DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Table] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 1-35563 |
Entity Registrant Name | PEMBINA PIPELINE CORPORATION |
Entity Incorporation, State or Country Code | A0 |
Entity Primary SIC Number | 4612 |
Entity Address, Address Line One | Suite 4000, 585 – 8th Avenue S.W. |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2P 1G1 |
City Area Code | 403 |
Local Phone Number | 231-7500 |
Title of 12(b) Security | Common Shares |
Trading Symbol | PBA |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding (in shares) | 549,941,905 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Amendment Flag | false |
Entity Central Index Key | 0001546066 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Business Contact | |
Cover [Table] | |
Entity Address, Address Line One | Columbia Center, 701 Fifth Avenue, Suite 6100 |
Entity Address, City or Town | Seattle |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98104-7043 |
City Area Code | 206 |
Local Phone Number | 903-8800 |
Contact Personnel Name | DL Services Inc. |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Current assets | |||
Cash and cash equivalents | $ 81 | $ 129 | $ 157 |
Trade receivables and other (Note 8) | 662 | 694 | 605 |
Inventory (Note 9) | 221 | 126 | 198 |
Derivative financial instruments (Note 27) | 25 | 40 | 54 |
Current assets | 989 | 989 | 1,014 |
Non-current assets | |||
Property, plant and equipment (Note 10) | 18,549 | 18,362 | 14,408 |
Intangible assets and goodwill (Note 11) | 6,340 | 6,444 | 4,409 |
Investments in equity accounted investees (Note 12) | 4,377 | 5,974 | 6,383 |
Right-of-use assets (Note 16) | 651 | 691 | 427 |
Finance lease receivable (Note 16) | 138 | 145 | 0 |
Deferred tax assets (Note 14) | 322 | 0 | 0 |
Advances to related parties and other assets (Note 30) | 50 | 150 | 170 |
Non-current assets | 30,427 | 31,766 | 25,797 |
Total assets | 31,416 | 32,755 | 26,811 |
Current liabilities | |||
Trade payables and other (Note 15) | 780 | 1,005 | 796 |
Loans and borrowings (Note 17) | 600 | 74 | 472 |
Dividends payable | 115 | 110 | 97 |
Lease liabilities | 99 | 112 | 64 |
Contract liabilities (Note 20) | 62 | 39 | 37 |
Taxes payable | 56 | 103 | 67 |
Derivative financial instruments (Note 27) | 69 | 6 | 6 |
Current liabilities | 1,781 | 1,449 | 1,539 |
Non-current liabilities | |||
Loans and borrowings (Note 17) | 10,276 | 10,078 | 7,046 |
Lease liabilities | 675 | 707 | 416 |
Decommissioning provision (Note 18) | 348 | 337 | 158 |
Contract liabilities (Note 20) | 230 | 192 | 131 |
Deferred tax liabilities (Note 14) | 2,925 | 2,945 | 2,814 |
Other liabilities | 166 | 179 | 198 |
Non-current liabilities | 14,620 | 14,438 | 10,763 |
Total liabilities | 16,401 | 15,887 | 12,302 |
Equity | |||
Attributable to shareholders | 14,955 | 16,808 | 14,449 |
Attributable to non-controlling interest | 60 | 60 | 60 |
Total equity | 15,015 | 16,868 | 14,509 |
Total liabilities and equity | $ 31,416 | $ 32,755 | $ 26,811 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of profit or loss and other comprehensive income [abstract] | ||
Revenue (Note 20) | $ 6,202 | $ 7,230 |
Cost of sales (Note 22) | 4,132 | 5,183 |
Loss (gain) on commodity-related derivative financial instruments (Note 27) | 30 | (20) |
Share of profit from equity accounted investees - operations (Note 12) | 282 | 375 |
Impairment in share of profit from equity accounted investees | (314) | 0 |
Gross profit | 2,008 | 2,442 |
General and administrative | 246 | 296 |
Other (income) expense | (18) | 15 |
Impairment expense (Note 13) | 1,776 | 300 |
Results from operating activities | 4 | 1,831 |
Net finance costs (Note 21) | 420 | 289 |
Earnings (loss) before income tax | (416) | 1,542 |
Current tax expense (Note 14) | 240 | 210 |
Deferred tax recovery (Note 14) | (340) | (175) |
Income tax (recovery) expense (Note 14) | (100) | 35 |
Earnings (loss) | (316) | 1,507 |
Other comprehensive income (loss), net of tax (Note 26 & 27) | ||
Exchange loss on translation of foreign operations | (117) | (213) |
Impact of hedging activities | 31 | 0 |
Re-measurement of defined benefit liability (Note 24) | (10) | (6) |
Total comprehensive income (loss) attributable to shareholders | (412) | 1,288 |
Earnings (loss) attributable to common shareholders, net of preferred share dividends (Note 23) | $ (476) | $ 1,376 |
Earnings (loss) per common share - basic (in CAD per share) | $ (0.86) | $ 2.69 |
Earnings (Loss) per common share - diluted (in CAD per share) | $ (0.86) | $ 2.68 |
Weighted average number of common shares (millions) | ||
Basic (in shares) | 550,000,000 | |
Diluted (in shares) | 550,000,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Millions | Total | Common share capital | Preferred share capital | Issued capitalCommon share capital | Issued capitalPreferred share capital | Deficit | DeficitCommon share capital | DeficitPreferred share capital | AOCI | [1] | Total | TotalCommon share capital | TotalPreferred share capital | Non-Controlling Interest |
Equity, beginning balance at Dec. 31, 2018 | $ 14,509 | $ 13,662 | $ 2,423 | $ (1,953) | $ 317 | $ 14,449 | $ 60 | |||||||
Total comprehensive income | ||||||||||||||
Earnings (loss) | 1,507 | 1,507 | 1,507 | 0 | ||||||||||
Other comprehensive income (loss), net of tax (Note 26 & 27) | ||||||||||||||
Exchange loss on translation of foreign operations | (213) | (213) | (213) | |||||||||||
Remeasurements of defined benefit liability, net of tax | (6) | (6) | (6) | |||||||||||
Total comprehensive income (loss) attributable to shareholders | 1,288 | 1,507 | (219) | 1,288 | ||||||||||
Transactions with shareholders of the Company | ||||||||||||||
Part VI.1 tax | $ (3) | |||||||||||||
Shares issued, net of issue costs | $ 1,710 | 533 | 1,710 | 533 | $ 1,710 | $ 533 | ||||||||
Share-based payment transactions (Note 19) | 167 | 167 | 167 | 167 | ||||||||||
Dividends declared | (1,213) | (126) | $ (1,213) | $ (126) | (1,213) | (126) | ||||||||
Total transactions with shareholders of the Company | 1,071 | 1,877 | 533 | (1,339) | 0 | 1,071 | ||||||||
Equity, ending balance at Dec. 31, 2019 | 16,868 | 15,539 | 2,956 | (1,785) | 98 | 16,808 | 60 | |||||||
Total comprehensive income | ||||||||||||||
Earnings (loss) | (316) | (316) | (316) | 0 | ||||||||||
Other comprehensive income (loss), net of tax (Note 26 & 27) | ||||||||||||||
Other comprehensive loss (Note 26) | (96) | (96) | (96) | |||||||||||
Exchange loss on translation of foreign operations | (117) | |||||||||||||
Remeasurements of defined benefit liability, net of tax | (10) | |||||||||||||
Total comprehensive income (loss) attributable to shareholders | (412) | (316) | (96) | (412) | 0 | |||||||||
Transactions with shareholders of the Company | ||||||||||||||
Part VI.1 tax | (10) | (10) | (10) | |||||||||||
Share-based payment transactions (Note 19) | 105 | 105 | 105 | |||||||||||
Dividends declared | $ (1,385) | $ (151) | $ (1,385) | $ (151) | $ (1,385) | $ (151) | ||||||||
Total transactions with shareholders of the Company | (1,441) | 105 | (10) | (1,536) | 0 | (1,441) | 0 | |||||||
Equity, ending balance at Dec. 31, 2020 | $ 15,015 | $ 15,644 | $ 2,946 | $ (3,637) | $ 2 | $ 14,955 | $ 60 | |||||||
[1] | Accumulated Other Comprehensive Income ("AOCI"). |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Loss | $ (316) | $ 1,507 |
Adjustments for: | ||
Share of profit from equity accounted investees - operations (Note 12) | (282) | (375) |
Impairment in share of profit from equity accounted investees (Note 12) | 314 | 0 |
Distributions from equity accounted investees (Note 12) | 459 | 575 |
Depreciation and amortization | 700 | 507 |
Impairment expense (Note 13) | 1,776 | 300 |
Unrealized loss on commodity-related derivative financial instruments (Note 27) | 84 | 13 |
Net finance costs (Note 21) | 420 | 289 |
Net interest paid (Note 21) | (383) | (269) |
Income tax (recovery) expense (Note 14) | (100) | 35 |
Taxes paid | (295) | (141) |
Share-based compensation expense (Note 25) | 28 | 66 |
Share-based compensation payment | (45) | (50) |
Net change in contract liabilities | (1) | (30) |
Other | (14) | (1) |
Change in non-cash operating working capital | (93) | 106 |
Cash flow from operating activities | 2,252 | 2,532 |
Financing activities | ||
Bank borrowings and issuance of debt (Note 17) | 1,581 | 2,153 |
Repayment of loans and borrowings | (2,421) | (1,866) |
Repayment of lease liability | (94) | (68) |
Issuance of medium-term notes (Note 17) | 1,578 | 2,318 |
Issue costs and financing fees | (11) | (14) |
Exercise of stock options | 88 | 151 |
Dividends paid | (1,530) | (1,323) |
Cash flow (used in) provided by financing activities | (809) | 1,351 |
Investing activities | ||
Capital expenditures | (1,029) | (1,645) |
Contributions to equity accounted investees (Note 12) | (202) | (206) |
Acquisitions (Note 7) | 0 | (2,009) |
Receipt of finance lease payments | 9 | 0 |
Interest paid during construction (Note 21) | (46) | (42) |
Advances to related parties | (32) | (63) |
Changes in non-cash investing working capital and other | (183) | 55 |
Cash flow used in investing activities | (1,483) | (3,910) |
Change in cash and cash equivalents | (40) | (27) |
Effect of movement in exchange rates on cash held | (8) | (1) |
Cash and cash equivalents, beginning of period | 129 | 157 |
Cash and cash equivalents, end of period | $ 81 | $ 129 |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2020 | |
Management Commentary [Abstract] | |
REPORTING ENTITY | 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. The consolidated financial statements include the accounts of Pembina, its subsidiary companies, partnerships and any investments in associates and joint arrangements as at and for the year ended December 31, 2020. 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 allow it to offer a full spectrum of midstream and marketing services to the energy sector. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION a. Basis of Measurement and Statement of Compliance The consolidated financial statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). Except for the changes described in Note 3, these accounting policies have been applied consistently for all periods presented in these consolidated financial statements. Certain insignificant comparative amounts have been reclassified to conform to the presentation adopted in the current year. These consolidated financial statements were authorized for issue by Pembina's Board of Directors on February 25, 2021. b. Functional and Presentation Currency The consolidated financial statements are presented in Canadian dollars. All financial information presented in Canadian dollars has been disclosed in millions, except where noted. The assets and liabilities of subsidiaries, and investments in equity accounted investees, whose functional currencies are other than Canadian dollars are translated into Canadian dollars at the foreign exchange rate at the balance sheet date, while revenues and expenses of such subsidiaries are translated using average monthly foreign exchange rates, which approximate the foreign exchange rates on the dates of the transactions. Foreign exchange differences arising on translation of subsidiaries and investments in equity accounted investees with a functional currency other than the Canadian dollar are included in other comprehensive income. c. Use of Estimates and Judgments The preparation of the Consolidated Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that are based on the facts and circumstances and estimates at the date of the Consolidated Financial Statements and affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Ongoing Impact of the COVID-19 Pandemic Following 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 these restrictions have been relaxed in certain jurisdictions, a resurgence of COVID-19 cases (including cases resulting from variants of the COVID-19 virus) in certain geographic areas and the risk that this could occur in other areas has caused governments in certain jurisdictions to sustain and, in some cases, re-impose restrictions. In addition, while vaccines are beginning to be distributed, there is ongoing uncertainty as to the timing, level of adoption, duration of efficacy and overall effectiveness of the vaccine, including against variants of the COVID-19 virus. As a result, there remains significant uncertainty as to the extent and duration of the global economic slowdown. This uncertainty has created volatility in asset and commodity prices, currency exchange rates and a marked decline in long-term interest rates. In addition, the resulting decrease in demand for crude oil has resulted in a decline in global crude oil prices. Management applied judgment and will continue to assess the situation in determining the impact of the significant uncertainties created by these events and conditions on the carrying amounts of assets and liabilities in the Consolidated Financial Statements. The following judgment and estimation uncertainties are those management considers material to the Consolidated Financial Statements: Judgments (i) Business Combinations Business combinations are accounted for using the acquisition method of accounting. The determination of fair value often requires management to make judgments about future possible events. The assumptions with respect to lease identification, classification and measurement, the fair value of property plant and equipment, intangible assets, decommissioning provisions and contract liabilities acquired, as well as the determination of deferred taxes, generally require the most judgment. (ii) Depreciation and Amortization Depreciation and amortization of property, plant and equipment and intangible assets are based on management's judgment of the most appropriate method to reflect the pattern of an asset's future economic benefit expected to be consumed by Pembina. Among other factors, these judgments are based on industry standards and historical experience. (iii) Impairment Assessment of impairment of non-financial assets is based on management's judgment of whether or not events or changes in circumstances indicate that the carrying value of an asset, investment, cash generating unit ("CGU") or group of CGUs exceeds its recoverable amount. The determination of a CGU is based on management's judgment and is an assessment of the smallest group of assets that generate cash inflows independently of other assets. In addition, management applies judgment to assign goodwill acquired as part of a business combination to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination for purposes of impairment testing. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount, defined as the greater of fair value less costs of disposal and value in use. As such, the asset composition of a CGU or group of CGUs directly impacts both the carrying value and recoverability of the assets included therein. (iv) Assessment of Joint Control Over Joint Arrangements The determination of joint control requires judgment about the influence Pembina has over the financial and operating decisions of an arrangement and the extent of the benefits it obtains based on the facts and circumstances of the arrangement during the reporting period. Joint control exists when decisions about the relevant activities require the unanimous consent of the parties that control the arrangement collectively. Ownership percentage alone may not be a determinant of joint control. (v) Pattern of Revenue Recognition The pattern of revenue recognition is impacted by management's judgments as to the nature of Pembina's performance obligations, the amount of consideration allocated to performance obligations that are not sold on a stand-alone basis, the valuation of material rights and the timing of when those performance obligations have been satisfied. (vi) Leases Management applies judgment to determine whether a contract is, or contains, a lease from both a lessee and lessor perspective. This assessment is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Key judgments include whether a contract identifies an asset (or portion of an asset), whether the lessee obtains substantially all the economic benefits of the asset over the contract term and whether the lessee has the right to direct the asset's use. Judgment is also applied in determining the rate used to discount the lease payments. Estimates (i) Business Combinations Estimates of future cash flows, forecast prices, interest rates, discount rates, cost, market values and useful lives are made in determining the fair value of assets acquired and liabilities assumed. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities, intangible assets, goodwill and deferred taxes in the purchase price equation. Future earnings can be affected as a result of changes in future depreciation and amortization, asset or goodwill impairment. (ii) Provisions and Contingencies Management uses judgment in determining the likelihood of realization of contingent assets and liabilities to determine the outcome of contingencies. Provisions recognized are based on management's best estimate of the timing, scope and amount of expected future cash outflows to settle the obligation. Based on the long-term nature of the decommissioning provision, the most significant uncertainties in estimating the provision are the determination of whether a present obligation exists, the discount and inflation rates used, the costs that will be incurred and the timing of when these costs will occur. (iii) Deferred Taxes The calculation of the deferred tax asset or liability is based on assumptions about the timing of many taxable events and the enacted or substantively enacted rates anticipated to be applicable to income in the years in which temporary differences are expected to be realized or reversed. Deferred income tax assets are recognized to the extent that it is probable that the deductible temporary differences will be recoverable in future periods. The assessment of future recoverability involves significant estimates to be made by management. (iv) Depreciation and Amortization Estimated useful lives of property, plant and equipment and intangible assets are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which may be associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. (v) Impairment of Non-Financial Assets In determining the recoverable amount of a CGU, a group of CGUs or an individual asset, management uses its best estimates of future cash flows, and assesses discount rates to reflect management's best estimate of a rate that reflects a current market assessment of the time value of money and the specific risks associated with the underlying assets and cash flows. (vi) Impairment of Financial Assets The measurement of financial assets carried at amortized cost includes management's estimates regarding the expected credit losses that will be realized on these financial assets. (vii) Revenue from Contracts with Customers In estimating the contract value, management makes assessments as to whether variable consideration is constrained or not reasonably estimable, such that an amount or portion of an amount cannot be included in the estimate of the contract value. Management's estimates of the likelihood of a customer's ability to use outstanding make-up rights may impact the timing of revenue recognition. In addition, in determining the amount of consideration to be allocated to performance obligations that are not sold on a stand-alone basis, management estimates the stand-alone selling price of each performance obligation under the contract, taking into consideration the location and volume of goods or services being provided, the market environment, and customer specific considerations. (viii) Fair Value of Financial Instruments For Level 2 valued financial instruments, management makes assumptions and estimates value based on observable inputs such as quoted forward prices, time value and volatility factors. For Level 3 valued financial instruments, management uses estimates of financial forecasts, expected cash flows and risk adjusted discount rates to measure fair value. (ix) Employee Benefit Obligations An actuarial valuation is prepared to measure Pembina's net employee benefit obligations using management's best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. (x) Leases |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
CHANGES IN ACCOUNTING POLICIES | CHANGES IN ACCOUNTING POLICIES Voluntary change in accounting policy Pembina re-assessed its policy for the measurement of its decommissioning provision. Previously, Pembina's decommissioning provision was measured at the present value of the expected costs to settle the obligations using a risk-free interest rate based on the Government of Canada's benchmark long-term bond yield. Effective December 31, 2020, Pembina elected to change its policy for the measurement of its decommissioning obligations to utilize a credit-adjusted risk-free interest rate. As a result of this change in policy, Pembina's decommissioning provision is now measured using a risk-free interest rate based on the Government of Canada's benchmark long-term bond yield, adjusted for Pembina's credit risk. The use of a credit-adjusted risk-free rate results in reliable and more relevant information for the readers of the Company's Consolidated Financial Statements as this methodology results in a more accurate representation of the value at which such liabilities could be transferred to a third party, provides a better indication of the risk associated with such obligations, and increases the comparability of Pembina's financial statements to those of its peers. Management has applied the change in accounting policy retrospectively. The Consolidated Financial Statements have been restated to reflect adjustments made as a result of this change in accounting policy. The following tables present the impacts of the change in accounting policy for decommissioning provisions to the statement of financial position, the statement of earnings (loss) and comprehensive income (loss), and the statement of cash flows, for each of the line items affected. i. Impacts on the Consolidated Statements of Financial Position As at December 31, 2020 December 31, 2019 January 1, 2019 ($ millions) Adjustments Adjustments Adjustments Assets Property, plant and equipment (546) (372) (304) Investments in equity accounted investees 24 20 15 Right-of-use assets (51) (39) — Advances to related parties and other assets (7) (7) (7) Total assets (580) (398) (296) Liabilities Decommissioning provision (734) (527) (411) Deferred tax liabilities 37 31 32 Total liabilities (697) (496) (379) Equity Deficit 117 98 83 Total equity attributable to Shareholders 117 98 83 A reconciliation for each of the line items affected in the restated Consolidated Statements of Financial Position is presented in Note 4. ii. Reconciliation of the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) For the years ended December 31 ($ millions, except per share amounts) 2020 2019 Adjustments Previously reported Adjustments Restated Cost of sales (18) 5,187 (4) 5,183 Share of profit from equity accounted investees 4 370 5 375 Gross profit 22 2,433 9 2,442 Net finance costs (3) 294 (5) 289 Earnings (loss) before income tax 25 1,528 14 1,542 Deferred tax (recovery) expense 6 (174) (1) (175) Earnings (loss) attributable to shareholders 19 1,492 15 1,507 Total comprehensive income (loss) attributable to shareholders 19 1,273 15 1,288 Earnings (loss) attributable to common shareholders, net of preferred share dividends 19 1,361 15 1,376 Earnings (loss) per common share - basic 0.04 2.66 0.03 2.69 Earnings (loss) per common share - diluted 0.04 2.65 0.03 2.68 iii. Reconciliation of the Consolidated Statement of Cash Flows For the years ended December 31 ($ millions) 2020 2019 Adjustments Previously reported Adjustments Restated Earnings (loss) 19 1,492 15 1,507 Share of profit from equity accounted investees (4) (370) (5) (375) Adjustments for depreciation and amortization (18) 511 (4) 507 Adjustments for net finance costs (3) 294 (5) 289 Adjustments for income tax expense 6 36 (1) 35 Cash flow from operating activities — 2,532 — 2,532 The following table presents the combined impact on the Company's Consolidated Statement of Financial Position of the change in accounting policy for decommissioning provisions presented in Note 3, and the acquisition adjustments related to the finalization of the purchase price allocation presented in Note 7. December 31, 2019 January 1, 2019 Accounting Accounting policy change Acquisition policy change As at Previously adjustments adjustments Previously adjustments ($ millions) reported (Note 3) (Note 7) Restated reported (Note 3) Restated Assets Trade receivables and other 692 — 2 694 605 — 605 Property, plant and equipment 18,775 (372) (41) 18,362 14,712 (304) 14,408 Intangible assets and goodwill 6,429 — 15 6,444 4,409 — 4,409 Investments in equity accounted investees 5,954 20 — 5,974 6,368 15 6,383 Right-of-use assets 822 (39) (92) 691 427 — 427 Finance lease receivable 29 — 116 145 — — — Advances to related parties and other assets 157 (7) — 150 177 (7) 170 Total assets 33,153 (398) — 32,755 27,107 (296) 26,811 Liabilities Trade payables and other 1,013 — (8) 1,005 796 — 796 Decommissioning provision 864 (527) — 337 569 (411) 158 Deferred tax liabilities 2,906 31 8 2,945 2,782 32 2,814 Total liabilities 16,383 (496) — 15,887 12,681 (379) 12,302 Equity Deficit (1,883) 98 — (1,785) (2,036) 83 (1,953) Total equity 16,770 98 — 16,868 14,426 83 14,509 |
CONSOLIDATED RESTATEMENT OF COM
CONSOLIDATED RESTATEMENT OF COMPARATIVE PERIOD STATEMENT OF FINANCIAL POSITION | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Recast of Comparative Period Statement of Financial Position [Abstract] | |
CONSOLIDATED RESTATEMENT OF COMPARATIVE PERIOD STATEMENT OF FINANCIAL POSITION | CHANGES IN ACCOUNTING POLICIES Voluntary change in accounting policy Pembina re-assessed its policy for the measurement of its decommissioning provision. Previously, Pembina's decommissioning provision was measured at the present value of the expected costs to settle the obligations using a risk-free interest rate based on the Government of Canada's benchmark long-term bond yield. Effective December 31, 2020, Pembina elected to change its policy for the measurement of its decommissioning obligations to utilize a credit-adjusted risk-free interest rate. As a result of this change in policy, Pembina's decommissioning provision is now measured using a risk-free interest rate based on the Government of Canada's benchmark long-term bond yield, adjusted for Pembina's credit risk. The use of a credit-adjusted risk-free rate results in reliable and more relevant information for the readers of the Company's Consolidated Financial Statements as this methodology results in a more accurate representation of the value at which such liabilities could be transferred to a third party, provides a better indication of the risk associated with such obligations, and increases the comparability of Pembina's financial statements to those of its peers. Management has applied the change in accounting policy retrospectively. The Consolidated Financial Statements have been restated to reflect adjustments made as a result of this change in accounting policy. The following tables present the impacts of the change in accounting policy for decommissioning provisions to the statement of financial position, the statement of earnings (loss) and comprehensive income (loss), and the statement of cash flows, for each of the line items affected. i. Impacts on the Consolidated Statements of Financial Position As at December 31, 2020 December 31, 2019 January 1, 2019 ($ millions) Adjustments Adjustments Adjustments Assets Property, plant and equipment (546) (372) (304) Investments in equity accounted investees 24 20 15 Right-of-use assets (51) (39) — Advances to related parties and other assets (7) (7) (7) Total assets (580) (398) (296) Liabilities Decommissioning provision (734) (527) (411) Deferred tax liabilities 37 31 32 Total liabilities (697) (496) (379) Equity Deficit 117 98 83 Total equity attributable to Shareholders 117 98 83 A reconciliation for each of the line items affected in the restated Consolidated Statements of Financial Position is presented in Note 4. ii. Reconciliation of the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) For the years ended December 31 ($ millions, except per share amounts) 2020 2019 Adjustments Previously reported Adjustments Restated Cost of sales (18) 5,187 (4) 5,183 Share of profit from equity accounted investees 4 370 5 375 Gross profit 22 2,433 9 2,442 Net finance costs (3) 294 (5) 289 Earnings (loss) before income tax 25 1,528 14 1,542 Deferred tax (recovery) expense 6 (174) (1) (175) Earnings (loss) attributable to shareholders 19 1,492 15 1,507 Total comprehensive income (loss) attributable to shareholders 19 1,273 15 1,288 Earnings (loss) attributable to common shareholders, net of preferred share dividends 19 1,361 15 1,376 Earnings (loss) per common share - basic 0.04 2.66 0.03 2.69 Earnings (loss) per common share - diluted 0.04 2.65 0.03 2.68 iii. Reconciliation of the Consolidated Statement of Cash Flows For the years ended December 31 ($ millions) 2020 2019 Adjustments Previously reported Adjustments Restated Earnings (loss) 19 1,492 15 1,507 Share of profit from equity accounted investees (4) (370) (5) (375) Adjustments for depreciation and amortization (18) 511 (4) 507 Adjustments for net finance costs (3) 294 (5) 289 Adjustments for income tax expense 6 36 (1) 35 Cash flow from operating activities — 2,532 — 2,532 The following table presents the combined impact on the Company's Consolidated Statement of Financial Position of the change in accounting policy for decommissioning provisions presented in Note 3, and the acquisition adjustments related to the finalization of the purchase price allocation presented in Note 7. December 31, 2019 January 1, 2019 Accounting Accounting policy change Acquisition policy change As at Previously adjustments adjustments Previously adjustments ($ millions) reported (Note 3) (Note 7) Restated reported (Note 3) Restated Assets Trade receivables and other 692 — 2 694 605 — 605 Property, plant and equipment 18,775 (372) (41) 18,362 14,712 (304) 14,408 Intangible assets and goodwill 6,429 — 15 6,444 4,409 — 4,409 Investments in equity accounted investees 5,954 20 — 5,974 6,368 15 6,383 Right-of-use assets 822 (39) (92) 691 427 — 427 Finance lease receivable 29 — 116 145 — — — Advances to related parties and other assets 157 (7) — 150 177 (7) 170 Total assets 33,153 (398) — 32,755 27,107 (296) 26,811 Liabilities Trade payables and other 1,013 — (8) 1,005 796 — 796 Decommissioning provision 864 (527) — 337 569 (411) 158 Deferred tax liabilities 2,906 31 8 2,945 2,782 32 2,814 Total liabilities 16,383 (496) — 15,887 12,681 (379) 12,302 Equity Deficit (1,883) 98 — (1,785) (2,036) 83 (1,953) Total equity 16,770 98 — 16,868 14,426 83 14,509 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting policies as set out below have been applied consistently to all periods presented in these Consolidated Financial Statements. a. Basis of Consolidation i) Business Combinations Pembina measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the fair value of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in earnings. Non-controlling interests represent existing outside owned equity interests in an acquired subsidiary. The non-controlling interests were recognized at fair value on the acquisition date and are presented as a separate component of equity. The equity interests bear conditional non-discretionary distributions and will continue to be held as a non-controlling interest in equity at their acquisition date fair value until derecognition, either when the conditions are met for reclassification from equity to financial liabilities, or when the equity interests are cancelled or on a loss of control of the relevant subsidiary. Transaction costs, other than those associated with the issue of debt or equity securities, that Pembina incurs in connection with a business combination are expensed as incurred. ii) Subsidiaries Subsidiaries are entities, including unincorporated entities such as partnerships, controlled by Pembina. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by Pembina. Changes in Pembina's ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. No adjustments are made to goodwill and no gain or loss is recognized in earnings. iii) Joint Arrangements Joint arrangements represent activities where Pembina has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the consolidated financial statements include Pembina's proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. Pembina's consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, or income equal to preferred distributions for certain preferred share interests in equity accounted investees, until the date that joint control ceases. When Pembina's share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that Pembina has an obligation or has made payments on behalf of the investee. Distributions from and contributions to investments in equity accounted investees are recognized when received or paid. Acquisition of an incremental ownership in a joint arrangement where Pembina maintains joint control is recorded at cost or fair value if acquired as part of a business combination. Where Pembina has a partial disposal, including a deemed disposal, of a joint arrangement and maintains joint control, the resulting gains or losses are recorded in earnings at the time of disposal. iv) Transactions Eliminated on Consolidation Balances and transactions, and any revenue and expenses arising from transaction with or between subsidiaries are eliminated in preparing the consolidated financial statements. Gains arising from transactions with investments in equity accounted investees are eliminated against the investment to the extent of Pembina's interest in the investee. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. v) Foreign Currency Transactions in foreign currencies are translated to Pembina's functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pembina's functional currency at the exchange rate at that date, with exchange differences recognized in earnings. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The assets and liabilities of subsidiaries, and investments in equity accounted investees, whose functional currencies are other than Canadian dollars are translated into Canadian dollars at the foreign exchange rate at the balance sheet date, while revenues and expenses of such subsidiaries are translated using average monthly foreign exchange rates, which approximate the foreign exchange rates on the dates of the transactions. Foreign exchange differences arising on translation of subsidiaries and investments in equity accounted investees with a functional currency other than the Canadian dollar are included in other comprehensive income. b. Cash and Cash Equivalents Cash and cash equivalents comprise cash balances, call deposits and short-term investments with original maturities of ninety days or less, and are used by Pembina in the management of its short-term commitments. c. Inventories Inventories are measured at the lower of cost and net realizable value and consist primarily of crude oil, natural gas liquids ("NGL") and spare parts. The cost of inventories is determined using the weighted average costing method and includes direct purchase costs and when applicable, costs of production, extraction, fractionation, and transportation. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. All changes in the value of inventories are reflected in earnings. d. Financial Instruments Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, Pembina has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. i) Non-Derivative Financial Assets Pembina initially recognizes loans, receivables, advances to related parties and deposits on the date that they are originated. All other financial assets are recognized on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Pembina derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by Pembina is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount of the financial asset and the consideration received is recognized in earnings. Pembina classifies non-derivative financial assets into the following categories: Financial Assets at Amortized Cost A financial asset is classified in this category if the asset is held within a business model whose objective is to collect contractual cash flows on specified dates that are solely payments of principal and interest. At initial recognition, financial assets at amortized cost are recognized at fair value plus directly attributable transaction costs. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any impairment loss allowances. Financial Assets at Fair Value Through Other Comprehensive Income A financial asset is classified in this category if the asset is held within a business model whose objective is met by both collecting contractual cash flows and selling financial assets. Pembina did not have any financial assets classified as fair value through other comprehensive income during the years covered in these financial statements. Financial Assets at Fair Value Through Earnings A financial asset is classified in this category if it is not classified as a financial asset at amortized cost or a financial asset at fair value through other comprehensive income, or it is an equity instrument designated as such on initial recognition. At initial recognition, and subsequently, these financial assets are recognized at fair value. ii) Non-Derivative Financial Liabilities Pembina initially recognizes financial liabilities on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Pembina derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. On derecognition, the difference between the carrying value of the liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in earnings. Pembina records a modification or exchange of an existing liability as a derecognition of the financial liability if the terms are substantially different, resulting in a difference of more than 10 percent when comparing the present value of the remaining cash flows of the existing liability to the present value of the discounted cash flows under the new terms using the original effective interest rate. If a modification to an existing liability causes a revision to the estimated payments of the liability but is not treated as a derecognition, Pembina adjusts the gross carrying amount of the liability to the present value of the estimated contractual cash flows using the instrument’s original effective interest rate, with the difference recorded in earnings. Pembina's non-derivative financial liabilities are comprised of the following: bank overdrafts, trade payables and accrued liabilities, taxes payable, dividends payable, loans and borrowings, lease liabilities and other liabilities. Bank overdrafts that are repayable on demand and form an integral part of Pembina's cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statements of cash flows. iii) Common Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. iv) Preferred Share Capital Preferred shares are classified as equity because they bear discretionary dividends and do not contain any obligations to deliver cash or other financial assets. Discretionary dividends are recognized as equity distributions on approval by Pembina's Board of Directors. Incremental costs directly attributable to the issue of preferred shares are recognized as a deduction from equity, net of any tax effects. v) Derivative Financial Instruments and Hedge Accounting Pembina holds derivative financial instruments to manage its interest rate, commodity, power costs and foreign exchange risk exposures. Derivatives are recognized initially at fair value. Subsequent to initial recognition, derivatives are measured at fair value with changes recognized immediately in earnings, unless hedge accounting is applied. Pembina applies hedge accounting to certain financial instruments that qualify for and are designated for hedge accounting treatment. At inception of a designated hedging relationship, formal documentation is prepared and includes the risk management objective and strategy for undertaking the hedge, identification of the hedged item and the hedging instrument, the nature of the risk being hedged and how Pembina will assess the hedging instrument's effectiveness in offsetting the exposure to changes in the hedged item. For derivatives that are designated and qualified cash flow hedges, the effective portion of changes in fair value is accumulated in other comprehensive income. The amount accumulated is reclassified to earnings in the same period or periods during which the hedged expected future cash flows occur. Any ineffective portion of changes in fair value of hedges are recorded in earnings. For non-derivative financial liabilities designated as hedging instruments in a hedge of the net investment in foreign operations, the effective portion of foreign exchange gains and losses arising on translation of the financial liability is recognized in other comprehensive income. Any ineffective portion of the foreign exchange gains and losses arising from the translation of the financial liability is recognized immediately in earnings. The amount accumulated in other comprehensive income is reclassified to earnings on disposal of the foreign operation. Hedge accounting is discontinued prospectively when the hedging relationship no longer qualifies for hedge accounting or the hedging instrument is sold or terminated. e. Property, Plant and Equipment i) Recognition and Measurement Items of property, plant and equipment are measured initially at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, property, plant and equipment are recorded net of accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, estimated decommissioning provisions and borrowing costs on qualifying assets. Cost may also include any gain or loss realized on foreign currency transactions directly attributable to the purchase or construction of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognized in earnings. ii) Subsequent Costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to Pembina, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized and recorded as depreciation expense. The cost of maintenance and repair expenses of the property, plant and equipment are recognized in earnings as incurred. iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of the asset, that component is depreciated separately. Land and linefill are not depreciated. Depreciation is recognized in earnings over an asset's useful life on a straight line or declining balance basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. An asset's useful life is determined as the lower of its physical life and economic life. Depreciation commences once an asset is available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted if appropriate. f. Intangible Assets i) Goodwill Goodwill that arises upon acquisitions is included in intangible assets and goodwill. See Note 5(a)(i) for the policy on measurement of goodwill at initial recognition. Subsequent Measurement Goodwill is measured at cost less accumulated impairment losses. In respect of investments in equity accounted investees, goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is allocated to the investment and not to any asset, including goodwill, that forms the carrying amount of the investment in equity accounted investee. ii) Other Intangible Assets Other intangible assets acquired individually by Pembina are initially recognized and measured at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, intangible assets with finite useful lives are recorded net of accumulated amortization and accumulated impairment losses. iii) Subsequent Expenditures Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in earnings as incurred. iv) Amortization Amortization is based on the cost of an asset less its residual value. Amortization is recognized in earnings over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortization is included in cost of sales and general and administrative expense. Amortization methods, useful lives and residual values are reviewed annually and adjusted if appropriate. g. Leases A specific asset is the subject of a lease if the contract conveys the right to control the use of that identified asset for a period of time in exchange for consideration. This determination is made at inception of a contract, and is reassessed when the terms and conditions of the contract are amended. At inception or on reassessment of a contract that contains a lease component, Pembina allocates contract consideration to the lease and non-lease components on the basis of their relative stand-alone prices. The consideration allocated to the lease components is recognized in accordance with the policies for lessee and lessor leases, as described below. The consideration allocated to non-lease components is recognized in accordance with its nature. i) Lessee Leased assets are recognized as right-of-use assets, with corresponding lease liabilities recognized on the statement of financial position at the lease commencement date. Right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset and restore the site of an underlying asset to the condition required by the terms of the lease, less any lease incentives received. Right-of-use assets recognized as a result of business combination are initially measured in the same manner, plus an adjustment to reflect favourable or unfavourable lease terms compared to market terms. Right-of-use assets are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses, adjusted for remeasurements of the lease liability. The right-of-use asset is depreciated over the lesser of the asset's useful life and the lease term on a straight-line basis. