DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
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) | 549,956,192 |
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 | 2021 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Addresses [Line Items] | |
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. |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Calgary, Canada |
Auditor Firm ID | 85 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 43 | $ 81 |
Trade receivables and other (Note 5) | 812 | 662 |
Inventory (Note 6) | 376 | 221 |
Derivative financial instruments (Note 25) | 14 | 25 |
Current assets | 1,245 | 989 |
Non-current assets | ||
Property, plant and equipment (Note 7) | 18,193 | 18,549 |
Intangible assets and goodwill (Note 8) | 6,238 | 6,340 |
Investments in equity accounted investees (Note 9) | 4,622 | 4,377 |
Right-of-use assets (Note 13) | 581 | 651 |
Finance lease receivable (Note 13) | 211 | 138 |
Deferred tax assets (Note 11) | 257 | 322 |
Derivative financial instruments and other assets (Note 28) | 109 | 50 |
Non-current assets | 30,211 | 30,427 |
Total assets | 31,456 | 31,416 |
Current liabilities | ||
Trade payables and other (Note 12) | 1,063 | 780 |
Loans and borrowings (Note 14) | 1,000 | 600 |
Dividends payable | 115 | 115 |
Lease liabilities | 88 | 99 |
Contract liabilities (Note 17) | 71 | 62 |
Taxes payable | 0 | 56 |
Derivative financial instruments (Note 25) | 53 | 69 |
Current liabilities | 2,390 | 1,781 |
Non-current liabilities | ||
Loans and borrowings (Note 14) | 9,645 | 10,276 |
Subordinated hybrid notes (Note 14) | 594 | 0 |
Lease liabilities | 635 | 675 |
Decommissioning provision (Note 15) | 412 | 348 |
Contract liabilities (Note 17) | 220 | 230 |
Deferred tax liabilities (Note 11) | 3,011 | 2,925 |
Other liabilities | 186 | 166 |
Non-current liabilities | 14,703 | 14,620 |
Total liabilities | 17,093 | 16,401 |
Equity | ||
Attributable to shareholders | 14,303 | 14,955 |
Attributable to non-controlling interest | 60 | 60 |
Total equity | 14,363 | 15,015 |
Total liabilities and equity | $ 31,456 | $ 31,416 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue (Note 17) | $ 8,627 | $ 5,953 | |
Cost of sales (Note 20) | 6,134 | 3,883 | |
Loss on commodity-related derivative financial instruments (Note 25) | 127 | 30 | |
Share of profit from equity accounted investees - operations (Note 9) | 281 | 282 | |
Impairment in share of profit from equity accounted investees | 0 | (314) | |
Gross profit | 2,647 | 2,008 | |
General and administrative | 306 | 246 | |
Other income (Note 18) | (248) | (18) | |
Impairment expense (Note 10) | 474 | 1,776 | |
Results from operating activities | 2,115 | 4 | |
Net finance costs (Note 19) | 450 | 420 | |
Earnings (loss) before income tax | 1,665 | (416) | |
Current tax expense (Note 11) | 286 | 240 | |
Deferred tax expense (recovery) (Note 11) | 137 | (340) | |
Adjustments for income tax expense | 423 | (100) | |
Earnings (loss) | 1,242 | (316) | |
Other comprehensive income (loss), net of tax (Note 24 & 25) | |||
Exchange loss on translation of foreign operations | (18) | (117) | [1] |
Impact of hedging activities | 10 | 31 | |
Re-measurement of defined benefit liability (Note 22) | 34 | (10) | |
Total comprehensive income (loss) attributable to shareholders | 1,268 | (412) | |
Earnings (loss) attributable to common shareholders, net of preferred share dividends (Note 21) | $ 1,098 | $ (476) | |
Earnings (loss) per common share - basic (in CAD per share) | $ 2 | $ (0.86) | |
Earnings (loss) per common share - diluted (in CAD per share) | $ 1.99 | $ (0.86) | |
Weighted average number of common shares (millions) | |||
Basic (in shares) | 550 | 550 | |
Diluted (in shares) | 551 | 550 | |
[1] | Accumulated Other Comprehensive Income (loss) ("AOCI"). |
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, 2019 | $ 16,868 | $ 15,539 | $ 2,956 | $ (1,785) | $ 98 | $ 16,808 | $ 60 | |||||||
Total comprehensive loss | ||||||||||||||
Earnings (loss) | (316) | (316) | (316) | 0 | ||||||||||
Other comprehensive income (loss), net of tax (Note 24 & 25) | ||||||||||||||
Other comprehensive income (loss) (Note 24) | (96) | (96) | (96) | |||||||||||
Total comprehensive income (loss) attributable to shareholders | (412) | (316) | (96) | (412) | ||||||||||
Transactions with shareholders of the Company (Note 16) | ||||||||||||||
Part VI.1 tax | $ (10) | (10) | $ (10) | |||||||||||
Share-based payment transactions | 105 | $ 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) | ||||||||
Equity, ending balance at Dec. 31, 2020 | 15,015 | 15,644 | 2,946 | (3,637) | 2 | 14,955 | 60 | |||||||
Total comprehensive loss | ||||||||||||||
Earnings (loss) | 1,242 | 1,242 | 1,242 | 0 | ||||||||||
Other comprehensive income (loss), net of tax (Note 24 & 25) | ||||||||||||||
Other comprehensive income (loss) (Note 24) | 26 | 26 | 26 | |||||||||||
Total comprehensive income (loss) attributable to shareholders | 1,268 | 1,242 | 26 | 1,268 | 0 | |||||||||
Transactions with shareholders of the Company (Note 16) | ||||||||||||||
Part VI.1 tax | (9) | (9) | (9) | |||||||||||
Repurchase of common shares | (17) | (13) | (13) | (4) | (17) | |||||||||
Preferred shares redemption | (420) | (420) | (420) | |||||||||||
Share-based payment transactions | 47 | 47 | 47 | |||||||||||
Dividends declared | $ (1,386) | $ (135) | $ (1,386) | $ (135) | $ (1,386) | $ (135) | ||||||||
Total transactions with shareholders of the Company | (1,920) | 34 | (429) | (1,525) | 0 | (1,920) | 0 | |||||||
Equity, ending balance at Dec. 31, 2021 | $ 14,363 | $ 15,678 | $ 2,517 | $ (3,920) | $ 28 | $ 14,303 | $ 60 | |||||||
[1] | Accumulated Other Comprehensive Income (loss) ("AOCI"). |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Earnings (loss) | $ 1,242 | $ (316) |
Adjustments for: | ||
Share of profit from equity accounted investees - operations (Note 9) | (281) | (282) |
Impairment in share of profit from equity accounted investees (Note 9) | 0 | 314 |
Distributions from equity accounted investees (Note 9) | 461 | 459 |
Depreciation and amortization | 723 | 700 |
Impairment expense (Note 10) | 474 | 1,776 |
Unrealized (gain) loss on commodity-related derivative financial instruments (Note 25) | (73) | 84 |
Net finance costs (Note 19) | 450 | 420 |
Net interest paid (Note 19) | (418) | (383) |
Income tax expense (recovery) (Note 11) | 423 | (100) |
Taxes paid | (355) | (295) |
Share-based compensation expense (Note 23) | 100 | 28 |
Share-based compensation payment | (32) | (45) |
Other | 36 | (15) |
Change in non-cash operating working capital | (100) | (93) |
Cash flow from operating activities | 2,650 | 2,252 |
Financing activities | ||
Net decrease in bank borrowings (Note 14) | (623) | (567) |
Proceeds from issuance of long-term debt, net of issue costs (Note 14) | 1,587 | 1,567 |
Repayment of long-term debt | (600) | (273) |
Repayment of lease liability | (87) | (94) |
Exercise of stock options | 16 | 88 |
Repurchase of common shares (Note 16) | (17) | 0 |
Redemption of preferred shares (Note 16) | (420) | 0 |
Cash flow used in financing activities | (1,665) | (809) |
Investing activities | ||
Capital expenditures | (658) | (1,029) |
Contributions to equity accounted investees (Note 9) | (335) | (202) |
Acquisitions (Note 9) | (41) | 0 |
Receipt of finance lease payments | 11 | 9 |
Interest paid during construction (Note 19) | (25) | (46) |
Advances to related parties | (9) | (32) |
Changes in non-cash investing working capital and other | 18 | (183) |
Cash flow used in investing activities | (1,039) | (1,483) |
Change in cash and cash equivalents | (54) | (40) |
Effect of movement in exchange rates on cash held | 16 | (8) |
Cash and cash equivalents, beginning of period | 81 | 129 |
Cash and cash equivalents, end of period | 43 | 81 |
Common share capital | ||
Financing activities | ||
Dividends paid | (1,386) | (1,380) |
Preferred share capital | ||
Financing activities | ||
Dividends paid | $ (135) | $ (150) |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2021 | |
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 audited consolidated financial statements ("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, 2021. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain 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, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION The Consolidated Financial Statements are presented in Canadian dollars, Pembina's functional currency, with all values presented in millions, unless otherwise indicated. The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The significant accounting policies applied in preparation of the Consolidated Financial Statements are set out below in Note 3 and have been applied consistently to all periods presented. Certain insignificant comparative amounts have been reclassified to conform to the presentation adopted in the current year. The Consolidated Financial Statements were authorized for issue by Pembina's Board of Directors on February 24, 2022. a. Basis of Measurement The Consolidated Financial Statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below. b. Basis of Consolidation These Consolidated Financial Statements include the results of the Company and its subsidiaries together with its interest in joint arrangements. i) 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. Non-controlling interests represent existing outside owned equity interests in a 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. ii) 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. iii) 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. iv) 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. 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 a pandemic in March 2020, many governments have imposed restrictions on individuals and businesses to contain the spread of the virus, which adversely impacted global commercial activity and significantly increased economic uncertainty. Although restrictions have largely been relaxed and vaccination programs implemented, there continues to be uncertainty and the potential for continued volatility in the global economy as a result of the possible resurgence of the virus, including variants, while the COVID-19 pandemic remains. Management considered these uncertainties when applying judgment to estimates and assumptions in the Consolidated Financial Statements. The following judgments and estimation uncertainties are those management considers material to the Consolidated Financial Statements: Judgments (i) 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. 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. (ii) 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. Estimates (i) 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, and estimates and judgement are used in assessing the recognition. Estimates including, but not limited to, the timing of reversal and future taxability may differ on actual realization, and may result in an income tax charge or credit in future periods. (ii) Impairment of Non-Financial Assets |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES a. 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. b. 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 that are expected to be used within one year of the year-end date. 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. c. 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 expected credit losses that will be realized and 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 at 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: 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. When the company repurchases its own common shares, share capital is reduced by the average carrying value of the shares repurchased. The excess of the purchase price over the average carrying value is recognized as an increase in deficit. Shares are cancelled upon repurchase. 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. d. Property, Plant and Equipment i) Recognition and Measurement Items of property, plant and equipment are measured initially at cost. 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. Estimated useful lives are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which maybe associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. Useful lives over which costs should be depreciated may be impacted by changes in our strategy, process or operations as a result of climate change initiatives. Depreciation commences once an asset is available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted if appropriate. e. Intangible Assets i) Goodwill 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. 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. f. 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 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. In measuring lease liabilities, management makes assessments of the stand-alone selling prices of each lease and non-lease component for the purposes of allocating consideration to each component. Management applies its best estimate with respect to the likelihood of renewal, extension and termination option exercising in determining the lease term. 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. g. 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. h. 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. The actuarial valuation is prepared using management's best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. 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. i. 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. With regards to these potential obligations, Pembina considers environmental laws, regulations and interpretations by regulatory authorities in determining expected cash flows. Updates to those laws and regulations, including those related to climate change, could impact the estimate. 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. 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, the timing of when these costs will occur and the impact of climate change. 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. j. 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. 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. Managements 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 and services being provided, the market environment and customer specific considerations. 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 |
