	2,946
Class A, Series 11 Preferred shares redeemed, net of issue costs				(7)	(170)
Class A, Series 13 Preferred shares redeemed, net of issue costs				(10)	(250)
Part VI.1 tax				—	(4)
Balance at June 30, 2021				105	2,522
On January 25, 2021 in conjunction with the offering of the Series 1 Subordinated Notes, Pembina issued 600,000 Series 2021-A Class A Preferred Shares, to Computershare Trust Company of Canada, to be held in trust as treasury shares to satisfy Pembina's obligations under the indenture governing the Series 1 Subordinated Notes.
On March 1, 2021, Pembina redeemed al of the 6.8 mil ion issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 11 (the "Series 11 Class A Preferred Shares") for a redemption price equal to $25.00 per Series 11 Class A Preferred Share.
On June 1, 2021, Pembina redeemed al of the 10 mil ion issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 13 (the "Series 13 Class A Preferred Shares") for a redemption price equal to $25.00 per Series 13 Class A Preferred Shares.
						Pembina Pipeline Corporation Second Quarter 2021 47

Dividends
The fol owing dividends were declared by Pembina:
6 Months Ended June 30($ mil ions)
	2021	2020
Common shares
$1.26 per common share (2020: $1.26)	693	693
Class A preferred shares
$0.61 per Series 1 Class A Preferred Share (2020: $0.61)	6	6
$0.56 per Series 3 Class A Preferred Share (2020: $0.56)	3	3
$0.57 per Series 5 Class A Preferred Share (2020: $0.57)	6	6
$0.54 per Series 7 Class A Preferred Share (2020: $0.54)	5	5
$0.53 per Series 9 Class A Preferred Share (2020: $0.59)	5	5
$0.24 per Series 11 Class A Preferred Share (2020: $0.71)	2	5
$0.59 per Series 13 Class A Preferred Share (2020: $0.71)	6	7
$0.56 per Series 15 Class A Preferred Share (2020: $0.56)			4	4
$0.60 per Series 17 Class A Preferred Share (2020: $0.60)			4	4
$0.59 per Series 19 Class A Preferred Share (2020: $0.63)			5	5
$0.61 per Series 21 Class A Preferred Share (2020: $0.61)			10	10
$0.66 per Series 23 Class A Preferred Share (2020: $0.66)			8	8
$0.65 per Series 25 Class A Preferred Share (2020: $0.65)			7	7
	71	75
On July 7, 2021, Pembina announced that its Board of Directors had declared a monthly dividend of $0.21 per common share in the total amount of $116 mil ion, payable on August 13, 2021 to shareholders of record on July 23, 2021. Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares as outlined in the fol owing table:
						Dividend Amount
Series			Record Date	Payable Date	Per Share Amount		($ mil ions)
Series 1			August 3, 2021	September 1, 2021	$0.306625	3
Series 3			August 3, 2021	September 1, 2021	$0.279875	2
Series 5			August 3, 2021	September 1, 2021	$0.285813	3
Series 7			August 3, 2021	September 1, 2021	$0.273750	3
Series 9			August 3, 2021	September 1, 2021	$0.268875	2
Series 15								September 15, 2021	September 30, 2021	$0.279000	2
Series 17								September 15, 2021	September 30, 2021	$0.301313	2
Series 19								September 15, 2021	September 30, 2021	$0.292750	2
Series 21			August 3, 2021	September 1, 2021	$0.306250	5
Series 23			August 3, 2021	August 16, 2021	$0.328125	4
Series 25			August 3, 2021	August 16, 2021	$0.325000	3
48 Pembina Pipeline Corporation Second Quarter 2021