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease if readily determinable, or at a rate Pembina would be required to pay to borrow over a similar term with a similar security to obtain an asset of a similar value to the right-of-use asset. Lease payments in an optional renewal period are included in the lease liability if Pembina is reasonably certain to exercise such option. The lease liability is subsequently increased by interest expense on the lease liability and decreased by lease payments made. Interest expense is recorded in earnings at an amount that represents a constant periodic rate of interest on the remaining balance of the lease liability. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimated guaranteed residual value to be paid, or a change in the assessment of whether a purchase option, extension option or termination option is reasonably certain to be exercised. A corresponding adjustment is made to the right of use asset when a liability is remeasured, or the adjustment is recorded in earnings if the right of use asset has been reduced to zero. Pembina has elected to apply the recognition exemptions for short-term and low value leases. Pembina recognizes lease payments associated with these leases as an expense on a straight-line basis over the lease term. ii) Lessor Lessor leases are classified as either operating leases or finance leases according to the substance of the contract. Leases transferring substantially all of the risks incidental to asset ownership are classified as finance leases, while all other leases are classified as operating leases. Subleases are classified as either operating or finance leases in reference to the right-of-use asset arising from the head lease. Assets under finance lease are recognized in finance lease receivables at the value of the net investment in the lease. The net investment in the lease is measured at the net present value of the future lease payments and the unguaranteed residual values of the underlying assets, discounted using the interest rate implicit in the lease. Finance income is recognized over the lease term in a pattern reflecting a consistent rate of return on the finance lease receivable. Finance lease income generated from physical assets in the normal course of operations is recorded as a component of revenue. All other finance lease income is recorded in net finance costs. Lease payments from operating leases are recognized in revenue on either a straight-line basis or a systematic basis representative of the pattern of economic benefit transfer. h. Impairment i) Non-Derivative Financial Assets Impairment of financial assets carried at amortized cost is assessed using the lifetime expected credit loss of the financial asset at initial recognition and throughout the life of the financial asset, except where credit risk has not increased significantly since initial recognition, in which case impairment is assessed at the 12 month expected credit loss of the financial asset at the reporting date. Impairment losses are recognized in earnings and reflected as a reduction in the related financial asset. ii) Non-Financial Assets The carrying amounts of Pembina's non-financial assets, other than: inventory, assets arising from employee benefits and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated annually in connection with the annual goodwill impairment test. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs, the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets. CGUs may incorporate integrated assets from multiple operating segments. For the purpose of goodwill impairment testing, CGUs are aggregated to the operating segment level, which reflects the lowest level at which goodwill is monitored for management purposes. Goodwill acquired in a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. An impairment loss is recognized if the carrying amount of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is the greater of its value in use and its fair value less costs of disposal. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset, CGU or group of CGUs. Pembina's corporate assets do not generate separate cash inflows and are utilized by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset has been allocated. Impairment losses are recognized in earnings. Impairment losses recognized in respect of a CGU (group of CGUs) are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an equity accounted investee is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment is tested for impairment as a single asset when there is objective evidence that the equity accounted investee may be impaired, unless the equity accounted investee does not generate cash flows that are largely independent of those from other assets of the entity in which case it is combined in a CGU with the related assets. i. Employee Benefits i) Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in earnings in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. ii) Defined Benefit Pension Plans A defined benefit pension plan is a post-employment benefit plan other than a defined contribution plan. Pembina's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value of any plan assets. The discount rate used to determine the present value is established by referencing market yields on high-quality corporate bonds on the measurement date with cash flows that match the timing and amount of expected benefits. The calculation is performed, at a minimum, every three years by a qualified actuary using the actuarial cost method. When the calculation results in a benefit to Pembina, the recognized asset is limited to the present value of economic benefits available in the form of future expenses payable from the plan, any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in Pembina. An economic benefit is available to Pembina if it is realizable during the life of the plan or on settlement of the plan liabilities. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in earnings immediately. Pembina recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income and expenses related to defined benefit plans in earnings. Pembina recognizes gains or losses on the termination or settlement of a defined benefit plan when the termination or settlement occurs. The gain or loss on termination comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains or losses and past service cost that had not previously been recognized. iii) Short-Term Employee Benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if Pembina has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. iv) Share-Based Payment Transactions For equity settled share-based payment plans, the fair value of the share-based payment at grant date is recognized as an expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service conditions at the vesting date. For cash settled share-based payment plans, the fair value of the amount payable to employees is recognized as an expense with a corresponding increase in liabilities, over the period that the employees unconditionally become entitled to payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognized as an expense in earnings. j. Provisions A provision is recognized if, as a result of a past event, Pembina has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic resources will be required to settle the obligation. Provisions are measured at each reporting date based on the best estimate of the settlement amount. Where the effect of the time value of money is material, provisions are discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount rate is recognized as accretion in finance costs. i) Decommissioning Provision Pembina's activities give rise to certain dismantling, decommissioning, environmental reclamation and remediation obligations at the end of an asset's economic life. A provision is made for the estimated cost of site restoration and capitalized as part of the cost of the underlying asset to which the provision relates. Decommissioning obligations are measured at the present value, based on a credit-adjusted risk-free rate, of management's best estimate of what is reasonably expected to be incurred |
DETERMINATION OF FAIR VALUES
DETERMINATION OF FAIR VALUES | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement [Abstract] | |
DETERMINATION OF FAIR VALUES | DETERMINATION OF FAIR VALUES A number of Pembina's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. When measuring fair value, Pembina uses observable market data to the extent possible. Fair value measurements are categorized into levels in a fair value hierarchy based on the degree to which inputs are observable and significant. Level 1: Unadjusted quoted prices are available in active markets for identical assets or liabilities as the reporting date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 3 valuations use unobservable inputs, such as a financial forecast developed using the entity's own data for expected cash flows and risk adjusted discount rates, to measure fair value to the extent that relevant observable inputs are not available. The unobservable inputs reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. In developing unobservable inputs, the entity's own data is used and adjusted for reasonably available information that would be used by other market participants. Ongoing Impact of the COVID-19 Pandemic Measuring fair values using significant unobservable inputs has become more challenging 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 these consolidated financial statements. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. i) Property, Plant and Equipment The fair value of property, plant and equipment recognized as a result of a business combination or transferred from a customer is based on market values when available, income approach and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence. When the recoverable value of an item of property, plant and equipment is estimated for impairment purposes, fair value is determined using comparable market transactions if available, or using a combination of internal and external estimates of the value that the assets could be sold for in an orderly manner. ii) Equity Investments When the recoverable value of the Company's equity investments is estimated for impairment purposes, fair value is determined using comparable market transactions if available, or using estimates of the discounted cash flows a market participant would expect to derive from the use and eventual sale of the investments. iii) Intangible Assets The fair value of intangible assets acquired in a business combination is determined by an active market value or using the multi-period excess earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that are part of creating the related cash flows. iv) Derivatives Fair value of derivatives are estimated by reference to independent monthly forward prices, interest rate yield curves, and currency rates at the reporting dates. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the company, entity and counterparty when appropriate. v) Non-Derivative Financial Assets and Liabilities The fair value of non-derivative financial assets and liabilities is determined on initial recognition, on a recurring basis, or for disclosure purposes. Fair values of financial assets at amortized cost are calculated based on the present value of estimated future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Fair values of financial assets held at fair value are calculated using a probability-weighted income approach based on current market expectations for future cash flows. For other financial liabilities where market rates are not readily available, a risk adjusted market rate is used which incorporates the nature of the instrument as well as the risk associated with the underlying cash payments. vi) Decommissioning Provision The fair value of decommissioning obligations assumed as part of a business combination are measured as the present value of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. The obligation is discounted using a risk adjusted rate corresponding to the underlying assets to which the obligation relates. vii) Share-Based Compensation Transactions The fair value of employee share options is measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations1 [Abstract] | |
ACQUISITION | ACQUISITION On December 16, 2019, Pembina acquired all of the issued and outstanding shares of Kinder Morgan Canada Limited ("Kinder Morgan Canada") by way of a plan of arrangement and the U.S. portion of the Cochin Pipeline system (collectively, the "Kinder Acquisition") for total consideration of $4.3 billion. During the year ended December 31, 2020, Pembina continued to obtain and verify information required to determine the fair value of certain assets and liabilities and the amount of deferred income taxes arising on their recognition. Pembina adjusted the purchase price allocation to reflect updated assumptions for the identification and classification of leases and the verification of information supporting the valuation of certain assets, provisions and liabilities. The purchase price allocation is based on assessed fair values, including adjustments determined during the year ended December 31, 2020 is as follows: As at December 16, 2019 ($ millions) Previously Reported Adjustments Restated Purchase price consideration Common shares 1,710 — 1,710 Cash (net of cash acquired) 2,009 — 2,009 Preferred shares 536 — 536 4,255 — 4,255 Current assets 68 2 70 Property, plant and equipment 2,660 (41) 2,619 Intangible assets 1,254 — 1,254 Right-of-use assets 348 (92) 256 Finance lease receivable — 116 116 Goodwill 809 15 824 Other assets 9 — 9 Current liabilities (124) 8 (116) Deferred tax liabilities (281) (8) (289) Decommissioning provision (74) — (74) Lease liability (348) — (348) Other liabilities (66) — (66) 4,255 — 4,255 |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE RECEIVABLES AND OTHER | TRADE RECEIVABLES AND OTHER As at December 31 2019 ($ millions) 2020 (Restated Note 4) Trade receivables from customers 578 575 Other receivables 60 94 Prepayments 24 25 Total trade receivables and other 662 694 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
INVENTORY | INVENTORY As at December 31 ($ millions) 2020 2019 Crude oil and NGL 127 42 Materials, supplies and other 94 84 Total inventory 221 126 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT ($ millions) Land and Land Rights Pipelines Facilities and Equipment Cavern Storage and Other Assets Under Construction (1) Total Cost Balance at December 31, 2018 ( Restated Note 4) 340 7,174 6,807 1,478 939 16,738 Reclassification on adoption of IFRS 16 — — — (44) — (44) Additions and transfers 32 215 691 203 534 1,675 Acquisition (Note 7) 70 1,434 772 315 28 2,619 Change in decommissioning provision — (13) 98 (3) — 82 Foreign exchange adjustments (2) (17) (4) — (11) (34) Disposals and other — (3) (31) (12) 3 (43) Balance at December 31, 2019 ( Restated Note 4) 440 8,790 8,333 1,937 1,493 20,993 Additions and transfers 8 454 622 57 (40) 1,101 Impairment (Note 13) (17) — — — (340) (357) Change in decommissioning provision — (10) (17) 16 — (11) Foreign exchange adjustments (2) (18) (9) (1) (7) (37) Disposals and other — (10) (22) (16) 3 (45) Balance at December 31, 2020 429 9,206 8,907 1,993 1,109 21,644 Depreciation Balance at December 31, 2018 ( Restated Note 4) 12 1,223 827 250 — 2,312 Reclassification on adoption of IFRS 16 — — — (26) — (26) Depreciation 4 155 174 59 — 392 Disposals and other — (13) (34) — — (47) Balance at December 31, 2019 ( Restated Note 4) 16 1,365 967 283 — 2,631 Depreciation 5 187 156 135 — 483 Disposals and other — (5) (5) (9) — (19) Balance at December 31, 2020 21 1,547 1,118 409 — 3,095 Carrying amounts Balance at December 31, 2019 ( Restated Note 4) 424 7,425 7,366 1,654 1,493 18,362 Balance at December 31, 2020 408 7,659 7,789 1,584 1,109 18,549 Assets subject to operating leases Balance at December 31, 2019 ( Restated Note 4) 9 295 542 191 — 1,037 Balance at December 31, 2020 8 301 537 185 — 1,031 (1) Includes capitalized borrowing costs. Depreciation Pipeline assets are depreciated using the straight-line method over three three three |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2018 3,878 227 639 866 4,744 Additions and other — 13 — 13 13 Acquisition (Note 7) 824 — 1,254 1,254 2,078 Foreign exchange adjustments (3) — (12) (12) (15) Balance at December 31, 2019 ( Restated Note 4) 4,699 240 1,881 2,121 6,820 Additions and other — 22 — 22 22 Foreign exchange adjustments (5) (1) (12) (13) (18) Balance at December 31, 2020 4,694 261 1,869 2,130 6,824 Amortization Balance at December 31, 2018 — 164 171 335 335 Amortization — 10 31 41 41 Balance at December 31, 2019 — 174 202 376 376 Amortization — 6 102 108 108 Balance at December 31, 2020 — 180 304 484 484 Carrying amounts Balance at December 31, 2019 ( Restated Note 4) 4,699 66 1,679 1,745 6,444 Balance at December 31, 2020 4,694 81 1,565 1,646 6,340 Intangible assets have a finite useful life and are amortized using the straight-line method over 7 to 40 years. The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2020 2019 (Restated Note 4) ($ millions) Pipelines 2,713 2,718 Facilities 541 541 Marketing & New Ventures 1,440 1,440 Total goodwill 4,694 4,699 Goodwill Impairment Testing For the purpose of impairment testing, goodwill is allocated to Pembina's operating segments which represent the lowest level within Pembina at which goodwill is monitored for management purposes. Consistent with prior year, impairment testing for goodwill is performed in the fourth quarter. The recoverable amount was determined using a fair value less costs of disposal approach by discounting each operating segment's expected future cash flows (Level 3). The key assumptions that influence the calculation of the recoverable amounts include: • Cash flows for the first five years are projected based on past experience, actual operating results and the business plan approved by management. Cash flows for Pipelines and Facilities incorporate assumptions regarding contracted volumes and rates, which are based on market expectations. In addition, revenue and cost of product projections for Marketing & New Ventures incorporate assumptions regarding commodity volumes and pricing, which are sensitive to changes in the commodity price environment. • Cash flows for the remaining years of the useful lives of the assets within each operating segment are extrapolated for periods up to 75 years (2019: 75 years) using a long-term growth rate, except where contracted, long-term cash flows indicate that no growth rate should be applied or a specific reduction in cash flows was more appropriate. • After-tax discount rates were applied in determining the recoverable amount of operating segments. Discount rates were estimated based on past experience, the risk free rate and average cost of debt, targeted debt to equity ratio, in addition to estimates of the specific operating segment's equity risk premium, size premium, projection risk and betas. For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments 2020 Pipelines Facilities Marketing & New Ventures (Percent) Key assumptions used After-tax discount rate 5.9 5.9 10.1 Long-term growth rate 0.6 0.8 1.8 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate 2.7 3.2 1.6 |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of impairment loss and reversals of impairment loss [Abstract] | |
IMPAIRMENTS | IMPAIRMENTS The following table summarizes impairments recognized for the year ended December 31, 2020: ($ millions) Property, Plant & Equipment (Note 10) Equity Accounted Investees (Note 12) Other Total Impairment Expense Jordan Cove 344 — 5 349 Investment in Ruby — 1,257 139 1,396 Investment in CKPC — 323 (2) 321 Other 13 11 — 24 Total impairments 357 1,591 142 2,090 Recognized through impairment in share of profit from equity accounted investees 314 Recognized as impairment expense 1,776 Total 2,090 Jordan Cove In December 2020, as a result of increased regulatory and political uncertainty, Pembina recognized an impairment on the assets associated with Jordan Cove. The impairment charge of $349 million ($258 million net of tax) includes all previously capitalized amounts related to Jordan Cove, except for land with a recoverable carrying amount of $21 million which approximates its fair value (Level 3). Ruby In December 2020, Pembina recognized an impairment for the full amount of its convertible, cumulative preferred interest in Ruby ($1.3 billion) and its associated related party advance ($139 million). The total impairment charge of $1.4 billion ($1.0 billion net of tax) was the result of an assessment triggered by upcoming contract expirations in mid-2021 with existing tariff rates well in excess of prevailing interruptible tariff rates, along with declining Rockies basin fundamentals and reduced future volumes resulting from the uncertainty with Jordan Cove. The recoverable amount of Ruby was determined using a value in use approach by discounting expected cash flows resulting from Pembina's convertible, cumulative preferred share interest. Key assumptions that influenced the calculation of the recoverable amount include no future volumes associated with Jordan Cove, incremental future contracted volumes and tolls. Pembina applied a discount rate of 8 percent (2019: 8 percent) in calculating the recoverable amount, which was determined using comparable preferred share yields adjusted for the specific risk profile of the investment. CKPC On December 14, 2020, Pembina announced that it, along with its joint venture partner in CKPC, would be indefinitely suspending execution of the integrated PDH/PP Facility project. The suspension is the result of the significant risks arising from the ongoing COVID-19 pandemic, most notably with respect to costs under the lump sum contract for construction of the PDH plant, which remains under a force majeure condition. As a result of the suspension, Pembina recognized an impairment for the full amount of its investment in CKPC, resulting in a total impairment charge of $323 million ($252 million net of tax) which includes Pembina's share of CKPC's loss resulting from an impairment charge recognized in the joint venture of $314 million plus an incremental impairment of the remaining investment value, based on a fair value less costs of disposal approach which determined the recoverable amount of the investment to be nil (Level 3). |
INVESTMENTS IN EQUITY ACCOUNTED
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | INVESTMENTS IN EQUITY ACCOUNTED INVESTEES Ownership Interest at December 31 (percent) Share of Profit (Loss) from Equity Investments Investment in Equity Accounted 12 Months Ended December 31 ($ millions) 2020 2019 2020 2019 (Restated Note 3) 2020 2019 (Restated Note 4) Alliance 50 50 105 153 2,498 2,638 Aux Sable 42.7 - 50 42.7 - 50 — 51 401 426 Ruby (1) — — 122 120 — 1,273 Veresen Midstream 45 45.3 50 49 1,374 1,350 CKPC (2) 50 50 (314) (1) — 171 Other 50 - 75 50 - 75 5 3 104 116 (32) 375 4,377 5,974 (1) Pembina owns a 50 percent convertible, cumulative preferred interest in Ruby. (2) Includes $314 million (2019: nil) of impairment in share of profit from equity accounted investees. Investments in equity accounted investees include the unamortized excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date, which is comprised of $98 million (2019: $98 million) Goodwill, $2.8 billion (2019: $2.9 billion) in property, plant and equipment and intangibles and $33 million in long-term debt (2019: $42 million). Pembina has U.S. $1.3 billion in Investments in Equity Accounted Investees that is held by entities whose functional currency is the U.S. dollar. The resulting foreign exchange loss for the year ended December 31, 2020 of $51 million (2019: $169 million loss) has been included in Other Comprehensive Income. In December 2020, Pembina recognized impairment on its 50 percent convertible, cumulative preferred interest in Ruby and within its investment in CKPC. Refer to Note 13 for further information on impairments. Distributions and Contributions The following table summarizes distributions from and contributions to Pembina's investments in equity accounted investees: For the years ended December 31 Distributions Contributions ($ millions) 2020 2019 2020 2019 Alliance 217 268 — 13 Aux Sable 19 84 3 4 Ruby 122 121 — — Veresen Midstream 97 96 69 73 CKPC — — 152 173 Other 4 6 — — Total 459 575 224 263 Distributions received from equity investments are included in operating activities in the Consolidated Statement of Cash Flows. Distributions from Alliance and Veresen Midstream are subject to satisfying certain financing conditions including a minimum debt service coverage ratio requirement. Contributions made to investments in equity accounted investees are included in investing activities in the Consolidated Statement of Cash Flows. Contributions for 2020 include a $22 million non-cash financial guarantee liability associated with CKPC's credit facility and 2019 contributions include the conversion of $57 million in related party advances to CKPC into equity contributions. Financing Activities On December 31, 2020, CKPC provided notice to cancel its U.S. $1.7 billion term facility and its U.S. $150 million revolving credit facility. As a result, Pembina accelerated the recognition of the previously recorded financial guarantee liability. On April 27, 2020, Ruby fully repaid its 364-day term loan. Concurrent to repayment, Ruby entered into a new amortizing term loan that matures on March 31, 2021. At December 31, 2020, U.S. $32 million (U.S. $16 million net to Pembina) remained outstanding. Summarized Financial Information Financial information for Pembina's equity accounted investees (presented at 100 percent) is presented in the following tables and is prepared under the financial reporting framework adopted by each equity accounted investee (U.S. GAAP except for CKPC). Differences between the equity accounted investee's earning (loss) and earnings (loss) attributable to Pembina relate to the different accounting standards applied and amortization of the excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date, with the exception of Ruby which Pembina owns a 50 percent convertible, cumulative preferred interest and recognizes its share of earnings based on its distribution. Alliance For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 840 965 Expenses (296) (262) Depreciation and amortization (141) (108) Finance costs and other (1)(2) (61) (58) Earnings 342 537 Earnings attributable to Pembina 105 153 (1) Includes interest income of $2 million (2019:$4 million). (2) Includes interest expense of $66 million (2019: $81 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 122 132 Non-current assets 1,816 1,944 Current liabilities (2) 206 21 Non-current liabilities (3) 1,121 1,147 (1) Includes cash and cash equivalents of $25 million (2019:$29 million). (2) Includes trade, other payables and provisions of $71 million (2019: $77 million). (3) Includes trade, other payables and provisions of $128 million (2019:$106 million). Aux Sable For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 1,059 1,028 Expenses (1,019) (868) Depreciation and amortization (49) (55) Earnings (loss) (9) 105 Earnings attributable to Pembina — 51 As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 162 153 Non-current assets 757 816 Current liabilities (2) 107 105 Non-current liabilities (3) 155 148 (1) Includes cash and cash equivalents of $50 million (2019: $20 million). (2) Includes trade, other payables and provisions of $103 million (2019: $98 million). (3) Includes trade, other payables and provisions of $5 million (2019:$5 million). Ruby For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 432 453 Expenses (29) (19) Depreciation and amortization (143) (142) Impairment (2,953) — Finance costs and other (1) (130) (117) Earnings (loss) (2,823) 175 Earnings attributable to Pembina 122 120 (1) Includes interest expense of $104 million (2019: $90 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 50 93 Non-current assets 688 3,705 Current liabilities (2) 77 177 Non-current liabilities (3) 928 1,003 (1) Includes cash and cash equivalents of $6 million (2019: $38 million). (2) Includes trade, other payables and provisions of $2 million (2019: $3 million). (3) Includes trade, other payables and provisions of $278 million (2019: $223 million). Veresen Midstream For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 561 615 Expenses (177) (213) Depreciation and amortization (173) (165) Finance costs and other (1) (84) (111) Earnings 127 126 Earnings attributable to Pembina 50 49 (1) Includes interest expense of $80 million (2019: $109 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 167 166 Non-current assets 4,658 4,501 Current liabilities (2) 109 106 Non-current liabilities (3) 2,681 2,593 (1) Includes cash and cash equivalents of nil (2019: $3 million). (2) Includes trade, other payables and provisions of $80 million (2019: $106 million). (3) Includes trade, other payables and provisions of $46 million (2019: $43 million). CKPC For the years ended December 31 ($ millions) 2020 2019 Earnings (Loss) and Comprehensive Income (Loss) Expenses (4) (4) Impairment (589) — Finance costs (1) (33) 4 Earnings (loss) (626) — Earnings (loss) attributable to Pembina (314) (1) (1) Includes interest income of $1 million (2019: $1 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 83 246 Non-current assets — 283 Current liabilities (2) 99 188 Non-current liabilities (3) 11 12 (1) Includes cash and cash equivalents of $75 million (2019: $118 million). (2) Includes trade, other payables and provisions of $99 million (2019: $76 million). (3) Includes trade, other payables and provisions of $11 million (2019: nil). Other For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 51 52 Expenses (16) (16) Depreciation and amortization (16) (16) Finance costs and other (1) (5) (4) Earnings 14 16 Earnings attributable to Pembina 5 3 (1) Includes interest expense of $2 million (2019: $3 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 6 8 Non-current assets 117 131 Current liabilities (2) 25 28 Non-current liabilities (3) 64 84 (1) Includes cash and cash equivalents of $1 million (2019: $1 million). (2) Includes trade, other payables and provisions of $3 million (2019: $4 million). (3) Includes trade, other payables and provisions of $1 million (2019: $1 million). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES The movements of the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2019 (Restated Note 4) Recognized in Earnings (Loss) Recognized in Other Comprehensive Income (Loss) Acquisition Equity Other Balance at December 31, 2020 Deferred income tax assets Derivative financial instruments (13) 21 (4) — — — 4 Employee benefits 9 (2) 4 — — — 11 Share-based payments 24 (10) — — — — 14 Provisions 79 4 — — — — 83 Benefit of loss carryforwards 400 (125) — — — — 275 Other deductible temporary differences 52 16 — — (2) — 66 Deferred income tax liabilities Property, plant and equipment 2,036 55 — — — — 2,091 Intangible assets 263 (3) — — — — 260 Investments in equity accounted investees 1,109 (417) — — — — 692 Taxable limited partnership income deferral 101 (103) — — — — (2) Other taxable temporary differences (13) 32 — — — (4) 15 Total net deferred tax liabilities 2,945 (340) — — 2 (4) 2,603 ($ millions) Balance at December 31, 2018 (Restated Note 3) Recognized in Earnings (Loss) Recognized in Other Acquisition Equity Other Balance at December 31, 2019 (Restated Note 4) Deferred income tax assets Derivative financial instruments (18) 5 — — — — (13) Employee benefits 9 (1) 1 — — — 9 Share-based payments 26 (2) — — — — 24 Provisions 46 16 — 17 — — 79 Benefit of loss carryforwards 153 256 — 13 — (22) 400 Other deductible temporary differences 67 (40) — 28 (3) — 52 Deferred income tax liabilities Property, plant and equipment 1,587 286 — 163 — 2,036 Intangible assets 118 (14) — 159 — — 263 Investments in equity accounted investees 1,263 (154) — — — — 1,109 Taxable limited partnership income deferral 122 (46) — 25 — — 101 Other taxable temporary differences 7 (13) — — (7) (13) Total net deferred tax liabilities 2,814 (175) (1) 289 3 15 2,945 Reconciliation of Effective Tax Rate For the years ended December 31 2019 ($ millions, except as noted) 2020 (Restated Note 3) Earnings (loss) before income tax (416) 1,542 Canadian statutory tax rate (percent) 24.6 26.7 Income tax at statutory rate (102) 412 Tax rate changes and foreign rate differential (5) (349) Changes in estimate and other (5) (35) Permanent items 12 7 Income tax (recovery) expense (100) 35 In 2019, the enactment of Alberta Bill 3 reduced corporate income tax rate from 12 percent to 8 percent over a four-year period which resulted in a deferred tax recovery of $305 million. In the fourth quarter of 2020, the Alberta government enacted Bill 35 that accelerated the Alberta corporate income tax rate from 10 percent to 8 percent effective July 1, 2020. Income Tax Expense For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Current tax expense 240 210 Deferred tax expense Origination and reversal of temporary differences (485) 392 Tax rate changes on deferred tax balances 32 (345) Decrease (increase) in tax loss carry forward 113 (222) Total deferred tax (recovery) (340) (175) Total income tax (recovery) expense (100) 35 Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2020 2019 Share issue costs (2) (3) Other comprehensive income (loss): Change in fair value of net investment hedges (Note 26) (4) — Remeasurements of defined benefit liability (Note 24) 4 1 Deferred tax items recovered directly in equity (2) (2) Pembina has temporary differences associated with its investments in subsidiaries. At December 31, 2020, Pembina has not recorded a deferred tax asset or liability for these temporary differences (2019: nil) as Pembina controls the timing of the reversal and it is not probable that the temporary differences will reverse in the foreseeable future. At December 31, 2020, Pembina had U.S. $758 million (2019: U.S. $1.1 billion) of U.S. tax losses that do not expire and $43 million (2019: $67 million) of Canadian tax losses that will expire after 2037. Pembina has determined that it is probable that future taxable profits will be sufficient to utilize these losses. |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES AND OTHER | TRADE PAYABLES AND OTHER As at December 31 2019 ($ millions) 2020 (Restated Note 4) Trade payables 434 717 Other payables & accrued liabilities 346 288 Total trade payables and other 780 1,005 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of leases [Abstract] | |
LEASES | LEASESLessee LeasesPembina 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 $131 million for the year ended December 31, 2020 (2019: $83 million). Right-of-Use Assets ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2019 ( Restated Note 4) — 221 127 79 427 Additions ( Restated Note 3) — 54 1 19 74 Acquisition (Note 7) 225 — 7 24 256 Amortization — (37) (17) (12) (66) Balance at December 31, 2019 (Restated Note 4) 225 238 118 110 691 Additions — 24 22 — 46 Amortization (12) (41) (19) (14) (86) Balance at December 31, 2020 213 221 121 96 651 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 tanks and caverns. See Note 10 for carrying value of property, plant and equipment under operating leases. Assets under finance leases include office sub-leases and terminal assets. Maturity of Lease Receivables As at December 31 2020 2019 (Restated Note 4) ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 23 168 23 One to two years 142 23 150 24 Two to three years 139 22 145 23 Three to four years 121 22 139 22 Four to five years 109 22 124 22 More than five years 874 224 983 246 Total undiscounted lease receipts 1,531 336 1,709 360 Unearned finance income on lease receipts (199) (215) Discounted unguaranteed residual value 8 7 Finance lease receivable 145 152 Less current portion (1) (7) (7) Total non-current 138 145 (1) Included in trade receivables and other on the Consolidated Statement of Financial Position. |
LOANS AND BORROWINGS
LOANS AND BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
LOANS AND BORROWINGS | LOANS AND BORROWINGS This note provides information about the contractual terms of Pembina's interest-bearing loans and borrowings, which are measured at amortized cost. Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2020 Nominal Interest Rate Year of Maturity December 31, 2020 December 31, 2019 Senior unsecured credit facilities (1)(3)(4) 4,138 1.61 (2) Various (1) 1,530 2,097 Senior unsecured notes series A — 5.57 2020 — 74 Senior unsecured notes series C — 5.58 2020 — 199 Senior unsecured medium-term notes series 1 250 4.89 2021 250 250 Senior unsecured medium-term notes series 2 450 3.77 2022 449 449 Senior unsecured medium-term notes series 3 450 4.75 2043 447 446 Senior unsecured medium-term notes series 4 600 4.81 2044 597 596 Senior unsecured medium-term notes series 5 450 3.54 2025 449 449 Senior unsecured medium-term notes series 6 500 4.24 2027 498 498 Senior unsecured medium-term notes series 7 600 3.71 2026 603 498 Senior unsecured medium-term notes series 8 650 2.99 2024 647 646 Senior unsecured medium-term notes series 9 550 4.74 2047 542 542 Senior unsecured medium-term notes series 10 650 4.02 2028 661 398 Senior unsecured medium-term notes series 11 800 4.75 2048 842 298 Senior unsecured medium-term notes series 12 650 3.62 2029 654 398 Senior unsecured medium-term notes series 13 700 4.54 2049 713 714 Senior unsecured medium-term notes series 14 600 2.56 2023 599 598 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 — Senior unsecured medium-term notes series 3A 50 5.05 2022 51 52 Senior unsecured medium-term notes series 5A 350 3.43 2021 350 353 Total interest bearing liabilities 10,876 10,152 Less current portion (600) (74) Total non-current 10,276 10,078 (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures in May 2024, a $500 million non-revolving term loan that matures in August 2022, a $800 million revolving facility that matures in April 2022, a U.S. $250 million non-revolving term loan that matures in May 2025 and a $20 million operating facility that matures in May 2021, which is typically renewed on an annual basis. (2) The nominal interest rate is the weighted average of all drawn credit facilities based on Pembina's credit rating at December 31, 2020. Borrowings under the credit facilities bear interest at prime, Bankers' Acceptance, or LIBOR rates, plus applicable margins. (3) Includes U.S. $250 million variable rate debt outstanding at December 31, 2020 (December 31, 2019: U.S. $454 million). (4) The U.S. dollar denominated non-revolving term loan is designated as a hedge of the Company’s net investment in selected foreign operations with a U.S. dollar functional currency. Refer to Note 27 for foreign exchange risk management. On January 10, 2020, Pembina closed an offering of $1.0 billion of senior unsecured medium-term notes. The offering was conducted in three tranches, consisting of $250 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 10, having a fixed coupon of 4.02 percent per annum, payable semi-annually and maturing on March 27, 2028; $500 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 11, having a fixed coupon of 4.75 percent per annum, payable semi-annually and maturing on March 26, 2048; and $250 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 12, having a fixed coupon of 3.62 percent per annum, payable semi-annually and maturing on April 3, 2029. On April 6, 2020, Pembina entered into an unsecured $800 million revolving credit facility with certain existing lenders, which provided additional liquidity and flexibility in Pembina's capital structure in light of current market conditions. The unsecured revolving credit facility matures April 3, 2022. The other terms and conditions of the credit facility, including financial covenants, are substantially similar to Pembina's unsecured $2.5 billion revolving credit facility. On May 7, 2020, Pembina entered into an unsecured U.S. $250 million non-revolving term loan with a global bank, which provided additional liquidity and flexibility in Pembina's capital structure in light of current market conditions. The term loan matures May 7, 2025. The other terms and conditions of the credit facility, including financial covenants, are substantially similar to Pembina's unsecured $2.5 billion revolving credit facility. On May 28, 2020, Pembina closed an offering of $500 million of senior unsecured medium-term notes. The offering was conducted in two tranches, consisting of the issuance of $400 million in senior unsecured medium-term notes, series 16, having a fixed coupon of 4.76 percent per annum, payable semi-annually, and maturing on May 28, 2050 and $100 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 7, having a fixed coupon of 3.71 percent per annum, payable semi-annually and maturing on August 11, 2026. On July 10, 2020, Pembina's $200 million senior unsecured notes, series C, were fully repaid through an early redemption, of which notice was provided to holders on June 5, 2020. The senior unsecured notes, series C, were originally set to mature in September 2021. Subsequent to year-end, on January 25, 2021, Pembina closed an offering of $600 million of fixed-to-fixed rate subordinated notes, series 1 (the "Subordinated Notes, Series 1"). The Subordinated Notes, Series 1 have a fixed coupon of 4.80 percent per annum, payable semi-annually, and mature on January 25, 2081. For more information about Pembina's exposure to interest rate, foreign currency and liquidity risk, see Note 27 Financial Instruments . |