DETERMINATION OF FAIR VALUES
DETERMINATION OF FAIR VALUES | 12 Months Ended |
Dec. 31, 2021 | |
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. 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. 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 the 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) Derivative Financial Instruments Pembina's derivative financial instrument fair value measurements are categorized in Level 2 and Level 3 of the fair value hierarchy. Further information about the methods used and assumptions made in determining fair values is disclosed in Note 25 to the Consolidated Financial Statements. 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. iv) 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) 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. |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE RECEIVABLES AND OTHER | TRADE RECEIVABLES AND OTHER As at December 31 ($ millions) 2021 2020 Trade receivables from customers 750 578 Other receivables 30 60 Prepayments 32 24 Total trade receivables and other 812 662 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
INVENTORY | INVENTORY As at December 31 ($ millions) 2021 2020 Crude oil and NGL 276 127 Materials, supplies and other 100 94 Total inventory 376 221 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 440 8,790 8,333 1,937 1,493 20,993 Additions and transfers 8 454 622 57 (40) 1,101 Impairment (Note 10) (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 Additions and transfers 28 92 469 144 (177) 556 Change in decommissioning provision — 8 25 6 — 39 Disposals and other (1) (22) (19) (59) (17) (118) Foreign exchange — (5) 2 — — (3) Balance at December 31, 2021 456 9,279 9,384 2,084 915 22,118 Depreciation Balance at December 31, 2019 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 Depreciation 5 192 232 82 — 511 Impairment (Note 10) — 283 85 12 — 380 Disposals and other — (7) (14) (40) — (61) Balance at December 31, 2021 26 2,015 1,421 463 — 3,925 Carrying amounts Balance at December 31, 2020 408 7,659 7,789 1,584 1,109 18,549 Balance at December 31, 2021 430 7,264 7,963 1,621 915 18,193 Assets subject to operating leases December 31, 2020 8 300 496 170 — 974 December 31, 2021 8 297 466 163 — 934 (1) At December 31, 2021, the movement in Assets Under Construction includes $90 million in assets transferred to net investment lease. three three |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships (1) Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2019 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 Additions — 26 — 26 26 Disposals and other (1) 1 (8) (7) (8) Balance at December 31, 2021 4,693 288 1,861 2,149 6,842 Amortization Balance at December 31, 2019 — 174 202 376 376 Amortization — 6 102 108 108 Balance at December 31, 2020 — 180 304 484 484 Amortization — 7 93 100 100 Impairment (Note 10) — 1 23 24 24 Disposals and other — 1 (5) (4) (4) Balance at December 31, 2021 — 189 415 604 604 Carrying amounts Balance at December 31, 2020 4,694 81 1,565 1,646 6,340 Balance at December 31, 2021 4,693 99 1,446 1,545 6,238 (1) The net book value includes purchase price allocations associated with the acquisition of Kinder Morgan on December 16, 2019 of $1.1 billion that have definite lives. The remaining lives of these allocations varies from 14-36 years. Intangible assets have a finite useful life and are amortized using the straight-line method over 8 to 40 years. The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2021 2020 ($ millions) Pipelines 2,714 2,713 Facilities 540 541 Marketing & New Ventures 1,439 1,440 Total goodwill 4,693 4,694 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 (2020: 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 As at December 31, 2021 Pipelines Facilities Marketing & New Ventures (Percent) Key assumptions used After-tax discount rate 6.5 6.4 8.9 Long-term growth rate 1.3 1.8 1.9 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate 2.9 4.1 2.5 |
INVESTMENTS IN EQUITY ACCOUNTED
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | 12 Months Ended |
Dec. 31, 2021 | |
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 For the years ended December 31 ($ millions) 2021 2020 2021 2020 2021 2020 Alliance 50 50 111 105 2,686 2,498 Aux Sable 42.7 - 50 42.7 - 50 77 — 377 401 Ruby (1) — — 12 122 — — Veresen Midstream 45 45 77 50 1,349 1,374 CKPC (2) 50 50 — (314) — — Cedar LNG 49.9 — — — 130 — Other 50 - 75 50 - 75 4 5 80 104 Total 281 (32) 4,622 4,377 (1) Pembina owns a 50 percent convertible, cumulative preferred interest in Ruby. (2) Includes nil (2020: $314 million) 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 $223 million (2020: $98 million) Goodwill, $2.7 billion (2020: $2.8 billion) in property, plant and equipment and intangibles and nil in long-term debt (2020: $33 million). In 2021, the long-term debt purchase price adjustment was fully amortized as an equity accounted investee redeemed its outstanding debt and entered into a new financing arrangement. 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, 2021 of $11 million (2020: $51 million loss) has been included in Other Comprehensive Income. Cedar LNG Acquisition On June 4, 2021, Pembina acquired a 49.9 percent interest in a joint venture with the Haisla Nation to develop the Cedar LNG Project, a LNG facility located on the coast of British Columbia within the Douglas Channel on Haisla-owned land. The purchase price of $125 million was allocated to goodwill as the net fair value of the identifiable assets and liabilities is nil. Pembina's investment of $130 million at December 31, 2021 includes $70 million of accrued contingent consideration payable on achievement of certain conditions. Under the terms of the agreements, Pembina has commitments to make additional payments on a positive final investment decision as well as contributions to fund development costs and annual operating budgets. Impairment of Equity Accounted Investees During 2021, Pembina recognized U.S. $8 million in impairment associated with an advance made to Ruby in January of 2021 and during June 2021, Pembina recognized an impairment charge of $22 million on its interest in Fort Corp. The impairment charge was the result of an assessment triggered by a reduction in the contracted capacity by a key customer on certain Fort Corp assets. In December 2020, Pembina recognized an impairment on its 50 percent convertible, cumulative preferred interest in Ruby and within its investment in CKPC. Refer to Note 10 for further information on impairments. Distributions and Contributions The following table summarizes distributions from and contributions to Pembina's investments in equity accounted investees: For the years ended December 31 Distributions Contributions ($ millions) 2021 2020 2021 2020 Alliance 212 217 299 — Aux Sable 100 19 2 3 Ruby 13 122 — — Veresen Midstream 131 97 29 69 CKPC — — — 152 Cedar LNG — — 5 — Other 5 4 — — Total 461 459 335 224 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 complying with financial covenants. 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. Financing Activities On April 19, 2021, Ruby fully repaid the $16 million outstanding on its term loan. A wholly-owned subsidiary of Ruby has debt obligations in the form of non-recourse, asset level financing. Specifically, the subsidiary has U.S. $475 million of senior notes outstanding, which come due April 1, 2022. Pembina presently does not expect the subsidiary to have adequate funds on hand to retire the senior notes when they come due. Management is currently evaluating options to satisfy this debt upon maturity. On December 10, 2021, Alliance redeemed all of its issued and outstanding senior notes, for a total of $367 million and U.S. $175 million. On December 10, 2021, Alliance issued a new syndicated unsecured credit agreement comprising of a $315 million non-revolving term loan facility, a $30 million revolving facility, a U.S. $250 million non-revolving term loan facility and a U.S. $30 million revolving facility. The credit facilities have a maturity date of December 10, 2024. Summarized Financial Information Financial information for Pembina's equity accounted investees (presented at 100 percent) is presented in the following tables and is prepared under the financial reporting framework adopted by each equity accounted investee (U.S. GAAP except for CKPC and Cedar). Differences between the equity accounted investee's earnings (loss) and earnings (loss) attributable to Pembina relate to the different accounting standards applied and amortization of the excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date, with the exception of Ruby which Pembina owns a 50 percent convertible, cumulative preferred interest and recognizes its share of earnings based on its distribution. Alliance For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue 905 840 Expenses (353) (296) Depreciation and amortization (138) (141) Finance costs and other (1)(2) (115) (61) Earnings 299 342 Earnings attributable to Pembina 111 105 (1) Includes interest income of nil (2020:$2 million). (2) Includes interest expense of $118 million (2020: $66 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 264 122 Non-current assets 1,690 1,816 Current liabilities (2) 67 206 Non-current liabilities (3) 814 1,121 (1) Includes cash and cash equivalents of $168 million (2020:$25 million). (2) Includes trade, other payables and provisions of $48 million (2020: $71 million). (3) Includes trade, other payables and provisions of $9 million (2020:$128 million). Aux Sable For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income (Loss) Revenue 1,967 1,059 Expenses (1,747) (1,019) Depreciation and amortization (43) (49) Earnings (loss) 177 (9) Earnings attributable to Pembina 77 — As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 196 162 Non-current assets 707 757 Current liabilities (2) 143 107 Non-current liabilities (3) 164 155 (1) Includes cash and cash equivalents of $24 million (2020: $50 million). (2) Includes trade, other payables and provisions of $98 million (2020: $103 million). (3) Includes trade, other payables and provisions of $5 million (2020: $5 million). Ruby For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income (Loss) Revenue 286 432 Expenses (8) (29) Depreciation and amortization (26) (143) Impairment — (2,953) Finance costs and other (1) (21) (130) Earnings (loss) 231 (2,823) Earnings attributable to Pembina 12 122 (1) Includes interest expense of $79 million (2020: $104 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 137 50 Non-current assets 662 688 Current liabilities (2) 622 77 Non-current liabilities (3) 302 928 (1) Includes cash and cash equivalents of $113 million (2020: $6 million). (2) Includes trade, other payables and provisions of $1 million (2020: $2 million). (3) Includes trade, other payables and provisions of $296 million (2020: $278 million). Veresen Midstream For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue (4) 661 565 Expenses (216) (177) Depreciation and amortization (4) (191) (177) Finance costs and other (1) (67) (84) Earnings 187 127 Earnings attributable to Pembina 77 50 (1) Includes interest expense of $71 million (2020: $80 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 211 167 Non-current assets (4) 4,605 4,671 Current liabilities (2)(4) 147 114 Non-current liabilities (3)(4) 2,674 2,689 (1) Includes cash and cash equivalents of $1 million (2020: nil). (2) Includes trade, other payables and provisions of $63 million (2020: $80 million). (3) Includes trade, other payables and provisions of $61 million (2020: $56 million). (4) Prior year information has been restated. CKPC For the years ended December 31 ($ millions) 2021 2020 Earnings (Loss) and Comprehensive Income (Loss) Expenses (6) (4) Impairment — (589) Finance costs (1) (1) (33) Earnings (loss) (7) (626) Earnings (loss) attributable to Pembina — (314) (1) Includes interest income of nil (2020: $1 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 33 83 Non-current assets — — Current liabilities (2) 57 99 Non-current liabilities (3) 10 11 (1) Includes cash and cash equivalents of $29 million (2020: $75 million). (2) Includes trade, other payables and provisions of $57 million (2020: $99 million). (3) Includes trade, other payables and provisions of $10 million (2020: $11 million). Cedar LNG Cedar LNG was formed in June 2021 and has not yet commenced operations and therefore has not recognized material revenues or expenses. As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets 2 — Non-current assets 50 — Current liabilities (1) 6 — Non-current liabilities (2) 36 — (1) Includes trade, other payables and provisions of $3 million (2020: nil). (2) Includes trade, other payables and provisions of $34 million (2020: nil). Other For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue 57 51 Expenses (23) (16) Depreciation and amortization (15) (16) Finance costs and other (1) — (5) Earnings 19 14 Earnings attributable to Pembina 4 5 (1) Includes interest expense of $1 million (2020: $2 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 6 6 Non-current assets 104 117 Current liabilities (2) 25 25 Non-current liabilities (3) 42 64 (1) Includes cash and cash equivalents of $1 million (2020: $1 million). (2) Includes trade, other payables and provisions of $4 million (2020: $3 million). (3) Includes trade, other payables and provisions of $1 million (2020: $1 million). |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of impairment loss and reversals of impairment loss [Abstract] | |