9. 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
	2021	2020
	Marketing	Marketing
3 Months Ended June 30
					& New			& New
			Pipelines	Facilities	Ventures					Total Pipelines	Facilities	Ventures							Total	($ mil ions)Take-or-pay(1)
				389	180				—	569				390	177						—	567
Fee-for-service(1)											93	36				—	129				66	28	—	94
Product sales(2)											—	—				1,215	1,215				—	—	561	561
Revenue from contracts with customers				482	216				1,215	1,913				456	205						561	1,222
Operational finance lease income				4	—				—	4	4	—						—	4
Fixed operating lease income											28	9				—	37				32	10	—	42
Total external revenue				514	225				1,215	1,954				492	215						561	1,268
(1)	Revenue recognized over time.
(2)	Revenue recognized at a point in time.
	2021	2020
	Marketing	Marketing
6 Months Ended June 30
					& New			& New
			Pipelines	Facilities	Ventures					Total Pipelines	Facilities	Ventures							Total	($ mil ions)Take-or-pay(1)
				788	364				—	1,152				778	359						—	1,137
Fee-for-service(1)				172	76				—	248				165	58						—	223
Product sales(2)											—	—				2,515	2,515				—	—	1,484	1,484
Revenue from contracts with customers				960	440				2,515	3,915				943	417						1,484	2,844
Operational finance lease income				8	—				—	8	8	—						—	8
Fixed operating lease income											58	18				—	76				69	18	—	87
Total external revenue				1,026	458				2,515	3,999				1,020	435						1,484	2,939
(1)	Revenue recognized over time.
(2)	Revenue recognized at a point in time.
b. Contract Liabilities
Significant changes in the contract liabilities balances during the period are as fol ows:
				6 Months Ended June 30, 2021						12 Months Ended December 31, 2020
	Other					Total	Other							Total
	Contract					Contract	Contract							Contract
($ mil ions)			Take-or-Pay	Liabilities					Liabilities				Take-or-Pay	Liabilities							Liabilities
Opening balance				3	289	292	8	223	231
Additions (net in the period)				32	46	78	3	117	120
Revenue recognized from contract liabilities(1)				—	(64)	(64)	(8)	(51)	(59)
Closing balance				35	271	306	3	289	292
Less current portion(2)				(35)	(45)	(80)	(3)	(59)	(62)
Ending balance				—	226	226	—	230	230
(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, 2021, the balance includes $35 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.
Contract liabilities depict Pembina's obligation to perform services in the future for cash and non-cash consideration which has 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.
					Pembina Pipeline Corporation Second Quarter 2021 49

Pembina does not have any contract assets. 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.
10. NET FINANCE COSTS
	3 Months Ended June 30	6 Months Ended June 30
				2020		2020
				(Restated		(Restated
($ mil ions)			2021	Note 2)	2021	Note 2)
Interest expense on financial liabilities measured at amortized cost:
Long-term debt			99	91	195	178
Leases			9	10	18	20
Unwinding of discount rate			4	3	8	7
Loss (gain) in fair value of non-commodity-related derivative financial
instruments			4	(24)	8	22
Foreign exchange (gains) losses and other			(21)	(9)	(30)	52
Net finance costs			95	71	199	279
50 Pembina Pipeline Corporation Second Quarter 2021

11. OPERATING SEGMENTS
Pembina's operating segments are organized by three divisions: Pipelines, Facilities and Marketing & New Ventures.
				Corporate &
3 Months Ended June 30, 2021
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total	($ mil ions)
Revenue from external customers						514	225				1,215	—	1,954
Inter-segment revenue						40	109				—	(149)	—
Total revenue(3)						554	334				1,215	(149)	1,954
Operating expenses						132	112				—	(58)	186
Cost of goods sold, including product purchases						—		2	1,150	(92)	1,060
Depreciation and amortization included in operations						108		56	12	2	178
Cost of sales						240	170				1,162	(148)	1,424
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
3 Months Ended June 30, 2020
				Corporate &
(Restated Note 2)($ mil ions)
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total
Revenue from external customers						492	215				561	—	1,268
Inter-segment revenue						36		75	—	(111)	—
Total revenue(3)						528	290				561	(111)	1,268
Operating expenses						107		86	—	(39)	154
Cost of goods sold, including product purchases						—		2	565	(75)	492
Depreciation and amortization included in operations						100		49	12	2	163
Cost of sales						207	137				577	(112)	809
Realized gain on commodity-related derivative
financial instruments						—		—	(36)	—	(36)
Share of profit (loss) from equity accounted investees						58		14	(6)	—	66
Unrealized loss on commodity-related derivative
financial instruments						—		2	99	—	101
Gross profit						379	165				(85)	1	460
Depreciation included in general and administrative						—		—	—	9	9
Other general and administrative						1		4	7	38	50
Other expense (income)						3		1	—	(24)	(20)
Reportable segment results from operating activities						375	160				(92)	(22)	421
Net finance costs (income)						9		5	(12)	69	71
Reportable segment earnings (loss) before tax						366	155				(80)	(91)	350
Capital expenditures						129		62	10	10	211
Contributions to equity accounted investees						—		—	2	—	2
(1)	Pipelines transportation revenue includes $55 mil ion (2020: $49 mil ion) associated with U.S. pipeline revenue.
(2)	Marketing & New Ventures includes revenue of $40 mil ion (2020: $15 mil ion) associated with U.S. midstream sales.
(3)	During 2021, no one customer accounted for 10 percent or more of total revenues reported throughout al segments. During 2020, one customer accounted for 10 percent or
more of total revenues with $164 mil ion reported throughout al segments
		Pembina Pipeline Corporation Second Quarter 2021 51