DECOMISSIONING PROVISION
DECOMISSIONING PROVISION | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
DECOMMISSIONING PROVISION | DECOMMISSIONING PROVISION The decommissioning provision reflects the discounted cash flows expected to be incurred to decommission Pembina's pipeline systems, gas processing and fractionation plants, storage and terminalling hubs, including estimated environmental reclamation and remediation costs. Changes in the measurement of the decommissioning provision are added to, or deducted from, the cost of the related property, plant and equipment or right of use asset. When a re-measurement of the decommissioning provision relates to a retired asset, the amount is recorded in earnings (loss). The undiscounted cash flows at the time of decommissioning are calculated using an estimated timing of economic outflows ranging from one ($ millions) 2020 2019 (Restated Note 4) Balance at January 1 (2) 340 162 Unwinding of discount rate 15 9 Change in rates — 90 Acquisition (Note 7) — 74 Additions 11 8 Change in cost estimates and other (16) (3) Total 350 340 Less current portion (1) (2) (3) Balance at December 31 348 337 (1) Included in trade payables and other on the Consolidated Statement of Financial Position. (1) January 1, 2019 opening balance includes $4 million relating to the current portion of the liability previously classified as trade payables and other. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
SHARE CAPITAL | SHARE CAPITALPembina is authorized to issue an unlimited number of common shares, without par value, 254,850,850 Class A preferred shares, issuable in series and an unlimited number of Class B preferred shares. The holders of the common shares are entitled to receive notice of, attend and vote at any meeting of the shareholders of Pembina, receive dividends declared and share in the remaining property of Pembina upon distribution of the assets of Pembina among its shareholders for the purpose of winding-up its affairs. Common Share Capital ($ millions, except as noted) Number of Common Shares (millions) Common Share Capital Balance at December 31, 2018 508 13,662 Issued on Acquisition, net of issue costs (Note 7) 36 1,710 Share-based payment transactions 4 167 Balance at December 31, 2019 548 15,539 Share-based payment transactions 2 105 Balance at December 31, 2020 550 15,644 Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2018 100 2,423 Class A, Series 23 Preferred shares issued on Acquisition, net of issue costs (Note 7) 12 293 Class A, Series 25 Preferred shares issued on Acquisition, net of issue costs (Note 7) 10 243 Part VI.1 tax — (3) Balance at December 31, 2019 122 2,956 Part VI.1 tax — (10) Balance at December 31, 2020 122 2,946 On March 1, 2019, none of the six million Cumulative Redeemable Rate Reset Class A Preferred Series 3 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 4 shares. On March 31, 2019, none of the six million Cumulative Redeemable Rate Reset Class A Preferred Series 17 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 18 shares. On June 3, 2019, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Series 5 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 6 shares. On December 2, 2019, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Series 7 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 8 shares. On December 16, 2019, in connection with the Kinder Acquisition, the outstanding preferred shares of Kinder Morgan Canada were exchanged for Series 23 and 25 Class A preferred shares with similar terms and conditions as the shares previously issued by Kinder Morgan Canada. Dividends on the Series 23 and 25 Class A preferred shares will continue to be paid on the 15 th of February, May, August and November in each year, if, as and when declared by the Board of Directors. On June 15, 2020, none of the eight million Cumulative Redeemable Rate Reset Class A Preferred Series 19 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 20 shares. On November 16, 2020, none of the nine million Cumulative Redeemable Rate Reset Class A Preferred Series 9 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 10 shares. Dividends The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2020 2019 Common shares $2.52 per common share (2019: $2.36) 1,385 1,213 Preferred shares $1.23 per Series 1 preferred share (2019: $1.23) 12 12 $1.12 per Series 3 preferred share (2019: $1.13) 7 7 $1.14 per Series 5 preferred share (2019: $1.19) 11 12 $1.10 per Series 7 preferred share (2019: $1.12) 11 11 $1.18 per Series 9 preferred share (2019: $1.19) 11 11 $1.44 per Series 11 preferred share (2019: $1.44) 10 10 $1.44 per Series 13 preferred share (2019: $1.44) 14 14 $1.12 per Series 15 preferred share (2019: $1.12) 9 9 $1.21 per Series 17 preferred share (2019: $1.22) 7 7 $1.21 per Series 19 preferred share (2019: $1.25) 10 10 $1.23 per Series 21 preferred share (2019: $1.23) 20 20 $1.31 per Series 23 preferred share (2019: $0.16) 16 2 $1.30 per Series 25 preferred share (2019: $0.16) 13 1 151 126 On January 6, 2021, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share in the total amount of $115 million, payable on February 12, 2021 to shareholders of record on January 25, 2021. On February 3, 2021, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share in the total amount of $115 million, payable on March 15, 2021 to shareholders of record on February 25, 2021. Pembina's Board of Directors also declared quarterly dividends for Pembina's preferred shares on January 6, 2021 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2021 March 1, 2021 $0.306625 3 Series 3 February 1, 2021 March 1, 2021 $0.279875 2 Series 5 February 1, 2021 March 1, 2021 $0.285813 3 Series 7 February 1, 2021 March 1, 2021 $0.273750 3 Series 9 February 1, 2021 March 1, 2021 $0.296875 3 Series 11 February 1, 2021 March 1, 2021 $0.359375 2 Series 13 February 1, 2021 March 1, 2021 $0.359375 4 Series 15 March 15, 2021 March 31, 2021 $0.279000 2 Series 17 March 15, 2021 March 31, 2021 $0.301313 2 Series 19 March 15, 2021 March 31, 2021 $0.292750 2 Series 21 February 1, 2021 March 1, 2021 $0.306250 5 Series 23 February 1, 2021 February 16, 2021 $0.328125 4 Series 25 February 1, 2021 February 16, 2021 $0.325000 3 38 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contracts With Customers [Abstract] | |
REVENUE | REVENUE Revenue has been disaggregated into categories to reflect how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.Revenue Disaggregation 2020 2019 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,664 740 — 2,404 1,200 625 — 1,825 Fee-for-service (1) 295 117 — 412 387 117 — 504 Product sales (2) — — 3,205 3,205 — 5 4,804 4,809 Revenue from contracts with customers 1,959 857 3,205 6,021 1,587 747 4,804 7,138 Operational finance lease income 15 — — 15 — — — — Fixed operating lease income 131 35 — 166 63 29 — 92 Total external revenue 2,105 892 3,205 6,202 1,650 776 4,804 7,230 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. Significant changes in the contract liabilities balances during the period are as follows: 2020 2019 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 8 223 231 9 159 168 Additions (net in the period) 3 117 120 4 35 39 Acquisition (Note 7) — — — — 77 77 Revenue recognized from contract liabilities (1) (8) (51) (59) (5) (48) (53) Closing balance 3 289 292 8 223 231 Less current portion (2) (3) (59) (62) (8) (31) (39) Ending balance — 230 230 — 192 192 (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 December 31, 2020, the balance includes $3 million of cash collected under take-or-pay contracts which will 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 does not have any contract assets. In all 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. Pembina expects to recognize revenue in future periods that includes current unsatisfied remaining performance obligations totaling $8.5 billion (2019: $9.3 billion). Over the next five years, this remaining performance obligation will be recognized annually ranging from $1.1 billion (2019: $1.1 billion) declining to $969 million (2019: $983 million). Subsequently, up to 2039 (2019: 2039), Pembina will recognize from $870 million (2019: $977 million) to $22 million (2019: $13 million) per year. In preparing the above figures, Pembina has taken the practical expedient to exclude contracts that are being accounted for using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice, as well as the practical expedient to exclude contracts that have original expected durations of one year or less. Variable consideration relating to flow through costs are not included in the amounts presented. These flow through costs do not impact net income or cash flow, and due to the long-term nature of the contracts there is significant uncertainty in estimating these amounts. In addition, Pembina excludes contracted revenue amounts for assets not yet in-service unless both Board of Directors approval and regulatory approval for the asset has been obtained. |
NET FINANCE COSTS
NET FINANCE COSTS | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
NET FINANCE COSTS | NET FINANCE COSTS For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 362 291 Leases 39 17 Unwinding of discount rate 15 8 Gain in fair value of non-commodity-related derivative financial instruments (5) (4) Foreign exchange losses (gains) and other 9 (23) Net finance costs 420 289 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Pembina determines its reportable segments based on the nature of operations and includes three operating segments: Pipelines, Facilities and Marketing & New Ventures. The Pipelines segment includes conventional, oil sands and transmission pipeline systems, crude oil storage and terminalling business and related infrastructure serving various markets and basins across North America. The Facilities segment includes processing and fractionation facilities and related infrastructure that provide Pembina's customers with natural gas and NGL services that are highly integrated with Pembina's other businesses and a bulk marine terminal in the Port of Vancouver, Canada. The Marketing & New Ventures segment undertakes value-added commodity marketing activities including buying and selling products and optimizing storage opportunities, by contracting capacity on Pembina's and various third-party pipelines and utilizing Pembina's rail fleet and rail logistics capabilities. Marketing activities also include identifying commercial opportunities to further develop other Pembina assets. Pembina's Marketing business also includes results from Aux Sable's NGL extraction facility near Chicago, Illinois and other natural gas and NGL processing facilities, logistics and distribution assets in the United States and Canada. The financial results of the operating segments are included below. Performance is measured based on results from operating activities, net of depreciation and amortization, as included in the internal management reports that are reviewed by Pembina's Chief Executive Officer, Chief Financial Officer and other Senior Vice Presidents. These results are used to measure performance as management believes that such information is the most relevant in evaluating results of certain segments relative to other entities that operate within these industries. Inter-segment transactions are recorded at market value and eliminated under corporate and inter-segment eliminations. For the year ended December 31, 2020 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,105 892 3,205 — 6,202 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 3,205 (485) 6,202 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 3,064 (317) 2,758 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 3,114 (484) 4,132 Realized gain on commodity-related derivative financial instruments — — (54) — (54) Unrealized (gain) loss on commodity-related derivative financial instruments — (4) 88 — 84 Share of profit from equity accounted investees - operations 227 55 — — 282 Adjusted gross profit 1,578 688 57 (1) 2,322 Impairment in share of profit from equity accounted investees — — (314) — (314) Gross profit (loss) 1,578 688 (257) (1) 2,008 Depreciation included in general and administrative — — — 38 38 Other general and administrative (4) 24 10 28 146 208 Other (income) expense (1) 2 4 (23) (18) Impairment expense 1,396 10 370 — 1,776 Reportable segment results from operating activities 159 666 (659) (162) 4 Net finance costs (income) 31 24 (13) 378 420 Reportable segment earnings (loss) before tax 128 642 (646) (540) (416) Capital expenditures 587 370 38 34 1,029 Contributions to equity accounted investees — 69 155 — 224 For the year ended December 31, 2019 (Restated Note 3) Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-segment revenue 137 345 — (482) — Total revenue (3) 1,787 1,121 4,804 (482) 7,230 Operating expenses (4) 436 344 — (178) 602 Cost of goods sold, including product purchases — 4 4,417 (311) 4,110 Depreciation and amortization included in operations 243 166 51 11 471 Cost of sales 679 514 4,468 (478) 5,183 Realized gain on commodity-related derivative financial instruments — — (33) — (33) Share of profit from equity accounted investees 274 51 50 — 375 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit (loss) 1,382 658 406 (4) 2,442 Depreciation included in general and administrative — — — 36 36 Other general and administrative (4) 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment expense 300 — — — 300 Reportable segment results from operating activities 1,049 644 368 (230) 1,831 Net finance costs (income) 6 21 (8) 270 289 Reportable segment earnings (loss) before tax 1,043 623 376 (500) 1,542 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 (1) Pipelines transportation revenue includes $228 million (2019: $33 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $143 million (2019: $182 million) associated with U.S. midstream sales. (3) During 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. During 2019, one customer accounted for 10 percent or more of total revenues with $718 million reported throughout all segments. (4) Pembina incurred $370 million (2019: $339 million) of employee costs, of which $244 million (2019: $182 million) was recorded in operating expenses and $126 million (2019: $157 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. Non-Current Assets For the years ended December 31 2019 ($ millions) 2020 (Restated Note 4) Canada 26,504 26,222 United States 3,601 5,543 Total non-current assets (1) 30,105 31,765 (1) Excludes deferred income tax assets. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic Earnings (Loss) Per Common Share The calculation of basic loss per common share at December 31, 2020 was based on the loss attributable to common shareholders of $476 million (2019: $1.4 billion (1) earnings) and a weighted average number of common shares outstanding of 550 million (2019: 512 million). Diluted Earnings (Loss) Per common Share The calculation of diluted loss per common share at December 31, 2020 was based on loss attributable to common shareholders of $476 million (2019: $1.4 billion (1) earnings), and weighted average number of common shares outstanding after adjustment for the effects of all dilutive potential common shares of 550 million (2019: 514 million). Earnings (Loss) Attributable to Common Shareholders For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Earnings (loss) (316) 1,507 Dividends on preferred shares (148) (123) Cumulative dividends on preferred shares, not yet declared (12) (8) Basic and diluted earnings (loss) attributable to common shareholders (476) 1,376 Weighted Average Number of Common Shares 2019 (In millions of shares, except as noted) 2020 (Restated Note 3) Issued common shares at January 1 548 508 Effect of shares issued on Acquisition — 1 Effect of shares issued on exercise of options 2 3 Basic weighted average number of common shares at December 31 550 512 Dilutive effect of share options on issue (1) — 2 Diluted weighted average number of common shares at December 31 550 514 Basic earnings (loss) per common share (dollars) (0.86) 2.69 Diluted earnings (loss) per common share (dollars) (0.86) 2.68 (1) The average market value of Pembina's shares for purposes of calculating the dilutive effect of share options for the year ended December 31, 2019 was based on quoted market prices for the period during which the options were outstanding. |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
PENSION PLAN | PENSION PLAN As at December 31 ($ millions) 2020 2019 Registered defined benefit net obligation 26 19 Supplemental defined benefit net obligation 18 16 Net employee benefit obligations 44 35 Pembina maintains defined contribution plans and non-contributory defined benefit pension plans covering its employees. Pembina contributes five to 10 percent of an employee's earnings to the defined contribution plan until the employee's age plus years of service equals 50, at which time they become eligible for the defined benefit plans. Pembina recognized $12 million in expense for the defined contribution plan during the year (2019: $11 million). The defined benefit plans include a funded registered plan for all eligible employees and an unfunded supplemental retirement plan for those employees affected by the Canada Revenue Agency maximum pension limits. The defined benefit plans are administered by separate pension funds that are legally separated from Pembina. Benefits under the plans are based on the length of service and the annual average best three Effective January 1, 2021, Pembina revised the eligibility requirements for the defined benefit plan. Employees with an age plus years of service of 40 at January 1, 2021 will remain eligible for the defined benefit plan, when their age plus years of service reaches 50. All other employees will remain in the defined contribution plan. Defined Benefit Obligations As at December 31 ($ millions) 2020 2019 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 18 — 16 Present value of funded obligations 278 — 250 — Total present value of obligations 278 18 250 16 Fair value of plan assets 252 — 231 — Recognized liability for defined benefit obligations (26) (18) (19) (16) Pembina funds the defined benefit obligation plans in accordance with government regulations by contributing to trust funds administered by an independent trustee. The funds are invested primarily in equities and bonds. Defined benefit plan contributions totaled $23 million for the year ended December 31, 2020 (2019: $20 million). Pembina has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements of the plans, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at December 31, 2020 (December 31, 2019: nil). Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2020 2019 Equity securities 63 62 Debt 37 38 100 100 Movement in the Present Value of the Defined Benefit Pension Obligation 2020 2019 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 250 16 212 12 Benefits paid by the plan (28) (2) (12) — Current service costs 18 1 15 1 Interest expense 8 1 8 — Actuarial losses in other comprehensive income 30 2 27 3 Defined benefit obligations at December 31 278 18 250 16 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2020 2019 Fair value of plan assets at January 1 231 193 Contributions paid into the plan 23 20 Benefits paid by the plan (28) (12) Return on plan assets 18 22 Interest income 8 8 Fair value of registered plan assets at December 31 252 231 Expense Recognition in Earnings (Loss) For the years ended December 31 ($ millions) 2020 2019 Registered Plan Current service costs 19 15 Interest on obligation 9 8 Interest on plan assets (8) (8) 20 15 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2020 2019 Registered Plan Operating expenses 10 7 General and administrative expense 10 8 20 15 Expense recognized for the Supplemental Plan was less than $2 million for each of the years ended December 31, 2020 and 2019. Actuarial Gains and Losses Recognized in Other Comprehensive Income (Loss) 2020 2019 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (33) (2) (35) (28) (1) (29) Remeasurements: Financial assumptions (13) (1) (14) (21) (1) (22) Experience adjustments (10) (1) (11) — — — Return on plan assets excluding interest income 15 — 15 16 — 16 Recognized loss during the period after tax (8) (2) (10) (5) (1) (6) Balance at December 31 (41) (4) (45) (33) (2) (35) Principal actuarial assumptions used: As at December 31 (weighted average percent) 2020 2019 Discount rate 2.6 3.1 Future pension earning increases 4.0 4.0 Assumptions regarding future mortality are based on published statistics and mortality tables. The current longevities underlying the values of the liabilities in the defined plans are as follows: As at December 31 (years) 2020 2019 Longevity at age 65 for current pensioners Males 21.9 21.8 Females 24.3 24.2 Longevity at age 65 for current member aged 45 Males 22.9 22.8 Females 25.2 25.1 The calculation of the defined benefit obligation is sensitive to the discount rate, compensation increases, retirements and termination rates as set out above. A change in the estimated discount rate of 2.6 percent by 100 basis points at December 31, 2020 is considered reasonably possible in the next financial year. An increase by 100 basis points would result in a $40 million addition to the obligation whereas, a decrease would lead to a $51 million reduction to the obligation. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS At December 31, 2020, Pembina has the following share-based payment arrangements: Share Option Plan (Equity-Settled) Pembina has a share option plan under which employees are eligible to receive options to purchase shares in Pembina. Long-Term Share Unit Award Incentive Plan (Cash-Settled) Pembina has a long-term share unit award incentive plan. Under the share-based compensation plan, awards of restricted ("RSU") and performance ("PSU") share units are made to officers and non-officers. The plan results in participants receiving cash compensation based on the value of the underlying notional shares granted under the plan. Payments are based on a trading value of Pembina's common shares plus notional dividends and performance of Pembina. Pembina also has a deferred share unit ("DSU") plan. Under the DSU plan, directors are required to take at least 50 percent of total director compensation as DSUs, until such time that they have met certain share ownership guidelines. A DSU is a notional share that has the same value as one Pembina common share. Its value changes with Pembina's share price. DSUs do not have voting rights but they accrue dividends as additional DSU units, at the same rate as dividends paid on Pembina's common shares. DSUs are paid out when a director retires from the board and are redeemed for cash using the weighted average of trading price of common shares on the Toronto Stock Exchange ("TSX") for the last five Terms and Conditions of Share Option Plan and Share Unit Award Incentive Plan Share Option Plan Share options vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date and have a contractual life of seven years. Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Non-Officers (2) and Directors (thousands of units, except as noted) PSUs (3) RSUs (3) DSUs Total January 1, 2019 475 460 36 971 January 1, 2020 469 487 31 987 (1) Distribution Units are granted in addition to RSU and PSU grants based on notional accrued dividends from RSU and PSU granted but not paid. (2) Non-Officers defined as senior selected positions within Pembina. (3) Contractual life of 3 years. PSUs vest on the third anniversary of the grant date. RSUs vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date. Actual units awarded are based on the trading value of the shares and performance of Pembina. Disclosure of Share Option Plan The number and weighted average exercise prices of share options as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Outstanding at December 31, 2018 17,928 $42.12 Granted 5,470 $48.27 Exercised (3,979) $37.95 Forfeited (655) $45.29 Expired (180) $48.98 Outstanding at December 31, 2019 18,584 $44.65 Granted 7,316 $37.55 Exercised (2,188) $40.17 Forfeited (1,103) $44.86 Expired (833) $45.24 Outstanding at December 31, 2020 21,776 $42.68 As of December 31, 2020, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding Options Exercisable Weighted Average Remaining Life $26.83 – $36.32 4,451 681 6.0 $36.33 – $43.06 4,349 3,813 3.3 $43.07 – $45.29 4,362 1,138 5.0 $45.30 – $48.08 3,402 2,039 4.9 $48.09 – $52.01 5,212 2,800 3.9 Total 21,776 10,471 4.6 Options are exercised regularly throughout the year. Therefore, the weighted average share price during the year of $49.79 (2019: $48.87) is representative of the weighted average share price at the date of exercise. Expected volatility is estimated by considering historic average share price volatility. The weighted average inputs used in the measurement of the fair values at grant date of share options are the following: Share Options Granted For the years ended December 31 (dollars, except as noted) 2020 2019 Weighted average Fair value at grant date 3.82 4.12 Expected volatility (percent) 36.61 18.7 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.52 2.36 Expected forfeitures (percent) 6.9 6.6 Risk-free interest rate (based on government bonds) (percent) 0.5 1.6 Disclosure of Long-Term Share Unit Award Incentive Plan The long-term share unit award incentive plans were valued using the volume weighted average price for 20 days ending December 31, 2020 of $32.53 (2019: $47.52). Actual payment may differ from amount valued based on market price and company performance. Employee Expenses For the years ended December 31 ($ millions) 2020 2019 Share option plan, equity settled 17 16 Long-term share unit award incentive plan 11 50 Share-based compensation expense 28 66 Total carrying amount of liabilities for cash settled arrangements 60 95 Total intrinsic value of liability for vested benefits 39 57 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total Balance at December 31, 2018 347 — (30) 317 Other comprehensive loss before hedging activities (213) — (6) (219) Balance at December 31, 2019 134 — (36) 98 Other comprehensive loss before hedging activities (117) — (10) (127) Other comprehensive gain resulting from hedging activities (1) 32 — — 32 Tax impact (1) — — (1) Balance at December 31, 2020 48 — (46) 2 (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 27). (2) Pension and other Post-Retirement Benefit Plan Adjustments will not be reclassified into earnings. |
FINANCIAL INSTRUMENTS & RISK MA
FINANCIAL INSTRUMENTS & RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS & RISK MANAGEMENT | FINANCIAL INSTRUMENTS & RISK MANAGEMENT Risk Management Overview Pembina has exposure to counterparty credit risk, liquidity risk and market risk. Pembina recognizes that effective management of these risks is a critical success factor in managing organization and shareholder value. Risk management strategies, policies and limits ensure risks and exposures are aligned to Pembina's 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. Internal audit personnel assist the Board of Directors in its oversight role by monitoring and evaluating the effectiveness of the organization's risk management system. Counterparty Credit Risk Counterparty credit risk represents the financial loss Pembina may experience if a counterparty to a financial instrument or commercial agreement failed to meet its contractual obligations to Pembina in accordance with the terms and conditions of the financial instruments or agreements with Pembina. Counterparty credit risk arises primarily from Pembina's cash and cash equivalents, trade and other receivables, advances to related parties and from counterparties to its derivative financial instruments. The carrying amount of Pembina's cash and cash equivalents, trade and other receivables, advances to related parties, derivative financial instruments and certain financial guarantees represents the maximum counterparty credit exposure, without taking into account security held. Pembina manages counterparty credit risk through established credit management techniques, including conducting comprehensive financial and other assessments for all new counterparties and regular reviews of existing counterparties to establish and monitor a counterparty's creditworthiness, setting exposure limits, monitoring exposures against these limits, entering into master netting arrangements and obtaining financial assurances where warranted. Pembina utilizes various sources of financial, credit and business information in assessing the creditworthiness of a counterparty including external credit ratings, where available, and in other cases, detailed financial statement analysis in order to generate an internal credit rating based on quantitative and qualitative factors. The establishment of counterparty exposure limits is governed by a Board of Directors designated counterparty exposure limit matrix which represents the maximum dollar amounts of counterparty exposure by debt rating that can be approved for a counterparty. Pembina continues to closely monitor and reassess the creditworthiness of its counterparties, which has resulted in Pembina reducing or mitigating its exposure to certain counterparties where it was deemed warranted and permitted under contractual terms. Financial assurances from counterparties may include guarantees, letters of credit and cash. At December 31, 2020 letters of credit totaling $130 million (December 31, 2019: $90 million) were held primarily in respect of customer trade receivables. Pembina typically has collected its trade receivables in full and at December 31, 2020, 94 percent were current (2019: 95 percent). Management defines current as outstanding accounts receivable under 30 days past due. Pembina has a general lien and a continuing and first priority security interest in, and a secured charge on, all of a shipper's petroleum products in its custody. At December 31, the aging of past due trade and other receivables was as follows: ($ millions) 2020 2019 31-60 days past due 3 1 Greater than 61 days past due 8 7 11 8 Pembina uses a loss allowance matrix to measure lifetime expected credit losses at initial recognition and throughout the life of the receivable. The loss allowance matrix is determined based on Pembina's historical default rates over the expected life of trade receivables, adjusted for forward-looking estimates. Management believes the unimpaired amounts that are past due by greater than 30 days are fully collectible based on historical default rates of customers and management's assessment of counterparty credit risk through established credit management techniques as discussed above. Expected credit losses on lease receivables are determined using a probability-weighted estimate of credit losses, measured as the present value of all expected cash shortfalls, discounted at the interest rates implicit in the leases, using reasonable and supportable information about past events, current conditions and forecasts of future economic conditions. Pembina considers the risk of default relating to lease receivables low based on Pembina's assessment of individual counterparty credit risk through established credit management techniques as discussed above. Advances to related parties at December 31, 2020 are held at amortized cost and consist of funds advanced by Pembina to a jointly controlled entity. Expected credit losses are measured using a probability-weighted estimate of credit losses, measured as the present value of all expected cash shortfalls, discounted at the effective interest rate of the financial asset, using reasonable and supportable information about past events, current conditions and forecasts of future economic conditions. As a result of the assessment leading to the impairment of Pembina's preferred interest in Ruby, Pembina further impaired its remaining related party advance of $139 million to Ruby. See Note 13 for additional details. Pembina monitors and manages its concentration of counterparty credit risk on an ongoing basis. Pembina believes these measures minimize its counterparty credit risk but there is no certainty that they will protect it against all material losses. As part of its ongoing operations, Pembina must balance its market and counterparty credit risks when making business decisions. Liquidity Risk Liquidity risk is the risk Pembina will not be able to meet its financial obligations as they come due. The following are the contractual maturities of financial liabilities, including estimated interest payments. Outstanding Balances Due by Period December 31, 2020 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and accrued liabilities 780 780 780 — — — Loans and borrowings 10,876 16,275 1,058 2,262 2,708 10,247 Dividends payable 115 115 115 — — — Derivative financial liabilities 69 69 69 — — — Lease liabilities 774 1,064 131 217 174 542 Pembina manages its liquidity risk by forecasting cash flows over a 12 month rolling time period to identify financing requirements. These financing requirements are then addressed through a combination of credit facilities and through access to capital markets, if required. Market Risk Pembina's results are subject to movements in commodity prices, foreign exchange and interest rates. A formal Risk Management Program including policies and procedures has been designed to mitigate these risks. a. Commodity Price Risk Certain of the transportation contracts or tolling arrangements with respect to Pembina's pipeline assets do not include take-or-pay commitments from crude oil and gas producers and, as a result, Pembina is exposed to throughput risk with respect to those assets. A decrease in volumes transported can directly and adversely affect Pembina’s revenues and earnings. The demand for, and utilization of, Pembina's pipeline assets may be impacted by factors such as changing market fundamentals, capacity bottlenecks, operational incidents, regulatory restrictions, system maintenance, weather and increased competition. Market fundamentals, such as commodity prices and price differentials, natural gas and gasoline consumption, alternative energy sources and global supply disruptions outside of Pembina's control can impact both the supply of and demand for the commodities transported on Pembina's pipelines. Pembina's Marketing business includes activities related to product storage, terminalling, and hub services. These activities expose Pembina to certain risks relating to fluctuations in commodity prices and, as a result, Pembina may experience volatility in revenue and impairments related to the book value of stored product with respect to these activities. Primarily, Pembina enters into contracts to purchase and sell crude oil, condensate, NGL and natural gas at floating market prices; as a result, the prices of products that are marketed by Pembina are subject to volatility as a result of factors such as seasonal demand changes, extreme weather conditions, market inventory levels, general economic conditions, changes in crude oil markets and other factors. Pembina manages its risk exposure by balancing purchases and sales to secure less volatile margins. Notwithstanding Pembina's management of price and quality risk, marketing margins for commodities can vary and have varied significantly from period to period in the past. This variability could have an adverse effect on the results of Pembina's Marketing business and its overall results of operations. To assist in reducing this inherent variability in its Marketing business, Pembina has invested, and will continue to invest, in assets that have a fee-based revenue component. Pembina is also exposed to potential price declines and decreasing frac spreads between the time Pembina purchases NGL feedstock and sells NGL products. Frac spread is the difference between the sale prices of NGL products and the cost of NGL sourced from natural gas and acquired at prices related to natural gas prices. Frac spreads can change significantly from period to period depending on the relationship between NGL and natural gas prices (the "frac spread ratio"), absolute commodity prices and changes in the Canadian to U.S. dollar exchange rate. In addition to the frac spread ratio changes, there is also a differential between NGL product prices and crude oil prices which can change margins realized for midstream products. The amount of profit or loss made on the extraction portion of the business will generally increase or decrease with frac spreads. This exposure could result in variability of cash flow generated by the Marketing business, which could affect Pembina and the cash dividends that Pembina is able to distribute. Pembina utilizes financial derivative instruments as part of its overall risk management strategy to assist in managing the exposure to commodity price, interest rate, cost of power and foreign exchange risk. As an example of commodity price mitigation, Pembina actively fixes a portion of its exposure to fractionation margins through the use of derivative financial instruments. Additionally, Pembina's Marketing business is also exposed to variability in quality, time and location differentials for various products, and financial instruments may be used to offset Pembina's exposures to these differentials. Pembina does not use financial instruments for speculative purposes. Commodity price fluctuations and volatility can also impact producer activity and throughput in Pembina’s infrastructure. The following table shows the impact on earnings (1) if the underlying commodity price risk of the derivative financial instruments (increased) or decreased by 15 percent, with other variables held constant. As at December 31, 2020 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (30) 28 Natural gas 9 (9) NGL (2) (32) 32 (1) Based on average market prices. (2) Includes propane, butane and condensate. b. Foreign Exchange Risk Certain of Pembina's cash flows, namely a portion of its commodity-related cash flows, certain cash flows from U.S.-based infrastructure assets and distributions from U.S.-based investments in equity accounted investees, are subject to currency risk, arising from the denomination of specific cash flows in U.S. dollars. Additionally, a portion of Pembina's capital expenditures and contributions or loans to Pembina's U.S.-based investments in equity accounted investees, may be denominated in U.S. dollars. Furthermore, the value of the investment in U.S. dollar denominated subsidiaries will fluctuate with changes in exchange rates when translated into Pembina's functional currency. Pembina monitors, assesses and responds to these foreign currency risks using an active risk management program, which may include the issuance of U.S. dollar debt, and exchange of foreign currency for domestic currency at a fixed rate. The following table shows the impact on earnings (1) if the underlying foreign exchange risk rate of the derivative financial instruments (increased) or decreased by $0.10, with other variables held constant. As at December 31, 2020 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (26) 26 (1) Based on the U.S. to Canadian dollar exchange rate. c. Interest Rate Risk Interest bearing financial liabilities include Pembina's debt and lease liabilities. Pembina has a floating interest rate debt in the form of its credit facilities and certain long-term debt, which subjects Pembina to interest rate risk. Pembina monitors and assesses variable interest rate risk and responds to this risk by issuing long-term debt with fixed interest rates or by entering into interest rate swaps. Pembina's U.S. drawings on its credit facilities, certain U.S. debt, and Pembina's interest rate swaps have variable rate components that reference the London Interbank Offered Rate ("LIBOR"). This rate is expected to be phased out following 2021 and will likely be replaced by a secured overnight financing rate. LIBOR will cease to be published at the end of 2023. Pembina will continue to monitor developments and the potential impact on the business. At the reporting date, the interest rate profile of Pembina's interest-bearing financial instruments was: As at December 31 ($ millions) 2020 2019 Carrying amounts of financial liability Fixed rate instruments (1) 10,120 8,874 Variable rate instruments (2) 1,530 2,097 11,650 10,971 (1) Includes lease liabilities. (2) At December 31, 2020, Pembina held positions in financial derivative contracts designated as cash flow hedging instruments, fixing the interest rates on U.S. $250 million of variable rate debt (December 31, 2019: nil). Cash Flow Sensitivity Analysis for Variable Rate Instruments The following table shows the impact on earnings if interest rates at the reporting date would have (increased) decreased earnings by 100 basis points, with other variables held constant. As at December 31, 2020 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (13) 13 Fair Values The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated 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. 2020 2019 As at December 31 Carrying Fair Value (1) Carrying Value Fair Value (1) ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments (3) 53 — 53 — 48 — 48 — Financial liabilities carried at fair value Derivative financial instruments (3) 69 — 69 — 9 — 9 — Financial liabilities carried at amortized cost Loans and borrowings (2) 10,876 — 11,902 — 10,152 — 10,729 — (1) The basis for determining fair value is disclosed in Note 6. (2) Carrying value of current and non-current balances. (3) At December 31, 2020 all derivative financial instruments are carried at fair value through earnings. Pembina's financial instruments carried at fair value are valued using Level 2 inputs that include quoted forward prices for commodities, time value and volatility factors, which can be substantially 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. Interest Rates Used for Determining Fair Value The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows: As at December 31 (percent) 2020 2019 Derivatives 0.5 - 0.7 2.0 - 2.5 Loans and borrowings 0.5 - 3.9 2.3 - 4.0 Fair value of power derivatives are based on market rates reflecting forward curves. Non-Derivative Instruments Designated as Net Investment Hedges Pembina has designated certain U.S. dollar denominated debt as a hedge of the Company's net investment in U.S. dollar denominated subsidiaries and investments in equity accounted investees. The designated debt has been assessed as having no ineffectiveness as the U.S. dollar debt has an equal and opposite exposure to U.S. dollar fluctuations. As a result, all foreign exchange gains or losses on the debt are reported directly in other comprehensive (loss) income. The following balances of U.S. dollar debt had been designated as hedges: For the Years ended December 31 ($ millions) 2020 2019 Notional amount of U.S. debt designated (in U.S. dollars) 250 — Carrying value of U.S. debt designated 317 — Maturity date 2025 NA 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 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 following table is a summary of the net derivative financial instruments, which is consistent with the gross balances: 2020 2019 As at December 31 ($ millions) Current Asset Non-Current Asset Current Liability Total Current Asset Non-Current Asset Current Liability Non-Current Liability Total Commodity, power, storage and rail financial instruments 11 27 (68) (30) 34 5 (6) (3) 30 Interest rate — 1 (1) — — — — — — Foreign exchange 14 — — 14 6 3 — — 9 Net derivative financial instruments 25 28 (69) (16) 40 8 (6) (3) 39 Notional and Maturity Summary The maturity and notional amount or quantity outstanding related Pembina's derivative instruments is as follows: ($ millions) Liquids (bpd) Natural Gas (GJ/d) Power (MWh) Foreign Exchange Interest Rate As at December 31, 2020 Purchases (1) 1,756 73,557 6 — — Sales (1) 25,284 — — — — Millions of U.S. dollars — — — 260 250 Maturity dates 2021 2021 2021 2021 2025 As at December 31, 2019 Purchases (1) 409 94,727 — — — Sales (1) 24,839 — — — — Millions of U.S. dollars — — — 470 — Maturity dates 2020-2021 2020-2021 NA 2020-2021 NA (1) Barrels per day ("bpd"), gigajoules per day ("GJ/d") and megawatt hours ("MWh"). Gains and Losses on Derivative Instruments Realized and unrealized gains (losses) on derivative instruments are as follows: For the years ended December 31 ($ millions) 2020 2019 Derivative instruments held at FVTPL (1) Realized (gain) loss Commodity-related (54) (33) Foreign exchange 2 3 Unrealized loss (gain) Commodity-related 84 13 Foreign exchange 5 4 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT Pembina's objective when managing capital is to ensure a stable stream of dividends to shareholders that is sustainable over the long-term. Pembina manages its capital structure based on requirements arising from significant capital development activities, the risk characteristics of its underlying asset base and changes in economic conditions. Pembina manages its capital structure and short-term financing requirements using non-GAAP measures, including the ratios of debt to adjusted EBITDA, debt to total enterprise value, adjusted cash flow to debt and debt to equity. The metrics are used to measure Pembina's financial leverage and measure the strength of Pembina's balance sheet. Pembina remains satisfied that the leverage currently employed in its capital structure is sufficient and appropriate given the characteristics and operations of the underlying asset base. Pembina, upon approval from its Board of Directors, will balance its overall capital structure through new equity or debt issuances, as required. Pembina maintains a conservative capital structure that allows it to finance its day-to-day cash requirements through its operations, without requiring external sources of capital. Pembina funds its operating commitments, short-term capital spending as well as its dividends to shareholders through this cash flow, while new borrowing and equity issuances are primarily reserved for the support of specific significant development activities. The capital structure of Pembina consists of shareholder's equity, comprised of common and preferred equity, plus long-term debt. Long-term debt is comprised of bank credit facilities and unsecured notes. Pembina is subject to certain financial covenants under its note indentures and credit agreements and is in compliance with all financial covenants as of December 31, 2020. Note 19 of these financial statements shows the change in share capital for the year ended December 31, 2020. |