IMPAIRMENTS | IMPAIRMENTS For the year ended December 31, 2021 ($ millions) Property, Plant & Equipment (Note 7) Intangible Assets and Goodwill (Note 8) Right-of-use Assets (Note 13) Equity Accounted Investees (Note 9) Other Total Impairment Expense Oil Sands Assets 368 24 27 — 5 424 Other 12 — — 22 16 50 Total impairments 380 24 27 22 21 474 During the year ended December 31, 2021, Pembina recognized an impairment charge of $474 million ($361 million net of tax), of which $424 million related to the impairment of the Nipisi and Mitsue Pipeline systems and the Edmonton South Rail Terminal as a result of contract expirations. The remaining charge related to partial impairments of equity accounted investees, discussed in Note 9. For the year ended December 31, 2020 ($ millions) Property, Plant & Equipment (Note 7) Equity Accounted Investees (Note 9) 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 expected 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 propane dehydration plant and polypropylene upgrading 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 was terminated in April 2021. 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 $314 million plus an incremental impairment of the remaining investment value, based on a fair value less costs of disposal approach which determined the recoverable amount of the investment to be nil (Level 3). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES The movements of the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2020 Recognized in Earnings (Loss) Recognized in Other Comprehensive Loss Equity Other Balance at December 31, 2021 Deferred income tax assets Derivative financial instruments 4 (20) — — — (16) Employee benefits 11 2 (11) — — 2 Share-based payments 14 10 — — — 24 Provisions 83 17 — — — 100 Benefit of loss carryforwards 275 110 — — — 385 Other deductible temporary differences 51 (41) — — (3) 7 Deferred income tax liabilities Property, plant and equipment 2,091 159 — — — 2,250 Intangible assets 260 (9) — — — 251 Investments in equity accounted investees 692 17 — — — 709 Taxable limited partnership income deferral (2) 48 — — — 46 Total net deferred tax liabilities (1) 2,603 137 11 — 3 2,754 ($ millions) Balance at December 31, 2019 Recognized in Earnings (Loss) Recognized in Other 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 (1) 2,945 (340) — 2 (4) 2,603 (1) Comprised of deferred tax liabilities of $3.0 billion (2020: $2.9 billion) net of deferred tax assets of $257 million (2020: $322 million). Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2021 2020 Earnings (loss) before income tax 1,665 (416) Canadian statutory tax rate (percent) 23.3 24.6 Income tax at statutory rate 388 (102) Tax rate changes and foreign rate differential (19) (5) Changes in estimate and other 21 (5) Permanent items 12 12 Unrecognized tax attribute 21 — Income tax expense (recovery) 423 (100) Income Tax Expense For the years ended December 31 ($ millions) 2021 2020 Current tax expense 286 240 Deferred tax expense Origination and reversal of temporary differences 235 (485) Tax rate changes on deferred tax balances 14 32 (Increase) decrease in tax loss carry forward (112) 113 Total deferred tax expense (recovery) 137 (340) Total income tax expense (recovery) 423 (100) Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2021 2020 Share issue costs — (2) Other comprehensive income (loss) (Note 24) : Change in fair value of net investment hedges — (4) Remeasurements of defined benefit (asset) liability (11) 4 Deferred tax items recovered directly in equity (11) (2) Pembina has temporary differences associated with its investments in subsidiaries. At December 31, 2021, Pembina has not recorded a deferred tax asset or liability for these temporary differences (2020: 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, 2021, Pembina had U.S. $1.1 billion (2020: U.S. $758 million) of U.S. tax losses that do not expire and $42 million (2020: $43 million) of Canadian tax losses that will expire after 2036. Pembina has determined that it is probable that future taxable profits will be sufficient to utilize these losses. The amount of unrecognized deferred tax asset as at December 31, 2021 was $21 million (2020: nil). |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES AND OTHER | TRADE PAYABLES AND OTHER As at December 31 ($ millions) 2021 2020 Trade payables 652 434 Other payables & accrued liabilities 411 346 Total trade payables and other 1,063 780 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
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 $127 million for the year ended December 31, 2021 (2020: $131 million). Right-of-Use Assets ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2020 225 238 118 110 691 Additions — 24 22 — 46 Depreciation (12) (41) (19) (14) (86) Balance at December 31, 2020 213 221 121 96 651 Additions and adjustments 2 1 40 18 61 Disposals and other — (4) — (9) (13) Depreciation (20) (41) (18) (12) (91) Impairment (27) — — — (27) Balance at December 31, 2021 168 177 143 93 581 Lessor Leases Pembina has entered into contracts for the use of its assets that have resulted in lease treatment for accounting purposes. Assets under operating leases include pipelines, terminals and storage assets. See Note 7 for carrying value of property, plant and equipment under operating leases. Assets under finance leases include pipelines, terminals, storage assets and office sub-leases. Maturity of Lease Receivables As at December 31 2021 2020 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 31 146 23 One to two years 140 31 142 23 Two to three years 121 31 139 22 Three to four years 109 32 121 22 Four to five years 108 31 109 22 More than five years 725 319 874 224 Total undiscounted lease receipts 1,349 475 1,531 336 Unearned finance income on lease receipts (270) (199) Discounted unguaranteed residual value 15 8 Finance lease receivable 220 145 Less current portion (1) (9) (7) Total non-current 211 138 (1) Included in trade receivables and other on the Consolidated Statement of Financial Position. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT This note provides information about the contractual terms of Pembina's interest-bearing long-term debt, which are measured at amortized cost. Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2021 Nominal Interest Rate Year of Maturity December 31, 2021 December 31, 2020 Loans and borrowings Senior unsecured credit facilities (1)(3)(4) 3,336 1.20 (2) Various (1) 907 1,530 Senior unsecured medium-term notes series 1 — 4.89 2021 — 250 Senior unsecured medium-term notes series 2 450 3.77 2022 450 449 Senior unsecured medium-term notes series 3 450 4.75 2043 447 447 Senior unsecured medium-term notes series 4 600 4.81 2044 597 597 Senior unsecured medium-term notes series 5 450 3.54 2025 449 449 Senior unsecured medium-term notes series 6 500 4.24 2027 499 498 Senior unsecured medium-term notes series 7 600 3.71 2026 602 603 Senior unsecured medium-term notes series 8 650 2.99 2024 648 647 Senior unsecured medium-term notes series 9 550 4.74 2047 542 542 Senior unsecured medium-term notes series 10 650 4.02 2028 660 661 Senior unsecured medium-term notes series 11 800 4.75 2048 841 842 Senior unsecured medium-term notes series 12 650 3.62 2029 654 654 Senior unsecured medium-term notes series 13 700 4.54 2049 712 713 Senior unsecured medium-term notes series 14 600 2.56 2023 599 599 Senior unsecured medium-term notes series 15 600 3.31 2030 597 597 Senior unsecured medium-term notes series 16 400 4.67 2050 397 397 Senior unsecured medium-term notes series 17 500 3.53 2031 497 — Senior unsecured medium-term notes series 18 500 4.49 2051 497 — Senior unsecured medium-term notes series 3A 50 5.05 2022 50 51 Senior unsecured medium-term notes series 5A — 3.43 2021 — 350 Total loans and borrowings 10,645 10,876 Less current portion loans and borrowings (1,000) (600) Total non-current loans and borrowings 9,645 10,276 Subordinated hybrid notes Subordinated notes, series 1 600 4.80 2081 594 — (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures in June 2026, a $500 million non-revolving term loan that matures in August 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 2022, 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, 2021. 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, 2021 (December 31, 2020: U.S. $250 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 25 for foreign exchange risk management. On January 25, 2021, Pembina closed a $600 million offering of Fixed-to-Fixed Rate Subordinated Hybrid Notes (the "Series 1 Subordinated Notes"). The Series 1 Subordinated Notes have a fixed 4.80 percent interest rate, payable semi-annually, which resets on January 25, 2031, and on every fifth anniversary thereafter, based on the five-year Government of Canada yield plus: (i) 4.17 percent for the period from, and including, January 25, 2031 to, but excluding January 25, 2051; and (ii) 4.92 percent for the period from, and including, January 25, 2051 to, but excluding January 25, 2081. The Series 1 Subordinated Notes are subject to optional redemption by Pembina from October 25, 2030 to January 25, 2031 and on any interest payment date or any interest reset date, as applicable. Pembina may also redeem the Series 1 Subordinated Notes in certain other limited circumstances. Following the occurrence of certain bankruptcy or insolvency events in respect of Pembina, subject to certain exceptions, the Series 2021-A Class A Preferred Shares (as defined below) will be delivered to the holders of the Series 1 Subordinated Notes to satisfy Pembina's obligations under the indenture governing the Series 1 Subordinated Notes. Upon delivery of the Series 2021-A Class A Preferred Shares, the Series 1 Subordinated Notes will be immediately and automatically surrendered and cancelled and all rights of any holders of the Series 1 Subordinated Notes will automatically cease. The fair value of the automatic delivery feature was assessed as nominal at inception. On March 25, 2021, Pembina cancelled its $800 million revolving credit facility. No balance was outstanding on the cancellation date. On April 30, 2021, Pembina completed an extension on its $2.5 billion revolving credit facility, which now matures on June 1, 2026. On December 10, 2021, Pembina closed an offering of $1.0 billion of senior unsecured medium-term notes. The offering was conducted in two tranches, consisting of the issuance of $500 million in senior unsecured medium-term notes, series 17, having a fixed coupon of 3.53 percent per annum, payable semi-annually and maturing on December 10, 2031; and $500 million in senior unsecured medium-term notes, series 18, having a fixed coupon of 4.49 percent per annum, payable semi-annually and maturing on December 10, 2051. For more information about Pembina's exposure to interest rate, foreign currency and liquidity risk, see Note 25 Financial Instruments . |
DECOMISSIONING PROVISION
DECOMISSIONING PROVISION | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
DECOMMISSIONING PROVISION | DECOMMISSIONING PROVISION The decommissioning provision reflects the discounted cash flows expected to be incurred to decommission Pembina's pipeline systems, gas processing and fractionation plants, storage and terminalling hubs, including estimated environmental reclamation and remediation costs. Changes in the measurement of the decommissioning provision are added to, or deducted from, the cost of the related property, plant and equipment or right of use asset. When a re-measurement of the decommissioning provision relates to a retired asset, the amount is recorded in earnings (loss). The undiscounted cash flows at the time of decommissioning are calculated using an estimated timing of economic outflows ranging from one ($ millions) 2021 2020 Balance at January 1 348 337 Unwinding of discount rate 16 15 Additions 29 11 Change in cost estimates and other 19 (15) Balance at December 31 412 348 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 548 15,539 Share-based payment transactions 2 105 Balance at December 31, 2020 550 15,644 Share-based payment transactions — 47 Repurchased — (13) Balance at December 31, 2021 550 15,678 On February 25, 2021, the Toronto Stock Exchange ("TSX") accepted the Company's notice of intention to commence a normal course issuer bid ("NCIB") that allows the Company to repurchase, at its discretion, up to approximately 27.5 million common shares through the facilities of the TSX, the New York Stock Exchange and/or alternative Canadian trading systems or as otherwise permitted by applicable securities law, subject to certain restrictions on the number of common shares that may be purchased on a single day. Common shares purchased by the Company will be cancelled. The NCIB commenced March 2, 2021 and will terminate on March 1, 2022 or on such earlier date as the Company has purchased the maximum number of common shares permitted pursuant to the notice of intention. The following table summarizes Pembina's share repurchases under its NCIB: For the years ended December 31 (millions, except as noted) 2021 2020 Number of common shares repurchased for cancellation (thousands) 450 — Average price per share $37.77 — Total cost (1) 17 — (1) Total cost includes $13 million (2020: nil) charged to share capital and $4 million (2020: nil) charged to deficit. Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2019 122 2,956 Part VI.1 tax — (10) Balance at December 31, 2020 122 2,946 Class A, Series 11 Preferred shares redeemed, net of issue costs (7) (170) Class A, Series 13 Preferred shares redeemed, net of issue costs (10) (250) Part VI.1 tax — (9) Balance at December 31, 2021 105 2,517 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. On January 25, 2021, in connection with the offering of the Series 1 Subordinated Notes, Pembina issued 600,000 Series 2021-A Class A Preferred Shares, to Computershare Trust Company of Canada, to be held in trust as treasury shares to satisfy Pembina's obligations under the indenture governing the Series 1 Subordinated Notes. On March 1, 2021, Pembina redeemed all of the 6.8 million issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 11 (the "Series 11 Class A Preferred Shares") for a redemption price equal to $25.00 per Series 11 Class A Preferred Share. On June 1, 2021, Pembina redeemed all of the 10 million issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 13 (the "Series 13 Class A Preferred Shares") for a redemption price equal to $25.00 per Series 13 Class A Preferred Shares, less taxes required to be deducted or withheld by the Company. Dividends The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2021 2020 Common shares $2.52 per common share (2020: $2.52) 1,386 1,385 Class A preferred shares $1.23 per Series 1 Class A Preferred Share (2020: $1.23) 12 12 $1.12 per Series 3 Class A Preferred Share (2020: $1.12) 7 7 $1.14 per Series 5 Class A Preferred Share (2020: $1.14) 11 11 $1.10 per Series 7 Class A Preferred Share (2020: $1.10) 11 11 $1.08 per Series 9 Class A Preferred Share (2020: $1.18) 10 11 $0.36 per Series 11 Class A Preferred Share (2020: $1.44) 2 10 $0.72 per Series 13 Class A Preferred Share (2020: $1.44) 7 14 $1.12 per Series 15 Class A Preferred Share (2020: $1.12) 9 9 $1.21 per Series 17 Class A Preferred Share (2020: $1.21) 7 7 $1.17 per Series 19 Class A Preferred Share (2020: $1.21) 10 10 $1.23 per Series 21 Class A Preferred Share (2020: $1.23) 20 20 $1.31 per Series 23 Class A Preferred Share (2020: $1.31) 16 16 $1.30 per Series 25 Class A Preferred Share (2020: $1.30) 13 13 135 151 On January 6, 2022, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share in the total amount of $116 million, payable on February 15, 2022 to shareholders of record on January 25, 2022. On February 3, 2022, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share in the total amount of $116 million, payable on March 15, 2022 to shareholders of record on February 25, 2022. Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares on January 6, 2022 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2022 March 1, 2022 $0.306625 3 Series 3 February 1, 2022 March 1, 2022 $0.279875 2 Series 5 February 1, 2022 March 1, 2022 $0.285813 3 Series 7 February 1, 2022 March 1, 2022 $0.273750 3 Series 9 February 1, 2022 March 1, 2022 $0.268875 2 Series 15 March 15, 2022 March 31, 2022 $0.279000 2 Series 17 March 15, 2022 March 31, 2022 $0.301313 2 Series 19 March 15, 2022 March 31, 2022 $0.292750 2 Series 21 February 1, 2022 March 1, 2022 $0.306250 5 Series 23 January 31, 2022 February 15, 2022 $0.328125 4 Series 25 January 31, 2022 February 15, 2022 $0.325000 3 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contracts With Customers [Abstract] | |