				Corporate &
6 Months Ended June 30, 2021
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total	($ mil ions)
Revenue from external customers		1,026	458				2,515	—	3,999
Inter-segment revenue								81	215				—	(296)	—
Total revenue(3)		1,107	673				2,515	(296)	3,999
Operating expenses								269	223				—	(124)	368
Cost of goods sold, including product purchases								—	6	2,276	(176)	2,106
Depreciation and amortization included in operations								212	102				25	4	343
Cost of sales								481	331				2,301	(296)	2,817
Realized loss on commodity-related derivative financial
instruments								—	—	121	—	121
Share of profit from equity accounted investees								74	36	13	—	123
Unrealized (gain) loss on commodity-related derivative
financial instruments								—	(17)				21	—	4
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
6 Months Ended June 30, 2020
				Corporate &
(Restated Note 2)
			Marketing &	Inter-segment
	Pipelines(1)	Facilities	New Ventures(2)	Eliminations	Total	($ mil ions)
Revenue from external customers		1,020	435				1,484	—	2,939
Inter-segment revenue								71	159				—	(230)	—
Total revenue(3)		1,091	594				1,484	(230)	2,939
Operating expenses								233	182				—	(82)	333
Cost of goods sold, including product purchases								—	4	1,448	(154)	1,298
Depreciation and amortization included in operations								197	100				25	4	326
Cost of sales								430	286				1,473	(232)	1,957
Realized gain on commodity-related derivative
financial instruments								—	—	(53)	—	(53)
Share of profit from equity accounted investees								117	30	3	—	150
Unrealized gain on commodity-related derivative
financial instruments								—	(3)	(5)	—	(8)
Gross profit								778	341				72	2	1,193
Depreciation included in general and administrative								—	—	—	19	19
Other general and administrative								10	5	15	71	101
Other expense (income)								3	1	12	(19)	(3)
Reportable segment results from operating activities								765	335				45	(69)	1,076
Net finance costs								16	11	9	243	279
Reportable segment earnings (loss) before tax								749	324				36	(312)	797
Capital expenditures								457	198				25	14	694
Contributions to equity accounted investees								—	41	155	—	196
(1)	Pipelines transportation revenue includes $106 mil ion (2020: $108 mil ion) associated with U.S. pipeline revenue.
(2)	Marketing & New Ventures includes revenue of $123 mil ion (2020: $65 mil ion) associated with U.S. midstream sales.
(3)	During 2021, no one customer accounted for 10 percent or more of total revenues reported throughout al segments. During 2020, one customer accounted for 10 percent or
more of total revenues with $301 mil ion reported throughout al segments
52 Pembina Pipeline Corporation Second Quarter 2021

12. 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, 2019						134					—	(36)	98
Other comprehensive gain before hedging activities						253					—	14	267
Other comprehensive gain (loss) resulting from hedging activities(1)								11	(1)	—	10
Tax impact								(1)	—	—	(1)
Balance at June 30, 2020						397					(1)	(22)	374
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)
(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 13).
(2)	Pension and other Post-Retirement Benefit Plan Adjustments wil not be reclassified into earnings.
13. 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's financial risks are consistent with those discussed in Note 27 of the Consolidated Financial Statements. Pembina has exposure to counterparty credit risk, liquidity risk and market risk. As at June 30, 2021, 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.
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 and trade payables and other 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.
					June 30, 2021	December 31, 2020
	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)
										74	—						74	—	53				—	53	—
Financial liabilities carried at fair valueDerivative financial instruments(3)
										109	—	109	—	69			—			69	—
Financial liabilities carried at amortized costLong-term debt(2)
									11,398	— 12,005	— 10,876				— 11,902	—
(1)	The basis for determining fair value is disclosed in Note 3.
(2)	Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes.
(3)	At June 30, 2021 al derivative financial instruments are carried at fair value through earnings, except for $5 mil ion in interest rate derivative financial assets that have been
designated as cash flow hedges.
	Pembina Pipeline Corporation Second Quarter 2021 53