GROUP ENTITIES
GROUP ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
GROUP ENTITIES | GROUP ENTITIES Significant Subsidiaries As at December 31 (percentages) Jurisdiction Ownership Interest Pembina Cochin LLC Delaware U.S. 100 Pembina Empress NGL Partnership Alberta 100 Pembina Gas Services Limited Partnership Alberta 100 Pembina Holding Canada L.P. Alberta 100 Pembina Infrastructure and Logistics L.P. Alberta 100 Pembina Midstream Limited Partnership Alberta 100 Pembina Oil Sands Pipeline L.P. Alberta 100 Pembina Pipeline Alberta 100 PKM Canada North 40 Limited Partnership Manitoba 100 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
RELATED PARTIES | RELATED PARTIES Pembina enters into transactions with related parties in the normal course of business and on terms equivalent to those that prevail in arm's length transactions, unless otherwise noted. Pembina contracts capacity from its equity accounted investee Alliance, advances funds to support operations and provides services, on a cost recovery basis, to investments in equity accounted investees. A summary of the significant related party transactions are as follows: Equity Accounted Investees ($ millions) 2020 2019 For the years ended December 31: Services provided 136 82 Services received 14 2 Interest income 14 10 As at December 31: Advances to related parties (1) 13 131 Trade receivables and other 19 17 Trade payables and accrued liabilities 2 — (1) During the year ended December 31, 2020, Pembina advanced U.S. $24 million (2019: U.S. $31 million) to Ruby and $5 million (2019: $17 million), net of repayments, to Fort Corp. In December 31, 2020, Pembina recognized an impairment of U.S. $110 million on its advances to Ruby (Note 13). During the year ended December 31, 2019, Pembina converted $57 million in advances to CKPC into equity contributions. Key Management Personnel and Director Compensation Key management consists of Pembina's directors and certain key officers. Compensation In addition to short-term employee benefits, including salaries, director fees and short-term incentives, Pembina also provides key management personnel with share-based compensation, contributes to post employment pension plans and provides car allowances, parking and business club memberships. Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2020 2019 Short-term employee benefits 10 10 Share-based compensation and other 10 13 Total compensation of key management 20 23 Transactions Key management personnel and directors of Pembina control less than one percent of the voting common shares of Pembina (consistent with the prior year). Certain directors and key management personnel also hold Pembina preferred shares. Dividend payments received for the common and preferred shares held are commensurate with other non-related holders of those instruments. Certain officers are subject to employment agreements in the event of termination without just cause or change of control. Post-Employment Benefit Plans Pembina has significant influence over the pension plans for the benefit of their respective employees. No balance payable is outstanding at December 31, 2020 (December 31, 2019: nil). ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2020 2019 Defined benefit plan Funding 23 20 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Pembina had the following contractual obligations outstanding at December 31, 2020: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (2) 1,064 131 217 174 542 Loans and borrowings (3) 16,275 1,058 2,262 2,708 10,247 Construction commitments (4) 1,208 523 149 43 493 Other 569 112 145 75 237 Total contractual obligations 19,116 1,824 2,773 3,000 11,519 (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 one (2) Includes terminals, rail, office space, land and vehicle leases. (3) Excluding deferred financing costs. Including interest payments on Pembina's senior unsecured notes. (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. 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 all 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 will 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. At December 31, 2020, Pembina had $91 million (December 31, 2019: $103 million) in letters of credit issued to facilitate commercial transactions with third parties and to support regulatory requirements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS [ On January xx, 2021, Pembina announced the sale of the Saskatchewan Ethane Extraction Plant ("SEEP") .] |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Basis of Measurement and Statement of Compliance | Basis of Measurement and Statement of ComplianceThe consolidated financial statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). Except for the changes described in Note 3, these accounting policies have been applied consistently for all periods presented in these consolidated financial statements. |
Functional and Presentation Currency | Functional and Presentation Currency The consolidated financial statements are presented in Canadian dollars. All financial information presented in Canadian dollars has been disclosed in millions, except where noted. The assets and liabilities of subsidiaries, and investments in equity accounted investees, whose functional currencies are other than Canadian dollars are translated into Canadian dollars at the foreign exchange rate at the balance sheet date, while revenues and expenses of such subsidiaries are translated using average monthly foreign exchange rates, which approximate the foreign exchange rates on the dates of the transactions. Foreign exchange differences arising on translation of subsidiaries and investments in equity accounted investees with a functional currency other than the Canadian dollar are included in other comprehensive income. |
Use of Estimates and Judgments | Use of Estimates and Judgments The preparation of the Consolidated Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that are based on the facts and circumstances and estimates at the date of the Consolidated Financial Statements and affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Ongoing Impact of the COVID-19 Pandemic Following 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 these restrictions have been relaxed in certain jurisdictions, a resurgence of COVID-19 cases (including cases resulting from variants of the COVID-19 virus) in certain geographic areas and the risk that this could occur in other areas has caused governments in certain jurisdictions to sustain and, in some cases, re-impose restrictions. In addition, while vaccines are beginning to be distributed, there is ongoing uncertainty as to the timing, level of adoption, duration of efficacy and overall effectiveness of the vaccine, including against variants of the COVID-19 virus. As a result, there remains significant uncertainty as to the extent and duration of the global economic slowdown. This uncertainty has created volatility in asset and commodity prices, currency exchange rates and a marked decline in long-term interest rates. In addition, the resulting decrease in demand for crude oil has resulted in a decline in global crude oil prices. Management applied judgment and will continue to assess the situation in determining the impact of the significant uncertainties created by these events and conditions on the carrying amounts of assets and liabilities in the Consolidated Financial Statements. The following judgment and estimation uncertainties are those management considers material to the Consolidated Financial Statements: Judgments (i) Business Combinations Business combinations are accounted for using the acquisition method of accounting. The determination of fair value often requires management to make judgments about future possible events. The assumptions with respect to lease identification, classification and measurement, the fair value of property plant and equipment, intangible assets, decommissioning provisions and contract liabilities acquired, as well as the determination of deferred taxes, generally require the most judgment. (ii) Depreciation and Amortization Depreciation and amortization of property, plant and equipment and intangible assets are based on management's judgment of the most appropriate method to reflect the pattern of an asset's future economic benefit expected to be consumed by Pembina. Among other factors, these judgments are based on industry standards and historical experience. (iii) Impairment Assessment of impairment of non-financial assets is based on management's judgment of whether or not events or changes in circumstances indicate that the carrying value of an asset, investment, cash generating unit ("CGU") or group of CGUs exceeds its recoverable amount. The determination of a CGU is based on management's judgment and is an assessment of the smallest group of assets that generate cash inflows independently of other assets. In addition, management applies judgment to assign goodwill acquired as part of a business combination to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination for purposes of impairment testing. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount, defined as the greater of fair value less costs of disposal and value in use. As such, the asset composition of a CGU or group of CGUs directly impacts both the carrying value and recoverability of the assets included therein. (iv) Assessment of Joint Control Over Joint Arrangements The determination of joint control requires judgment about the influence Pembina has over the financial and operating decisions of an arrangement and the extent of the benefits it obtains based on the facts and circumstances of the arrangement during the reporting period. Joint control exists when decisions about the relevant activities require the unanimous consent of the parties that control the arrangement collectively. Ownership percentage alone may not be a determinant of joint control. (v) Pattern of Revenue Recognition The pattern of revenue recognition is impacted by management's judgments as to the nature of Pembina's performance obligations, the amount of consideration allocated to performance obligations that are not sold on a stand-alone basis, the valuation of material rights and the timing of when those performance obligations have been satisfied. (vi) Leases Management applies judgment to determine whether a contract is, or contains, a lease from both a lessee and lessor perspective. This assessment is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Key judgments include whether a contract identifies an asset (or portion of an asset), whether the lessee obtains substantially all the economic benefits of the asset over the contract term and whether the lessee has the right to direct the asset's use. Judgment is also applied in determining the rate used to discount the lease payments. Estimates (i) Business Combinations Estimates of future cash flows, forecast prices, interest rates, discount rates, cost, market values and useful lives are made in determining the fair value of assets acquired and liabilities assumed. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities, intangible assets, goodwill and deferred taxes in the purchase price equation. Future earnings can be affected as a result of changes in future depreciation and amortization, asset or goodwill impairment. (ii) Provisions and Contingencies Management uses judgment in determining the likelihood of realization of contingent assets and liabilities to determine the outcome of contingencies. Provisions recognized are based on management's best estimate of the timing, scope and amount of expected future cash outflows to settle the obligation. Based on the long-term nature of the decommissioning provision, the most significant uncertainties in estimating the provision are the determination of whether a present obligation exists, the discount and inflation rates used, the costs that will be incurred and the timing of when these costs will occur. (iii) Deferred Taxes The calculation of the deferred tax asset or liability is based on assumptions about the timing of many taxable events and the enacted or substantively enacted rates anticipated to be applicable to income in the years in which temporary differences are expected to be realized or reversed. Deferred income tax assets are recognized to the extent that it is probable that the deductible temporary differences will be recoverable in future periods. The assessment of future recoverability involves significant estimates to be made by management. (iv) Depreciation and Amortization Estimated useful lives of property, plant and equipment and intangible assets are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which may be associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. (v) Impairment of Non-Financial Assets In determining the recoverable amount of a CGU, a group of CGUs or an individual asset, management uses its best estimates of future cash flows, and assesses discount rates to reflect management's best estimate of a rate that reflects a current market assessment of the time value of money and the specific risks associated with the underlying assets and cash flows. (vi) Impairment of Financial Assets The measurement of financial assets carried at amortized cost includes management's estimates regarding the expected credit losses that will be realized on these financial assets. (vii) Revenue from Contracts with Customers In estimating the contract value, management makes assessments as to whether variable consideration is constrained or not reasonably estimable, such that an amount or portion of an amount cannot be included in the estimate of the contract value. Management's estimates of the likelihood of a customer's ability to use outstanding make-up rights may impact the timing of revenue recognition. In addition, in determining the amount of consideration to be allocated to performance obligations that are not sold on a stand-alone basis, management estimates the stand-alone selling price of each performance obligation under the contract, taking into consideration the location and volume of goods or services being provided, the market environment, and customer specific considerations. (viii) Fair Value of Financial Instruments For Level 2 valued financial instruments, management makes assumptions and estimates value based on observable inputs such as quoted forward prices, time value and volatility factors. For Level 3 valued financial instruments, management uses estimates of financial forecasts, expected cash flows and risk adjusted discount rates to measure fair value. (ix) Employee Benefit Obligations An actuarial valuation is prepared to measure Pembina's net employee benefit obligations using management's best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. (x) Leases |
Basis of Consolidation | Basis of Consolidation i) Business Combinations Pembina measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the fair value of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in earnings. Non-controlling interests represent existing outside owned equity interests in an acquired subsidiary. The non-controlling interests were recognized at fair value on the acquisition date and are presented as a separate component of equity. The equity interests bear conditional non-discretionary distributions and will continue to be held as a non-controlling interest in equity at their acquisition date fair value until derecognition, either when the conditions are met for reclassification from equity to financial liabilities, or when the equity interests are cancelled or on a loss of control of the relevant subsidiary. Transaction costs, other than those associated with the issue of debt or equity securities, that Pembina incurs in connection with a business combination are expensed as incurred. ii) Subsidiaries Subsidiaries are entities, including unincorporated entities such as partnerships, controlled by Pembina. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by Pembina. Changes in Pembina's ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. No adjustments are made to goodwill and no gain or loss is recognized in earnings. iii) Joint Arrangements Joint arrangements represent activities where Pembina has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the consolidated financial statements include Pembina's proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. Pembina's consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, or income equal to preferred distributions for certain preferred share interests in equity accounted investees, until the date that joint control ceases. When Pembina's share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that Pembina has an obligation or has made payments on behalf of the investee. Distributions from and contributions to investments in equity accounted investees are recognized when received or paid. Acquisition of an incremental ownership in a joint arrangement where Pembina maintains joint control is recorded at cost or fair value if acquired as part of a business combination. Where Pembina has a partial disposal, including a deemed disposal, of a joint arrangement and maintains joint control, the resulting gains or losses are recorded in earnings at the time of disposal. iv) Transactions Eliminated on Consolidation Balances and transactions, and any revenue and expenses arising from transaction with or between subsidiaries are eliminated in preparing the consolidated financial statements. Gains arising from transactions with investments in equity accounted investees are eliminated against the investment to the extent of Pembina's interest in the investee. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. v) Foreign Currency Transactions in foreign currencies are translated to Pembina's functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pembina's functional currency at the exchange rate at that date, with exchange differences recognized in earnings. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents comprise cash balances, call deposits and short-term investments with original maturities of ninety days or less, and are used by Pembina in the management of its short-term commitments. |
Inventories | InventoriesInventories are measured at the lower of cost and net realizable value and consist primarily of crude oil, natural gas liquids ("NGL") and spare parts. The cost of inventories is determined using the weighted average costing method and includes direct purchase costs and when applicable, costs of production, extraction, fractionation, and transportation. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. All changes in the value of inventories are reflected in earnings. |
Financial Instruments | Financial Instruments Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, Pembina has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. i) Non-Derivative Financial Assets Pembina initially recognizes loans, receivables, advances to related parties and deposits on the date that they are originated. All other financial assets are recognized on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Pembina derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by Pembina is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount of the financial asset and the consideration received is recognized in earnings. Pembina classifies non-derivative financial assets into the following categories: Financial Assets at Amortized Cost A financial asset is classified in this category if the asset is held within a business model whose objective is to collect contractual cash flows on specified dates that are solely payments of principal and interest. At initial recognition, financial assets at amortized cost are recognized at fair value plus directly attributable transaction costs. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any impairment loss allowances. Financial Assets at Fair Value Through Other Comprehensive Income A financial asset is classified in this category if the asset is held within a business model whose objective is met by both collecting contractual cash flows and selling financial assets. Pembina did not have any financial assets classified as fair value through other comprehensive income during the years covered in these financial statements. Financial Assets at Fair Value Through Earnings A financial asset is classified in this category if it is not classified as a financial asset at amortized cost or a financial asset at fair value through other comprehensive income, or it is an equity instrument designated as such on initial recognition. At initial recognition, and subsequently, these financial assets are recognized at fair value. ii) Non-Derivative Financial Liabilities Pembina initially recognizes financial liabilities on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Pembina derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. On derecognition, the difference between the carrying value of the liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in earnings. Pembina records a modification or exchange of an existing liability as a derecognition of the financial liability if the terms are substantially different, resulting in a difference of more than 10 percent when comparing the present value of the remaining cash flows of the existing liability to the present value of the discounted cash flows under the new terms using the original effective interest rate. If a modification to an existing liability causes a revision to the estimated payments of the liability but is not treated as a derecognition, Pembina adjusts the gross carrying amount of the liability to the present value of the estimated contractual cash flows using the instrument’s original effective interest rate, with the difference recorded in earnings. Pembina's non-derivative financial liabilities are comprised of the following: bank overdrafts, trade payables and accrued liabilities, taxes payable, dividends payable, loans and borrowings, lease liabilities and other liabilities. Bank overdrafts that are repayable on demand and form an integral part of Pembina's cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statements of cash flows. iii) Common Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. iv) Preferred Share Capital Preferred shares are classified as equity because they bear discretionary dividends and do not contain any obligations to deliver cash or other financial assets. Discretionary dividends are recognized as equity distributions on approval by Pembina's Board of Directors. Incremental costs directly attributable to the issue of preferred shares are recognized as a deduction from equity, net of any tax effects. v) Derivative Financial Instruments and Hedge Accounting Pembina holds derivative financial instruments to manage its interest rate, commodity, power costs and foreign exchange risk exposures. Derivatives are recognized initially at fair value. Subsequent to initial recognition, derivatives are measured at fair value with changes recognized immediately in earnings, unless hedge accounting is applied. Pembina applies hedge accounting to certain financial instruments that qualify for and are designated for hedge accounting treatment. At inception of a designated hedging relationship, formal documentation is prepared and includes the risk management objective and strategy for undertaking the hedge, identification of the hedged item and the hedging instrument, the nature of the risk being hedged and how Pembina will assess the hedging instrument's effectiveness in offsetting the exposure to changes in the hedged item. For derivatives that are designated and qualified cash flow hedges, the effective portion of changes in fair value is accumulated in other comprehensive income. The amount accumulated is reclassified to earnings in the same period or periods during which the hedged expected future cash flows occur. Any ineffective portion of changes in fair value of hedges are recorded in earnings. For non-derivative financial liabilities designated as hedging instruments in a hedge of the net investment in foreign operations, the effective portion of foreign exchange gains and losses arising on translation of the financial liability is recognized in other comprehensive income. Any ineffective portion of the foreign exchange gains and losses arising from the translation of the financial liability is recognized immediately in earnings. The amount accumulated in other comprehensive income is reclassified to earnings on disposal of the foreign operation. |
Property, Plant and Equipment | Property, Plant and Equipment i) Recognition and Measurement Items of property, plant and equipment are measured initially at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, property, plant and equipment are recorded net of accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, estimated decommissioning provisions and borrowing costs on qualifying assets. Cost may also include any gain or loss realized on foreign currency transactions directly attributable to the purchase or construction of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognized in earnings. ii) Subsequent Costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to Pembina, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized and recorded as depreciation expense. The cost of maintenance and repair expenses of the property, plant and equipment are recognized in earnings as incurred. iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of the asset, that component is depreciated separately. Land and linefill are not depreciated. Depreciation is recognized in earnings over an asset's useful life on a straight line or declining balance basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. An asset's useful life is determined as the lower of its physical life and economic life. Depreciation commences once an asset is available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted if appropriate. |
Intangible Assets | Intangible Assets i) Goodwill Goodwill that arises upon acquisitions is included in intangible assets and goodwill. See Note 5(a)(i) for the policy on measurement of goodwill at initial recognition. Subsequent Measurement Goodwill is measured at cost less accumulated impairment losses. In respect of investments in equity accounted investees, goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is allocated to the investment and not to any asset, including goodwill, that forms the carrying amount of the investment in equity accounted investee. ii) Other Intangible Assets Other intangible assets acquired individually by Pembina are initially recognized and measured at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, intangible assets with finite useful lives are recorded net of accumulated amortization and accumulated impairment losses. iii) Subsequent Expenditures Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in earnings as incurred. iv) Amortization Amortization is based on the cost of an asset less its residual value. Amortization is recognized in earnings over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortization is included in cost of sales and general and administrative expense. Amortization methods, useful lives and residual values are reviewed annually and adjusted if appropriate. |
Leases | Leases A specific asset is the subject of a lease if the contract conveys the right to control the use of that identified asset for a period of time in exchange for consideration. This determination is made at inception of a contract, and is reassessed when the terms and conditions of the contract are amended. At inception or on reassessment of a contract that contains a lease component, Pembina allocates contract consideration to the lease and non-lease components on the basis of their relative stand-alone prices. The consideration allocated to the lease components is recognized in accordance with the policies for lessee and lessor leases, as described below. The consideration allocated to non-lease components is recognized in accordance with its nature. i) Lessee Leased assets are recognized as right-of-use assets, with corresponding lease liabilities recognized on the statement of financial position at the lease commencement date. Right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset and restore the site of an underlying asset to the condition required by the terms of the lease, less any lease incentives received. Right-of-use assets recognized as a result of business combination are initially measured in the same manner, plus an adjustment to reflect favourable or unfavourable lease terms compared to market terms. Right-of-use assets are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses, adjusted for remeasurements of the lease liability. The right-of-use asset is depreciated over the lesser of the asset's useful life and the lease term on a straight-line basis. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease if readily determinable, or at a rate Pembina would be required to pay to borrow over a similar term with a similar security to obtain an asset of a similar value to the right-of-use asset. Lease payments in an optional renewal period are included in the lease liability if Pembina is reasonably certain to exercise such option. The lease liability is subsequently increased by interest expense on the lease liability and decreased by lease payments made. Interest expense is recorded in earnings at an amount that represents a constant periodic rate of interest on the remaining balance of the lease liability. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimated guaranteed residual value to be paid, or a change in the assessment of whether a purchase option, extension option or termination option is reasonably certain to be exercised. A corresponding adjustment is made to the right of use asset when a liability is remeasured, or the adjustment is recorded in earnings if the right of use asset has been reduced to zero. Pembina has elected to apply the recognition exemptions for short-term and low value leases. Pembina recognizes lease payments associated with these leases as an expense on a straight-line basis over the lease term. ii) Lessor Lessor leases are classified as either operating leases or finance leases according to the substance of the contract. Leases transferring substantially all of the risks incidental to asset ownership are classified as finance leases, while all other leases are classified as operating leases. Subleases are classified as either operating or finance leases in reference to the right-of-use asset arising from the head lease. Assets under finance lease are recognized in finance lease receivables at the value of the net investment in the lease. The net investment in the lease is measured at the net present value of the future lease payments and the unguaranteed residual values of the underlying assets, discounted using the interest rate implicit in the lease. Finance income is recognized over the lease term in a pattern reflecting a consistent rate of return on the finance lease receivable. Finance lease income generated from physical assets in the normal course of operations is recorded as a component of revenue. All other finance lease income is recorded in net finance costs. Lease payments from operating leases are recognized in revenue on either a straight-line basis or a systematic basis representative of the pattern of economic benefit transfer. |
Impairment | Impairment i) Non-Derivative Financial Assets Impairment of financial assets carried at amortized cost is assessed using the lifetime expected credit loss of the financial asset at initial recognition and throughout the life of the financial asset, except where credit risk has not increased significantly since initial recognition, in which case impairment is assessed at the 12 month expected credit loss of the financial asset at the reporting date. Impairment losses are recognized in earnings and reflected as a reduction in the related financial asset. ii) Non-Financial Assets The carrying amounts of Pembina's non-financial assets, other than: inventory, assets arising from employee benefits and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated annually in connection with the annual goodwill impairment test. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs, the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets. CGUs may incorporate integrated assets from multiple operating segments. For the purpose of goodwill impairment testing, CGUs are aggregated to the operating segment level, which reflects the lowest level at which goodwill is monitored for management purposes. Goodwill acquired in a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. An impairment loss is recognized if the carrying amount of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is the greater of its value in use and its fair value less costs of disposal. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset, CGU or group of CGUs. Pembina's corporate assets do not generate separate cash inflows and are utilized by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset has been allocated. Impairment losses are recognized in earnings. Impairment losses recognized in respect of a CGU (group of CGUs) are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Employee Benefits | Employee Benefits i) Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in earnings in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. ii) Defined Benefit Pension Plans A defined benefit pension plan is a post-employment benefit plan other than a defined contribution plan. Pembina's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value of any plan assets. The discount rate used to determine the present value is established by referencing market yields on high-quality corporate bonds on the measurement date with cash flows that match the timing and amount of expected benefits. The calculation is performed, at a minimum, every three years by a qualified actuary using the actuarial cost method. When the calculation results in a benefit to Pembina, the recognized asset is limited to the present value of economic benefits available in the form of future expenses payable from the plan, any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in Pembina. An economic benefit is available to Pembina if it is realizable during the life of the plan or on settlement of the plan liabilities. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in earnings immediately. Pembina recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income and expenses related to defined benefit plans in earnings. Pembina recognizes gains or losses on the termination or settlement of a defined benefit plan when the termination or settlement occurs. The gain or loss on termination comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains or losses and past service cost that had not previously been recognized. iii) Short-Term Employee Benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if Pembina has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. iv) Share-Based Payment Transactions For equity settled share-based payment plans, the fair value of the share-based payment at grant date is recognized as an expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service conditions at the vesting date. For cash settled share-based payment plans, the fair value of the amount payable to employees is recognized as an expense with a corresponding increase in liabilities, over the period that the employees unconditionally become entitled to payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognized as an expense in earnings. |
Provisions | ProvisionsA provision is recognized if, as a result of a past event, Pembina has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic resources will be required to settle the obligation. Provisions are measured at each reporting date based on the best estimate of the settlement amount. Where the effect of the time value of money is material, provisions are discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount rate is recognized as accretion in finance costs. |
Decommissioning Provision | Decommissioning Provision Pembina's activities give rise to certain dismantling, decommissioning, environmental reclamation and remediation obligations at the end of an asset's economic life. A provision is made for the estimated cost of site restoration and capitalized as part of the cost of the underlying asset to which the provision relates. Decommissioning obligations are measured at the present value, based on a credit-adjusted risk-free rate, of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. Subsequent to the initial measurement, the obligation is adjusted at the end of each period to reflect the passage of time, changes in the credit-adjusted risk-free rate and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized as accretion in finance costs whereas increases or decreases due to changes in the estimated future cash flows or credit adjusted risk-free rate are added to or deducted from the cost of the related asset. Decommissioning obligations assumed in a business combination are initially recorded at fair value and remeasured using a credit-adjusted risk-free rate subsequent to acquisition. This remeasurement is added to or deducted from the cost of the related asset. |