REVENUE | REVENUE Revenue has been disaggregated into categories to reflect how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.Revenue Disaggregation 2021 2020 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,642 754 — 2,396 1,664 740 — 2,404 Fee-for-service (1) 348 138 — 486 295 117 — 412 Product sales (2) — — 5,577 5,577 — — 2,956 2,956 Revenue from contracts with customers 1,990 892 5,577 8,459 1,959 857 2,956 5,772 Operational finance lease income 17 2 — 19 15 — — 15 Fixed operating lease income 116 33 — 149 131 35 — 166 Total external revenue 2,123 927 5,577 8,627 2,105 892 2,956 5,953 (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: 2021 2020 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 3 289 292 8 223 231 Additions (net in the period) — 64 64 3 117 120 Revenue recognized from contract liabilities (1) — (65) (65) (8) (51) (59) Closing balance 3 288 291 3 289 292 Less current portion (2) (3) (68) (71) (3) (59) (62) Ending balance — 220 220 — 230 230 (1) Recognition of revenue related to performance obligations satisfied in the current period that were included in the opening balance of contract liabilities. (2) As at December 31, 2021, 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 $14.5 billion (2020: $16.1 billion as restated). Over the next five years, this remaining performance obligation will be recognized annually ranging from $2.0 billion (2020: $1.9 billion as restated) declining to $1.3 billion (2020: $1.5 billion as restated). Subsequently, up to 2047 (2020: 2047), Pembina will recognize from $1.1 billion (2020: $1.3 billion as restated) to $7 million (2020: $7 million as restated) per year. In preparing the above figures, Pembina has taken 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. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
OTHER INCOME | OTHER INCOMEFor the year ended December 31, 2021, other income includes $350 million associated with Pembina's termination of the arrangement agreement providing for the proposed acquisition by Pembina of Inter Pipeline Ltd. |
NET FINANCE COSTS
NET FINANCE COSTS | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
NET FINANCE COSTS | NET FINANCE COSTS For the years ended December 31 ($ millions) 2021 2020 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 362 362 Subordinated hybrid notes 27 — Leases 35 39 Unwinding of discount rate 16 15 Loss (gain) in fair value of non-commodity-related derivative financial instruments 19 (5) Foreign exchange (gains) losses and other (9) 9 Net finance costs 450 420 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
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, and a liquefied propane export facility on Canada's West Coast, which provide Pembina's customers with natural gas and NGL services that are highly integrated with Pembina's other businesses. In addition, the Facilities segment includes 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 President and Chief Executive Officer, interim 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, 2021 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,123 927 5,577 — 8,627 Inter-segment revenue 156 436 — (592) — Total revenue (3) 2,279 1,363 5,577 (592) 8,627 Operating expenses (4) 556 471 — (266) 761 Cost of goods sold, including product purchases — 6 5,017 (334) 4,689 Depreciation and amortization included in operations 413 214 50 7 684 Cost of sales 969 691 5,067 (593) 6,134 Realized (gain) loss on commodity-related derivative financial instruments — (10) 210 — 200 Unrealized gain on commodity-related derivative financial instruments — (38) (35) — (73) Share of profit from equity accounted investees 124 80 77 — 281 Gross profit 1,434 800 412 1 2,647 Depreciation included in general and administrative — — — 39 39 Other general and administrative (4) 30 14 29 194 267 Other expense (income) 11 14 (5) (268) (248) Impairment expense 447 22 5 — 474 Reportable segment results from operating activities 946 750 383 36 2,115 Net finance costs (income) 29 35 (8) 394 450 Reportable segment earnings (loss) before tax 917 715 391 (358) 1,665 Capital expenditures 475 136 21 26 658 Contributions to equity accounted investees 299 29 7 — 335 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 2,956 — 5,953 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 2,956 (485) 5,953 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 2,815 (317) 2,509 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 2,865 (484) 3,883 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 (loss) 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 (1) Pipelines transportation revenue includes $207 million (2020: $228 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $265 million (2020: $143 million) associated with U.S. midstream sales. (3) During 2021 and 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (4) Pembina incurred $440 million (2020: $370 million) of employee costs, of which $265 million (2020: $244 million) was recorded in operating expenses and $175 million (2020:$126 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. Non-Current Assets For the years ended December 31 ($ millions) 2021 2020 Canada 26,128 26,504 United States 3,826 3,601 Total non-current assets (1) 29,954 30,105 (1) Excludes deferred income tax assets. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic Earnings (Loss) Per Common Share The calculation of basic earnings per common share at December 31, 2021 was based on the earnings attributable to common shareholders of $1.1 billion (2020: $476 million loss) and a weighted average number of common shares outstanding of 550 million (2020: 550 million). Diluted Earnings (Loss) Per common Share The calculation of diluted earnings per common share at December 31, 2021 was based on earnings attributable to common shareholders of $1.1 billion (1) (2020: $476 million loss), and weighted average number of common shares outstanding after adjustment for the effects of all dilutive potential common shares of 551 million (2020: 550 million). Earnings (Loss) Attributable to Common Shareholders For the years ended December 31 ($ millions) 2021 2020 Earnings (loss) 1,242 (316) Dividends on preferred shares (135) (148) Cumulative dividends on preferred shares, not yet declared (9) (12) Basic and diluted earnings (loss) attributable to common shareholders 1,098 (476) Weighted Average Number of Common Shares (In millions of shares, except as noted) 2021 2020 Issued common shares at January 1 550 548 Effect of shares issued on exercise of options — 2 Basic weighted average number of common shares at December 31 550 550 Dilutive effect of share options on issue (1) 1 — Diluted weighted average number of common shares at December 31 551 550 Basic earnings (loss) per common share (dollars) 2.00 (0.86) Diluted earnings (loss) per common share (dollars) 1.99 (0.86) (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, 2021 was based on quoted market prices for the period during which the options were outstanding. |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits [Abstract] | |
PENSION PLAN | PENSION PLAN As at December 31 ($ millions) 2021 2020 Registered defined benefit net (asset) obligation (11) 26 Supplemental defined benefit net obligation 17 18 Net employee benefit obligations 6 44 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 $11 million in expense for the defined contribution plan during the year (2020: $12 million). The defined benefit plans include a funded registered plan for all eligible employees and an unfunded supplemental retirement plan for those employees affected by the Canada Revenue Agency maximum pension limits. The defined benefit plans are administered by separate pension funds that are legally separated from Pembina. Benefits under the plans are based on the length of service and the annual average best three years of earnings during the last 10 years of service of the employee. Benefits paid out of the plans are not indexed. Pembina measures its accrued benefit obligations and the fair value of plan assets for accounting purposes as at December 31 of each year. The most recent actuarial funding valuation was at December 31, 2020. The defined benefit plans expose Pembina to actuarial risks such as longevity risk, interest rate risk, and market (investment) risk. Effective January 1, 2021, Pembina revised the eligibility requirements for the defined benefit plan. Employees with an age plus years of service of 40 at January 1, 2021 will remain eligible for the defined benefit plan, when their age plus years of service reaches 50. All other employees will remain in the defined contribution plan. Defined Benefit Obligations As at December 31 ($ millions) 2021 2020 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 17 — 18 Present value of funded obligations 257 — 278 — Total present value of obligations 257 17 278 18 Fair value of plan assets 268 — 252 — Recognized defined benefit assets (obligations) 11 (17) (26) (18) 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, 2021 (2020: $23 million). Pembina has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements of the plans, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at December 31, 2021 (December 31, 2020: nil). Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2021 2020 Equity securities 61 63 Debt 39 37 100 100 Movement in the Present Value of the Defined Benefit Pension Obligation 2021 2020 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 278 18 250 16 Benefits paid by the plan (28) (1) (28) (2) Current service costs 27 1 18 1 Interest expense 7 1 8 1 Actuarial (gains) losses in other comprehensive income (27) (2) 30 2 Defined benefit obligations at December 31 257 17 278 18 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2021 2020 Fair value of plan assets at January 1 252 231 Contributions paid into the plan 23 23 Benefits paid by the plan (28) (28) Return on plan assets 15 18 Interest income 6 8 Fair value of registered plan assets at December 31 268 252 Expense Recognition in Earnings (Loss) For the years ended December 31 ($ millions) 2021 2020 Registered Plan Current service costs 28 19 Interest on obligation 8 9 Interest on plan assets (6) (8) 30 20 The expense is recognized in the following line items in the consolidated statement of comprehensive income (loss): For the years ended December 31 ($ millions) 2021 2020 Registered Plan Operating expenses 16 10 General and administrative expense 14 10 30 20 Expense recognized for the Supplemental Plan was less than $2 million for each of the years ended December 31, 2021 and 2020. Actuarial Gains and Losses Recognized in Other Comprehensive Income (Loss) 2021 2020 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (41) (4) (45) (33) (2) (35) Remeasurements: Financial assumptions 19 2 21 (13) (1) (14) Experience adjustments 2 — 2 (10) (1) (11) Return on plan assets excluding interest income 11 — 11 15 — 15 Recognized gain (loss) during the period after tax 32 2 34 (8) (2) (10) Balance at December 31 (9) (2) (11) (41) (4) (45) Principal actuarial assumptions used: As at December 31 (weighted average percent) 2021 2020 Discount rate 3.2 2.6 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) 2021 2020 Longevity at age 65 for current pensioners Males 22.0 21.9 Females 24.3 24.3 Longevity at age 65 for current member aged 45 Males 23.0 22.9 Females 25.3 25.2 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 3.2 percent by 100 basis points at December 31, 2021 is considered reasonably possible in the next financial year. An increase by 100 basis points would result in a $37 million reduction to the obligation whereas, a decrease would lead to a $46 million increase to the obligation. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS At December 31, 2021, 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 employees. 