Pembina's financial instruments classified in level 2 of the fair value hierarchy 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.
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, which is consistent with the gross balances:
	June 30, 2021	December 31, 2020
	Non-				Non-	Non-
			Current	Current	Current			Current		Current	Current						Current
($ mil ions)			Asset	Asset	Liability			Liability	Total	Asset	Asset						Liability	Total
Commodity, power, storage and rail
financial instruments				19	44								(102)	(7)	(46)	11								27	(68)	(30)
Interest rate				—	5								—	—	5	—					1	(1)	—
Foreign exchange				6	—								—	—	6	14								—	—	14
Net derivative financial instruments				25	49								(102)	(7)	(35)	25								28	(69)	(16)
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, 2021Purchases(1)
										—	31,711	6,059						—	—
Sales(1)										7,597		—	—						—	—
Mil ions of U.S. dol ars										—		—	—						83	250
Maturity dates					2022	2022	2040					2021	2025
As at December 31, 2020Purchases(1)(2)
										1,756	73,557	—						—	—
Sales(1)										25,284		—	—						—	—
Mil ions of U.S. dol ars										—		—	—						260	250
Maturity dates					2021	2021	2021					2021	2025
(1)	Barrels per day ("bpd"), gigajoules per day ("GJ/d") and gigawatt hours ("GWh").
(2)	As at December 31, 2020 Pembina had outstanding power purchase derivatives representing approximately 6 megawatt hours.
54	Pembina Pipeline Corporation Second Quarter 2021

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)			2021	2020	2021	2020
Derivative instruments held at FVTPL(1)Realized loss (gain)
Commodity-related			33	(36)	121	(53)
Foreign exchange			(3)	4	(8)	4
Unrealized (gain) loss
Commodity-related			(1)	101	4	(8)
Foreign exchange			4	22	8	22
Derivative instruments in hedging relationships(2)Unrealized loss (gain)
Interest rate			1	1	(4)	1
(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 losses (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 12 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, 2021	December 31, 2020
Notional amount of U.S. debt designated (in U.S. dol ars)							250	250
Carrying value of U.S. debt designated							308	317
Maturity date		2025				2025
	Pembina Pipeline Corporation Second Quarter 2021 55

14. COMMITMENTS AND CONTINGENCIES
Commitments
Pembina had the fol owing contractual obligations outstanding at June 30, 2021:
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)							1,032	121			188	157	566
Long-term debt(3)							16,906	887	2,895	2,284			10,840
Construction commitments(4)							1,092	503			77	33	479
Other							549	85			128	70	266
Total contractual obligations							19,579	1,596	3,288	2,544			12,151
(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 12 and 138 mbpd of NGL each year up to and including 2029. Power purchase agreements range from one to 24 years and involve
the purchase of power from electrical service providers. Pembina has secured up to 80 megawatts per day each year up to and including 2045.
(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.
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, 2021, Pembina had $129 mil ion (December 31, 2020: $91 mil ion) in letters of credit issued.
56	Pembina Pipeline Corporation Second Quarter 2021

15. SUBSEQUENT EVENT
On June 1, 2021, Pembina announced that it had entered into an arrangement agreement with Inter Pipeline Ltd. ("Inter Pipeline"), pursuant to which Pembina proposed to acquire al of the issued and outstanding shares of Inter Pipeline by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Inter Pipeline Acquisition"). Pursuant to the Inter Pipeline Acquisition, holders of Inter Pipeline common shares (other than dissenting holders of Inter Pipeline common shares) would have received 0.5 of a common share of Pembina for each common share of Inter Pipeline that they owned. On July 25, 2021, the arrangement agreement was terminated and Pembina received the termination fee of $350 mil ion.
	Pembina Pipeline Corporation Second Quarter 2021 57

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