Revenue | Revenue i) Take-or-Pay Pembina provides transportation, gas processing, fractionation, terminalling, and storage services under take-or-pay contracts. In a take-or-pay contract, Pembina is entitled to a minimum fee for the firm service promised to a customer over the contract period, regardless of actual volumes transported, processed, terminalled, or stored. This minimum fee can be represented as a set fee for an annual minimum volume, or an annual minimum revenue requirement. In addition, these contracts may include variable consideration for operating costs that are flow through to the customer. Pembina satisfies its performance obligations and recognizes revenue for services under take-or-pay commitments when volumes are transported, processed, terminalled, or stored. Make-up rights may arise when a customer does not fulfill their minimum volume commitment in a certain period, but is allowed to use the delivery of past or future volumes to meet this commitment. These make-up rights are subject to expiry and have varying conditions associated with them. When contract terms allow a customer to exercise their make-up rights using firm volume commitments, revenue is not recognized until these make-up rights are used, expire, or management determines that it is remote that they will be utilized. If Pembina bills a customer for unused service in an earlier period and the customer utilizes available make-up rights, Pembina records a refund liability for the amount to be returned to the customer through an annual adjustment process. For contracts where no make-up rights exist, revenue is recognized to take-or-pay levels once Pembina has an enforceable right to payment for the take-or-pay volumes. Make-up rights generally expire within a contract year, and a majority of the related contract years follow the calendar year. When customers are transporting, processing, terminalling, or storing volumes below their take-or-pay commitments early in a contract year, and the customer has the right to exercise make up rights against future firm volume commitments, the timing of revenue recognition may not be even throughout the year. Where Pembina has a right to invoice to take-or-pay levels throughout the contract year, revenue is deferred and a contract liability is recorded for the volumes invoiced that were not utilized by the customer. Once the customer has used its make-up rights or it is determined to be remote that a customer will use them, the previously deferred revenue is recognized. In these instances, there will be a deferral of revenue in early quarters of the year, with subsequent recognition occurring in later quarters although there is no impact on cash flows. For certain arrangements where the customer does not have make-up rights, where the make-up rights have been determined to be insignificant, and for cost of service agreements, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice. For these arrangements, the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. When up-front payments or non-cash consideration is received in exchange for future services to be performed, revenue is deferred as a contract liability and recognized over the period the performance obligation is expected to be satisfied. Non-cash consideration is measured at the fair value of the non-cash consideration received. ii) Fee-for-Service Fee-for-service revenue includes firm contracted revenue that is not subject to take-or-pay commitments and interruptible revenue. Pembina satisfies its performance obligations for transportation, gas processing, fractionation, terminalling, and storage as volumes of product are transported, processed, or stored. Revenue is based on a contracted fee and consideration is variable with respect to volumes. Payment is due in the month following Pembina's provision of service. iii) Product Sales Pembina satisfies its performance obligation on product sales at the time legal title to the product is transferred to the customer. Certain commodity buy/sell arrangements where control of the product has not transferred to Pembina are recognized on a net basis in revenue. For product sales, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice as the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. |
Government Grants | Government GrantsGovernment grants are recognized in earnings as other income on a systematic basis over the periods in which Pembina recognizes expenses for the related costs for which the grant is intended to compensate. Government grants are recognized only when there is reasonable assurance that Pembina will comply with the conditions attached to the grant, and the grant will be received. Government grants received during 2020 associated with the Canadian Emergency Wage Subsidy ("CEWS") were recognized in other income. |
Finance Income and Finance Costs | Finance Income and Finance Costs Finance income comprises interest income on funds deposited and invested, finance lease receivables, advances to related parties, gains on non-commodity-related derivatives measured at fair value through earnings and foreign exchange gains. Interest income is recognized as it accrues in earnings, using the effective interest rate method. Finance costs comprise interest expense on loans and borrowings and lease liabilities, accretion on provisions, losses on disposal of available for sale financial assets, losses on non-commodity-related derivatives and foreign exchange losses. Borrowing costs that are not directly attributable to the acquisition or construction of a qualifying asset are recognized in earnings using the effective interest rate method. |
Income Tax | Income Tax Income tax expense comprises current and deferred tax. Current and deferred taxes are recognized in earnings except to the extent that they relate to a business combination, or items are recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable earnings; • temporary differences relating to investments in subsidiaries and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising on the initial recognition of goodwill. The measurement of deferred tax reflects the tax consequences that would follow the manner in which Pembina expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset, and they relate to income taxes levied by the same taxation authority on either: i) the same taxable entity; or ii) different tax entities where the intent is to settle current tax liabilities and assets on a net basis, or where tax liabilities and assets will be realized simultaneously in each future period. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. In determining the amount of current and deferred tax, Pembina takes into account income tax exposures and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes Pembina to change its judgment regarding the adequacy of existing tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination is made. |
Earnings Per Common Share | Earnings Per Common Share Pembina presents basic and diluted earnings per common share ("EPS") data for its common shares. Basic EPS is calculated by dividing the earnings attributable to common shareholders of Pembina by the weighted average number of common shares outstanding during the period. To calculate earnings attributable to common shareholders, earnings are adjusted for accumulated preferred dividends. Diluted EPS is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding, for the effects of all potentially dilutive common shares, which comprise share options granted to employees. Only outstanding share options that will have a dilutive effect are included in fully diluted calculations. The dilutive effect of share options is determined whereby outstanding share options at the end of the period are assumed to have been converted at the beginning of the period or at the time issued if issued during the year. Amounts charged to earnings relating to the outstanding share options are added back to earnings for the diluted calculations. The shares issued upon conversion are included in the denominator of per share basic calculations for the date of issue. |
Segment Reporting | Segment ReportingAn operating segment is a component of Pembina that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components. All operating segments' operating results are reviewed regularly by Pembina's Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO") and other Senior Vice Presidents ("SVPs") to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.Segment results that are reported to the CEO, CFO and other SVPs include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. |
New Standards and Interpretations Not Yet Adopted | New Standards and Interpretations Not Yet Adopted The International Accounting Standards Board have issued a standard and amendments to existing standards that are effective for periods on or after January 1, 2021, with early application permitted. Assessment of the impacts of these standards is ongoing, however, no material impacts on Pembina's Consolidated Financial Statements have been identified. • Interbank Offered Rates ("IBOR") Reform - Phase 2 (Amendments to IFRS 9, IFRS 7, and IFRS 16); • Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); • Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37); • Updating a Reference to the Conceptual Framework (Amendments to IFRS 3); • Annual Improvements to IFRS Standards 2018-2020; • Classification of Liabilities as Current or Non-Current (Amendments to IAS 1); and • IFRS 17: Insurance Contracts . |
Determination of Fair Values | DETERMINATION OF FAIR VALUES A number of Pembina's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. When measuring fair value, Pembina uses observable market data to the extent possible. Fair value measurements are categorized into levels in a fair value hierarchy based on the degree to which inputs are observable and significant. Level 1: Unadjusted quoted prices are available in active markets for identical assets or liabilities as the reporting date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 3 valuations use unobservable inputs, such as a financial forecast developed using the entity's own data for expected cash flows and risk adjusted discount rates, to measure fair value to the extent that relevant observable inputs are not available. The unobservable inputs reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. In developing unobservable inputs, the entity's own data is used and adjusted for reasonably available information that would be used by other market participants. Ongoing Impact of the COVID-19 Pandemic Measuring fair values using significant unobservable inputs has become more challenging 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 these consolidated financial statements. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. i) Property, Plant and Equipment The fair value of property, plant and equipment recognized as a result of a business combination or transferred from a customer is based on market values when available, income approach and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence. When the recoverable value of an item of property, plant and equipment is estimated for impairment purposes, fair value is determined using comparable market transactions if available, or using a combination of internal and external estimates of the value that the assets could be sold for in an orderly manner. ii) Equity Investments When the recoverable value of the Company's equity investments is estimated for impairment purposes, fair value is determined using comparable market transactions if available, or using estimates of the discounted cash flows a market participant would expect to derive from the use and eventual sale of the investments. iii) Intangible Assets The fair value of intangible assets acquired in a business combination is determined by an active market value or using the multi-period excess earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that are part of creating the related cash flows. iv) Derivatives Fair value of derivatives are estimated by reference to independent monthly forward prices, interest rate yield curves, and currency rates at the reporting dates. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the company, entity and counterparty when appropriate. v) Non-Derivative Financial Assets and Liabilities The fair value of non-derivative financial assets and liabilities is determined on initial recognition, on a recurring basis, or for disclosure purposes. Fair values of financial assets at amortized cost are calculated based on the present value of estimated future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Fair values of financial assets held at fair value are calculated using a probability-weighted income approach based on current market expectations for future cash flows. For other financial liabilities where market rates are not readily available, a risk adjusted market rate is used which incorporates the nature of the instrument as well as the risk associated with the underlying cash payments. vi) Decommissioning Provision The fair value of decommissioning obligations assumed as part of a business combination are measured as the present value of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. The obligation is discounted using a risk adjusted rate corresponding to the underlying assets to which the obligation relates. vii) Share-Based Compensation Transactions The fair value of employee share options is measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Disclosure of voluntary change in accounting policy | Impacts on the Consolidated Statements of Financial Position As at December 31, 2020 December 31, 2019 January 1, 2019 ($ millions) Adjustments Adjustments Adjustments Assets Property, plant and equipment (546) (372) (304) Investments in equity accounted investees 24 20 15 Right-of-use assets (51) (39) — Advances to related parties and other assets (7) (7) (7) Total assets (580) (398) (296) Liabilities Decommissioning provision (734) (527) (411) Deferred tax liabilities 37 31 32 Total liabilities (697) (496) (379) Equity Deficit 117 98 83 Total equity attributable to Shareholders 117 98 83 A reconciliation for each of the line items affected in the restated Consolidated Statements of Financial Position is presented in Note 4. ii. Reconciliation of the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) For the years ended December 31 ($ millions, except per share amounts) 2020 2019 Adjustments Previously reported Adjustments Restated Cost of sales (18) 5,187 (4) 5,183 Share of profit from equity accounted investees 4 370 5 375 Gross profit 22 2,433 9 2,442 Net finance costs (3) 294 (5) 289 Earnings (loss) before income tax 25 1,528 14 1,542 Deferred tax (recovery) expense 6 (174) (1) (175) Earnings (loss) attributable to shareholders 19 1,492 15 1,507 Total comprehensive income (loss) attributable to shareholders 19 1,273 15 1,288 Earnings (loss) attributable to common shareholders, net of preferred share dividends 19 1,361 15 1,376 Earnings (loss) per common share - basic 0.04 2.66 0.03 2.69 Earnings (loss) per common share - diluted 0.04 2.65 0.03 2.68 iii. Reconciliation of the Consolidated Statement of Cash Flows For the years ended December 31 ($ millions) 2020 2019 Adjustments Previously reported Adjustments Restated Earnings (loss) 19 1,492 15 1,507 Share of profit from equity accounted investees (4) (370) (5) (375) Adjustments for depreciation and amortization (18) 511 (4) 507 Adjustments for net finance costs (3) 294 (5) 289 Adjustments for income tax expense 6 36 (1) 35 Cash flow from operating activities — 2,532 — 2,532 The following table presents the combined impact on the Company's Consolidated Statement of Financial Position of the change in accounting policy for decommissioning provisions presented in Note 3, and the acquisition adjustments related to the finalization of the purchase price allocation presented in Note 7. December 31, 2019 January 1, 2019 Accounting Accounting policy change Acquisition policy change As at Previously adjustments adjustments Previously adjustments ($ millions) reported (Note 3) (Note 7) Restated reported (Note 3) Restated Assets Trade receivables and other 692 — 2 694 605 — 605 Property, plant and equipment 18,775 (372) (41) 18,362 14,712 (304) 14,408 Intangible assets and goodwill 6,429 — 15 6,444 4,409 — 4,409 Investments in equity accounted investees 5,954 20 — 5,974 6,368 15 6,383 Right-of-use assets 822 (39) (92) 691 427 — 427 Finance lease receivable 29 — 116 145 — — — Advances to related parties and other assets 157 (7) — 150 177 (7) 170 Total assets 33,153 (398) — 32,755 27,107 (296) 26,811 Liabilities Trade payables and other 1,013 — (8) 1,005 796 — 796 Decommissioning provision 864 (527) — 337 569 (411) 158 Deferred tax liabilities 2,906 31 8 2,945 2,782 32 2,814 Total liabilities 16,383 (496) — 15,887 12,681 (379) 12,302 Equity Deficit (1,883) 98 — (1,785) (2,036) 83 (1,953) Total equity 16,770 98 — 16,868 14,426 83 14,509 |
CONSOLIDATED RESTATEMENT OF C_2
CONSOLIDATED RESTATEMENT OF COMPARATIVE PERIOD STATEMENT OF FINANCIAL POSITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Recast of Comparative Period Statement of Financial Position [Abstract] | |
Disclosure of voluntary change in accounting policy | Impacts on the Consolidated Statements of Financial Position As at December 31, 2020 December 31, 2019 January 1, 2019 ($ millions) Adjustments Adjustments Adjustments Assets Property, plant and equipment (546) (372) (304) Investments in equity accounted investees 24 20 15 Right-of-use assets (51) (39) — Advances to related parties and other assets (7) (7) (7) Total assets (580) (398) (296) Liabilities Decommissioning provision (734) (527) (411) Deferred tax liabilities 37 31 32 Total liabilities (697) (496) (379) Equity Deficit 117 98 83 Total equity attributable to Shareholders 117 98 83 A reconciliation for each of the line items affected in the restated Consolidated Statements of Financial Position is presented in Note 4. ii. Reconciliation of the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) For the years ended December 31 ($ millions, except per share amounts) 2020 2019 Adjustments Previously reported Adjustments Restated Cost of sales (18) 5,187 (4) 5,183 Share of profit from equity accounted investees 4 370 5 375 Gross profit 22 2,433 9 2,442 Net finance costs (3) 294 (5) 289 Earnings (loss) before income tax 25 1,528 14 1,542 Deferred tax (recovery) expense 6 (174) (1) (175) Earnings (loss) attributable to shareholders 19 1,492 15 1,507 Total comprehensive income (loss) attributable to shareholders 19 1,273 15 1,288 Earnings (loss) attributable to common shareholders, net of preferred share dividends 19 1,361 15 1,376 Earnings (loss) per common share - basic 0.04 2.66 0.03 2.69 Earnings (loss) per common share - diluted 0.04 2.65 0.03 2.68 iii. Reconciliation of the Consolidated Statement of Cash Flows For the years ended December 31 ($ millions) 2020 2019 Adjustments Previously reported Adjustments Restated Earnings (loss) 19 1,492 15 1,507 Share of profit from equity accounted investees (4) (370) (5) (375) Adjustments for depreciation and amortization (18) 511 (4) 507 Adjustments for net finance costs (3) 294 (5) 289 Adjustments for income tax expense 6 36 (1) 35 Cash flow from operating activities — 2,532 — 2,532 The following table presents the combined impact on the Company's Consolidated Statement of Financial Position of the change in accounting policy for decommissioning provisions presented in Note 3, and the acquisition adjustments related to the finalization of the purchase price allocation presented in Note 7. December 31, 2019 January 1, 2019 Accounting Accounting policy change Acquisition policy change As at Previously adjustments adjustments Previously adjustments ($ millions) reported (Note 3) (Note 7) Restated reported (Note 3) Restated Assets Trade receivables and other 692 — 2 694 605 — 605 Property, plant and equipment 18,775 (372) (41) 18,362 14,712 (304) 14,408 Intangible assets and goodwill 6,429 — 15 6,444 4,409 — 4,409 Investments in equity accounted investees 5,954 20 — 5,974 6,368 15 6,383 Right-of-use assets 822 (39) (92) 691 427 — 427 Finance lease receivable 29 — 116 145 — — — Advances to related parties and other assets 157 (7) — 150 177 (7) 170 Total assets 33,153 (398) — 32,755 27,107 (296) 26,811 Liabilities Trade payables and other 1,013 — (8) 1,005 796 — 796 Decommissioning provision 864 (527) — 337 569 (411) 158 Deferred tax liabilities 2,906 31 8 2,945 2,782 32 2,814 Total liabilities 16,383 (496) — 15,887 12,681 (379) 12,302 Equity Deficit (1,883) 98 — (1,785) (2,036) 83 (1,953) Total equity 16,770 98 — 16,868 14,426 83 14,509 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The purchase price allocation is based on assessed fair values, including adjustments determined during the year ended December 31, 2020 is as follows: As at December 16, 2019 ($ millions) Previously Reported Adjustments Restated Purchase price consideration Common shares 1,710 — 1,710 Cash (net of cash acquired) 2,009 — 2,009 Preferred shares 536 — 536 4,255 — 4,255 Current assets 68 2 70 Property, plant and equipment 2,660 (41) 2,619 Intangible assets 1,254 — 1,254 Right-of-use assets 348 (92) 256 Finance lease receivable — 116 116 Goodwill 809 15 824 Other assets 9 — 9 Current liabilities (124) 8 (116) Deferred tax liabilities (281) (8) (289) Decommissioning provision (74) — (74) Lease liability (348) — (348) Other liabilities (66) — (66) 4,255 — 4,255 |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade receivables and other | As at December 31 2019 ($ millions) 2020 (Restated Note 4) Trade receivables from customers 578 575 Other receivables 60 94 Prepayments 24 25 Total trade receivables and other 662 694 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Schedule of Current Inventory | As at December 31 ($ millions) 2020 2019 Crude oil and NGL 127 42 Materials, supplies and other 94 84 Total inventory 221 126 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | ($ millions) Land and Land Rights Pipelines Facilities and Equipment Cavern Storage and Other Assets Under Construction (1) Total Cost Balance at December 31, 2018 ( Restated Note 4) 340 7,174 6,807 1,478 939 16,738 Reclassification on adoption of IFRS 16 — — — (44) — (44) Additions and transfers 32 215 691 203 534 1,675 Acquisition (Note 7) 70 1,434 772 315 28 2,619 Change in decommissioning provision — (13) 98 (3) — 82 Foreign exchange adjustments (2) (17) (4) — (11) (34) Disposals and other — (3) (31) (12) 3 (43) Balance at December 31, 2019 ( Restated Note 4) 440 8,790 8,333 1,937 1,493 20,993 Additions and transfers 8 454 622 57 (40) 1,101 Impairment (Note 13) (17) — — — (340) (357) Change in decommissioning provision — (10) (17) 16 — (11) Foreign exchange adjustments (2) (18) (9) (1) (7) (37) Disposals and other — (10) (22) (16) 3 (45) Balance at December 31, 2020 429 9,206 8,907 1,993 1,109 21,644 Depreciation Balance at December 31, 2018 ( Restated Note 4) 12 1,223 827 250 — 2,312 Reclassification on adoption of IFRS 16 — — — (26) — (26) Depreciation 4 155 174 59 — 392 Disposals and other — (13) (34) — — (47) Balance at December 31, 2019 ( Restated Note 4) 16 1,365 967 283 — 2,631 Depreciation 5 187 156 135 — 483 Disposals and other — (5) (5) (9) — (19) Balance at December 31, 2020 21 1,547 1,118 409 — 3,095 Carrying amounts Balance at December 31, 2019 ( Restated Note 4) 424 7,425 7,366 1,654 1,493 18,362 Balance at December 31, 2020 408 7,659 7,789 1,584 1,109 18,549 Assets subject to operating leases Balance at December 31, 2019 ( Restated Note 4) 9 295 542 191 — 1,037 Balance at December 31, 2020 8 301 537 185 — 1,031 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2018 3,878 227 639 866 4,744 Additions and other — 13 — 13 13 Acquisition (Note 7) 824 — 1,254 1,254 2,078 Foreign exchange adjustments (3) — (12) (12) (15) Balance at December 31, 2019 ( Restated Note 4) 4,699 240 1,881 2,121 6,820 Additions and other — 22 — 22 22 Foreign exchange adjustments (5) (1) (12) (13) (18) Balance at December 31, 2020 4,694 261 1,869 2,130 6,824 Amortization Balance at December 31, 2018 — 164 171 335 335 Amortization — 10 31 41 41 Balance at December 31, 2019 — 174 202 376 376 Amortization — 6 102 108 108 Balance at December 31, 2020 — 180 304 484 484 Carrying amounts Balance at December 31, 2019 ( Restated Note 4) 4,699 66 1,679 1,745 6,444 Balance at December 31, 2020 4,694 81 1,565 1,646 6,340 |
Disclosure of goodwill and intangible assets by segment | The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2020 2019 (Restated Note 4) ($ millions) Pipelines 2,713 2,718 Facilities 541 541 Marketing & New Ventures 1,440 1,440 Total goodwill 4,694 4,699 For the year ended December 31, 2020 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,105 892 3,205 — 6,202 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 3,205 (485) 6,202 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 3,064 (317) 2,758 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 3,114 (484) 4,132 Realized gain on commodity-related derivative financial instruments — — (54) — (54) Unrealized (gain) loss on commodity-related derivative financial instruments — (4) 88 — 84 Share of profit from equity accounted investees - operations 227 55 — — 282 Adjusted gross profit 1,578 688 57 (1) 2,322 Impairment in share of profit from equity accounted investees — — (314) — (314) Gross profit (loss) 1,578 688 (257) (1) 2,008 Depreciation included in general and administrative — — — 38 38 Other general and administrative (4) 24 10 28 146 208 Other (income) expense (1) 2 4 (23) (18) Impairment expense 1,396 10 370 — 1,776 Reportable segment results from operating activities 159 666 (659) (162) 4 Net finance costs (income) 31 24 (13) 378 420 Reportable segment earnings (loss) before tax 128 642 (646) (540) (416) Capital expenditures 587 370 38 34 1,029 Contributions to equity accounted investees — 69 155 — 224 For the year ended December 31, 2019 (Restated Note 3) Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-segment revenue 137 345 — (482) — Total revenue (3) 1,787 1,121 4,804 (482) 7,230 Operating expenses (4) 436 344 — (178) 602 Cost of goods sold, including product purchases — 4 4,417 (311) 4,110 Depreciation and amortization included in operations 243 166 51 11 471 Cost of sales 679 514 4,468 (478) 5,183 Realized gain on commodity-related derivative financial instruments — — (33) — (33) Share of profit from equity accounted investees 274 51 50 — 375 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit (loss) 1,382 658 406 (4) 2,442 Depreciation included in general and administrative — — — 36 36 Other general and administrative (4) 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment expense 300 — — — 300 Reportable segment results from operating activities 1,049 644 368 (230) 1,831 Net finance costs (income) 6 21 (8) 270 289 Reportable segment earnings (loss) before tax 1,043 623 376 (500) 1,542 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 (1) Pipelines transportation revenue includes $228 million (2019: $33 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $143 million (2019: $182 million) associated with U.S. midstream sales. (3) During 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. During 2019, one customer accounted for 10 percent or more of total revenues with $718 million reported throughout all segments. (4) Pembina incurred $370 million (2019: $339 million) of employee costs, of which $244 million (2019: $182 million) was recorded in operating expenses and $126 million (2019: $157 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. |
Disclosure of key assumptions used in goodwill impairment | For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments 2020 Pipelines Facilities Marketing & New Ventures (Percent) Key assumptions used After-tax discount rate 5.9 5.9 10.1 Long-term growth rate 0.6 0.8 1.8 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate 2.7 3.2 1.6 |
IMPAIRMENTS (Tables)
IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of impairment loss and reversals of impairment loss [Abstract] | |
Disclosure of impairment loss and reversal of impairment loss | The following table summarizes impairments recognized for the year ended December 31, 2020: ($ millions) Property, Plant & Equipment (Note 10) Equity Accounted Investees (Note 12) Other Total Impairment Expense Jordan Cove 344 — 5 349 Investment in Ruby — 1,257 139 1,396 Investment in CKPC — 323 (2) 321 Other 13 11 — 24 Total impairments 357 1,591 142 2,090 Recognized through impairment in share of profit from equity accounted investees 314 Recognized as impairment expense 1,776 Total 2,090 |
INVESTMENTS IN EQUITY ACCOUNT_2
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in joint ventures | Ownership Interest at December 31 (percent) Share of Profit (Loss) from Equity Investments Investment in Equity Accounted 12 Months Ended December 31 ($ millions) 2020 2019 2020 2019 (Restated Note 3) 2020 2019 (Restated Note 4) Alliance 50 50 105 153 2,498 2,638 Aux Sable 42.7 - 50 42.7 - 50 — 51 401 426 Ruby (1) — — 122 120 — 1,273 Veresen Midstream 45 45.3 50 49 1,374 1,350 CKPC (2) 50 50 (314) (1) — 171 Other 50 - 75 50 - 75 5 3 104 116 (32) 375 4,377 5,974 (1) Pembina owns a 50 percent convertible, cumulative preferred interest in Ruby. (2) Includes $314 million (2019: nil) of impairment in share of profit from equity accounted investees. Financial information for Pembina's equity accounted investees (presented at 100 percent) is presented in the following tables and is prepared under the financial reporting framework adopted by each equity accounted investee (U.S. GAAP except for CKPC). Differences between the equity accounted investee's earning (loss) and earnings (loss) attributable to Pembina relate to the different accounting standards applied and amortization of the excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date, with the exception of Ruby which Pembina owns a 50 percent convertible, cumulative preferred interest and recognizes its share of earnings based on its distribution. Alliance For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 840 965 Expenses (296) (262) Depreciation and amortization (141) (108) Finance costs and other (1)(2) (61) (58) Earnings 342 537 Earnings attributable to Pembina 105 153 (1) Includes interest income of $2 million (2019:$4 million). (2) Includes interest expense of $66 million (2019: $81 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 122 132 Non-current assets 1,816 1,944 Current liabilities (2) 206 21 Non-current liabilities (3) 1,121 1,147 (1) Includes cash and cash equivalents of $25 million (2019:$29 million). (2) Includes trade, other payables and provisions of $71 million (2019: $77 million). (3) Includes trade, other payables and provisions of $128 million (2019:$106 million). Aux Sable For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 1,059 1,028 Expenses (1,019) (868) Depreciation and amortization (49) (55) Earnings (loss) (9) 105 Earnings attributable to Pembina — 51 As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 162 153 Non-current assets 757 816 Current liabilities (2) 107 105 Non-current liabilities (3) 155 148 (1) Includes cash and cash equivalents of $50 million (2019: $20 million). (2) Includes trade, other payables and provisions of $103 million (2019: $98 million). (3) Includes trade, other payables and provisions of $5 million (2019:$5 million). Ruby For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 432 453 Expenses (29) (19) Depreciation and amortization (143) (142) Impairment (2,953) — Finance costs and other (1) (130) (117) Earnings (loss) (2,823) 175 Earnings attributable to Pembina 122 120 (1) Includes interest expense of $104 million (2019: $90 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 50 93 Non-current assets 688 3,705 Current liabilities (2) 77 177 Non-current liabilities (3) 928 1,003 (1) Includes cash and cash equivalents of $6 million (2019: $38 million). (2) Includes trade, other payables and provisions of $2 million (2019: $3 million). (3) Includes trade, other payables and provisions of $278 million (2019: $223 million). Veresen Midstream For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 561 615 Expenses (177) (213) Depreciation and amortization (173) (165) Finance costs and other (1) (84) (111) Earnings 127 126 Earnings attributable to Pembina 50 49 (1) Includes interest expense of $80 million (2019: $109 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 167 166 Non-current assets 4,658 4,501 Current liabilities (2) 109 106 Non-current liabilities (3) 2,681 2,593 (1) Includes cash and cash equivalents of nil (2019: $3 million). (2) Includes trade, other payables and provisions of $80 million (2019: $106 million). (3) Includes trade, other payables and provisions of $46 million (2019: $43 million). CKPC For the years ended December 31 ($ millions) 2020 2019 Earnings (Loss) and Comprehensive Income (Loss) Expenses (4) (4) Impairment (589) — Finance costs (1) (33) 4 Earnings (loss) (626) — Earnings (loss) attributable to Pembina (314) (1) (1) Includes interest income of $1 million (2019: $1 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 83 246 Non-current assets — 283 Current liabilities (2) 99 188 Non-current liabilities (3) 11 12 (1) Includes cash and cash equivalents of $75 million (2019: $118 million). (2) Includes trade, other payables and provisions of $99 million (2019: $76 million). (3) Includes trade, other payables and provisions of $11 million (2019: nil). Other For the years ended December 31 ($ millions) 2020 2019 Earnings and Comprehensive Income Revenue 51 52 Expenses (16) (16) Depreciation and amortization (16) (16) Finance costs and other (1) (5) (4) Earnings 14 16 Earnings attributable to Pembina 5 3 (1) Includes interest expense of $2 million (2019: $3 million). As at December 31 ($ millions) 2020 2019 Statements of Financial Position Current assets (1) 6 8 Non-current assets 117 131 Current liabilities (2) 25 28 Non-current liabilities (3) 64 84 (1) Includes cash and cash equivalents of $1 million (2019: $1 million). (2) Includes trade, other payables and provisions of $3 million (2019: $4 million). (3) Includes trade, other payables and provisions of $1 million (2019: $1 million). |
Summary of Distributions From and Contributions to Equity Accounted Investees | The following table summarizes distributions from and contributions to Pembina's investments in equity accounted investees: For the years ended December 31 Distributions Contributions ($ millions) 2020 2019 2020 2019 Alliance 217 268 — 13 Aux Sable 19 84 3 4 Ruby 122 121 — — Veresen Midstream 97 96 69 73 CKPC — — 152 173 Other 4 6 — — Total 459 575 224 263 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Disclosure of movement in components of deferred tax assets and liabilities | The movements of the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2019 (Restated Note 4) Recognized in Earnings (Loss) Recognized in Other Comprehensive Income (Loss) Acquisition Equity Other Balance at December 31, 2020 Deferred income tax assets Derivative financial instruments (13) 21 (4) — — — 4 Employee benefits 9 (2) 4 — — — 11 Share-based payments 24 (10) — — — — 14 Provisions 79 4 — — — — 83 Benefit of loss carryforwards 400 (125) — — — — 275 Other deductible temporary differences 52 16 — — (2) — 66 Deferred income tax liabilities Property, plant and equipment 2,036 55 — — — — 2,091 Intangible assets 263 (3) — — — — 260 Investments in equity accounted investees 1,109 (417) — — — — 692 Taxable limited partnership income deferral 101 (103) — — — — (2) Other taxable temporary differences (13) 32 — — — (4) 15 Total net deferred tax liabilities 2,945 (340) — — 2 (4) 2,603 ($ millions) Balance at December 31, 2018 (Restated Note 3) Recognized in Earnings (Loss) Recognized in Other Acquisition Equity Other Balance at December 31, 2019 (Restated Note 4) Deferred income tax assets Derivative financial instruments (18) 5 — — — — (13) Employee benefits 9 (1) 1 — — — 9 Share-based payments 26 (2) — — — — 24 Provisions 46 16 — 17 — — 79 Benefit of loss carryforwards 153 256 — 13 — (22) 400 Other deductible temporary differences 67 (40) — 28 (3) — 52 Deferred income tax liabilities Property, plant and equipment 1,587 286 — 163 — 2,036 Intangible assets 118 (14) — 159 — — 263 Investments in equity accounted investees 1,263 (154) — — — — 1,109 Taxable limited partnership income deferral 122 (46) — 25 — — 101 Other taxable temporary differences 7 (13) — — (7) (13) Total net deferred tax liabilities 2,814 (175) (1) 289 3 15 2,945 |
Disclosure of reconciliation of effective tax rate | Reconciliation of Effective Tax Rate For the years ended December 31 2019 ($ millions, except as noted) 2020 (Restated Note 3) Earnings (loss) before income tax (416) 1,542 Canadian statutory tax rate (percent) 24.6 26.7 Income tax at statutory rate (102) 412 Tax rate changes and foreign rate differential (5) (349) Changes in estimate and other (5) (35) Permanent items 12 7 Income tax (recovery) expense (100) 35 |
Disclosure of income tax expense | Income Tax Expense For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Current tax expense 240 210 Deferred tax expense Origination and reversal of temporary differences (485) 392 Tax rate changes on deferred tax balances 32 (345) Decrease (increase) in tax loss carry forward 113 (222) Total deferred tax (recovery) (340) (175) Total income tax (recovery) expense (100) 35 |
Disclosure of deferred tax items recovered directly in equity | Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2020 2019 Share issue costs (2) (3) Other comprehensive income (loss): Change in fair value of net investment hedges (Note 26) (4) — Remeasurements of defined benefit liability (Note 24) 4 1 Deferred tax items recovered directly in equity (2) (2) |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables and accrued liabilities | As at December 31 2019 ($ millions) 2020 (Restated Note 4) Trade payables 434 717 Other payables & accrued liabilities 346 288 Total trade payables and other 780 1,005 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of leases [Abstract] | |
Disclosure of quantitative information about right-of-use assets | ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2019 ( Restated Note 4) — 221 127 79 427 Additions ( Restated Note 3) — 54 1 19 74 Acquisition (Note 7) 225 — 7 24 256 Amortization — (37) (17) (12) (66) Balance at December 31, 2019 (Restated Note 4) 225 238 118 110 691 Additions — 24 22 — 46 Amortization (12) (41) (19) (14) (86) Balance at December 31, 2020 213 221 121 96 651 |
Disclosure of maturity analysis of finance lease payments receivable | As at December 31 2020 2019 (Restated Note 4) ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 23 168 23 One to two years 142 23 150 24 Two to three years 139 22 145 23 Three to four years 121 22 139 22 Four to five years 109 22 124 22 More than five years 874 224 983 246 Total undiscounted lease receipts 1,531 336 1,709 360 Unearned finance income on lease receipts (199) (215) Discounted unguaranteed residual value 8 7 Finance lease receivable 145 152 Less current portion (1) (7) (7) Total non-current 138 145 (1) Included in trade receivables and other on the Consolidated Statement of Financial Position. |
Disclosure of maturity analysis of operating lease payments | As at December 31 2020 2019 (Restated Note 4) ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 23 168 23 One to two years 142 23 150 24 Two to three years 139 22 145 23 Three to four years 121 22 139 22 Four to five years 109 22 124 22 More than five years 874 224 983 246 Total undiscounted lease receipts 1,531 336 1,709 360 Unearned finance income on lease receipts (199) (215) Discounted unguaranteed residual value 8 7 Finance lease receivable 145 152 Less current portion (1) (7) (7) Total non-current 138 145 (1) Included in trade receivables and other on the Consolidated Statement of Financial Position. |
LOANS AND BORROWINGS (Tables)
LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2020 Nominal Interest Rate Year of Maturity December 31, 2020 December 31, 2019 Senior unsecured credit facilities (1)(3)(4) 4,138 1.61 (2) Various (1) 1,530 2,097 Senior unsecured notes series A — 5.57 2020 — 74 Senior unsecured notes series C — 5.58 2020 — 199 Senior unsecured medium-term notes series 1 250 4.89 2021 250 250 Senior unsecured medium-term notes series 2 450 3.77 2022 449 449 Senior unsecured medium-term notes series 3 450 4.75 2043 447 446 Senior unsecured medium-term notes series 4 600 4.81 2044 597 596 Senior unsecured medium-term notes series 5 450 3.54 2025 449 449 Senior unsecured medium-term notes series 6 500 4.24 2027 498 498 Senior unsecured medium-term notes series 7 600 3.71 2026 603 498 Senior unsecured medium-term notes series 8 650 2.99 2024 647 646 Senior unsecured medium-term notes series 9 550 4.74 2047 542 542 Senior unsecured medium-term notes series 10 650 4.02 2028 661 398 Senior unsecured medium-term notes series 11 800 4.75 2048 842 298 Senior unsecured medium-term notes series 12 650 3.62 2029 654 398 Senior unsecured medium-term notes series 13 700 4.54 2049 713 714 Senior unsecured medium-term notes series 14 600 2.56 2023 599 598 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 — Senior unsecured medium-term notes series 3A 50 5.05 2022 51 52 Senior unsecured medium-term notes series 5A 350 3.43 2021 350 353 Total interest bearing liabilities 10,876 10,152 Less current portion (600) (74) Total non-current 10,276 10,078 (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures in May 2024, a $500 million non-revolving term loan that matures in August 2022, a $800 million revolving facility that matures in April 2022, a U.S. $250 million non-revolving term loan that matures in May 2025 and a $20 million operating facility that matures in May 2021, which is typically renewed on an annual basis. (2) The nominal interest rate is the weighted average of all drawn credit facilities based on Pembina's credit rating at December 31, 2020. Borrowings under the credit facilities bear interest at prime, Bankers' Acceptance, or LIBOR rates, plus applicable margins. (3) Includes U.S. $250 million variable rate debt outstanding at December 31, 2020 (December 31, 2019: U.S. $454 million). (4) The U.S. dollar denominated non-revolving term loan is designated as a hedge of the Company’s net investment in selected foreign operations with a U.S. dollar functional currency. Refer to Note 27 for foreign exchange risk management. |
DECOMISSIONING PROVISION (Table
DECOMISSIONING PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of decommissioning provisions | ($ millions) 2020 2019 (Restated Note 4) Balance at January 1 (2) 340 162 Unwinding of discount rate 15 9 Change in rates — 90 Acquisition (Note 7) — 74 Additions 11 8 Change in cost estimates and other (16) (3) Total 350 340 Less current portion (1) (2) (3) Balance at December 31 348 337 (1) Included in trade payables and other on the Consolidated Statement of Financial Position. (1) January 1, 2019 opening balance includes $4 million relating to the current portion of the liability previously classified as trade payables and other. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | Common Share Capital ($ millions, except as noted) Number of Common Shares (millions) Common Share Capital Balance at December 31, 2018 508 13,662 Issued on Acquisition, net of issue costs (Note 7) 36 1,710 Share-based payment transactions 4 167 Balance at December 31, 2019 548 15,539 Share-based payment transactions 2 105 Balance at December 31, 2020 550 15,644 Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2018 100 2,423 Class A, Series 23 Preferred shares issued on Acquisition, net of issue costs (Note 7) 12 293 Class A, Series 25 Preferred shares issued on Acquisition, net of issue costs (Note 7) 10 243 Part VI.1 tax — (3) Balance at December 31, 2019 122 2,956 Part VI.1 tax — (10) Balance at December 31, 2020 122 2,946 |