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. In 2021, Pembina granted select executive officers and non-officers stock options that vest after a four Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Employees and Directors (thousands of units, except as noted) PSUs (2) RSUs (2) DSUs Total 2020 469 487 31 987 2021 704 1,429 44 2,177 (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) 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. In 2021, Pembina granted additional RSUs that vest 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, 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 Granted 2,695 $36.36 Exercised (464) $34.41 Forfeited (835) $39.23 Expired (3,201) $47.87 Outstanding at December 31, 2021 19,971 $41.33 As of December 31, 2021, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2021 Options Exercisable Weighted Average Remaining Life $26.83 – $35.25 3,517 1,102 5.2 $35.26 – $41.38 4,149 1,700 4.6 $41.39 – $43.41 2,677 2,677 2.7 $43.42 – $46.00 4,618 2,722 4.5 $46.01 – $49.78 5,010 3,575 4.3 Total 19,971 11,776 4.4 Options are exercised regularly throughout the year. Therefore, the weighted average share price during the year of $40.17 (2020: $49.79) 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 2021 2021 2020 (dollars, except as noted) Graded Vesting Cliff Vesting Graded Vesting Weighted average Fair value at grant date 7.78 6.59 3.82 Expected volatility (percent) 49.06 40.01 36.61 Expected option life (years) 3.67 5.00 3.67 Expected annual dividends per option 2.52 2.52 2.52 Expected forfeitures (percent) 7.1 7.1 6.9 Risk-free interest rate (based on government bonds) (percent) 0.6 1.0 0.5 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, 2021 of $37.99 (2020: $32.53). Actual payment may differ from amount valued based on market price and company performance. Employee Expenses For the years ended December 31 ($ millions) 2021 2020 Share option plan, equity settled 31 17 Long-term share unit award incentive plan 69 11 Share-based compensation expense 100 28 Total carrying amount of liabilities for cash settled arrangements 88 60 Total intrinsic value of liability for vested benefits 56 39 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total 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 Other comprehensive (loss) gain before hedging activities (18) — 34 16 Other comprehensive gain resulting from hedging activities (1) 2 8 — 10 Balance at December 31, 2021 32 8 (12) 28 (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 25). (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, 2021 | |
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 Board of Directors has approved a counterparty exposure limit matrix which establishes the maximum exposure that can be approved for a counterparty based on debt rating. 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, 2021 letters of credit totaling $100 million (December 31, 2020: $130 million) were held primarily in respect of customer trade receivables. Pembina typically has collected its trade receivables in full and at December 31, 2021, 98 percent were current (2020: 94 percent). Management defines current as outstanding accounts receivable under 30 days past due. Pembina has a general lien and a continuing and first priority security interest in, and a secured charge on, all of a shipper's petroleum products in its custody. At December 31, the aging of past due trade and other receivables was as follows: ($ millions) 2021 2020 31-60 days past due 2 3 Greater than 61 days past due 2 8 4 11 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, 2021 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. 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 As at December 31, 2021 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 1,063 1,063 1,063 — — — Loans and borrowings 10,645 16,535 1,478 1,944 2,088 11,025 Subordinated hybrid notes 594 874 41 58 58 717 Dividends payable 115 115 115 — — — Derivative financial liabilities 59 59 59 — — — Lease liabilities 723 978 113 181 152 532 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, 2021 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (40) 40 Natural gas 11 (11) NGL (2) (39) 39 (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, 2021 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (27) 27 (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 USD London Interbank Offered Rate ("LIBOR"). 1-Week and 2-Month USD LIBOR rates have been phased out on December 31, 2021 and other USD LIBOR rates will cease to be published at the end of June 2023. LIBOR will likely be replaced by a secured overnight financing rate. 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) 2021 2020 Carrying amounts of financial liability Fixed rate instruments (1) 11,055 10,120 Variable rate instruments (2) 907 1,530 11,962 11,650 (1) Includes lease liabilities and subordinated hybrid notes. (2) At December 31, 2021, 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, 2020: U.S. $250 million). Cash Flow Sensitivity Analysis for Variable Rate Instruments The following table shows the impact on earnings if interest rates at the reporting date would have (increased) decreased earnings by 100 basis points, with other variables held constant. As at December 31, 2021 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (11) 11 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, trade payables and other, and other liabilities have been excluded because they have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. These instruments would be classified in Level 2 of the fair value hierarchy. 2021 2020 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) 95 — 84 11 53 — 53 — Financial liabilities carried at fair value Derivative financial instruments (3) 59 — 59 — 69 — 69 — Contingent consideration (4) 70 — 35 35 — — — — Financial liabilities carried at amortized cost Loans and borrowings (2) 11,239 — 11,814 — 10,876 — 11,902 — (1) The basis for determining fair value is disclosed in Note 4. (2) Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes. (3) At December 31, 2021 all derivative financial instruments are carried at fair value through earnings, except for $8 million in interest rate derivative financial assets that have been designated as cash flow hedges. (4) Included in trade payables and other and other liabilities. See Note 9 for further details. Level 2 Pembina's Level 2 financial instruments carried at fair value are valued using inputs that include quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter physical forwards and options, including those that have prices similar to quoted market prices. Pembina obtains quoted market prices for its inputs from information sources including banks, Bloomberg Terminals and Natural Gas Exchange. The significant unobservable inputs used in the fair value measurement of the Level 3 derivative instrument were as follows: Significant Unobservable Inputs (percent) 2021 Wind discount 29.0 Wind escalation rate 4.5 Wind capacity 38.2 Wind discount inputs are adjusted for management's projections of wind discount escalation over time which cannot be substantially observed or corroborated in the marketplace. The table below shows the impact to earnings associated with the change in fair value of the derivative if the following significant unobservable inputs at the reporting date would have (increased) decreased, with other variables held constant. Management concluded that changes in the wind capacity factor would not have a material impact to the fair value measurement. As at December 31, 2021 ($ millions) Sensitivity Range Increase Decrease Wind discount +/- 20 percent (38) 38 Wind escalation rate +/- 10 percent (8) 8 Changes in net fair value of derivative asset and liability classified as Level 3 in the fair value hierarchy were as follows: For the year ended December 31 ($ millions) 2021 Level 3 net derivative asset at beginning of period — Total gain (loss): Included in earnings 11 Level 3 net derivative asset at end of period 11 There were no transfers into or out of Level 3 during the year ended December 31, 2021. 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) 2021 2020 Derivatives 0.4 - 1.8 0.5 - 0.7 Loans and borrowings 1.1 - 5.0 0.5 - 3.9 Fair value of power derivatives are based on market rates reflecting forward curves. Derivative instruments Pembina enters into derivative instruments to hedge future cash flows associated with interest rate, commodity, and foreign exchange exposures. Derivatives are considered effective hedges to the extent that they offset the changes in value of the hedged item or transaction resulting from a specified risk factor. In some cases, even though the derivatives are considered to be effective economic hedges, they do not meet the specific criteria for hedge accounting treatment and are classified as held at fair value through profit or loss ("FVTPL"). The following table is a summary of the net derivative financial instruments: 2021 2020 As at December 31 ($ millions) Current Asset (1) Non-Current Asset Current Liability (1) Non-Current Liability Total Current Asset (1) Non-Current Asset Current Liability (1) Total Commodity, power, storage and rail financial instruments 13 73 (48) (6) 32 11 27 (68) (30) Interest rate 1 8 — — 9 — 1 (1) — Foreign exchange — — (5) — (5) 14 — — 14 Net derivative financial instruments 14 81 (53) (6) 36 25 28 (69) (16) (1) At December 31, 2021 the derivative financial instruments were offset by $11 million (2020: $6 million) when determining the net amounts presented on the consolidated statement of financial position. Notional and Maturity Summary The maturity and notional amount or quantity outstanding related to Pembina's derivative instruments are as follows: ($ millions) Liquids (bpd) Natural Gas (GJ/d) Power (GWh) Foreign Exchange Interest Rate As at December 31, 2021 Purchases (1) — 62,615 6,166 — — Sales (1) 16,550 — — — — Millions of U.S. dollars — — — 272 250 Maturity dates 2022 2022 2040 2022 2025 As at December 31, 2020 Purchases (1)(2) 1,756 73,557 — — — Sales (1) 25,284 — — — — Millions of U.S. dollars — — — 260 250 Maturity dates 2021 2021 2021 2021 2025 (1) Barrels per day ("bpd"), gigajoules per day ("GJ/d") and gigawatt hours ("GWh"). Gains and Losses on Derivative Instruments Realized and unrealized losses (gains) on derivative instruments are as follows: For the years ended December 31 ($ millions) 2021 2020 Derivative instruments held at FVTPL (1) Realized loss (gain) Commodity-related 200 (54) Foreign exchange (12) 2 Unrealized (gain) loss Commodity-related (73) 84 Foreign exchange 19 5 Derivative instruments in hedging relationships (2) Unrealized (gain) loss Interest rate (8) — (1) Realized and unrealized losses (gains) on commodity derivative instruments held at FVTPL are included in loss (gain) on commodity-related derivative financial instruments in the Consolidated Financial Statements. Realized and unrealized losses (gains) on foreign exchange derivative instruments held at FVTPL are included in net finance costs in the Consolidated Financial Statements. (2) Unrealized losses (gains) on derivatives in designated cash flow hedging relationships are recognized in the cash flow hedge reserve in accumulated other comprehensive income, with realized (gains) losses being reclassified to net finance costs. Refer to Note 24 for amounts reclassified. No (gains) losses have been recognized in net income relating to discontinued cash flow hedges. Non-Derivative Instruments Designated as Net Investment Hedges Pembina has designated certain U.S. 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 income. The following balances of U.S. dollar debt had been designated as hedges: For the years ended December 31 ($ millions) 2021 2020 Notional amount of U.S. debt designated (in U.S. dollars) 250 250 Carrying value of U.S. debt designated 316 317 Maturity date 2025 2025 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021. Note 16 of these financial statements shows the change in share capital for the year ended December 31, 2021. |
GROUP ENTITIES
GROUP ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
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 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
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 investees, advances funds to support operations, provides letters of credit, including financial guarantees, 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) 2021 2020 For the years ended December 31: Services provided 162 136 Services received 31 14 Interest income 15 14 As at December 31: Advances to related parties (1) 8 13 Trade receivables and other 7 7 Trade payables and accrued liabilities 27 18 (1) During the year ended December 31, 2021, Fort Corp. repaid advances of $5 million (2020: $5 million). During the year ended December 31, 2021, Pembina advanced U.S. $10 million (2020: U.S. $24 million) to Ruby and recognized an impairment of U.S. $10 million (2020: U.S. $110 million) on its advances to Ruby (Note 10). Key Management Personnel and Director Compensation Key management consists of Pembina's directors and certain key officers. Compensation In addition to short-term employee benefits, including salaries, director fees and short-term incentives, Pembina also provides key management personnel with share-based compensation, contributes to post employment pension plans and provides car allowances, parking and business club memberships. Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2021 2020 Short-term employee benefits 9 8 Share-based compensation and other (1) 53 3 Total compensation of key management 62 11 (1) Includes termination benefits. 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, 2021 (December 31, 2020: nil). ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2021 2020 Defined benefit plan Funding 23 23 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (2) 978 113 181 152 532 Long-term debt (3) 17,409 1,519 2,002 2,146 11,742 Construction commitments (4) 1,042 435 32 24 551 Other 531 92 120 74 245 Total contractual obligations 19,960 2,159 2,335 2,396 13,070 (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) Includes loans and borrowings, subordinated hybrid notes and interest payments on Pembina's senior unsecured medium-term notes and subordinated hybrid notes. Excludes deferred financing costs. (4) Excluding significant projects that are awaiting regulatory approval, projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. Commitments to Equity Accounted Investees Pembina has commitments to provide contributions to certain equity accounted investees based on annual budgets approved by the joint venture partners and contractual agreements. Contingencies Pembina, including its subsidiaries and its investments in equity accounted investees, are subject to various legal and regulatory and tax proceedings, actions and audits arising in the normal course of business. We represent our interests vigorously in 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. As at December 31, 2021, Pembina had $135 million (December 31, 2020: $91 million) in letters of credit issued. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | |
