Free Option on a West Coast Pipe? Pembina Finds a Shareholder-friendly Approach

Research evidence excerpt

Free Option on a West Coast Pipe? Pembina Finds a Shareholder-friendly Approach

Energy Infrastructure

Pembina Pipeline Corp.

TD SECURITIES INC. - CANADA QUICK TAKE: COMPANY UPDATE

July 3, 2026

Price: C$65.82 (07/2/2026) Free Option on a West Coast Pipe? Pembina

Price Target: C$75.00 Finds a Shareholder-friendly Approach

BUY (1)

Aaron MacNeil, CA^ THE TD COWEN INSIGHT

403 292 1222

We view this announcement positively for Pembina. The company has secured exposure to a

aaron.macneil@tdsecurities.com

potentially significant crude export opportunity while committing no at-risk capital prior to FID,

Mark Newson, CFA^ retaining full investment discretion, and limiting exposure to many of the regulatory, political,

403 299 3207 and execution risks that have historically challenged Canadian pipeline developments.

mark.newson@tdsecurities.com

Ben Fullarton^ Event: Pembina announced its non-binding participation in the proposed Alberta/Federal West

416 308 8209 Coast pipeline project.

ben.fullarton@tdsecurities.com

Impact: POSITIVE

Key Data

Symbol TSX: PPL-T Details: Pembina has signed a non-binding agreement to participate in the evaluation

Market Cap C$38.3B and development of a proposed ~1mmbbl/d West Coast crude oil pipeline alongside the

federal and Alberta governments and Trans Mountain Corporation. The project will utilize the

existing TMX corridor and be led by Trans Mountain Corporation, which will be responsible for

permitting, stakeholder engagement, construction, and operations. At this stage, Pembina's

role is primarily advisory and execution-focused, with no commitment to proceed beyond

ongoing due diligence.

Pembina's Participation Appears to be Shareholder-friendly: Although the project remains