Disclosure of dividends | The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2020 2019 Common shares $2.52 per common share (2019: $2.36) 1,385 1,213 Preferred shares $1.23 per Series 1 preferred share (2019: $1.23) 12 12 $1.12 per Series 3 preferred share (2019: $1.13) 7 7 $1.14 per Series 5 preferred share (2019: $1.19) 11 12 $1.10 per Series 7 preferred share (2019: $1.12) 11 11 $1.18 per Series 9 preferred share (2019: $1.19) 11 11 $1.44 per Series 11 preferred share (2019: $1.44) 10 10 $1.44 per Series 13 preferred share (2019: $1.44) 14 14 $1.12 per Series 15 preferred share (2019: $1.12) 9 9 $1.21 per Series 17 preferred share (2019: $1.22) 7 7 $1.21 per Series 19 preferred share (2019: $1.25) 10 10 $1.23 per Series 21 preferred share (2019: $1.23) 20 20 $1.31 per Series 23 preferred share (2019: $0.16) 16 2 $1.30 per Series 25 preferred share (2019: $0.16) 13 1 151 126 Pembina's Board of Directors also declared quarterly dividends for Pembina's preferred shares on January 6, 2021 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2021 March 1, 2021 $0.306625 3 Series 3 February 1, 2021 March 1, 2021 $0.279875 2 Series 5 February 1, 2021 March 1, 2021 $0.285813 3 Series 7 February 1, 2021 March 1, 2021 $0.273750 3 Series 9 February 1, 2021 March 1, 2021 $0.296875 3 Series 11 February 1, 2021 March 1, 2021 $0.359375 2 Series 13 February 1, 2021 March 1, 2021 $0.359375 4 Series 15 March 15, 2021 March 31, 2021 $0.279000 2 Series 17 March 15, 2021 March 31, 2021 $0.301313 2 Series 19 March 15, 2021 March 31, 2021 $0.292750 2 Series 21 February 1, 2021 March 1, 2021 $0.306250 5 Series 23 February 1, 2021 February 16, 2021 $0.328125 4 Series 25 February 1, 2021 February 16, 2021 $0.325000 3 38 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contracts With Customers [Abstract] | |
Disclosure of disaggregation of revenue from contracts with customers | 2020 2019 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,664 740 — 2,404 1,200 625 — 1,825 Fee-for-service (1) 295 117 — 412 387 117 — 504 Product sales (2) — — 3,205 3,205 — 5 4,804 4,809 Revenue from contracts with customers 1,959 857 3,205 6,021 1,587 747 4,804 7,138 Operational finance lease income 15 — — 15 — — — — Fixed operating lease income 131 35 — 166 63 29 — 92 Total external revenue 2,105 892 3,205 6,202 1,650 776 4,804 7,230 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. |
Disclosure of significant changes in contract assets and contract liabilities | Significant changes in the contract liabilities balances during the period are as follows: 2020 2019 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 8 223 231 9 159 168 Additions (net in the period) 3 117 120 4 35 39 Acquisition (Note 7) — — — — 77 77 Revenue recognized from contract liabilities (1) (8) (51) (59) (5) (48) (53) Closing balance 3 289 292 8 223 231 Less current portion (2) (3) (59) (62) (8) (31) (39) Ending balance — 230 230 — 192 192 (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 December 31, 2020, the balance includes $3 million of cash collected under take-or-pay contracts which will be recognized within one year as the customer chooses to ship, process, or otherwise forego the associated service. |
NET FINANCE COSTS (Tables)
NET FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about net finance costs | For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 362 291 Leases 39 17 Unwinding of discount rate 15 8 Gain in fair value of non-commodity-related derivative financial instruments (5) (4) Foreign exchange losses (gains) and other 9 (23) Net finance costs 420 289 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2020 2019 (Restated Note 4) ($ millions) Pipelines 2,713 2,718 Facilities 541 541 Marketing & New Ventures 1,440 1,440 Total goodwill 4,694 4,699 For the year ended December 31, 2020 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,105 892 3,205 — 6,202 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 3,205 (485) 6,202 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 3,064 (317) 2,758 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 3,114 (484) 4,132 Realized gain on commodity-related derivative financial instruments — — (54) — (54) Unrealized (gain) loss on commodity-related derivative financial instruments — (4) 88 — 84 Share of profit from equity accounted investees - operations 227 55 — — 282 Adjusted gross profit 1,578 688 57 (1) 2,322 Impairment in share of profit from equity accounted investees — — (314) — (314) Gross profit (loss) 1,578 688 (257) (1) 2,008 Depreciation included in general and administrative — — — 38 38 Other general and administrative (4) 24 10 28 146 208 Other (income) expense (1) 2 4 (23) (18) Impairment expense 1,396 10 370 — 1,776 Reportable segment results from operating activities 159 666 (659) (162) 4 Net finance costs (income) 31 24 (13) 378 420 Reportable segment earnings (loss) before tax 128 642 (646) (540) (416) Capital expenditures 587 370 38 34 1,029 Contributions to equity accounted investees — 69 155 — 224 For the year ended December 31, 2019 (Restated Note 3) Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-segment revenue 137 345 — (482) — Total revenue (3) 1,787 1,121 4,804 (482) 7,230 Operating expenses (4) 436 344 — (178) 602 Cost of goods sold, including product purchases — 4 4,417 (311) 4,110 Depreciation and amortization included in operations 243 166 51 11 471 Cost of sales 679 514 4,468 (478) 5,183 Realized gain on commodity-related derivative financial instruments — — (33) — (33) Share of profit from equity accounted investees 274 51 50 — 375 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit (loss) 1,382 658 406 (4) 2,442 Depreciation included in general and administrative — — — 36 36 Other general and administrative (4) 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment expense 300 — — — 300 Reportable segment results from operating activities 1,049 644 368 (230) 1,831 Net finance costs (income) 6 21 (8) 270 289 Reportable segment earnings (loss) before tax 1,043 623 376 (500) 1,542 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 (1) Pipelines transportation revenue includes $228 million (2019: $33 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $143 million (2019: $182 million) associated with U.S. midstream sales. (3) During 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. During 2019, one customer accounted for 10 percent or more of total revenues with $718 million reported throughout all segments. (4) Pembina incurred $370 million (2019: $339 million) of employee costs, of which $244 million (2019: $182 million) was recorded in operating expenses and $126 million (2019: $157 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. |
Disclosure of non-current assets | For the years ended December 31 2019 ($ millions) 2020 (Restated Note 4) Canada 26,504 26,222 United States 3,601 5,543 Total non-current assets (1) 30,105 31,765 (1) Excludes deferred income tax assets. |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Disclosure of earnings per common share | Earnings (Loss) Attributable to Common Shareholders For the years ended December 31 2019 ($ millions) 2020 (Restated Note 3) Earnings (loss) (316) 1,507 Dividends on preferred shares (148) (123) Cumulative dividends on preferred shares, not yet declared (12) (8) Basic and diluted earnings (loss) attributable to common shareholders (476) 1,376 Weighted Average Number of Common Shares 2019 (In millions of shares, except as noted) 2020 (Restated Note 3) Issued common shares at January 1 548 508 Effect of shares issued on Acquisition — 1 Effect of shares issued on exercise of options 2 3 Basic weighted average number of common shares at December 31 550 512 Dilutive effect of share options on issue (1) — 2 Diluted weighted average number of common shares at December 31 550 514 Basic earnings (loss) per common share (dollars) (0.86) 2.69 Diluted earnings (loss) per common share (dollars) (0.86) 2.68 (1) The average market value of Pembina's shares for purposes of calculating the dilutive effect of share options for the year ended December 31, 2019 was based on quoted market prices for the period during which the options were outstanding. |
PENSION PLAN (Tables)
PENSION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
Disclosure of obligations and plan assumptions | As at December 31 ($ millions) 2020 2019 Registered defined benefit net obligation 26 19 Supplemental defined benefit net obligation 18 16 Net employee benefit obligations 44 35 Principal actuarial assumptions used: As at December 31 (weighted average percent) 2020 2019 Discount rate 2.6 3.1 Future pension earning increases 4.0 4.0 Assumptions regarding future mortality are based on published statistics and mortality tables. The current longevities underlying the values of the liabilities in the defined plans are as follows: As at December 31 (years) 2020 2019 Longevity at age 65 for current pensioners Males 21.9 21.8 Females 24.3 24.2 Longevity at age 65 for current member aged 45 Males 22.9 22.8 Females 25.2 25.1 |
Disclosure of analysis of present value of defined benefit obligations | Defined Benefit Obligations As at December 31 ($ millions) 2020 2019 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 18 — 16 Present value of funded obligations 278 — 250 — Total present value of obligations 278 18 250 16 Fair value of plan assets 252 — 231 — Recognized liability for defined benefit obligations (26) (18) (19) (16) |
Disclosure of fair value of plan assets | Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2020 2019 Equity securities 63 62 Debt 37 38 100 100 |
Disclosure of movement in benefit obligation and plan assets, recognized expenses, and actuarial gains and losses | Movement in the Present Value of the Defined Benefit Pension Obligation 2020 2019 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 250 16 212 12 Benefits paid by the plan (28) (2) (12) — Current service costs 18 1 15 1 Interest expense 8 1 8 — Actuarial losses in other comprehensive income 30 2 27 3 Defined benefit obligations at December 31 278 18 250 16 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2020 2019 Fair value of plan assets at January 1 231 193 Contributions paid into the plan 23 20 Benefits paid by the plan (28) (12) Return on plan assets 18 22 Interest income 8 8 Fair value of registered plan assets at December 31 252 231 Expense Recognition in Earnings (Loss) For the years ended December 31 ($ millions) 2020 2019 Registered Plan Current service costs 19 15 Interest on obligation 9 8 Interest on plan assets (8) (8) 20 15 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2020 2019 Registered Plan Operating expenses 10 7 General and administrative expense 10 8 20 15 Actuarial Gains and Losses Recognized in Other Comprehensive Income (Loss) 2020 2019 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (33) (2) (35) (28) (1) (29) Remeasurements: Financial assumptions (13) (1) (14) (21) (1) (22) Experience adjustments (10) (1) (11) — — — Return on plan assets excluding interest income 15 — 15 16 — 16 Recognized loss during the period after tax (8) (2) (10) (5) (1) (6) Balance at December 31 (41) (4) (45) (33) (2) (35) |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangements [Abstract] | |
Disclosure of terms and conditions of share-based payment arrangement | Share options vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date and have a contractual life of seven years. Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Non-Officers (2) and Directors (thousands of units, except as noted) PSUs (3) RSUs (3) DSUs Total January 1, 2019 475 460 36 971 January 1, 2020 469 487 31 987 (1) Distribution Units are granted in addition to RSU and PSU grants based on notional accrued dividends from RSU and PSU granted but not paid. (2) Non-Officers defined as senior selected positions within Pembina. (3) Contractual life of 3 years. |
Disclosure of number and weighted average exercise prices of share options | The number and weighted average exercise prices of share options as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Outstanding at December 31, 2018 17,928 $42.12 Granted 5,470 $48.27 Exercised (3,979) $37.95 Forfeited (655) $45.29 Expired (180) $48.98 Outstanding at December 31, 2019 18,584 $44.65 Granted 7,316 $37.55 Exercised (2,188) $40.17 Forfeited (1,103) $44.86 Expired (833) $45.24 Outstanding at December 31, 2020 21,776 $42.68 |
Disclosure of range of exercise prices of outstanding share options | As of December 31, 2020, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding Options Exercisable Weighted Average Remaining Life $26.83 – $36.32 4,451 681 6.0 $36.33 – $43.06 4,349 3,813 3.3 $43.07 – $45.29 4,362 1,138 5.0 $45.30 – $48.08 3,402 2,039 4.9 $48.09 – $52.01 5,212 2,800 3.9 Total 21,776 10,471 4.6 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | As of December 31, 2020, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding Options Exercisable Weighted Average Remaining Life $26.83 – $36.32 4,451 681 6.0 $36.33 – $43.06 4,349 3,813 3.3 $43.07 – $45.29 4,362 1,138 5.0 $45.30 – $48.08 3,402 2,039 4.9 $48.09 – $52.01 5,212 2,800 3.9 Total 21,776 10,471 4.6 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | Share Options Granted For the years ended December 31 (dollars, except as noted) 2020 2019 Weighted average Fair value at grant date 3.82 4.12 Expected volatility (percent) 36.61 18.7 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.52 2.36 Expected forfeitures (percent) 6.9 6.6 Risk-free interest rate (based on government bonds) (percent) 0.5 1.6 |
Disclosure of employee share-based compensation expense | Employee Expenses For the years ended December 31 ($ millions) 2020 2019 Share option plan, equity settled 17 16 Long-term share unit award incentive plan 11 50 Share-based compensation expense 28 66 Total carrying amount of liabilities for cash settled arrangements 60 95 Total intrinsic value of liability for vested benefits 39 57 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Schedule of Accumulated Other Comprehensive Income | ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total Balance at December 31, 2018 347 — (30) 317 Other comprehensive loss before hedging activities (213) — (6) (219) Balance at December 31, 2019 134 — (36) 98 Other comprehensive loss before hedging activities (117) — (10) (127) Other comprehensive gain resulting from hedging activities (1) 32 — — 32 Tax impact (1) — — (1) Balance at December 31, 2020 48 — (46) 2 (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 27). (2) Pension and other Post-Retirement Benefit Plan Adjustments will not be reclassified into earnings. |
FINANCIAL INSTRUMENTS & RISK _2
FINANCIAL INSTRUMENTS & RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Disclosure of aging of trade and other receivables | At December 31, the aging of past due trade and other receivables was as follows: ($ millions) 2020 2019 31-60 days past due 3 1 Greater than 61 days past due 8 7 11 8 |
Disclosure of how entity manages liquidity risk | Liquidity risk is the risk Pembina will not be able to meet its financial obligations as they come due. The following are the contractual maturities of financial liabilities, including estimated interest payments. Outstanding Balances Due by Period December 31, 2020 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and accrued liabilities 780 780 780 — — — Loans and borrowings 10,876 16,275 1,058 2,262 2,708 10,247 Dividends payable 115 115 115 — — — Derivative financial liabilities 69 69 69 — — — Lease liabilities 774 1,064 131 217 174 542 |
Disclosure of type of risk sensitivity analysis | The following table shows the impact on earnings (1) if the underlying commodity price risk of the derivative financial instruments (increased) or decreased by 15 percent, with other variables held constant. As at December 31, 2020 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (30) 28 Natural gas 9 (9) NGL (2) (32) 32 (1) Based on average market prices. (2) Includes propane, butane and condensate. The following table shows the impact on earnings (1) if the underlying foreign exchange risk rate of the derivative financial instruments (increased) or decreased by $0.10, with other variables held constant. As at December 31, 2020 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (26) 26 |
Disclosure of financial instruments by type of interest rate | At the reporting date, the interest rate profile of Pembina's interest-bearing financial instruments was: As at December 31 ($ millions) 2020 2019 Carrying amounts of financial liability Fixed rate instruments (1) 10,120 8,874 Variable rate instruments (2) 1,530 2,097 11,650 10,971 (1) Includes lease liabilities. |
Disclosure of cash flow sensitivity analysis for variable rate instruments | The following table shows the impact on earnings if interest rates at the reporting date would have (increased) decreased earnings by 100 basis points, with other variables held constant. As at December 31, 2020 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (13) 13 |
Disclosure of fair value of financial instruments | 2020 2019 As at December 31 Carrying Fair Value (1) Carrying Value Fair Value (1) ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments (3) 53 — 53 — 48 — 48 — Financial liabilities carried at fair value Derivative financial instruments (3) 69 — 69 — 9 — 9 — Financial liabilities carried at amortized cost Loans and borrowings (2) 10,876 — 11,902 — 10,152 — 10,729 — (1) The basis for determining fair value is disclosed in Note 6. (2) Carrying value of current and non-current balances. (3) At December 31, 2020 all derivative financial instruments are carried at fair value through earnings. |
Disclosure of discount rates used to determine fair value of liabilities | The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows: As at December 31 (percent) 2020 2019 Derivatives 0.5 - 0.7 2.0 - 2.5 Loans and borrowings 0.5 - 3.9 2.3 - 4.0 |
Disclosure of detailed information about hedging instruments | The following balances of U.S. dollar debt had been designated as hedges: For the Years ended December 31 ($ millions) 2020 2019 Notional amount of U.S. debt designated (in U.S. dollars) 250 — Carrying value of U.S. debt designated 317 — Maturity date 2025 NA |
Disclosure of derivative financial instruments | The maturity and notional amount or quantity outstanding related Pembina's derivative instruments is as follows: ($ millions) Liquids (bpd) Natural Gas (GJ/d) Power (MWh) Foreign Exchange Interest Rate As at December 31, 2020 Purchases (1) 1,756 73,557 6 — — Sales (1) 25,284 — — — — Millions of U.S. dollars — — — 260 250 Maturity dates 2021 2021 2021 2021 2025 As at December 31, 2019 Purchases (1) 409 94,727 — — — Sales (1) 24,839 — — — — Millions of U.S. dollars — — — 470 — Maturity dates 2020-2021 2020-2021 NA 2020-2021 NA |
Disclosure of financial instruments designated at fair value through profit or loss | Realized and unrealized gains (losses) on derivative instruments are as follows: For the years ended December 31 ($ millions) 2020 2019 Derivative instruments held at FVTPL (1) Realized (gain) loss Commodity-related (54) (33) Foreign exchange 2 3 Unrealized loss (gain) Commodity-related 84 13 Foreign exchange 5 4 |
GROUP ENTITIES (Tables)
GROUP ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | As at December 31 (percentages) Jurisdiction Ownership Interest Pembina Cochin LLC Delaware U.S. 100 Pembina Empress NGL Partnership Alberta 100 Pembina Gas Services Limited Partnership Alberta 100 Pembina Holding Canada L.P. Alberta 100 Pembina Infrastructure and Logistics L.P. Alberta 100 Pembina Midstream Limited Partnership Alberta 100 Pembina Oil Sands Pipeline L.P. Alberta 100 Pembina Pipeline Alberta 100 PKM Canada North 40 Limited Partnership Manitoba 100 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | Equity Accounted Investees ($ millions) 2020 2019 For the years ended December 31: Services provided 136 82 Services received 14 2 Interest income 14 10 As at December 31: Advances to related parties (1) 13 131 Trade receivables and other 19 17 Trade payables and accrued liabilities 2 — (1) During the year ended December 31, 2020, Pembina advanced U.S. $24 million (2019: U.S. $31 million) to Ruby and $5 million (2019: $17 million), net of repayments, to Fort Corp. In December 31, 2020, Pembina recognized an impairment of U.S. $110 million on its advances to Ruby (Note 13). During the year ended December 31, 2019, Pembina converted $57 million in advances to CKPC into equity contributions. ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2020 2019 Defined benefit plan Funding 23 20 |
Disclosure of key management personnel compensation | Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2020 2019 Short-term employee benefits 10 10 Share-based compensation and other 10 13 Total compensation of key management 20 23 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of contingent liabilities | Pembina had the following contractual obligations outstanding at December 31, 2020: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (2) 1,064 131 217 174 542 Loans and borrowings (3) 16,275 1,058 2,262 2,708 10,247 Construction commitments (4) 1,208 523 149 43 493 Other 569 112 145 75 237 Total contractual obligations 19,116 1,824 2,773 3,000 11,519 (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 one (2) Includes terminals, rail, office space, land and vehicle leases. (3) Excluding deferred financing costs. Including interest payments on Pembina's senior unsecured notes. (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. |
CHANGES IN ACCOUNTING POLICIE_2
CHANGES IN ACCOUNTING POLICIES - Consolidated Financial Statement Impacts (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020CAD ($)$ / shares | Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($)$ / shares | Dec. 31, 2019CAD ($)shares | Jan. 01, 2019CAD ($) | Dec. 31, 2018CAD ($) | |
Assets | ||||||
Property, plant and equipment (Note 10) | $ 18,549 | $ 18,549 | $ 18,362 | $ 18,362 | $ 14,408 | |
Investments in equity accounted investees (Note 12) | 4,377 | 4,377 | 5,974 | 5,974 | 6,383 | |
Right-of-use assets | 651 | 651 | 691 | 691 | 427 | $ 427 |
Advances to related parties and other assets (Note 30) | 50 | 50 | 150 | 150 | 170 | |
Total assets | 31,416 | 31,416 | 32,755 | 32,755 | 26,811 | |
Liabilities | ||||||
Decommissioning provision (Note 18) | 348 | 348 | 337 | 337 | 158 | |
Deferred tax liabilities (Note 14) | 2,925 | 2,925 | 2,945 | 2,945 | 2,814 | |
Total liabilities | 16,401 | 16,401 | 15,887 | 15,887 | 12,302 | |
Equity | ||||||
Retained earnings | (1,785) | (1,785) | (1,953) | |||
Total equity attributable to owners of parent | 14,955 | 14,955 | 16,808 | $ 16,808 | 14,449 | |
Earnings and Comprehensive Income | ||||||
Cost of sales (Note 22) | 4,132 | 5,183 | ||||
Share of profit from equity accounted investees - operations (Note 12) | 282 | 375 | ||||
Gross profit | 2,008 | 2,442 | ||||
Net finance costs (Note 21) | 420 | 289 | ||||
Earnings (loss) before income tax | (416) | 1,542 | ||||
Deferred tax recovery (Note 14) | (340) | (175) | ||||
Earnings (loss) | (316) | 1,507 | ||||
Total comprehensive income (loss) attributable to shareholders | (412) | 1,288 | ||||
Earnings (loss) attributable to common shareholders, net of preferred share dividends (Note 23) | $ (476) | $ 1,376 | ||||
Basic (loss) earnings per common share (in CAD per share) | (per share) | $ (0.86) | $ 2.69 | $ 2,690,000 | |||
Diluted (loss) earnings per common share (in CAD per share) | (per share) | $ (0.86) | $ 2.68 | $ 2,680,000 | |||
Statement of cash flows [abstract] | ||||||
Earnings (loss) | $ (316) | $ 1,507 | ||||
Share of profit from equity accounted investees - operations (Note 12) | (282) | (375) | ||||
Depreciation and amortization | 700 | 507 | ||||
Net finance costs (Note 21) | 420 | 289 | ||||
Income tax (recovery) expense (Note 14) | (100) | 35 | ||||
Cash flows from (used in) operating activities | 2,252 | 2,532 | ||||
Previously stated | ||||||
Assets | ||||||
Property, plant and equipment (Note 10) | 18,775 | $ 18,775 | 14,712 | |||
Investments in equity accounted investees (Note 12) | 5,954 | 5,954 | 6,368 | |||
Right-of-use assets | 822 | 822 | 427 | |||
Advances to related parties and other assets (Note 30) | 157 | 157 | 177 | |||
Total assets | 33,153 | 33,153 | 27,107 | |||
Liabilities | ||||||
Decommissioning provision (Note 18) | 864 | 864 | 569 | |||
Deferred tax liabilities (Note 14) | 2,906 | 2,906 | 2,782 | |||
Total liabilities | 16,383 | 16,383 | 12,681 | |||
Equity | ||||||
Retained earnings | (1,883) | $ (1,883) | (2,036) | |||
Earnings and Comprehensive Income | ||||||
Cost of sales (Note 22) | 5,187 | |||||
Share of profit from equity accounted investees - operations (Note 12) | 370 | |||||
Gross profit | 2,433 | |||||
Net finance costs (Note 21) | 294 | |||||
Earnings (loss) before income tax | 1,528 | |||||
Deferred tax recovery (Note 14) | (174) | |||||
Earnings (loss) | 1,492 | |||||
Total comprehensive income (loss) attributable to shareholders | 1,273 | |||||
Earnings (loss) attributable to common shareholders, net of preferred share dividends (Note 23) | 1,361 | |||||
Basic (loss) earnings per common share (in CAD per share) | shares | $ 2,660,000 | |||||
Diluted (loss) earnings per common share (in CAD per share) | shares | $ 2,650,000 | |||||
Statement of cash flows [abstract] | ||||||
Earnings (loss) | 1,492 | |||||
Share of profit from equity accounted investees - operations (Note 12) | (370) | |||||
Depreciation and amortization | 511 | |||||
Net finance costs (Note 21) | 294 | |||||
Income tax (recovery) expense (Note 14) | 36 | |||||
Cash flows from (used in) operating activities | 2,532 | |||||
Accounting policy change adjustments | ||||||
Assets | ||||||
Property, plant and equipment (Note 10) | (546) | (546) | (372) | $ (372) | (304) | |
Investments in equity accounted investees (Note 12) | 24 | 24 | 20 | 20 | 15 | |
Right-of-use assets | (51) | (51) | (39) | (39) | 0 | |
Advances to related parties and other assets (Note 30) | (7) | (7) | (7) | (7) | (7) | |
Total assets | (580) | (580) | (398) | (398) | (296) | |
Liabilities | ||||||
Decommissioning provision (Note 18) | (734) | (734) | (527) | (527) | (411) | |
Deferred tax liabilities (Note 14) | 37 | 37 | 31 | 31 | 32 | |
Total liabilities | (697) | (697) | (496) | (496) | (379) | |
Equity | ||||||
Retained earnings | 117 | 117 | 98 | 98 | 83 | |
Total equity attributable to owners of parent | 117 | $ 117 | 98 | $ 98 | $ 83 | |
Earnings and Comprehensive Income | ||||||
Cost of sales (Note 22) | (18) | (4) | ||||
Share of profit from equity accounted investees - operations (Note 12) | 4 | 5 | ||||
Gross profit | 22 | 9 | ||||
Net finance costs (Note 21) | (3) | (5) | ||||
Earnings (loss) before income tax | 25 | 14 | ||||
Deferred tax recovery (Note 14) | 6 | (1) | ||||
Earnings (loss) | 19 | 15 | ||||
Total comprehensive income (loss) attributable to shareholders | 19 | 15 | ||||
Earnings (loss) attributable to common shareholders, net of preferred share dividends (Note 23) | 19 | 15 | ||||
Basic (loss) earnings per common share (in CAD per share) | shares | $ 40,000 | $ 30,000 | ||||
Diluted (loss) earnings per common share (in CAD per share) | shares | $ 40,000 | $ 30,000 | ||||
Statement of cash flows [abstract] | ||||||
Earnings (loss) | 19 | 15 | ||||
Share of profit from equity accounted investees - operations (Note 12) | (4) | (5) | ||||
Depreciation and amortization | (18) | (4) | ||||
Net finance costs (Note 21) | (3) | (5) | ||||
Income tax (recovery) expense (Note 14) | 6 | (1) | ||||
Cash flows from (used in) operating activities | $ 0 | $ 0 |
CONSOLIDATED RESTATEMENT OF C_3
CONSOLIDATED RESTATEMENT OF COMPARATIVE PERIOD STATEMENT OF FINANCIAL POSITION (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | ||||
Trade receivables and other (Note 8) | $ 662 | $ 694 | $ 605 | |
Property, plant and equipment (Note 10) | 18,549 | 18,362 | 14,408 | |
Intangible assets and goodwill (Note 11) | 6,340 | 6,444 | 4,409 | |
Investments in equity accounted investees (Note 12) | 4,377 | 5,974 | 6,383 | |
Right-of-use assets | 651 | 691 | 427 | $ 427 |
Finance lease receivable (Note 16) | 138 | 145 | 0 | |
Advances to related parties and other assets (Note 30) | 50 | 150 | 170 | |
Assets | 31,416 | 32,755 | 26,811 | |
Liabilities | ||||
Trade payables and other (Note 15) | 780 | 1,005 | 796 | |
Decommissioning provision (Note 18) | 348 | 337 | 158 | |
Deferred tax liabilities (Note 14) | 2,925 | 2,945 | 2,814 | |
Liabilities | 16,401 | 15,887 | 12,302 | |
Equity | ||||
Retained earnings | (1,785) | (1,953) | ||
Equity | 15,015 | 16,868 | 14,509 | $ 14,509 |
Previously stated | ||||
Assets | ||||
Trade receivables and other (Note 8) | 692 | 605 | ||
Property, plant and equipment (Note 10) | 18,775 | 14,712 | ||
Intangible assets and goodwill (Note 11) | 6,429 | 4,409 | ||
Investments in equity accounted investees (Note 12) | 5,954 | 6,368 | ||
Right-of-use assets | 822 | 427 | ||
Finance lease receivable (Note 16) | 29 | 0 | ||
Advances to related parties and other assets (Note 30) | 157 | 177 | ||
Assets | 33,153 | 27,107 | ||
Liabilities | ||||
Trade payables and other (Note 15) | 1,013 | 796 | ||
Decommissioning provision (Note 18) | 864 | 569 | ||
Deferred tax liabilities (Note 14) | 2,906 | 2,782 | ||
Liabilities | 16,383 | 12,681 | ||
Equity | ||||
Retained earnings | (1,883) | (2,036) | ||
Equity | 16,770 | 14,426 | ||
Accounting policy change adjustments | ||||
Assets | ||||
Trade receivables and other (Note 8) | 0 | 0 | ||
Property, plant and equipment (Note 10) | (546) | (372) | (304) | |
Intangible assets and goodwill (Note 11) | 0 | 0 | ||
Investments in equity accounted investees (Note 12) | 24 | 20 | 15 | |
Right-of-use assets | (51) | (39) | 0 | |
Finance lease receivable (Note 16) | 0 | 0 | ||
Advances to related parties and other assets (Note 30) | (7) | (7) | (7) | |
Assets | (580) | (398) | (296) | |
Liabilities | ||||
Trade payables and other (Note 15) | 0 | 0 | ||
Decommissioning provision (Note 18) | (734) | (527) | (411) | |
Deferred tax liabilities (Note 14) | 37 | 31 | 32 | |
Liabilities | (697) | (496) | (379) | |
Equity | ||||
Retained earnings | $ 117 | 98 | 83 | |
Equity | 98 | $ 83 | ||
Acquisition Adjustment | ||||
Assets | ||||
Trade receivables and other (Note 8) | 2 | |||
Property, plant and equipment (Note 10) | (41) | |||
Intangible assets and goodwill (Note 11) | 15 | |||
Investments in equity accounted investees (Note 12) | 0 | |||
Right-of-use assets | (92) | |||
Finance lease receivable (Note 16) | 116 | |||
Advances to related parties and other assets (Note 30) | 0 | |||
Assets | 0 | |||
Liabilities | ||||
Trade payables and other (Note 15) | (8) | |||
Decommissioning provision (Note 18) | 0 | |||
Deferred tax liabilities (Note 14) | 8 | |||
Liabilities | 0 | |||
Equity | ||||
Retained earnings | 0 | |||
Equity | $ 0 |
DETERMINATION OF FAIR VALUES (D
DETERMINATION OF FAIR VALUES (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement [Abstract] | |
Period of measure for calculating weighted average share price of share options | 20 days |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) $ in Millions | Dec. 16, 2019CAD ($) |
Kinder Morgan Canada Limited | |
Disclosure of detailed information about business combination [line items] | |
Purchase price consideration | $ 4,255 |
ACQUISITION - Purchase Price Co
ACQUISITION - Purchase Price Consideration (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 16, 2019 |
Purchase price consideration | |||
Finance lease receivable | $ 116 | ||
Goodwill | $ 4,694 | $ 4,699 | |
Adjustments | |||
Purchase price consideration | |||
Finance lease receivable | 116 | ||
Kinder Morgan Canada Limited | |||
Purchase price consideration | |||
Cash (net of cash acquired) | 2,009 | ||
Purchase Price Consideration | 4,255 | ||
Current assets | 70 | ||
Property, plant and equipment | 2,619 | ||
Intangible assets | 1,254 | ||
Right-of-use assets | 256 | ||
Goodwill | 824 | ||
Other assets | 9 | ||
Current liabilities | (116) | ||
Deferred tax liabilities | (289) | ||
Decommissioning provision | (74) | ||
Lease liability | (348) | ||
Other liabilities | (66) | ||
Identifiable assets acquired (liabilities assumed) | 4,255 | ||
Kinder Morgan Canada Limited | Previously Reported | |||
Purchase price consideration | |||
Cash (net of cash acquired) | 2,009 | ||
Purchase Price Consideration | 4,255 | ||
Current assets | 68 | ||
Property, plant and equipment | 2,660 | ||
Intangible assets | 1,254 | ||
Right-of-use assets | 348 | ||
Finance lease receivable | 0 | ||
Goodwill | 809 | ||
Other assets | 9 | ||
Current liabilities | (124) | ||
Deferred tax liabilities | (281) | ||
Decommissioning provision | (74) | ||
Lease liability | (348) | ||
Other liabilities | (66) | ||
Identifiable assets acquired (liabilities assumed) | 4,255 | ||
Kinder Morgan Canada Limited | Adjustments | |||
Purchase price consideration | |||
Cash (net of cash acquired) | 0 | ||
Purchase Price Consideration | 0 | ||
Current assets | 2 | ||
Property, plant and equipment | (41) | ||
Intangible assets | 0 | ||
Right-of-use assets | (92) | ||
Goodwill | 15 | ||
Other assets | 0 | ||
Current liabilities | 8 | ||
Deferred tax liabilities | (8) | ||
Decommissioning provision | 0 | ||
Lease liability | 0 | ||
Other liabilities | 0 | ||
Identifiable assets acquired (liabilities assumed) | 0 | ||
Kinder Morgan Canada Limited | Common shares | |||
Purchase price consideration | |||
Equity interests of acquirer | 1,710 | ||
Kinder Morgan Canada Limited | Common shares | Previously Reported | |||
Purchase price consideration | |||
Equity interests of acquirer | 1,710 | ||
Kinder Morgan Canada Limited | Common shares | Adjustments | |||
Purchase price consideration | |||
Equity interests of acquirer | 0 | ||
Kinder Morgan Canada Limited | Preferred shares | |||
Purchase price consideration | |||
Equity interests of acquirer | 536 | ||
Kinder Morgan Canada Limited | Preferred shares | Previously Reported | |||
Purchase price consideration | |||
Equity interests of acquirer | 536 | ||
Kinder Morgan Canada Limited | Preferred shares | Adjustments | |||
Purchase price consideration | |||
Equity interests of acquirer | $ 0 |
TRADE RECEIVABLES AND OTHER (De
TRADE RECEIVABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Trade receivables from customers | $ 578 | $ 575 | |
Other receivables | 60 | 94 | |
Prepayments | 24 | 25 | |
Total trade receivables and other | $ 662 | $ 694 | $ 605 |
INVENTORY (Details)
INVENTORY (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Inventories [Abstract] | |||
Crude oil and NGL | $ 127 | $ 42 | |
Materials, supplies and other | 94 | 84 | |
Total current inventories | $ 221 | $ 126 | $ 198 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property Types (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | $ 18,362 | |
Property, plant and equipment, ending balance | 18,549 | $ 18,362 |
Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,037 | |
Property, plant and equipment, ending balance | 1,031 | 1,037 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 20,993 | 16,738 |
Reclassification on adoption of IFRS 16 (Note 3) | (44) | |
Additions and transfers | 1,101 | 1,675 |
Acquisition (Note 7) | 2,619 | |
Impairment (Note 13) | (357) | |
Change in decommissioning provision | (11) | 82 |
Foreign exchange adjustments | (37) | (34) |
Disposals and other | (45) | (43) |
Property, plant and equipment, ending balance | 21,644 | 20,993 |
Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (2,631) | (2,312) |
Reclassification on adoption of IFRS 16 (Note 3) | (26) | |
Depreciation | 483 | 392 |
Disposals and other | 19 | 47 |
Property, plant and equipment, ending balance | (3,095) | (2,631) |
Land and Land Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 424 | |
Property, plant and equipment, ending balance | 408 | 424 |
Land and Land Rights | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 9 | |
Property, plant and equipment, ending balance | 8 | 9 |
Land and Land Rights | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 440 | 340 |
Additions and transfers | 8 | 32 |
Acquisition (Note 7) | 70 | |
Impairment (Note 13) | (17) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange adjustments | (2) | (2) |
Disposals and other | 0 | 0 |
Property, plant and equipment, ending balance | 429 | 440 |
Land and Land Rights | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (16) | (12) |
Depreciation | 5 | 4 |
Disposals and other | 0 | 0 |
Property, plant and equipment, ending balance | (21) | (16) |
Pipelines | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 7,425 | |
Property, plant and equipment, ending balance | 7,659 | 7,425 |
Pipelines | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 295 | |
Property, plant and equipment, ending balance | 301 | 295 |
Pipelines | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 8,790 | 7,174 |
Additions and transfers | 454 | 215 |
Acquisition (Note 7) | 1,434 | |
Impairment (Note 13) | 0 | |
Change in decommissioning provision | (10) | (13) |
Foreign exchange adjustments | (18) | (17) |
Disposals and other | (10) | (3) |
Property, plant and equipment, ending balance | 9,206 | 8,790 |
Pipelines | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (1,365) | (1,223) |
Depreciation | 187 | 155 |
Disposals and other | 5 | 13 |
Property, plant and equipment, ending balance | (1,547) | (1,365) |
Facilities and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 7,366 | |
Property, plant and equipment, ending balance | 7,789 | 7,366 |
Facilities and Equipment | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 542 | |
Property, plant and equipment, ending balance | 537 | 542 |
Facilities and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 8,333 | 6,807 |
Additions and transfers | 622 | 691 |
Acquisition (Note 7) | 772 | |
Impairment (Note 13) | 0 | |
Change in decommissioning provision | (17) | 98 |
Foreign exchange adjustments | (9) | (4) |
Disposals and other | (22) | (31) |
Property, plant and equipment, ending balance | 8,907 | 8,333 |
Facilities and Equipment | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (967) | (827) |
Depreciation | 156 | 174 |
Disposals and other | 5 | 34 |
Property, plant and equipment, ending balance | (1,118) | (967) |
Cavern Storage and Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,654 | |
Property, plant and equipment, ending balance | 1,584 | 1,654 |
Cavern Storage and Other | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 191 | |
Property, plant and equipment, ending balance | 185 | 191 |
Cavern Storage and Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,937 | 1,478 |
Reclassification on adoption of IFRS 16 (Note 3) | (44) | |
Additions and transfers | 57 | 203 |
Acquisition (Note 7) | 315 | |
Impairment (Note 13) | 0 | |
Change in decommissioning provision | 16 | (3) |
Foreign exchange adjustments | (1) | 0 |
Disposals and other | (16) | (12) |
Property, plant and equipment, ending balance | 1,993 | 1,937 |
Cavern Storage and Other | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (283) | (250) |
Reclassification on adoption of IFRS 16 (Note 3) | (26) | |
Depreciation | 135 | 59 |
Disposals and other | 9 | 0 |
Property, plant and equipment, ending balance | (409) | (283) |
Assets Under Construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,493 | |
Property, plant and equipment, ending balance | 1,109 | 1,493 |
Assets Under Construction | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 0 | |
Property, plant and equipment, ending balance | 0 | 0 |
Assets Under Construction | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,493 | 939 |
Additions and transfers | (40) | 534 |
Acquisition (Note 7) | 28 | |
Impairment (Note 13) | (340) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange adjustments | (7) | (11) |
Disposals and other | 3 | 3 |
Property, plant and equipment, ending balance | 1,109 | 1,493 |
Assets Under Construction | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 0 | 0 |
Depreciation | 0 | 0 |
Disposals and other | 0 | 0 |
Property, plant and equipment, ending balance | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs | $ 46 | $ 42 |
Minimum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs, capitalization rate | 3.63% | 3.91% |
Maximum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs, capitalization rate | 3.91% | 4.05% |
Pipeline Assets | Minimum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 3 years | |
Pipeline Assets | Maximum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 75 years | |
Pipeline Assets | Average | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 40 years | |
Facilities and Equipment | Minimum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 3 years | |
Facilities and Equipment | Maximum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 75 years | |
Facilities and Equipment | Average | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 40 years | |
Other | Minimum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 3 years | |
Other | Maximum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 40 years | |
Other | Average | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 40 years |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 6,444 | |
Intangible assets and goodwill, ending balance | $ 6,340 | $ 6,444 |
Minimum | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Finite-lived intangible asset, useful life | 7 years | |
Maximum | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Finite-lived intangible asset, useful life | 40 years | |
Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 6,820 | 4,744 |
Additions and other | 22 | 13 |
Acquisition (Note 7) | 2,078 | |
Foreign exchange adjustments | (18) | (15) |
Intangible assets and goodwill, ending balance | 6,824 | 6,820 |
Amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (376) | (335) |
Amortization | 108 | 41 |
Intangible assets and goodwill, ending balance | (484) | (376) |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 4,699 | |
Intangible assets and goodwill, ending balance | 4,694 | 4,699 |
Goodwill | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 4,699 | 3,878 |
Additions and other | 0 | 0 |
Acquisition (Note 7) | 824 | |
Foreign exchange adjustments | (5) | (3) |
Intangible assets and goodwill, ending balance | 4,694 | 4,699 |
Goodwill | Amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 0 | 0 |
Intangible assets and goodwill, ending balance | 0 | 0 |
Purchase and Sale Contracts and Other | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 66 | |
Intangible assets and goodwill, ending balance | 81 | 66 |
Purchase and Sale Contracts and Other | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 240 | 227 |
Additions and other | 22 | 13 |
Acquisition (Note 7) | 0 | |
Foreign exchange adjustments | (1) | 0 |
Intangible assets and goodwill, ending balance | 261 | 240 |
Purchase and Sale Contracts and Other | Amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (174) | (164) |
Amortization | 6 | 10 |
Intangible assets and goodwill, ending balance | (180) | (174) |
Customer Relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 1,679 | |
Intangible assets and goodwill, ending balance | 1,565 | 1,679 |
Customer Relationships | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 1,881 | 639 |
Additions and other | 0 | 0 |
Acquisition (Note 7) | 1,254 | |
Foreign exchange adjustments | (12) | (12) |
Intangible assets and goodwill, ending balance | 1,869 | 1,881 |
Customer Relationships | Amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (202) | (171) |