Basis of Measurement | Basis of Measurement The Consolidated Financial Statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below. |
Basis of Consolidation | Basis of Consolidation These Consolidated Financial Statements include the results of the Company and its subsidiaries together with its interest in joint arrangements. i) 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. Non-controlling interests represent existing outside owned equity interests in a 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. ii) 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. iii) 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. iv) 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. |
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 a pandemic in March 2020, many governments have imposed restrictions on individuals and businesses to contain the spread of the virus, which adversely impacted global commercial activity and significantly increased economic uncertainty. Although restrictions have largely been relaxed and vaccination programs implemented, there continues to be uncertainty and the potential for continued volatility in the global economy as a result of the possible resurgence of the virus, including variants, while the COVID-19 pandemic remains. Management considered these uncertainties when applying judgment to estimates and assumptions in the Consolidated Financial Statements. The following judgments and estimation uncertainties are those management considers material to the Consolidated Financial Statements: Judgments (i) 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. 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. (ii) 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. Estimates (i) 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, and estimates and judgement are used in assessing the recognition. Estimates including, but not limited to, the timing of reversal and future taxability may differ on actual realization, and may result in an income tax charge or credit in future periods. (ii) Impairment of Non-Financial Assets |
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 that are expected to be used within one year of the year-end date. 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 expected credit losses that will be realized and 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 at 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: 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. When the company repurchases its own common shares, share capital is reduced by the average carrying value of the shares repurchased. The excess of the purchase price over the average carrying value is recognized as an increase in deficit. Shares are cancelled upon repurchase. 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. 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. Estimated useful lives are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which maybe associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. Useful lives over which costs should be depreciated may be impacted by changes in our strategy, process or operations as a result of climate change initiatives. Depreciation commences once an asset is available for use. |
Intangible Assets | Intangible Assets i) Goodwill 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. 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 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. In measuring lease liabilities, management makes assessments of the stand-alone selling prices of each lease and non-lease component for the purposes of allocating consideration to each component. Management applies its best estimate with respect to the likelihood of renewal, extension and termination option exercising in determining the lease term. 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. 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. |
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. The actuarial valuation is prepared using management's best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. 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. With regards to these potential obligations, Pembina considers environmental laws, regulations and interpretations by regulatory authorities in determining expected cash flows. Updates to those laws and regulations, including those related to climate change, could impact the estimate. 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. 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, the timing of when these costs will occur and the impact of climate change. 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. |
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. 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. Managements 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 and services being provided, the market environment and customer specific considerations. 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 are 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, fractionated, terminalled, 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 control of product is transferred to the customer. Control of product is not necessarily held by the party with legal title, but by the party with the rights to the remaining economic benefits of the commodity being transferred. 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. |
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 President and Chief Executive Officer ("CEO"), interim 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 IASB has issued a standard and amendments to existing standards that are effective for periods on or after January 1, 2022, 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. • 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; • Disclosure Initiative – Accounting Policies (Amendments to IAS 1); • Definition of Accounting Estimates (Amendments to IAS 8); • 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. 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. 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 the 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) Derivative Financial Instruments Pembina's derivative financial instrument fair value measurements are categorized in Level 2 and Level 3 of the fair value hierarchy. Further information about the methods used and assumptions made in determining fair values is disclosed in Note 25 to the Consolidated Financial Statements. 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. iv) 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) 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. |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade receivables and other | As at December 31 ($ millions) 2021 2020 Trade receivables from customers 750 578 Other receivables 30 60 Prepayments 32 24 Total trade receivables and other 812 662 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Schedule of Current Inventory | As at December 31 ($ millions) 2021 2020 Crude oil and NGL 276 127 Materials, supplies and other 100 94 Total inventory 376 221 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 440 8,790 8,333 1,937 1,493 20,993 Additions and transfers 8 454 622 57 (40) 1,101 Impairment (Note 10) (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 Additions and transfers 28 92 469 144 (177) 556 Change in decommissioning provision — 8 25 6 — 39 Disposals and other (1) (22) (19) (59) (17) (118) Foreign exchange — (5) 2 — — (3) Balance at December 31, 2021 456 9,279 9,384 2,084 915 22,118 Depreciation Balance at December 31, 2019 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 Depreciation 5 192 232 82 — 511 Impairment (Note 10) — 283 85 12 — 380 Disposals and other — (7) (14) (40) — (61) Balance at December 31, 2021 26 2,015 1,421 463 — 3,925 Carrying amounts Balance at December 31, 2020 408 7,659 7,789 1,584 1,109 18,549 Balance at December 31, 2021 430 7,264 7,963 1,621 915 18,193 Assets subject to operating leases December 31, 2020 8 300 496 170 — 974 December 31, 2021 8 297 466 163 — 934 (1) At December 31, 2021, the movement in Assets Under Construction includes $90 million in assets transferred to net investment lease. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships (1) Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2019 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 Additions — 26 — 26 26 Disposals and other (1) 1 (8) (7) (8) Balance at December 31, 2021 4,693 288 1,861 2,149 6,842 Amortization Balance at December 31, 2019 — 174 202 376 376 Amortization — 6 102 108 108 Balance at December 31, 2020 — 180 304 484 484 Amortization — 7 93 100 100 Impairment (Note 10) — 1 23 24 24 Disposals and other — 1 (5) (4) (4) Balance at December 31, 2021 — 189 415 604 604 Carrying amounts Balance at December 31, 2020 4,694 81 1,565 1,646 6,340 Balance at December 31, 2021 4,693 99 1,446 1,545 6,238 (1) The net book value includes purchase price allocations associated with the acquisition of Kinder Morgan on December 16, 2019 of $1.1 billion that have definite lives. The remaining lives of these allocations varies from 14-36 years. |
Disclosure of goodwill and intangible assets by segment | The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2021 2020 ($ millions) Pipelines 2,714 2,713 Facilities 540 541 Marketing & New Ventures 1,439 1,440 Total goodwill 4,693 4,694 For the year ended December 31, 2021 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,123 927 5,577 — 8,627 Inter-segment revenue 156 436 — (592) — Total revenue (3) 2,279 1,363 5,577 (592) 8,627 Operating expenses (4) 556 471 — (266) 761 Cost of goods sold, including product purchases — 6 5,017 (334) 4,689 Depreciation and amortization included in operations 413 214 50 7 684 Cost of sales 969 691 5,067 (593) 6,134 Realized (gain) loss on commodity-related derivative financial instruments — (10) 210 — 200 Unrealized gain on commodity-related derivative financial instruments — (38) (35) — (73) Share of profit from equity accounted investees 124 80 77 — 281 Gross profit 1,434 800 412 1 2,647 Depreciation included in general and administrative — — — 39 39 Other general and administrative (4) 30 14 29 194 267 Other expense (income) 11 14 (5) (268) (248) Impairment expense 447 22 5 — 474 Reportable segment results from operating activities 946 750 383 36 2,115 Net finance costs (income) 29 35 (8) 394 450 Reportable segment earnings (loss) before tax 917 715 391 (358) 1,665 Capital expenditures 475 136 21 26 658 Contributions to equity accounted investees 299 29 7 — 335 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 2,956 — 5,953 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 2,956 (485) 5,953 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 2,815 (317) 2,509 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 2,865 (484) 3,883 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 (loss) 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 (1) Pipelines transportation revenue includes $207 million (2020: $228 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $265 million (2020: $143 million) associated with U.S. midstream sales. (3) During 2021 and 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (4) Pembina incurred $440 million (2020: $370 million) of employee costs, of which $265 million (2020: $244 million) was recorded in operating expenses and $175 million (2020:$126 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. |
Disclosure of key assumptions used in goodwill impairment | For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments As at December 31, 2021 Pipelines Facilities Marketing & New Ventures (Percent) Key assumptions used After-tax discount rate 6.5 6.4 8.9 Long-term growth rate 1.3 1.8 1.9 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate 2.9 4.1 2.5 |
INVESTMENTS IN EQUITY ACCOUNT_2
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in joint ventures | Ownership Interest at December 31 (percent) Share of Profit (Loss) from Equity Investments Investment in Equity Accounted For the years ended December 31 ($ millions) 2021 2020 2021 2020 2021 2020 Alliance 50 50 111 105 2,686 2,498 Aux Sable 42.7 - 50 42.7 - 50 77 — 377 401 Ruby (1) — — 12 122 — — Veresen Midstream 45 45 77 50 1,349 1,374 CKPC (2) 50 50 — (314) — — Cedar LNG 49.9 — — — 130 — Other 50 - 75 50 - 75 4 5 80 104 Total 281 (32) 4,622 4,377 (1) Pembina owns a 50 percent convertible, cumulative preferred interest in Ruby. (2) Includes nil (2020: $314 million) impairment in share of profit from equity accounted investees. Alliance For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue 905 840 Expenses (353) (296) Depreciation and amortization (138) (141) Finance costs and other (1)(2) (115) (61) Earnings 299 342 Earnings attributable to Pembina 111 105 (1) Includes interest income of nil (2020:$2 million). (2) Includes interest expense of $118 million (2020: $66 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 264 122 Non-current assets 1,690 1,816 Current liabilities (2) 67 206 Non-current liabilities (3) 814 1,121 (1) Includes cash and cash equivalents of $168 million (2020:$25 million). (2) Includes trade, other payables and provisions of $48 million (2020: $71 million). (3) Includes trade, other payables and provisions of $9 million (2020:$128 million). Aux Sable For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income (Loss) Revenue 1,967 1,059 Expenses (1,747) (1,019) Depreciation and amortization (43) (49) Earnings (loss) 177 (9) Earnings attributable to Pembina 77 — As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 196 162 Non-current assets 707 757 Current liabilities (2) 143 107 Non-current liabilities (3) 164 155 (1) Includes cash and cash equivalents of $24 million (2020: $50 million). (2) Includes trade, other payables and provisions of $98 million (2020: $103 million). (3) Includes trade, other payables and provisions of $5 million (2020: $5 million). Ruby For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income (Loss) Revenue 286 432 Expenses (8) (29) Depreciation and amortization (26) (143) Impairment — (2,953) Finance costs and other (1) (21) (130) Earnings (loss) 231 (2,823) Earnings attributable to Pembina 12 122 (1) Includes interest expense of $79 million (2020: $104 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 137 50 Non-current assets 662 688 Current liabilities (2) 622 77 Non-current liabilities (3) 302 928 (1) Includes cash and cash equivalents of $113 million (2020: $6 million). (2) Includes trade, other payables and provisions of $1 million (2020: $2 million). (3) Includes trade, other payables and provisions of $296 million (2020: $278 million). Veresen Midstream For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue (4) 661 565 Expenses (216) (177) Depreciation and amortization (4) (191) (177) Finance costs and other (1) (67) (84) Earnings 187 127 Earnings attributable to Pembina 77 50 (1) Includes interest expense of $71 million (2020: $80 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 211 167 Non-current assets (4) 4,605 4,671 Current liabilities (2)(4) 147 114 Non-current liabilities (3)(4) 2,674 2,689 (1) Includes cash and cash equivalents of $1 million (2020: nil). (2) Includes trade, other payables and provisions of $63 million (2020: $80 million). (3) Includes trade, other payables and provisions of $61 million (2020: $56 million). (4) Prior year information has been restated. CKPC For the years ended December 31 ($ millions) 2021 2020 Earnings (Loss) and Comprehensive Income (Loss) Expenses (6) (4) Impairment — (589) Finance costs (1) (1) (33) Earnings (loss) (7) (626) Earnings (loss) attributable to Pembina — (314) (1) Includes interest income of nil (2020: $1 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 33 83 Non-current assets — — Current liabilities (2) 57 99 Non-current liabilities (3) 10 11 (1) Includes cash and cash equivalents of $29 million (2020: $75 million). (2) Includes trade, other payables and provisions of $57 million (2020: $99 million). (3) Includes trade, other payables and provisions of $10 million (2020: $11 million). Cedar LNG Cedar LNG was formed in June 2021 and has not yet commenced operations and therefore has not recognized material revenues or expenses. As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets 2 — Non-current assets 50 — Current liabilities (1) 6 — Non-current liabilities (2) 36 — (1) Includes trade, other payables and provisions of $3 million (2020: nil). (2) Includes trade, other payables and provisions of $34 million (2020: nil). Other For the years ended December 31 ($ millions) 2021 2020 Earnings and Comprehensive Income Revenue 57 51 Expenses (23) (16) Depreciation and amortization (15) (16) Finance costs and other (1) — (5) Earnings 19 14 Earnings attributable to Pembina 4 5 (1) Includes interest expense of $1 million (2020: $2 million). As at December 31 ($ millions) 2021 2020 Statements of Financial Position Current assets (1) 6 6 Non-current assets 104 117 Current liabilities (2) 25 25 Non-current liabilities (3) 42 64 (1) Includes cash and cash equivalents of $1 million (2020: $1 million). (2) Includes trade, other payables and provisions of $4 million (2020: $3 million). (3) Includes trade, other payables and provisions of $1 million (2020: $1 million). |
Summary of Distributions From and Contributions to Equity Accounted Investees | The following table summarizes distributions from and contributions to Pembina's investments in equity accounted investees: For the years ended December 31 Distributions Contributions ($ millions) 2021 2020 2021 2020 Alliance 212 217 299 — Aux Sable 100 19 2 3 Ruby 13 122 — — Veresen Midstream 131 97 29 69 CKPC — — — 152 Cedar LNG — — 5 — Other 5 4 — — Total 461 459 335 224 |
IMPAIRMENTS (Tables)
IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of impairment loss and reversals of impairment loss [Abstract] | |
Disclosure of impairment loss and reversal of impairment loss | For the year ended December 31, 2021 ($ millions) Property, Plant & Equipment (Note 7) Intangible Assets and Goodwill (Note 8) Right-of-use Assets (Note 13) Equity Accounted Investees (Note 9) Other Total Impairment Expense Oil Sands Assets 368 24 27 — 5 424 Other 12 — — 22 16 50 Total impairments 380 24 27 22 21 474 For the year ended December 31, 2020 ($ millions) Property, Plant & Equipment (Note 7) Equity Accounted Investees (Note 9) 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 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 Recognized in Earnings (Loss) Recognized in Other Comprehensive Loss Equity Other Balance at December 31, 2021 Deferred income tax assets Derivative financial instruments 4 (20) — — — (16) Employee benefits 11 2 (11) — — 2 Share-based payments 14 10 — — — 24 Provisions 83 17 — — — 100 Benefit of loss carryforwards 275 110 — — — 385 Other deductible temporary differences 51 (41) — — (3) 7 Deferred income tax liabilities Property, plant and equipment 2,091 159 — — — 2,250 Intangible assets 260 (9) — — — 251 Investments in equity accounted investees 692 17 — — — 709 Taxable limited partnership income deferral (2) 48 — — — 46 Total net deferred tax liabilities (1) 2,603 137 11 — 3 2,754 ($ millions) Balance at December 31, 2019 Recognized in Earnings (Loss) Recognized in Other 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 (1) 2,945 (340) — 2 (4) 2,603 (1) Comprised of deferred tax liabilities of $3.0 billion (2020: $2.9 billion) net of deferred tax assets of $257 million (2020: $322 million). |
Disclosure of reconciliation of effective tax rate | Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2021 2020 Earnings (loss) before income tax 1,665 (416) Canadian statutory tax rate (percent) 23.3 24.6 Income tax at statutory rate 388 (102) Tax rate changes and foreign rate differential (19) (5) Changes in estimate and other 21 (5) Permanent items 12 12 Unrecognized tax attribute 21 — Income tax expense (recovery) 423 (100) |
Disclosure of income tax expense | Income Tax Expense For the years ended December 31 ($ millions) 2021 2020 Current tax expense 286 240 Deferred tax expense Origination and reversal of temporary differences 235 (485) Tax rate changes on deferred tax balances 14 32 (Increase) decrease in tax loss carry forward (112) 113 Total deferred tax expense (recovery) 137 (340) Total income tax expense (recovery) 423 (100) |
Disclosure of deferred tax items recovered directly in equity | Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2021 2020 Share issue costs — (2) Other comprehensive income (loss) (Note 24) : Change in fair value of net investment hedges — (4) Remeasurements of defined benefit (asset) liability (11) 4 Deferred tax items recovered directly in equity (11) (2) |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables and accrued liabilities | As at December 31 ($ millions) 2021 2020 Trade payables 652 434 Other payables & accrued liabilities 411 346 Total trade payables and other 1,063 780 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of leases [Abstract] | |
Disclosure of quantitative information about right-of-use assets | ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2020 225 238 118 110 691 Additions — 24 22 — 46 Depreciation (12) (41) (19) (14) (86) Balance at December 31, 2020 213 221 121 96 651 Additions and adjustments 2 1 40 18 61 Disposals and other — (4) — (9) (13) Depreciation (20) (41) (18) (12) (91) Impairment (27) — — — (27) Balance at December 31, 2021 168 177 143 93 581 |
Disclosure of maturity analysis of finance lease payments receivable | As at December 31 2021 2020 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 31 146 23 One to two years 140 31 142 23 Two to three years 121 31 139 22 Three to four years 109 32 121 22 Four to five years 108 31 109 22 More than five years 725 319 874 224 Total undiscounted lease receipts 1,349 475 1,531 336 Unearned finance income on lease receipts (270) (199) Discounted unguaranteed residual value 15 8 Finance lease receivable 220 145 Less current portion (1) (9) (7) Total non-current 211 138 (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 2021 2020 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 146 31 146 23 One to two years 140 31 142 23 Two to three years 121 31 139 22 Three to four years 109 32 121 22 Four to five years 108 31 109 22 More than five years 725 319 874 224 Total undiscounted lease receipts 1,349 475 1,531 336 Unearned finance income on lease receipts (270) (199) Discounted unguaranteed residual value 15 8 Finance lease receivable 220 145 Less current portion (1) (9) (7) Total non-current 211 138 (1) Included in trade receivables and other on the Consolidated Statement of Financial Position. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Nominal Interest Rate Year of Maturity December 31, 2021 December 31, 2020 Loans and borrowings Senior unsecured credit facilities (1)(3)(4) 3,336 1.20 (2) Various (1) 907 1,530 Senior unsecured medium-term notes series 1 — 4.89 2021 — 250 Senior unsecured medium-term notes series 2 450 3.77 2022 450 449 Senior unsecured medium-term notes series 3 450 4.75 2043 447 447 Senior unsecured medium-term notes series 4 600 4.81 2044 597 597 Senior unsecured medium-term notes series 5 450 3.54 2025 449 449 Senior unsecured medium-term notes series 6 500 4.24 2027 499 498 Senior unsecured medium-term notes series 7 600 3.71 2026 602 603 Senior unsecured medium-term notes series 8 650 2.99 2024 648 647 Senior unsecured medium-term notes series 9 550 4.74 2047 542 542 Senior unsecured medium-term notes series 10 650 4.02 2028 660 661 Senior unsecured medium-term notes series 11 800 4.75 2048 841 842 Senior unsecured medium-term notes series 12 650 3.62 2029 654 654 Senior unsecured medium-term notes series 13 700 4.54 2049 712 713 Senior unsecured medium-term notes series 14 600 2.56 2023 599 599 Senior unsecured medium-term notes series 15 600 3.31 2030 597 597 Senior unsecured medium-term notes series 16 400 4.67 2050 397 397 Senior unsecured medium-term notes series 17 500 3.53 2031 497 — Senior unsecured medium-term notes series 18 500 4.49 2051 497 — Senior unsecured medium-term notes series 3A 50 5.05 2022 50 51 Senior unsecured medium-term notes series 5A — 3.43 2021 — 350 Total loans and borrowings 10,645 10,876 Less current portion loans and borrowings (1,000) (600) Total non-current loans and borrowings 9,645 10,276 Subordinated hybrid notes Subordinated notes, series 1 600 4.80 2081 594 — (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures in June 2026, a $500 million non-revolving term loan that matures in August 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 2022, 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, 2021. 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, 2021 (December 31, 2020: U.S. $250 million). (4) The U.S. dollar denominated non-revolving term loan is designated as a hedge of the Company’s net investment in selected foreign operations with a U.S. dollar functional currency. Refer to Note 25 for foreign exchange risk management. |
DECOMISSIONING PROVISION (Table
DECOMISSIONING PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of decommissioning provisions | ($ millions) 2021 2020 Balance at January 1 348 337 Unwinding of discount rate 16 15 Additions 29 11 Change in cost estimates and other 19 (15) Balance at December 31 412 348 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 548 15,539 Share-based payment transactions 2 105 Balance at December 31, 2020 550 15,644 Share-based payment transactions — 47 Repurchased — (13) Balance at December 31, 2021 550 15,678 Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2019 122 2,956 Part VI.1 tax — (10) Balance at December 31, 2020 122 2,946 Class A, Series 11 Preferred shares redeemed, net of issue costs (7) (170) Class A, Series 13 Preferred shares redeemed, net of issue costs (10) (250) Part VI.1 tax — (9) Balance at December 31, 2021 105 2,517 |
Disclosure of dividends | The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2021 2020 Common shares $2.52 per common share (2020: $2.52) 1,386 1,385 Class A preferred shares $1.23 per Series 1 Class A Preferred Share (2020: $1.23) 12 12 $1.12 per Series 3 Class A Preferred Share (2020: $1.12) 7 7 $1.14 per Series 5 Class A Preferred Share (2020: $1.14) 11 11 $1.10 per Series 7 Class A Preferred Share (2020: $1.10) 11 11 $1.08 per Series 9 Class A Preferred Share (2020: $1.18) 10 11 $0.36 per Series 11 Class A Preferred Share (2020: $1.44) 2 10 $0.72 per Series 13 Class A Preferred Share (2020: $1.44) 7 14 $1.12 per Series 15 Class A Preferred Share (2020: $1.12) 9 9 $1.21 per Series 17 Class A Preferred Share (2020: $1.21) 7 7 $1.17 per Series 19 Class A Preferred Share (2020: $1.21) 10 10 $1.23 per Series 21 Class A Preferred Share (2020: $1.23) 20 20 $1.31 per Series 23 Class A Preferred Share (2020: $1.31) 16 16 $1.30 per Series 25 Class A Preferred Share (2020: $1.30) 13 13 135 151 Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares on January 6, 2022 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2022 March 1, 2022 $0.306625 3 Series 3 February 1, 2022 March 1, 2022 $0.279875 2 Series 5 February 1, 2022 March 1, 2022 $0.285813 3 Series 7 February 1, 2022 March 1, 2022 $0.273750 3 Series 9 February 1, 2022 March 1, 2022 $0.268875 2 Series 15 March 15, 2022 March 31, 2022 $0.279000 2 Series 17 March 15, 2022 March 31, 2022 $0.301313 2 Series 19 March 15, 2022 March 31, 2022 $0.292750 2 Series 21 February 1, 2022 March 1, 2022 $0.306250 5 Series 23 January 31, 2022 February 15, 2022 $0.328125 4 Series 25 January 31, 2022 February 15, 2022 $0.325000 3 |