Amortization | 102 | 31 |
Intangible assets and goodwill, ending balance | (304) | (202) |
Intangible Assets | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 1,745 | |
Intangible assets and goodwill, ending balance | 1,646 | 1,745 |
Intangible Assets | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 2,121 | 866 |
Additions and other | 22 | 13 |
Acquisition (Note 7) | 1,254 | |
Foreign exchange adjustments | (13) | (12) |
Intangible assets and goodwill, ending balance | 2,130 | 2,121 |
Intangible Assets | Amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (376) | (335) |
Amortization | 108 | 41 |
Intangible assets and goodwill, ending balance | $ (484) | $ (376) |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of operating segments [line items] | ||
Goodwill | $ 4,694 | $ 4,699 |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Goodwill | 2,713 | 2,718 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Goodwill | 541 | 541 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Goodwill | $ 1,440 | $ 1,440 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Key Assumptions of Goodwill Impairment (Details) - Goodwill | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Period of cash flows used in long-term growth estimate of value in use | 75 years | 75 years |
Pipelines | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
After-tax discount rate | 5.90% | |
Long-term growth rate | 0.60% | |
Increase in after-tax discount rate | 2.70% | |
Facilities | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
After-tax discount rate | 5.90% | |
Long-term growth rate | 0.80% | |
Increase in after-tax discount rate | 3.20% | |
Marketing & New Ventures | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
After-tax discount rate | 10.10% | |
Long-term growth rate | 1.80% | |
Increase in after-tax discount rate | 1.60% |
IMPAIRMENTS - Summary of Impair
IMPAIRMENTS - Summary of Impairment Expense (Details) - CAD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 2,090 | ||
Impairment in share of profit from equity accounted investees (Note 12) | 314 | $ 0 | |
Recognized as impairment expense | 1,776 | ||
Property, Plant & Equipment (Note 10) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 357 | ||
Equity Accounted Investees (Note 12) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 1,591 | ||
Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 142 | ||
Jordan Cove | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 349 | 349 | |
Jordan Cove | Property, Plant & Equipment (Note 10) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 344 | ||
Jordan Cove | Equity Accounted Investees (Note 12) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Jordan Cove | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 5 | ||
Ruby Pipeline | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 1,396 | ||
Ruby Pipeline | Property, Plant & Equipment (Note 10) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Ruby Pipeline | Equity Accounted Investees (Note 12) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 1,257 | ||
Ruby Pipeline | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 139 | ||
CKPC | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 321 | ||
CKPC | Property, Plant & Equipment (Note 10) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
CKPC | Equity Accounted Investees (Note 12) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 323 | ||
CKPC | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | (2) | ||
Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 24 | ||
Other | Property, Plant & Equipment (Note 10) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 13 | ||
Other | Equity Accounted Investees (Note 12) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 11 | ||
Other | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 0 |
IMPAIRMENTS - Narrative (Detail
IMPAIRMENTS - Narrative (Details) - CAD ($) $ in Millions | Dec. 14, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 2,090 | |||
Impairment in share of profit from equity accounted investees (Note 12) | 314 | $ 0 | ||
Equity Accounted Investees | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 1,591 | |||
Other | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 142 | |||
Property, Plant & Equipment (Note 10) | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 357 | |||
Jordan Cove | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 349 | 349 | ||
Impairment of investment in equity accounted investees, net | 258 | |||
Land | 21 | 21 | ||
Jordan Cove | Equity Accounted Investees | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 0 | |||
Jordan Cove | Other | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 5 | |||
Jordan Cove | Property, Plant & Equipment (Note 10) | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 344 | |||
Ruby Blocker LLC | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 1,400 | |||
Impairment of investment in equity accounted investees, net | 1,000 | |||
Ruby Blocker LLC | Equity Accounted Investees | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 1,300 | |||
After-tax discount rate | 8.00% | 8.00% | 800.00% | |
Ruby Blocker LLC | Other | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 139 | |||
CKPC | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment in share of profit from equity accounted investees (Note 12) | $ 314 | |||
CKPC | Equity Accounted Investees | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 323 | |||
Impairment of investment in equity accounted investees, net | $ 252 |
INVESTMENTS IN EQUITY ACCOUNT_3
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Investment Interest (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | $ (32,000,000) | $ 375,000,000 | ||
Investments in equity accounted investees | $ 4,377,000,000 | 4,377,000,000 | 5,974,000,000 | $ 6,383,000,000 |
Impairment expense | $ 1,776,000,000 | $ 300,000,000 | ||
Alliance | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 105,000,000 | $ 153,000,000 | ||
Investments in equity accounted investees | 2,498,000,000 | 2,498,000,000 | 2,638,000,000 | |
Aux Sable | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 0 | 51,000,000 | ||
Investments in equity accounted investees | $ 401,000,000 | $ 401,000,000 | $ 426,000,000 | |
Aux Sable | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 42.70% | 42.70% | ||
Aux Sable | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Ruby Pipeline | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 122,000,000 | $ 120,000,000 | ||
Investments in equity accounted investees | $ 1,273,000,000 | |||
Veresen Midstream | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 45.00% | 45.30% | ||
Share of Profit (Loss) from Equity Investments | $ 50,000,000 | $ 49,000,000 | ||
Investments in equity accounted investees | $ 1,374,000,000 | $ 1,374,000,000 | $ 1,350,000,000 | |
CKPC | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ (314,000,000) | $ (1,000,000) | ||
Investments in equity accounted investees | 171,000,000 | |||
Impairment expense | 314,000,000 | 0 | ||
Other | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 5,000,000 | 3,000,000 | ||
Investments in equity accounted investees | $ 104,000,000 | $ 104,000,000 | $ 116,000,000 | |
Other | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Other | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 75.00% | 75.00% |
INVESTMENTS IN EQUITY ACCOUNT_4
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2019CAD ($) | |
Disclosure of joint ventures [line items] | |||||
Goodwill | $ 4,694 | $ 4,694 | $ 4,699 | ||
Property, plant and equipment | 18,549 | 18,549 | 18,362 | $ 14,408 | |
Long-term debt | 10,276 | 10,276 | 10,078 | 7,046 | |
Investments in equity accounted investees | $ 4,377 | 4,377 | 5,974 | $ 6,383 | |
Exchange loss on translation of foreign operations | $ (117) | (213) | |||
Ruby Pipeline | |||||
Disclosure of joint ventures [line items] | |||||
Investments in equity accounted investees | 1,273 | ||||
Proportion of ownership interest in joint venture (percent) | 50.00% | 50.00% | |||
Joint ventures | |||||
Disclosure of joint ventures [line items] | |||||
Goodwill | $ 98 | $ 98 | 98 | ||
Property, plant and equipment | 2,800 | 2,800 | 2,900 | ||
Long-term debt | 33 | 33 | 42 | ||
Investments in equity accounted investees | $ 1,300,000,000 | ||||
Exchange loss on translation of foreign operations | (51) | 169 | |||
Canada Kuwait Petrochemical Limited Partnership | |||||
Disclosure of joint ventures [line items] | |||||
Non-cash financial guarantee liability | $ 22 | $ 22 | |||
Related party advances | $ 57 | ||||
Revolving Credit Facility | Canada Kuwait Petrochemical Limited Partnership | |||||
Disclosure of joint ventures [line items] | |||||
Notional amount | 150,000,000 | ||||
Term Loan | |||||
Disclosure of joint ventures [line items] | |||||
Notional amount | 16,000,000 | ||||
Term Loan | Ruby Pipeline | |||||
Disclosure of joint ventures [line items] | |||||
Notional amount | 32,000,000 | ||||
Term Loan | Canada Kuwait Petrochemical Limited Partnership | |||||
Disclosure of joint ventures [line items] | |||||
Notional amount | $ 1,700,000,000 |
INVESTMENTS IN EQUITY ACCOUNT_5
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Summary of Distributions From and Contributions to Equity Accounted Investees (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of joint ventures [line items] | ||
Distributions | $ 459 | $ 575 |
Contributions | 224 | 263 |
Alliance | ||
Disclosure of joint ventures [line items] | ||
Distributions | 217 | 268 |
Contributions | 0 | 13 |
Aux Sable | ||
Disclosure of joint ventures [line items] | ||
Distributions | 19 | 84 |
Contributions | 3 | 4 |
Ruby Pipeline | ||
Disclosure of joint ventures [line items] | ||
Distributions | 122 | 121 |
Contributions | 0 | 0 |
Veresen Midstream | ||
Disclosure of joint ventures [line items] | ||
Distributions | 97 | 96 |
Contributions | 69 | 73 |
CKPC | ||
Disclosure of joint ventures [line items] | ||
Distributions | 0 | 0 |
Contributions | 152 | 173 |
Other | ||
Disclosure of joint ventures [line items] | ||
Distributions | 4 | 6 |
Contributions | $ 0 | $ 0 |
INVESTMENTS IN EQUITY ACCOUNT_6
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Financial Information of Investments (Details) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Earnings and Comprehensive Income | ||||
Revenue | $ 6,202,000,000 | $ 7,230,000,000 | ||
Impairment | (1,776,000,000) | |||
Impairment expense (Note 13) | 1,776,000,000 | 300,000,000 | ||
Finance costs and other | (420,000,000) | (289,000,000) | ||
Earnings (loss) | (316,000,000) | 1,507,000,000 | ||
Total comprehensive income (loss) attributable to shareholders | (412,000,000) | 1,288,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 989,000,000 | 989,000,000 | $ 1,014,000,000 | |
Non-current assets | 30,427,000,000 | 31,766,000,000 | 25,797,000,000 | |
Current liabilities | 1,781,000,000 | 1,449,000,000 | 1,539,000,000 | |
Non-current liabilities | 14,620,000,000 | 14,438,000,000 | 10,763,000,000 | |
Cash and cash equivalents | 81,000,000 | 129,000,000 | $ 157,000,000 | $ 157,000,000 |
Alliance | ||||
Earnings and Comprehensive Income | ||||
Revenue | 840,000,000 | 965,000,000 | ||
Expenses | (296,000,000) | (262,000,000) | ||
Depreciation and amortization | (141,000,000) | (108,000,000) | ||
Finance costs and other | (61,000,000) | (58,000,000) | ||
Earnings (loss) | 342,000,000 | 537,000,000 | ||
Net Income Attributable To Pembina | 105,000,000 | 153,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 122,000,000 | 132,000,000 | ||
Non-current assets | 1,816,000,000 | 1,944,000,000 | ||
Current liabilities | 206,000,000 | 21,000,000 | ||
Non-current liabilities | 1,121,000,000 | 1,147,000,000 | ||
Interest income | 2,000,000 | 4,000,000 | ||
Interest expense | 66,000,000 | 81,000,000 | ||
Cash and cash equivalents | 25,000,000 | 29,000,000 | ||
Alliance | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 71,000,000 | 77,000,000 | ||
Alliance | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 128,000,000 | 106,000,000 | ||
Aux Sable | ||||
Earnings and Comprehensive Income | ||||
Revenue | 1,059,000,000 | 1,028,000,000 | ||
Expenses | (1,019,000,000) | (868,000,000) | ||
Depreciation and amortization | (49,000,000) | (55,000,000) | ||
Earnings (loss) | (9,000,000) | 105,000,000 | ||
Net Income Attributable To Pembina | 0 | 51,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 162,000,000 | 153,000,000 | ||
Non-current assets | 757,000,000 | 816,000,000 | ||
Current liabilities | 107,000,000 | 105,000,000 | ||
Non-current liabilities | 155,000,000 | 148,000,000 | ||
Cash and cash equivalents | 50,000,000 | 20,000,000 | ||
Aux Sable | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 103,000,000 | 98,000,000 | ||
Aux Sable | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 5,000,000 | 5,000,000 | ||
Ruby Pipeline | ||||
Earnings and Comprehensive Income | ||||
Revenue | 432,000,000 | 453,000,000 | ||
Expenses | (29,000,000) | (19,000,000) | ||
Depreciation and amortization | (143,000,000) | (142,000,000) | ||
Impairment expense (Note 13) | 2,953,000,000 | 0 | ||
Finance costs and other | (130,000,000) | (117,000,000) | ||
Earnings (loss) | (2,823,000,000) | 175,000,000 | ||
Net Income Attributable To Pembina | 122,000,000 | 120,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 50,000,000 | 93,000,000 | ||
Non-current assets | 688,000,000 | 3,705,000,000 | ||
Current liabilities | 77,000,000 | 177,000,000 | ||
Non-current liabilities | 928,000,000 | 1,003,000,000 | ||
Interest expense | (104,000,000) | 90,000,000 | ||
Cash and cash equivalents | 6,000,000 | 38,000,000 | ||
Ruby Pipeline | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 2,000,000 | 3,000,000 | ||
Ruby Pipeline | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 278,000,000 | 223,000,000 | ||
Veresen Midstream | ||||
Earnings and Comprehensive Income | ||||
Revenue | 561,000,000 | 615,000,000 | ||
Expenses | (177,000,000) | (213,000,000) | ||
Depreciation and amortization | (173,000,000) | (165,000,000) | ||
Finance costs and other | (84,000,000) | (111,000,000) | ||
Earnings (loss) | 127,000,000 | 126,000,000 | ||
Net Income Attributable To Pembina | 50,000,000 | 49,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 167,000,000 | 166,000,000 | ||
Non-current assets | 4,658,000,000 | 4,501,000,000 | ||
Current liabilities | 109,000,000 | 106,000,000 | ||
Non-current liabilities | 2,681,000,000 | 2,593,000,000 | ||
Interest expense | 80,000,000 | 109,000,000 | ||
Cash and cash equivalents | 0 | 3,000,000 | ||
Veresen Midstream | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 80,000,000 | 106,000,000 | ||
Veresen Midstream | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 46,000,000 | 43,000,000 | ||
CKPC | ||||
Earnings and Comprehensive Income | ||||
Expenses | (4,000,000) | (4,000,000) | ||
Impairment | (589,000,000) | 0 | ||
Finance costs and other | (33,000,000) | 4,000,000 | ||
Earnings (loss) | (626,000,000) | 0 | ||
Net Income Attributable To Pembina | (314,000,000) | (1,000,000) | ||
Statement of financial position [abstract] | ||||
Current assets | 83,000,000 | 246,000,000 | ||
Non-current assets | 0 | 283,000,000 | ||
Current liabilities | 99,000,000 | 188,000,000 | ||
Non-current liabilities | 11,000,000 | 12,000,000 | ||
Interest income | 1,000,000 | 1,000,000 | ||
Cash and cash equivalents | 75,000,000 | 118,000,000 | ||
CKPC | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 99,000,000 | 76,000,000 | ||
CKPC | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 11,000,000 | 0 | ||
Other | ||||
Earnings and Comprehensive Income | ||||
Revenue | 51,000,000 | 52,000,000 | ||
Expenses | (16,000,000) | (16,000,000) | ||
Depreciation and amortization | (16,000,000) | (16,000,000) | ||
Finance costs and other | (5,000,000) | (4,000,000) | ||
Earnings (loss) | 14,000,000 | 16,000,000 | ||
Net Income Attributable To Pembina | 5,000,000 | 3,000,000 | ||
Statement of financial position [abstract] | ||||
Current assets | 6,000,000 | 8,000,000 | ||
Non-current assets | 117,000,000 | 131,000,000 | ||
Current liabilities | 25,000,000 | 28,000,000 | ||
Non-current liabilities | 64,000,000 | 84,000,000 | ||
Interest expense | 2,000,000 | 3,000,000 | ||
Cash and cash equivalents | 1,000,000 | 1,000,000 | ||
Other | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | 3,000,000 | 4,000,000 | ||
Other | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade and other payables | $ 1,000,000 | $ 1,000,000 |
INCOME TAXES - Movement in Comp
INCOME TAXES - Movement in Components of Deferred Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | $ 2,945 | $ 2,814 |
Recognized in Earnings (Loss) | (340) | (175) |
Recognized in Other Comprehensive Income (Loss) | 0 | (1) |
Acquisition | 0 | 289 |
Equity | 2 | 3 |
Other | (4) | 15 |
Deferred tax liability (asset) at end of period | 2,603 | 2,945 |
Derivative financial instruments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 13 | 18 |
Recognized in Earnings (Loss) | 21 | 5 |
Recognized in Other Comprehensive Income (Loss) | (4) | |
Deferred tax liability (asset) at end of period | (4) | 13 |
Employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (9) | (9) |
Recognized in Earnings (Loss) | (2) | (1) |
Recognized in Other Comprehensive Income (Loss) | 4 | 1 |
Deferred tax liability (asset) at end of period | (11) | (9) |
Share-based payments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (24) | (26) |
Recognized in Earnings (Loss) | (10) | (2) |
Deferred tax liability (asset) at end of period | (14) | (24) |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (79) | (46) |
Recognized in Earnings (Loss) | 4 | 16 |
Acquisition | (17) | |
Deferred tax liability (asset) at end of period | (83) | (79) |
Benefit of loss carryforwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (400) | (153) |
Recognized in Earnings (Loss) | (125) | 256 |
Acquisition | (13) | |
Other | 22 | |
Deferred tax liability (asset) at end of period | (275) | (400) |
Other deductible temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (52) | (67) |
Recognized in Earnings (Loss) | 16 | (40) |
Acquisition | (28) | |
Equity | (2) | (3) |
Deferred tax liability (asset) at end of period | (66) | (52) |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 2,036 | 1,587 |
Recognized in Earnings (Loss) | 55 | 286 |
Acquisition | 163 | |
Deferred tax liability (asset) at end of period | 2,091 | 2,036 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 263 | 118 |
Recognized in Earnings (Loss) | (3) | (14) |
Acquisition | 159 | |
Deferred tax liability (asset) at end of period | 260 | 263 |
Investments in equity accounted investees | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 1,109 | 1,263 |
Recognized in Earnings (Loss) | (417) | (154) |
Deferred tax liability (asset) at end of period | 692 | 1,109 |
Taxable limited partnership income deferral | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 101 | 122 |
Recognized in Earnings (Loss) | (103) | (46) |
Acquisition | 25 | |
Deferred tax liability (asset) at end of period | (2) | 101 |
Other taxable temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (13) | 7 |
Recognized in Earnings (Loss) | 32 | (13) |
Other | (4) | (7) |
Deferred tax liability (asset) at end of period | $ 15 | $ (13) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Earnings (loss) before income tax | $ (416) | $ 1,542 |
Canadian statutory tax rate (percent) | 24.60% | 26.70% |
Income tax at statutory rate | $ (102) | $ 412 |
Tax rate changes and foreign rate differential | (5) | (349) |
Changes in estimate and other | (5) | (35) |
Permanent items | 12 | 7 |
Income tax (recovery) expense (Note 14) | (100) | 35 |
Deferred tax recovery | $ (32) | 345 |
Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Deferred tax recovery | $ 305 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Current tax expense | $ 240 | $ 210 |
Deferred tax expense | ||
Origination and reversal of temporary differences | (485) | 392 |
Tax rate changes on deferred tax balances | 32 | (345) |
Decrease (increase) in tax loss carry forward | 113 | (222) |
For the years ended December 31 | (340) | (175) |
Income tax (recovery) expense (Note 14) | $ (100) | $ 35 |
INCOME TAXES - Deferred Tax Ite
INCOME TAXES - Deferred Tax Items Recovered Directly in Equity (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | |
Income Taxes [Abstract] | |||||
Share issue costs | $ (2,000,000) | $ (3,000,000) | |||
Change in fair value of net investment hedges (Note 26) | (4,000,000) | 0 | |||
Remeasurements of defined benefit liability (Note 24) | 4,000,000 | 1,000,000 | |||
Deferred tax items recovered directly in equity | (2,000,000) | (2,000,000) | |||
Temporary differences associated with its investments in subsidiaries and interests in joint arrangements | 0 | 0 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | 2,603,000,000 | 2,945,000,000 | $ 2,814,000,000 | ||
Benefit of loss carryforwards | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | (275,000,000) | (400,000,000) | $ (153,000,000) | ||
Benefit of loss carryforwards | United States | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | $ 758 | $ 1,100 | |||
Benefit of loss carryforwards | Canada | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | $ 43,000,000 | $ 67,000,000 |
TRADE PAYABLES AND OTHER (Detai
TRADE PAYABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Trade payables | $ 434 | $ 717 | |
Other payables & accrued liabilities | 346 | 288 | |
Total trade payables and other | $ 780 | $ 1,005 | $ 796 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of leases [Abstract] | ||
Cash outflow for leases | $ 131 | $ 83 |
LEASES - Right-of-use assets (D
LEASES - Right-of-use assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | $ 691 | $ 427 |
Additions to right-of-use assets | 46 | 74 |
Acquisition (Note 6) | 256 | |
Amortization | (86) | (66) |
Ending balance, right-of-use assets | 651 | 691 |
Terminals | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 225 | 0 |
Additions to right-of-use assets | 0 | 0 |
Acquisition (Note 6) | 225 | |
Amortization | (12) | 0 |
Ending balance, right-of-use assets | 213 | 225 |
Rail | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 238 | 221 |
Additions to right-of-use assets | 24 | 54 |
Acquisition (Note 6) | 0 | |
Amortization | (41) | (37) |
Ending balance, right-of-use assets | 221 | 238 |
Buildings | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 118 | 127 |
Additions to right-of-use assets | 22 | 1 |
Acquisition (Note 6) | 7 | |
Amortization | (19) | (17) |
Ending balance, right-of-use assets | 121 | 118 |
Land & Other | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 110 | 79 |
Additions to right-of-use assets | 0 | 19 |
Acquisition (Note 6) | 24 | |
Amortization | (14) | (12) |
Ending balance, right-of-use assets | $ 96 | $ 110 |
LEASES - Maturity of operating
LEASES - Maturity of operating leases (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 1,531 | $ 1,709 |
Less than 1 Year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 146 | 168 |
One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 142 | 150 |
Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 139 | 145 |
Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 121 | 139 |
Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 109 | 124 |
More than 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 874 | $ 983 |
LEASES - Maturity of finance le
LEASES - Maturity of finance leases (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | $ 336 | $ 360 | |
Unearned finance income on lease receipts | (199) | (215) | |
Discounted unguaranteed residual value | 8 | 7 | |
Finance lease receivable | 145 | 152 | |
Less current portion | (7) | (7) | |
Total non-current | 138 | 145 | $ 0 |
Less than 1 Year | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | 23 | 23 | |
One to two years | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | 23 | 24 | |
Two to three years | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | 22 | 23 | |
Three to four years | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | 22 | 22 | |
Four to five years | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | 22 | 22 | |
More than 5 years | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Total undiscounted lease receipts | $ 224 | $ 246 |
LOANS AND BORROWINGS - Carrying
LOANS AND BORROWINGS - Carrying Value, Terms and Conditions, and Debt Maturity Schedule (Details) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | May 28, 2020CAD ($) | May 07, 2020USD ($) | Apr. 06, 2020CAD ($) | Jan. 10, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019CAD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||
Carrying value | $ 10,876,000,000 | $ 10,152,000,000 | |||||||
Loans and borrowings | 10,876,000,000 | 10,152,000,000 | |||||||
Less current portion | (600,000,000) | (74,000,000) | |||||||
Total non-current | 10,276,000,000 | 10,078,000,000 | $ 7,046,000,000 | ||||||
Senior unsecured credit facilities | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 4,138,000,000 | ||||||||
Nominal interest rate | 161.00% | 161.00% | |||||||
Carrying value | $ 1,530,000,000 | 2,097,000,000 | |||||||
Loans and borrowings | 1,530,000,000 | 2,097,000,000 | |||||||
Senior unsecured notes series A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 0 | ||||||||
Nominal interest rate | 557.00% | 557.00% | |||||||
Carrying value | $ 0 | 74,000,000 | |||||||
Loans and borrowings | 0 | 74,000,000 | |||||||
Senior unsecured notes series C | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 0 | ||||||||
Nominal interest rate | 558.00% | 558.00% | |||||||
Carrying value | $ 0 | 199,000,000 | |||||||
Loans and borrowings | 0 | 199,000,000 | |||||||
Senior unsecured medium-term notes series 1 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 250,000,000 | ||||||||
Nominal interest rate | 489.00% | 489.00% | |||||||
Carrying value | $ 250,000,000 | 250,000,000 | |||||||
Loans and borrowings | 250,000,000 | 250,000,000 | |||||||
Senior unsecured medium-term notes series 2 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 377.00% | 377.00% | |||||||
Carrying value | $ 449,000,000 | 449,000,000 | |||||||
Loans and borrowings | 449,000,000 | 449,000,000 | |||||||
Senior unsecured medium-term notes series 3 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 475.00% | 475.00% | |||||||
Carrying value | $ 447,000,000 | 446,000,000 | |||||||
Loans and borrowings | 447,000,000 | 446,000,000 | |||||||
Senior unsecured medium-term notes series 4 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | ||||||||
Nominal interest rate | 481.00% | 481.00% | |||||||
Carrying value | $ 597,000,000 | 596,000,000 | |||||||
Loans and borrowings | 597,000,000 | 596,000,000 | |||||||
Senior unsecured medium-term notes series 5 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 354.00% | 354.00% | |||||||
Carrying value | $ 449,000,000 | 449,000,000 | |||||||
Loans and borrowings | 449,000,000 | 449,000,000 | |||||||
Senior unsecured medium-term notes series 6 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 500,000,000 | ||||||||
Nominal interest rate | 424.00% | 424.00% | |||||||
Carrying value | $ 498,000,000 | 498,000,000 | |||||||
Loans and borrowings | 498,000,000 | 498,000,000 | |||||||
Senior unsecured medium-term notes series 7 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | $ 100,000,000 | |||||||
Nominal interest rate | 371.00% | 371.00% | 3.71% | ||||||
Carrying value | $ 603,000,000 | 498,000,000 | |||||||
Loans and borrowings | 603,000,000 | 498,000,000 | |||||||
Senior unsecured medium-term notes series 8 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 650,000,000 | ||||||||
Nominal interest rate | 299.00% | 299.00% | |||||||
Carrying value | $ 647,000,000 | 646,000,000 | |||||||
Loans and borrowings | 647,000,000 | 646,000,000 | |||||||
Senior unsecured medium-term notes series 9 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 550,000,000 | ||||||||
Nominal interest rate | 474.00% | 474.00% | |||||||
Carrying value | $ 542,000,000 | 542,000,000 | |||||||
Loans and borrowings | 542,000,000 | 542,000,000 | |||||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 650,000,000 | $ 250,000,000 | |||||||
Nominal interest rate | 402.00% | 402.00% | 4.02% | ||||||
Carrying value | $ 661,000,000 | 398,000,000 | |||||||
Loans and borrowings | 661,000,000 | 398,000,000 | |||||||
Senior unsecured medium-term notes series 11 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 800,000,000 | $ 500,000,000 | |||||||
Nominal interest rate | 475.00% | 475.00% | 4.75% | ||||||
Carrying value | $ 842,000,000 | 298,000,000 | |||||||
Loans and borrowings | 842,000,000 | 298,000,000 | |||||||
Senior unsecured medium-term notes series 12 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 650,000,000 | $ 250,000,000 | |||||||
Nominal interest rate | 362.00% | 362.00% | 3.62% | ||||||
Carrying value | $ 654,000,000 | 398,000,000 | |||||||
Loans and borrowings | 654,000,000 | 398,000,000 | |||||||
Senior unsecured medium-term notes series 13 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 700,000,000 | ||||||||
Nominal interest rate | 454.00% | 454.00% | |||||||
Carrying value | $ 713,000,000 | 714,000,000 | |||||||
Loans and borrowings | 713,000,000 | 714,000,000 | |||||||
Senior unsecured medium-term notes series 14 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | ||||||||
Nominal interest rate | 256.00% | 256.00% | |||||||
Carrying value | $ 599,000,000 | 598,000,000 | |||||||
Loans and borrowings | 599,000,000 | 598,000,000 | |||||||
Senior unsecured medium-term notes series 15 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | ||||||||
Nominal interest rate | 331.00% | 331.00% | |||||||
Carrying value | $ 597,000,000 | 597,000,000 | |||||||
Loans and borrowings | 597,000,000 | 597,000,000 | |||||||
Senior unsecured medium-term notes series 16 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 400,000,000 | $ 400,000,000 | |||||||
Nominal interest rate | 467.00% | 467.00% | 4.76% | ||||||
Carrying value | $ 397,000,000 | 0 | |||||||
Loans and borrowings | 397,000,000 | 0 | |||||||
Senior unsecured medium-term notes series 3A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 50,000,000 | ||||||||
Nominal interest rate | 505.00% | 505.00% | |||||||
Carrying value | $ 51,000,000 | 52,000,000 | |||||||
Loans and borrowings | 51,000,000 | 52,000,000 | |||||||
Senior unsecured medium-term notes series 5A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 350,000,000 | ||||||||
Nominal interest rate | 343.00% | 343.00% | |||||||
Carrying value | $ 350,000,000 | 353,000,000 | |||||||
Loans and borrowings | 350,000,000 | $ 353,000,000 | |||||||
Revolving unsecured credit facility maturing in May 2024 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | 2,500,000,000 | ||||||||
Non-revolving term loan matures in August 2022 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | 500,000,000 | $ 500,000,000 | |||||||
Revolving unsecured credit facility maturing in April 2022 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | 800,000,000 | $ 800,000,000 | |||||||
Non-revolving term loan facility maturing in May 2025 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 250,000,000 | $ 250,000,000 | |||||||
Non-revolving term loan facility maturing in May 2025 | Variable rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 250,000,000 | $ 454,000,000 | |||||||
Operating facility | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 20,000,000 |
LOANS AND BORROWINGS - Narrativ
LOANS AND BORROWINGS - Narrative (Details) - Fixed rate instruments | May 28, 2020CAD ($)tranche | Jan. 10, 2020CAD ($)tranche | Jan. 25, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Jul. 10, 2020CAD ($) | May 07, 2020USD ($) | Apr. 06, 2020CAD ($) |
Senior unsecured medium-term notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 1,000,000,000 | |||||||
Number of tranches | tranche | 2 | 3 | ||||||
Senior unsecured medium-term notes series 10 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 250,000,000 | $ 650,000,000 | ||||||
Nominal interest rate | 4.02% | 402.00% | 402.00% | |||||
Senior unsecured medium-term notes series 11 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 500,000,000 | $ 800,000,000 | ||||||
Nominal interest rate | 4.75% | 475.00% | 475.00% | |||||
Senior unsecured medium-term notes series 12 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 250,000,000 | $ 650,000,000 | ||||||
Nominal interest rate | 3.62% | 362.00% | 362.00% | |||||
Revolving unsecured credit facility maturing in April 2022 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 800,000,000 | $ 800,000,000 | ||||||
Revolving unsecured credit facility maturing in May 2024 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | 2,500,000,000 | |||||||
Non-revolving term loan facility maturing in May 2025 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 250,000,000 | $ 250,000,000 | ||||||
Non-revolving term loan matures in August 2022 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 500,000,000 | 500,000,000 | ||||||
Senior unsecured medium-term notes series 16 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 400,000,000 | $ 400,000,000 | ||||||
Nominal interest rate | 4.76% | 467.00% | 467.00% | |||||
Senior unsecured medium-term notes series 7 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 100,000,000 | $ 600,000,000 | ||||||
Nominal interest rate | 3.71% | 371.00% | 371.00% | |||||
Senior unsecured notes series C | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 0 | |||||||
Nominal interest rate | 558.00% | 558.00% | ||||||
Notional amount repaid at maturity | $ 200,000,000 | |||||||
Series 1 Subordinated Notes | Issuance of Debt | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 600,000,000 | |||||||
Nominal interest rate | 4.80% |
DECOMISSIONING PROVISION - Deta
DECOMISSIONING PROVISION - Detailed Disclosure (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Inflation rate for preset value (percent) | 1.80% | |
Decommissioning provision | ||
Disclosure of other provisions [line items] | ||
Estimated economic lives of assets covered by the decommissioning provision (years) | 50 years | |
Inflation rate for preset value (percent) | 1.80% | |
Reconciliation of changes in other provisions [abstract] | ||
Other provisions, beginning balance | $ 340 | $ 162 |
Unwinding of discount rate | 15 | 9 |
Change in rates | 0 | 90 |
Acquisition (Note 7) | 0 | 74 |
Additions | 11 | 8 |
Change in cost estimates and other | (16) | (3) |
Other provisions, ending balance | 350 | 340 |
Less current portion | (2) | (3) |
Other non-current provisions | $ 348 | 337 |
Decommissioning provision | Minimum | ||
Disclosure of other provisions [line items] | ||
Estimated economic lives of assets covered by the decommissioning provision (years) | 1 year | |
Risk-free rate for preset value (percent) | 3.30% | |
Decommissioning provision | Maximum | ||
Disclosure of other provisions [line items] | ||
Estimated economic lives of assets covered by the decommissioning provision (years) | 83 years | |
Risk-free rate for preset value (percent) | 4.70% | |
Trade and Payables and Other | ||
Reconciliation of changes in other provisions [abstract] | ||
Other provisions, beginning balance | $ 4 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | Feb. 03, 2021 | Jan. 09, 2021 | Nov. 16, 2020 | Jun. 15, 2020 | Dec. 02, 2019 | Jun. 03, 2019 | Mar. 31, 2019 | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 01, 2021 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||||||||||||
Maximum number of preference shares issuable as a percentage of ordinary shares issued and outstanding | 25485085000.00% | |||||||||||
Preferred share capital | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares outstanding (in shares) | 122,000,000 | 122,000,000 | 100,000,000 | |||||||||
Dividends declared | $ 151 | $ 126 | ||||||||||
Class A Series 3 Rate Reset Preference Shares | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 6,000,000 | |||||||||||
Series 17 preferred share | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 6,000,000 | |||||||||||
Dividends declared | 7 | 7 | ||||||||||
Series 5 preferred share | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 10,000,000 | |||||||||||
Dividends declared | 11 | 12 | ||||||||||
Class A Series 7 Reset Preference Shares | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 10,000,000 | |||||||||||
Series 19 preferred share | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 8,000,000 | |||||||||||
Dividends declared | 10 | 10 | ||||||||||
Series 9 preferred share | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||
Number of shares outstanding (in shares) | 9,000,000 | |||||||||||
Dividends declared | 11 | 11 | ||||||||||
Series 11 preferred share | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Dividends declared | $ 10 | $ 10 | ||||||||||
Series 11 preferred share | Major ordinary share transactions | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares outstanding (in shares) | 6,800,000 | |||||||||||
Preferred stock, redemption price per share (in CAD per share) | $ 25 | |||||||||||
Common share capital | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Number of shares outstanding (in shares) | 550,000,000 | 548,000,000 | 508,000,000 | |||||||||
Dividends declared | $ 1,385 | $ 1,213 | ||||||||||
Common share capital | Major ordinary share transactions | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Monthly dividends paid per share (in CAD per share) | $ 0.21 | $ 0.21 | ||||||||||
Dividends declared | $ 115 | $ 115 |
SHARE CAPITAL - Common and Pref
SHARE CAPITAL - Common and Preferred Share Capital (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of number of shares outstanding [abstract] | ||
Share-based payment transactions | $ 105 | $ 167 |
Common share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 548 | 508 |
Issued on Acquisition, net of issue costs (Note 6) (in shares) | 36 | |
Share-based payment transactions (in shares) | 2 | 4 |
Number of shares, Ending balance (in shares) | 550 | 548 |
Share capital, beginning balance | $ 15,539 | $ 13,662 |
Issued on Acquisition, net of issue costs (Note 7) | 1,710 | |
Share-based payment transactions | 167 | |
Share capital, ending balance | $ 15,644 | $ 15,539 |
Preferred share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 122 | 100 |
Issued, net of issue costs (in shares) | 0 | 0 |
Number of shares, Ending balance (in shares) | 122 | 122 |
Share capital, beginning balance | $ 2,956 | $ 2,423 |
Issued on Acquisition, net of issue costs (Note 7) | 533 | |
Part VI.1 tax | (10) | (3) |
Share capital, ending balance | $ 2,946 | $ 2,956 |
Class A Series 23 Preference Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued on Acquisition, net of issue costs (Note 6) (in shares) | 12 | |
Issued on Acquisition, net of issue costs (Note 7) | $ (293) | |
Class A Series 25 Preference Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued on Acquisition, net of issue costs (Note 6) (in shares) | 10 | |
Issued on Acquisition, net of issue costs (Note 7) | $ (243) |
SHARE CAPITAL - Dividends (Deta
SHARE CAPITAL - Dividends (Details) - CAD ($) $ / shares in Units, $ in Millions | Mar. 15, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 2.52 | $ 2.36 | ||
Dividends paid | $ 1,385 | $ 1,213 | ||
Preferred share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid | $ 151 | $ 126 | ||
Series 1 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.23 | $ 1.23 | ||
Dividends paid | $ 12 | $ 12 | ||
Series 3 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.12 | $ 1.13 | ||
Dividends paid | $ 7 | $ 7 | ||
Series 5 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.14 | $ 1.19 | ||
Dividends paid | $ 11 | $ 12 | ||
Series 7 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.10 | $ 1.12 | ||
Dividends paid | $ 11 | $ 11 | ||
Series 9 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.18 | $ 1.19 | ||
Dividends paid | $ 11 | $ 11 | ||
Series 11 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.44 | $ 1.44 | ||
Dividends paid | $ 10 | $ 10 | ||
Series 13 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.44 | $ 1.44 | ||
Dividends paid | $ 14 | $ 14 | ||
Series 15 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.12 | $ 1.12 | ||
Dividends paid | $ 9 | $ 9 | ||
Series 17 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.21 | $ 1.22 | ||
Dividends paid | $ 7 | $ 7 | ||
Series 19 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.21 | $ 1.25 | ||
Dividends paid | $ 10 | $ 10 | ||
Series 21 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.23 | $ 1.23 | ||
Dividends paid | $ 20 | $ 20 | ||
Series 23 preference share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.31 | $ 0.16 | ||
Dividends paid | $ 16 | $ 2 | ||
Series 25 preference share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends paid per share (in CAD per share) | $ 1.30 | $ 0.16 | ||
Dividends paid | $ 13 | $ 1 | ||
Major preference share transactions | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 38 | |||
Major preference share transactions | Series 1 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.306625 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | |||
Major preference share transactions | Series 3 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.279875 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | |||
Major preference share transactions | Series 5 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.285813 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | |||
Major preference share transactions | Series 7 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.273750 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | |||
Major preference share transactions | Series 9 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.296875 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | |||
Major preference share transactions | Series 11 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.359375 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | |||
Major preference share transactions | Series 13 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.359375 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 | |||
Major preference share transactions | Series 15 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.279000 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | |||
Major preference share transactions | Series 17 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.301313 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | |||
Major preference share transactions | Series 19 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.292750 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | |||
Major preference share transactions | Series 21 preferred share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.306250 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 5 | |||
Major preference share transactions | Series 23 preference share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.328125 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 | |||
Major preference share transactions | Series 25 preference share | ||||
Disclosure of classes of share capital [line items] | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.325000 | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 |
REVENUE - Revenue Disaggregatio
REVENUE - Revenue Disaggregation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 6,021 | $ 7,138 |
Operational finance lease income | 15 | 0 |
Lease and other revenue | 166 | 92 |
Revenue | 6,202 | 7,230 |
Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,959 | 1,587 |
Operational finance lease income | 15 | 0 |
Lease and other revenue | 131 | 63 |
Revenue | 2,105 | 1,650 |
Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 857 | 747 |
Operational finance lease income | 0 | 0 |
Lease and other revenue | 35 | 29 |
Revenue | 892 | 776 |
Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,205 | 4,804 |
Operational finance lease income | 0 | 0 |
Lease and other revenue | 0 | 0 |
Revenue | 3,205 | 4,804 |
Take-or-Pay | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,404 | 1,825 |
Take-or-Pay | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,664 | 1,200 |
Take-or-Pay | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 740 | 625 |
Take-or-Pay | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 0 |
Fee-for-Service | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 412 | 504 |
Fee-for-Service | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 295 | 387 |
Fee-for-Service | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 117 | 117 |
Fee-for-Service | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 0 |
Product Sales | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,205 | 4,809 |
Product Sales | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 0 |
Product Sales | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 5 |
Product Sales | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 3,205 | $ 4,804 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Contract balances [Line Items] | |||
Opening balance | $ 231 | $ 168 | |
Additions (net in the period) | 120 | 39 | |
Acquisition (Note 7) | 0 | 77 | |
Revenue recognized from contract liabilities | (59) | (53) | |
Closing balance | 292 | 231 | |
Less current portion | (62) | (39) | $ (37) |
Ending balance | 230 | 192 | $ 131 |
Take-or-Pay | |||
Contract balances [Line Items] | |||
Opening balance | 8 | 9 | |
Additions (net in the period) | 3 | 4 | |
Acquisition (Note 7) | 0 | 0 | |
Revenue recognized from contract liabilities | (8) | (5) | |
Closing balance | 3 | 8 | |
Less current portion | (3) | (8) | |
Ending balance | 0 | 0 | |
Other Contract Liabilities | |||
Contract balances [Line Items] | |||
Opening balance | 223 | 159 | |
Additions (net in the period) | 117 | 35 | |
Acquisition (Note 7) | 0 | 77 | |
Revenue recognized from contract liabilities | (51) | (48) | |
Closing balance | 289 | 223 | |
Less current portion | (59) | (31) | |
Ending balance | $ 230 | $ 192 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 8,500 | $ 9,300 |
Maximum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,100 | 1,100 |
Maximum | Later Than Five Years Not Later Than Twenty Two Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 870 | 977 |
Minimum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 969 | 983 |
Minimum | Later Than Five Years Not Later Than Twenty Two Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 22 | $ 13 |
NET FINANCE COSTS (Details)
NET FINANCE COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense on financial liabilities measured at amortized cost: | ||
Loans and borrowings | $ 362 | $ 291 |
Leases | 39 | 17 |
Unwinding of discount rate | 15 | 8 |
Gain in fair value of non-commodity-related derivative financial instruments | (5) | (4) |
Foreign exchange losses (gains) and other | (9) | 23 |
Net finance costs | $ 420 | $ 289 |
NET FINANCE COSTS - Narrative (
NET FINANCE COSTS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | ||
Net interest paid | $ 429 | $ 311 |
Interest paid during construction | $ 46 | $ 42 |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020CAD ($)segment | Dec. 31, 2019CAD ($) | |
Operating Segments [Abstract] | ||
Number of operating segments | segment | 3 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 6,202 | $ 7,230 |
Salaries and wages | 370 | 339 |
Operating expense | 244 | 182 |
General and administrative expense | 126 | 157 |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,105 | 1,650 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 3,205 | 4,804 |
Operating segments | ||
Disclosure of operating segments [line items] | ||
Revenue | 718 | |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,251 | 1,787 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 3,205 | 4,804 |
United States | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 228 | 33 |
United States | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 143 | $ 182 |
One customer | ||
Disclosure of operating segments [line items] | ||
Percentage of entity's revenue | 10.00% |
OPERATING SEGMENTS - Financial
OPERATING SEGMENTS - Financial Information by Segment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 6,202 | $ 7,230 |
Operating expenses | 712 | 602 |
Cost of goods sold, including product purchases | 2,758 | 4,110 |
Depreciation and amortization included in operations | 662 | 471 |
Cost of sales | 4,132 | 5,183 |
Realized gain on commodity-related derivative financial instruments | (54) | (33) |
Unrealized (gain) loss on commodity-related derivative financial instruments | 84 | 13 |
Share of profit from equity accounted investees - operations | 282 | 375 |
Adjusted gross profit | 2,322 | |
Impairment in share of profit from equity accounted investees | (314) | 0 |
Gross profit (loss) | 2,008 | 2,442 |
Depreciation included in general and administrative | 38 | 36 |
Other general and administrative | 208 | 260 |
Other (income) expense | (18) | 15 |
Impairment expense | 1,776 | 300 |
Results from operating activities | 4 | 1,831 |
Net finance costs (income) | 420 | 289 |
Earnings (loss) before income tax | (416) | 1,542 |
Capital expenditures | 1,029 | 1,645 |
Contributions to equity accounted investees | 224 | 263 |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,105 | 1,650 |
Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 892 | 776 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 3,205 | 4,804 |
Operating segments | ||
Disclosure of operating segments [line items] | ||
Revenue | 718 | |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,251 | 1,787 |
Operating expenses | 498 | 436 |
Depreciation and amortization included in operations | 402 | 243 |
Cost of sales | 900 | 679 |
Share of profit from equity accounted investees - operations | 227 | 274 |
Adjusted gross profit | 1,578 | |
Gross profit (loss) | 1,578 | 1,382 |
Other general and administrative | 24 | 30 |
Other (income) expense | (1) | 3 |
Impairment expense | 1,396 | 300 |
Results from operating activities | 159 | 1,049 |
Net finance costs (income) | 31 | 6 |
Earnings (loss) before income tax | 128 | 1,043 |
Capital expenditures | 587 | 892 |
Contributions to equity accounted investees | 0 | 13 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 1,231 | 1,121 |
Operating expenses | 392 | 344 |
Cost of goods sold, including product purchases | 11 | 4 |
Depreciation and amortization included in operations | 199 | 166 |
Cost of sales | 602 | 514 |
Unrealized (gain) loss on commodity-related derivative financial instruments | (4) | |
Share of profit from equity accounted investees - operations | 55 | 51 |
Adjusted gross profit | 688 | |
Gross profit (loss) | 688 | 658 |
Other general and administrative | 10 | 14 |
Other (income) expense | 2 | |
Impairment expense | 10 | |
Results from operating activities | 666 | 644 |
Net finance costs (income) | 24 | 21 |
Earnings (loss) before income tax | 642 | 623 |
Capital expenditures | 370 | 569 |
Contributions to equity accounted investees | 69 | 73 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 3,205 | 4,804 |
Cost of goods sold, including product purchases | 3,064 | 4,417 |
Depreciation and amortization included in operations | 50 | 51 |
Cost of sales | 3,114 | 4,468 |
Realized gain on commodity-related derivative financial instruments | (54) | (33) |
Unrealized (gain) loss on commodity-related derivative financial instruments | 88 | 13 |
Share of profit from equity accounted investees - operations | 50 | |
Adjusted gross profit | 57 | |
Impairment in share of profit from equity accounted investees | (314) | |
Gross profit (loss) | (257) | 406 |
Other general and administrative | 28 | 35 |
Other (income) expense | 4 | 3 |
Impairment expense | 370 | |
Results from operating activities | (659) | 368 |
Net finance costs (income) | (13) | (8) |
Earnings (loss) before income tax | (646) | 376 |
Capital expenditures | 38 | 157 |
Contributions to equity accounted investees | 155 | 177 |
Corporate & Inter-segment Eliminations | ||
Disclosure of operating segments [line items] | ||
Revenue | (485) | (482) |
Operating expenses | (178) | (178) |
Cost of goods sold, including product purchases | (317) | (311) |
Depreciation and amortization included in operations | 11 | 11 |
Cost of sales | (484) | (478) |
Adjusted gross profit | (1) | |
Gross profit (loss) | (1) | (4) |
Depreciation included in general and administrative | 38 | 36 |
Other general and administrative | 146 | 181 |
Other (income) expense | (23) | 9 |
Results from operating activities | (162) | (230) |
Net finance costs (income) | 378 | 270 |
Earnings (loss) before income tax | (540) | (500) |
Capital expenditures | 34 | 27 |
Corporate & Inter-segment Eliminations | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | (146) | (137) |
Corporate & Inter-segment Eliminations | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | $ (339) | $ (345) |
OPERATING SEGMENTS - Non-Curren
OPERATING SEGMENTS - Non-Current Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of operating segments [line items] | ||
Non-current assets | $ 30,105 | $ 31,765 |
Canada | ||
Disclosure of operating segments [line items] | ||
Non-current assets | 26,504 | 26,222 |
United States | ||
Disclosure of operating segments [line items] | ||
Non-current assets | $ 3,601 | $ 5,543 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | ||
Earnings attributable to common shareholders | $ (476) | $ 1,376 |
Weighted average number of common shares (in shares) | 550,000,000 | 512,000,000 |
Profit (loss), attributable to ordinary equity holders of parent entity including dilutive effects | $ (476) | $ 1,376 |
Adjusted weighted average number of ordinary shares outstanding (in shares) | 550,000,000 | 514,000,000 |
Antidilutive securities excluded from computation of earnings per share, amount | 277,000 | 0 |
EARNINGS (LOSS) PER COMMON SH_4
EARNINGS (LOSS) PER COMMON SHARE - Earnings Attributable to Common Shareholders (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | ||
Loss | $ (316) | $ 1,507 |
Dividends on preferred shares | (148) | (123) |
Cumulative dividends on preferred shares, not yet declared | (12) | (8) |
Basic and diluted earnings (loss) attributable to common shareholders | $ (476) | $ 1,376 |
EARNINGS (LOSS) PER COMMON SH_5
EARNINGS (LOSS) PER COMMON SHARE - Weighted Average Number of Common Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | |
Earnings per share [abstract] | |||
Number of shares issued (in shares) | 548,000,000 | 508,000,000 | 508,000,000 |
Effect of shares issued (in shares) | 0 | 1,000,000 | |
Effect of shares issued on exercise of options (in shares) | 2,000,000 | 3,000,000 | |
Basic (in shares) | 550,000,000 | 512,000,000 | |
Dilutive effect of share options on issue (in shares) | 0 | 2,000,000 | |
Weighted average number of common shares at December 31 (diluted) (in shares) | 550,000,000 | 514,000,000 | |
Basic (loss) earnings per common share (in CAD per share) | $ (0.86) | $ 2.69 | shares 2,690,000 |
Diluted (loss) earnings per common share (in CAD per share) | $ (0.86) | $ 2.68 | shares 2,680,000 |
PENSION PLAN - Employee Benefit
PENSION PLAN - Employee Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 44 | $ 35 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | 26 | 19 |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 18 | $ 16 |
PENSION PLAN - Narrative (Detai
PENSION PLAN - Narrative (Details) - CAD ($) | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Post-employment benefit expense, defined contribution plans | $ 12,000,000 | $ 11,000,000 | ||
Number of best years of earnings (years) | 3 years | |||
Number of years of service (years) | 10 years | |||
Decrease in defined benefit plan related to present value of refunds or reductions in future contributions | $ 0 | 0 | ||
Estimated discount rate (percent) | 2.60% | 2.60% | ||
Effect of one percentage point increase on defined benefit obligation | $ 40,000,000 | |||
Effect of one percentage point decrease on defined benefit obligation | $ 51,000,000 | |||
Increase (decrease) of estimated discount rate (percent) | 0.0100 | 0.0100 | ||
Expected future contributions to plan in 2020 | $ 23,000,000 | |||
Registered Plans | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Pension plan expense | 20,000,000 | 15,000,000 | ||
Plan assets | Registered Plans | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Contributions paid into the plan | $ (23,000,000) | (20,000,000) | ||
Minimum | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Employer contributions percent | 5.00% | |||
Maximum | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Employer contributions percent | 10.00% | |||
Employee's age plus years of service | 40 years | 50 years | ||
Maximum | Update to Pension Plan | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Employee's age plus years of service | 50 years | |||
Maximum | Supplemental Plan | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Pension plan expense | $ 2,000,000 | $ 2,000,000 |
PENSION PLAN - Defined Benefit
PENSION PLAN - Defined Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | $ 278 | $ 250 |
Fair value of plan assets | 252 | 231 |
Recognized liability for defined benefit obligations | (26) | (19) |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | 18 | 16 |
Fair value of plan assets | 0 | 0 |
Recognized liability for defined benefit obligations | $ (18) | $ (16) |
PENSION PLAN - Plan Assets (Det
PENSION PLAN - Plan Assets (Details) - Registered Plans | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 63.00% | 62.00% |
Debt | 37.00% | 38.00% |
Total | 100.00% | 100.00% |
PENSION PLAN - Movement in Plan
PENSION PLAN - Movement in Plan (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 19 | $ 15 |
Return on plan assets | 8 | 8 |
Interest expense (income) | 9 | 8 |
Registered Plans | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 250 | 212 |
Benefits paid by the plan | 28 | 12 |
Current service costs | 18 | 15 |
Interest expense (income) | 8 | 8 |
Actuarial losses in other comprehensive income | 30 | 27 |
Net defined benefit liability (asset), ending balance | 278 | 250 |
Registered Plans | Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (231) | (193) |
Contributions paid into the plan | 23 | 20 |
Benefits paid by the plan | 28 | 12 |
Return on plan assets | 18 | 22 |
Interest expense (income) | (8) | (8) |
Net defined benefit liability (asset), ending balance | (252) | (231) |
Supplemental Plan | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 16 | 12 |
Benefits paid by the plan | 2 | 0 |
Current service costs | 1 | 1 |
Interest expense (income) | 1 | 0 |
Actuarial losses in other comprehensive income | 2 | 3 |
Net defined benefit liability (asset), ending balance | $ 18 | $ 16 |
PENSION PLAN - Expense Recogniz
PENSION PLAN - Expense Recognized in Earnings (Details) - Registered Plans - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 19 | $ 15 |
Interest on obligation | 9 | 8 |
Interest on plan assets | (8) | (8) |
Pension plan expense | 20 | 15 |
Operating expenses | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | 10 | 7 |
General and administrative expense | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | $ 10 | $ 8 |
PENSION PLAN - Actuarial Gains
PENSION PLAN - Actuarial Gains and Losses Recognized in OCI (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | $ 35 | $ 29 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (14) | (22) |
Experience adjustments | (11) | 0 |
Return on plan assets excluding interest income | 15 | 16 |
Recognized loss during the period after tax | (10) | (6) |
Net defined benefit liability (asset), ending balance | 45 | 35 |
Registered Plans | ||
Actuarial gain (loss) arising from | ||
Return on plan assets excluding interest income | (8) | (8) |
Registered Plans | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 33 | 28 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (13) | (21) |
Experience adjustments | (10) | 0 |
Return on plan assets excluding interest income | 15 | 16 |
Recognized loss during the period after tax | (8) | (5) |
Net defined benefit liability (asset), ending balance | 41 | 33 |
Supplemental Plan | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 2 | 1 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (1) | (1) |
Experience adjustments | (1) | 0 |
Return on plan assets excluding interest income | 0 | 0 |
Recognized loss during the period after tax | (2) | (1) |
Net defined benefit liability (asset), ending balance | $ 4 | $ 2 |
PENSION PLAN - Actuarial Assump
PENSION PLAN - Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits [Abstract] | ||
Discount rate | 2.60% | 3.10% |
Future pension earning increases | 4.00% | 4.00% |
Current male pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 21 years 10 months 24 days | 21 years 9 months 18 days |
Current female pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 24 years 3 months 18 days | 24 years 2 months 12 days |
Current male members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 22 years 10 months 24 days | 22 years 9 months 18 days |
Current female members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 25 years 2 months 12 days | 25 years 1 month 6 days |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) | Jan. 01, 2020shares | Jan. 01, 2019shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares |
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Trading days prior to redemption date | 5 days | |||
Weighted average remaining contractual life of outstanding share options | 4 years 7 months 6 days | |||
Weighted average share price at the date of exercise for share options exercised (in CAD per share) | $ / shares | $ 49.79 | $ 48.87 | ||
Measurement period for weighted average exercise price of lon-term share unit award incentive plans | 20 days | |||
Weighted average exercise price long-term share unit award incentive plans (in CAD per share) | $ / shares | $ 32.53 | $ 47.52 | ||
Number of share options granted in share-based payment arrangement | 7,316,000 | 5,470,000 | ||
Number of other equity instruments granted in share-based payment arrangement | 987,000 | 971,000 | ||
Minimum | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
DSUs as a percent of total director compensation | 50.00% | |||
Share-based Compensation Award, Tranche One | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of share options granted in share-based payment arrangement | 0.3333 | |||
Share-based Compensation Award, Tranche Two | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of share options granted in share-based payment arrangement | 0.3333 | |||
Share-based Compensation Award, Tranche Three | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of share options granted in share-based payment arrangement | 0.3333 | |||
PSUs | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of other equity instruments granted in share-based payment arrangement | 469,000 | 475,000 | ||
Weighted average remaining contractual life of outstanding other equity instruments (years) | 3 years | |||
RSUs | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of other equity instruments granted in share-based payment arrangement | 487,000 | 460,000 | ||
RSUs | Share-based Compensation Award, Tranche One | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 | |||
RSUs | Share-based Compensation Award, Tranche Two | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 | |||
RSUs | Share-based Compensation Award, Tranche Three | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 | |||
Share Option Plan and Share Unit Award Incentive Plan | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Weighted average remaining contractual life of outstanding share options | 7 years |
SHARE-BASED PAYMENTS - Long-ter
SHARE-BASED PAYMENTS - Long-term Share Unit Aware Incentive Plan (Details) - shares shares in Thousands | Jan. 01, 2020 | Jan. 01, 2019 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 987 | 971 |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 469 | 475 |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 487 | 460 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 31 | 36 |
SHARE-BASED PAYMENTS - Share Op
SHARE-BASED PAYMENTS - Share Option Plan (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | |
Share-based Payment Arrangements [Abstract] | ||
Options outstanding, beginning balance (in shares) | shares | 18,584 | 17,928 |
Granted (in shares) | shares | 7,316 | 5,470 |
Exercised (in shares) | shares | (2,188) | (3,979) |
Forfeited (in shares) | shares | (1,103) | (655) |
Expired (in shares) | shares | (833) | (180) |
Options outstanding, ending balance (in shares) | shares | 21,776 | 18,584 |
Weighted average exercise price, outstanding, beginning balance (in CAD per share) | $ / shares | $ 44.65 | $ 42.12 |
Weighted average exercise price of share options granted in share-based payment arrangement (in CAD per share) | $ / shares | 37.55 | 48.27 |
Weighted average exercise price of share options exercised in share-based payment arrangement (in CAD per share) | $ / shares | 40.17 | 37.95 |
Weighted average exercise price of share options forfeited in share-based payment arrangement (in CAD per share) | $ / shares | 44.86 | 45.29 |
Weighted average exercise price of share options expired in share-based payment arrangement (in CAD per share) | $ / shares | 45.24 | 48.98 |
Weighted average exercise price, outstanding, ending balance (in CAD per share) | $ / shares | $ 42.68 | $ 44.65 |
SHARE-BASED PAYMENTS - Exercise
SHARE-BASED PAYMENTS - Exercise Price Range of Outstanding Share Options (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 21,776 | 18,584 | 17,928 |
Options Exercisable (in shares) | 10,471 | ||
Weighted average remaining life (in years) | 4 years 7 months 6 days | ||
$26.83 – $36.32 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 4,451 | ||
Options Exercisable (in shares) | 681 | ||
Weighted average remaining life (in years) | 6 years | ||
$36.33 – $43.06 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 4,349 | ||
Options Exercisable (in shares) | 3,813 | ||
Weighted average remaining life (in years) | 3 years 3 months 18 days | ||
$43.07 – $45.29 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 4,362 | ||
Options Exercisable (in shares) | 1,138 | ||
Weighted average remaining life (in years) | 5 years | ||
$45.3 – $48.08 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 3,402 | ||
Options Exercisable (in shares) | 2,039 | ||
Weighted average remaining life (in years) | 4 years 10 months 24 days | ||
$48.09 – $52.01 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 5,212 | ||
Options Exercisable (in shares) | 2,800 | ||
Weighted average remaining life (in years) | 3 years 10 months 24 days | ||
Minimum | $26.83 – $36.32 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 26.83 | ||
Minimum | $36.33 – $43.06 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 36.33 | ||
Minimum | $43.07 – $45.29 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.07 | ||
Minimum | $45.3 – $48.08 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 45.30 | ||
Minimum | $48.09 – $52.01 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 48.09 | ||
Maximum | $26.83 – $36.32 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 36.32 | ||
Maximum | $36.33 – $43.06 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.06 | ||
Maximum | $43.07 – $45.29 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 45.29 | ||
Maximum | $45.3 – $48.08 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 48.08 | ||
Maximum | $48.09 – $52.01 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 52.01 |
SHARE-BASED PAYMENTS - Share _2
SHARE-BASED PAYMENTS - Share Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2020CAD ($)year | Dec. 31, 2019CAD ($)year | |
Share-based Payment Arrangements [Abstract] | ||
Weighted average fair value at grant date | $ 3.82 | $ 4.12 |
Weighted average expected volatility (percent) | 36.61% | 18.70% |
Weighted average expected option life (years) | year | 3.67 | 3.67 |
Expected annual dividends per option | $ 2.52 | $ 2.36 |
Expected forfeitures (percent) | 6.90% | 6.60% |
Risk-free interest rate (based on government bonds)(percent) | 0.50% | 1.60% |
SHARE-BASED PAYMENTS - Employee
SHARE-BASED PAYMENTS - Employee Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangements [Abstract] | ||
Share option plan, equity settled | $ 17 | $ 16 |
Long-term share unit award incentive plan | 11 | 50 |
Share-based compensation expense | 28 | 66 |
Total carrying amount of liabilities for cash settled arrangements | 60 | 95 |
Total intrinsic value of liability for vested benefits | $ 39 | $ 57 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | $ 98 | $ 317 |
Other comprehensive loss before hedging activities | (127) | (219) |
Other comprehensive gain (loss) resulting from hedging activities | 32 | |
Tax impact | (1) | |
Accumulated other comprehensive income, ending balance | 2 | 98 |
Currency Translation Reserve | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 134 | 347 |
Other comprehensive loss before hedging activities | (117) | (213) |
Other comprehensive gain (loss) resulting from hedging activities | 32 | |
Tax impact | (1) | |
Accumulated other comprehensive income, ending balance | 48 | 134 |
Cash Flow Hedge Reserve | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 0 | 0 |
Other comprehensive loss before hedging activities | 0 | 0 |
Other comprehensive gain (loss) resulting from hedging activities | 0 | |
Tax impact | 0 | |
Accumulated other comprehensive income, ending balance | 0 | 0 |
Pension and other Post-Retirement Benefit Plan Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (36) | (30) |
Other comprehensive loss before hedging activities | (10) | (6) |
Other comprehensive gain (loss) resulting from hedging activities | 0 | |
Tax impact | 0 | |
Accumulated other comprehensive income, ending balance | $ (46) | $ (36) |
FINANCIAL INSTRUMENTS & RISK _3
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Letters of credit outstanding, amount | $ 130 | $ 90 |
Trade receivables, current percentage | 94.00% | 95.00% |
Impairment expense (Note 13) | $ 1,776 | $ 300 |
Ruby Pipeline | ||
Disclosure of transactions between related parties [line items] | ||
Impairment expense (Note 13) | 2,953 | $ 0 |
Ruby Pipeline | Related parties [member] | ||
Disclosure of transactions between related parties [line items] | ||
Impairment expense (Note 13) | $ 139 |
FINANCIAL INSTRUMENTS & RISK _4
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Aging of Trade and Other Receivables (Details) - Trade receivables and other - Financial assets past due but not impaired - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 11 | $ 8 |
31-60 days past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 3 | 1 |
Greater than 61 days past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 8 | $ 7 |
FINANCIAL INSTRUMENTS & RISK _5
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Liquidity Risk (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | $ 69 | ||
Derivative financial liabilities, Expected Cash Flows | 69 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and other | 780 | $ 1,005 | $ 796 |
Loans and borrowings | 10,876 | 10,152 | |
Dividends payable | 115 | $ 110 | $ 97 |
Lease liabilities | 774 | ||
Trade payables and accrued liabilities, Expected Cash Flows | 780 | ||
Loans and borrowings, Expected Cash Flows | 16,275 | ||
Dividends payable, Expected Cash Flows | 115 | ||
Finance leases, Expected Cash Flows | 1,064 | ||
Less than 1 Year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 69 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 780 | ||
Loans and borrowings, Expected Cash Flows | 1,058 | ||
Dividends payable, Expected Cash Flows | 115 | ||
Finance leases, Expected Cash Flows | 131 | ||
Later than one year and not later than three years [member] | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 2,262 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | 217 | ||
3 – 5 Years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 2,708 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | 174 | ||
More than 5 years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 10,247 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | $ 542 |
FINANCIAL INSTRUMENTS & RISK _6
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Sensitivity Analysis of Market Risk (Details) $ in Millions | Dec. 31, 2020CAD ($) |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (26) |
Increase (decrease) in earnings due to reasonably possible decrease in price | 26 |
Crude oil | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible decrease in price | 28 |
Value of reasonably possible increase in price | (30) |
Natural Gas | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible decrease in price | (9) |
Value of reasonably possible increase in price | 9 |
Liquids (bpd) | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible decrease in price | 32 |
Value of reasonably possible increase in price | $ (32) |
FINANCIAL INSTRUMENTS & RISK _7
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Fair Value of Derivative Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Current derivative financial assets | $ 25 | $ 40 | $ 54 |
Non-current derivative financial assets | 28 | 8 | |
Current derivative financial liabilities | 69 | 6 | $ 6 |
Disclosure of financial liabilities [line items] | |||
Non-current derivative financial liabilities | 3 | ||
Foreign exchange | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Current derivative financial liabilities | 0 | 0 | |
Disclosure of financial liabilities [line items] | |||
Non-current derivative financial liabilities | 0 | ||
Interest rate | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Current derivative financial liabilities | 1 | 0 | |
Disclosure of financial liabilities [line items] | |||
Non-current derivative financial liabilities | 0 | ||
Foreign exchange | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Current derivative financial assets | 14 | 6 | |
Non-current derivative financial assets | 0 | 3 | |
Interest rate | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Current derivative financial assets | 0 | 0 | |
Non-current derivative financial assets | $ 1 | $ 0 |
FINANCIAL INSTRUMENTS & RISK _8
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Interest Rate Risk (Details) $ in Millions | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Disclosure of financial instruments by type of interest rate [line items] | |||
Fixed interest rates under derivative contracts, portion of underlying instrument | $ 250 | $ 0 | |
Fixed rate instruments | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Financial liabilities | $ 10,120,000,000 | 8,874,000,000 | |
Variable rate instruments | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Financial liabilities | 1,530,000,000 | 2,097,000,000 | |
Fixed and variable rate instruments | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Financial liabilities | $ 11,650,000,000 | $ 10,971,000,000 |
FINANCIAL INSTRUMENTS & RISK _9
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Cash Flow Sensitivity Analysis for Variable Rate Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments [Abstract] | ||
Percentage of reasonably possible increase in interest rate | 1.00% | 1.00% |
Increase (decrease) in earnings due to reasonably possible increase in interest rate assumption | $ (13) | |
Percentage of reasonably possible decrease in interest rate | (1.00%) | (1.00%) |
Increase (decrease) in earnings due to reasonably possible decrease in interest rate assumption | $ 13 |
FINANCIAL INSTRUMENTS & RISK_10
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Fair Value of Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | $ 69 | $ 9 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | Level 1 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 0 | 0 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | Level 2 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 69 | 9 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | Level 3 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 0 | 0 |
Loans and borrowings | Financial liabilities carried at amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 10,876 | 10,152 |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 1 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 0 | 0 |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 2 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 11,902 | 10,729 |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 3 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 0 | 0 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | ||
Disclosure of financial assets [line items] | ||
Financial assets | 53 | 48 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 1 | ||
Disclosure of financial assets [line items] | ||
Fair Value | 0 | 0 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 2 | ||
Disclosure of financial assets [line items] | ||
Fair Value | 53 | 48 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 3 | ||
Disclosure of financial assets [line items] | ||
Fair Value | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS & RISK_11
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Interest Rates Used for Determining Fair Values (Details) - Interest rate, measurement input - Discounted cash flow | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives | Minimum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.005 | 0.020 |
Derivatives | Maximum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.007 | 0.025 |
Loans and borrowings | Minimum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.005 | 0.023 |
Loans and borrowings | Maximum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.039 | 0.040 |
FINANCIAL INSTRUMENTS & RISK_12
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Summary of Net Derivative Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial assets | $ 25 | $ 40 | $ 54 |
Non-current derivative financial assets | 28 | 8 | |
Current derivative financial liabilities | (69) | (6) | $ (6) |
Non-current derivative financial liabilities | (3) | ||
Total | (16) | 39 | |
Commodity, power, storage and rail financial instruments | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial assets | 11 | 34 | |
Non-current derivative financial assets | 27 | 5 | |
Interest rate | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial assets | 0 | 0 | |
Non-current derivative financial assets | 1 | 0 | |
Foreign exchange | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial assets | 14 | 6 | |
Non-current derivative financial assets | 0 | 3 | |
Commodity, power, storage and rail financial instruments | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial liabilities | (68) | (6) | |
Non-current derivative financial liabilities | (3) | ||
Total | (30) | 30 | |
Interest rate | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial liabilities | (1) | 0 | |
Non-current derivative financial liabilities | 0 | ||
Total | 0 | 0 | |
Foreign exchange | |||
Disclosure of Financial Assets and Liabilities [Line Items] | |||
Current derivative financial liabilities | 0 | 0 | |
Non-current derivative financial liabilities | 0 | ||
Total | $ 14 | $ 9 |
FINANCIAL INSTRUMENTS & RISK_13
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Non-Derivative Instruments Designated as Net Investment Hedges (Details) - Hedges of net investment in foreign operations [member] $ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||||
Notional amount | $ 250 | $ 0 | ||
Hedging instrument, assets | $ 317 | $ 0 |
FINANCIAL INSTRUMENTS & RISK_14
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Notional and Maturity Summary (Details) gigajoule in Millions, bbl in Millions, MWh in Millions, $ in Millions | Dec. 31, 2020USD ($)MWhgigajoulebbl | Dec. 31, 2019USD ($)bblgigajoule |
Foreign Exchange Contract | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Notional amount | $ | $ 260 | $ 470 |
Interest Rate Contract | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Notional amount | $ | $ 250 | |
Purchases | Liquids (bpd) | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | bbl | 1,756 | 409 |
Purchases | Natural Gas | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | gigajoule | 73,557 | 94,727 |
Purchases | Power (MWh) | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | MWh | 6 | |
Sales | Liquids (bpd) | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | bbl | 25,284 | 24,839 |
FINANCIAL INSTRUMENTS & RISK_15
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Unrealized and Realized Gains (Losses) on Derivative Instruments (Details) - Financial assets at fair value through profit or loss, category - Financial liabilities at fair value through profit or loss, category - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commodity-related | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Gains (losses) on financial assets and liabilities at fair value through profit or loss | $ 54 | $ 33 |
Unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss | (84) | (13) |
Foreign exchange | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Gains (losses) on financial assets and liabilities at fair value through profit or loss | (2) | (3) |
Unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss | $ (5) | $ (4) |
GROUP ENTITIES (Details)
GROUP ENTITIES (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Pembina Cochin LLC | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Empress NGL Partnership | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Gas Services Limited Partnership | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Holding Canada L.P. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Infrastructure and Logistics L.P. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Midstream Limited Partnership | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Oil Sands Pipeline L.P. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Pembina Pipeline [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
PKM Canada North 40 Limited Partnership | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
RELATED PARTIES - Equity Accoun
RELATED PARTIES - Equity Accounted Investees (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party [Abstract] | ||
Services provided | $ 136 | $ 82 |
Services received | 14 | 2 |
Interest income | 14 | 10 |
Advances to related parties | 13 | 131 |
Trade receivables and other | 19 | 17 |
Trade payables and accrued liabilities | $ 2 | $ 0 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Disclosure of transactions between related parties [line items] | ||||
Contributions to equity accounted investees | $ 202,000,000 | $ 206,000,000 | ||
Impairment expense (Note 13) | $ 1,776,000,000 | 300,000,000 | ||
Proportion of ownership interest in entity (less than) | 1.00% | 1.00% | ||
Defined benefit plan, balance payable | $ 0 | 0 | ||
Ruby Pipeline | ||||
Disclosure of transactions between related parties [line items] | ||||
Contributions to equity accounted investees | $ 24 | $ 31 | ||
Impairment expense (Note 13) | $ 110 | |||
Fort Saskatchewan Ethylene Storage Limited Partnership | ||||
Disclosure of transactions between related parties [line items] | ||||
Contributions to equity accounted investees | $ 5,000,000 | $ 17,000,000 |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 10 | $ 10 |
Share-based compensation and other | 10 | 13 |
Total compensation of key management | $ 20 | $ 23 |
RELATED PARTIES - Post-employme
RELATED PARTIES - Post-employment Benefit Plans (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party [Abstract] | ||
Defined benefit plan | $ 23 | $ 20 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020CAD ($)MWMBbls | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 19,116 |
Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,064 |
Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 16,275 |
Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,208 |
Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 569 |
Less than 1 Year | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,824 |
Less than 1 Year | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 131 |
Less than 1 Year | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,058 |
Less than 1 Year | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 523 |
Less than 1 Year | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 112 |
1 - 3 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,773 |
1 - 3 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 217 |
1 - 3 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,262 |
1 - 3 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 149 |
1 - 3 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 145 |
3 – 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 3,000 |
3 – 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 174 |
3 – 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,708 |
3 – 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 43 |
3 – 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 75 |
After 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 11,519 |
After 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 542 |
After 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 10,247 |
After 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 493 |
After 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 237 |
Minimum | Liquids (bpd) | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 1 year |
Minimum | Natural Gas | Not More than Nine Years | |
Disclosure of contingent liabilities [line items] | |
Commitments, quantity secured (mbpd) | MBbls | 35 |
Minimum | Electrical Power | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 1 year |
Maximum | Liquids (bpd) | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 9 years |
Maximum | Natural Gas | Not More than Nine Years | |
Disclosure of contingent liabilities [line items] | |
Commitments, quantity secured (mbpd) | MBbls | 175 |
Maximum | Electrical Power | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 24 years |
Maximum | Electrical Power | Not More than Nine Years | |
Disclosure of contingent liabilities [line items] | |
Daily power required (mw) | MW | 80 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of contingent liabilities [line items] | ||
Contractual obligation | $ 19,116 | |
Letters of credit outstanding, amount | $ 91 | $ 103 |