Disclosure of share repurchases | The following table summarizes Pembina's share repurchases under its NCIB: For the years ended December 31 (millions, except as noted) 2021 2020 Number of common shares repurchased for cancellation (thousands) 450 — Average price per share $37.77 — Total cost (1) 17 — (1) Total cost includes $13 million (2020: nil) charged to share capital and $4 million (2020: nil) charged to deficit. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contracts With Customers [Abstract] | |
Disclosure of disaggregation of revenue from contracts with customers | 2021 2020 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,642 754 — 2,396 1,664 740 — 2,404 Fee-for-service (1) 348 138 — 486 295 117 — 412 Product sales (2) — — 5,577 5,577 — — 2,956 2,956 Revenue from contracts with customers 1,990 892 5,577 8,459 1,959 857 2,956 5,772 Operational finance lease income 17 2 — 19 15 — — 15 Fixed operating lease income 116 33 — 149 131 35 — 166 Total external revenue 2,123 927 5,577 8,627 2,105 892 2,956 5,953 (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: 2021 2020 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 3 289 292 8 223 231 Additions (net in the period) — 64 64 3 117 120 Revenue recognized from contract liabilities (1) — (65) (65) (8) (51) (59) Closing balance 3 288 291 3 289 292 Less current portion (2) (3) (68) (71) (3) (59) (62) Ending balance — 220 220 — 230 230 (1) Recognition of revenue related to performance obligations satisfied in the current period that were included in the opening balance of contract liabilities. (2) As at December 31, 2021, the balance includes $3 million of cash collected under take-or-pay contracts which will be recognized within one year as the customer chooses to ship, process, or otherwise forego the associated service. |
NET FINANCE COSTS (Tables)
NET FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about net finance costs | For the years ended December 31 ($ millions) 2021 2020 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 362 362 Subordinated hybrid notes 27 — Leases 35 39 Unwinding of discount rate 16 15 Loss (gain) in fair value of non-commodity-related derivative financial instruments 19 (5) Foreign exchange (gains) losses and other (9) 9 Net finance costs 450 420 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 ($ millions) Pipelines 2,714 2,713 Facilities 540 541 Marketing & New Ventures 1,439 1,440 Total goodwill 4,693 4,694 For the year ended December 31, 2021 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers 2,123 927 5,577 — 8,627 Inter-segment revenue 156 436 — (592) — Total revenue (3) 2,279 1,363 5,577 (592) 8,627 Operating expenses (4) 556 471 — (266) 761 Cost of goods sold, including product purchases — 6 5,017 (334) 4,689 Depreciation and amortization included in operations 413 214 50 7 684 Cost of sales 969 691 5,067 (593) 6,134 Realized (gain) loss on commodity-related derivative financial instruments — (10) 210 — 200 Unrealized gain on commodity-related derivative financial instruments — (38) (35) — (73) Share of profit from equity accounted investees 124 80 77 — 281 Gross profit 1,434 800 412 1 2,647 Depreciation included in general and administrative — — — 39 39 Other general and administrative (4) 30 14 29 194 267 Other expense (income) 11 14 (5) (268) (248) Impairment expense 447 22 5 — 474 Reportable segment results from operating activities 946 750 383 36 2,115 Net finance costs (income) 29 35 (8) 394 450 Reportable segment earnings (loss) before tax 917 715 391 (358) 1,665 Capital expenditures 475 136 21 26 658 Contributions to equity accounted investees 299 29 7 — 335 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 2,956 — 5,953 Inter-segment revenue 146 339 — (485) — Total revenue (3) 2,251 1,231 2,956 (485) 5,953 Operating expenses (4) 498 392 — (178) 712 Cost of goods sold, including product purchases — 11 2,815 (317) 2,509 Depreciation and amortization included in operations 402 199 50 11 662 Cost of sales 900 602 2,865 (484) 3,883 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 (loss) 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 (1) Pipelines transportation revenue includes $207 million (2020: $228 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $265 million (2020: $143 million) associated with U.S. midstream sales. (3) During 2021 and 2020, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (4) Pembina incurred $440 million (2020: $370 million) of employee costs, of which $265 million (2020: $244 million) was recorded in operating expenses and $175 million (2020:$126 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. |
Disclosure of non-current assets | For the years ended December 31 ($ millions) 2021 2020 Canada 26,128 26,504 United States 3,826 3,601 Total non-current assets (1) 29,954 30,105 (1) Excludes deferred income tax assets. |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Disclosure of earnings per common share | Earnings (Loss) Attributable to Common Shareholders For the years ended December 31 ($ millions) 2021 2020 Earnings (loss) 1,242 (316) Dividends on preferred shares (135) (148) Cumulative dividends on preferred shares, not yet declared (9) (12) Basic and diluted earnings (loss) attributable to common shareholders 1,098 (476) Weighted Average Number of Common Shares (In millions of shares, except as noted) 2021 2020 Issued common shares at January 1 550 548 Effect of shares issued on exercise of options — 2 Basic weighted average number of common shares at December 31 550 550 Dilutive effect of share options on issue (1) 1 — Diluted weighted average number of common shares at December 31 551 550 Basic earnings (loss) per common share (dollars) 2.00 (0.86) Diluted earnings (loss) per common share (dollars) 1.99 (0.86) (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, 2021 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, 2021 | |
Employee Benefits [Abstract] | |
Disclosure of obligations and plan assumptions | As at December 31 ($ millions) 2021 2020 Registered defined benefit net (asset) obligation (11) 26 Supplemental defined benefit net obligation 17 18 Net employee benefit obligations 6 44 Principal actuarial assumptions used: As at December 31 (weighted average percent) 2021 2020 Discount rate 3.2 2.6 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) 2021 2020 Longevity at age 65 for current pensioners Males 22.0 21.9 Females 24.3 24.3 Longevity at age 65 for current member aged 45 Males 23.0 22.9 Females 25.3 25.2 |
Disclosure of analysis of present value of defined benefit obligations | Defined Benefit Obligations As at December 31 ($ millions) 2021 2020 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 17 — 18 Present value of funded obligations 257 — 278 — Total present value of obligations 257 17 278 18 Fair value of plan assets 268 — 252 — Recognized defined benefit assets (obligations) 11 (17) (26) (18) |
Disclosure of fair value of plan assets | Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2021 2020 Equity securities 61 63 Debt 39 37 100 100 |
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 2021 2020 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 278 18 250 16 Benefits paid by the plan (28) (1) (28) (2) Current service costs 27 1 18 1 Interest expense 7 1 8 1 Actuarial (gains) losses in other comprehensive income (27) (2) 30 2 Defined benefit obligations at December 31 257 17 278 18 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2021 2020 Fair value of plan assets at January 1 252 231 Contributions paid into the plan 23 23 Benefits paid by the plan (28) (28) Return on plan assets 15 18 Interest income 6 8 Fair value of registered plan assets at December 31 268 252 Expense Recognition in Earnings (Loss) For the years ended December 31 ($ millions) 2021 2020 Registered Plan Current service costs 28 19 Interest on obligation 8 9 Interest on plan assets (6) (8) 30 20 The expense is recognized in the following line items in the consolidated statement of comprehensive income (loss): For the years ended December 31 ($ millions) 2021 2020 Registered Plan Operating expenses 16 10 General and administrative expense 14 10 30 20 Actuarial Gains and Losses Recognized in Other Comprehensive Income (Loss) 2021 2020 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (41) (4) (45) (33) (2) (35) Remeasurements: Financial assumptions 19 2 21 (13) (1) (14) Experience adjustments 2 — 2 (10) (1) (11) Return on plan assets excluding interest income 11 — 11 15 — 15 Recognized gain (loss) during the period after tax 32 2 34 (8) (2) (10) Balance at December 31 (9) (2) (11) (41) (4) (45) |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. In 2021, Pembina granted select executive officers and non-officers stock options that vest after a four Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Employees and Directors (thousands of units, except as noted) PSUs (2) RSUs (2) DSUs Total 2020 469 487 31 987 2021 704 1,429 44 2,177 (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) 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, 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 Granted 2,695 $36.36 Exercised (464) $34.41 Forfeited (835) $39.23 Expired (3,201) $47.87 Outstanding at December 31, 2021 19,971 $41.33 |
Disclosure of range of exercise prices of outstanding share options | As of December 31, 2021, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2021 Options Exercisable Weighted Average Remaining Life $26.83 – $35.25 3,517 1,102 5.2 $35.26 – $41.38 4,149 1,700 4.6 $41.39 – $43.41 2,677 2,677 2.7 $43.42 – $46.00 4,618 2,722 4.5 $46.01 – $49.78 5,010 3,575 4.3 Total 19,971 11,776 4.4 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | As of December 31, 2021, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2021 Options Exercisable Weighted Average Remaining Life $26.83 – $35.25 3,517 1,102 5.2 $35.26 – $41.38 4,149 1,700 4.6 $41.39 – $43.41 2,677 2,677 2.7 $43.42 – $46.00 4,618 2,722 4.5 $46.01 – $49.78 5,010 3,575 4.3 Total 19,971 11,776 4.4 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | Share Options Granted For the years ended December 31 2021 2021 2020 (dollars, except as noted) Graded Vesting Cliff Vesting Graded Vesting Weighted average Fair value at grant date 7.78 6.59 3.82 Expected volatility (percent) 49.06 40.01 36.61 Expected option life (years) 3.67 5.00 3.67 Expected annual dividends per option 2.52 2.52 2.52 Expected forfeitures (percent) 7.1 7.1 6.9 Risk-free interest rate (based on government bonds) (percent) 0.6 1.0 0.5 |
Disclosure of employee share-based compensation expense | Employee Expenses For the years ended December 31 ($ millions) 2021 2020 Share option plan, equity settled 31 17 Long-term share unit award incentive plan 69 11 Share-based compensation expense 100 28 Total carrying amount of liabilities for cash settled arrangements 88 60 Total intrinsic value of liability for vested benefits 56 39 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total 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 Other comprehensive (loss) gain before hedging activities (18) — 34 16 Other comprehensive gain resulting from hedging activities (1) 2 8 — 10 Balance at December 31, 2021 32 8 (12) 28 (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 25). (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, 2021 | |
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) 2021 2020 31-60 days past due 2 3 Greater than 61 days past due 2 8 4 11 |
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 As at December 31, 2021 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 1,063 1,063 1,063 — — — Loans and borrowings 10,645 16,535 1,478 1,944 2,088 11,025 Subordinated hybrid notes 594 874 41 58 58 717 Dividends payable 115 115 115 — — — Derivative financial liabilities 59 59 59 — — — Lease liabilities 723 978 113 181 152 532 |
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, 2021 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (40) 40 Natural gas 11 (11) NGL (2) (39) 39 (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, 2021 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (27) 27 |
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) 2021 2020 Carrying amounts of financial liability Fixed rate instruments (1) 11,055 10,120 Variable rate instruments (2) 907 1,530 11,962 11,650 (1) Includes lease liabilities and subordinated hybrid notes. |
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, 2021 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (11) 11 |
Disclosure of fair value of financial instruments | 2021 2020 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) 95 — 84 11 53 — 53 — Financial liabilities carried at fair value Derivative financial instruments (3) 59 — 59 — 69 — 69 — Contingent consideration (4) 70 — 35 35 — — — — Financial liabilities carried at amortized cost Loans and borrowings (2) 11,239 — 11,814 — 10,876 — 11,902 — (1) The basis for determining fair value is disclosed in Note 4. (2) Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes. (3) At December 31, 2021 all derivative financial instruments are carried at fair value through earnings, except for $8 million in interest rate derivative financial assets that have been designated as cash flow hedges. (4) Included in trade payables and other and other liabilities. See Note 9 for further details. |
Disclosure of significant unobservable inputs used in fair value measurements | The significant unobservable inputs used in the fair value measurement of the Level 3 derivative instrument were as follows: Significant Unobservable Inputs (percent) 2021 Wind discount 29.0 Wind escalation rate 4.5 Wind capacity 38.2 The table below shows the impact to earnings associated with the change in fair value of the derivative if the following significant unobservable inputs at the reporting date would have (increased) decreased, with other variables held constant. Management concluded that changes in the wind capacity factor would not have a material impact to the fair value measurement. As at December 31, 2021 ($ millions) Sensitivity Range Increase Decrease Wind discount +/- 20 percent (38) 38 Wind escalation rate +/- 10 percent (8) 8 |
Assets and liabilities measured on recurring basis, unobservable input reconciliation | Changes in net fair value of derivative asset and liability classified as Level 3 in the fair value hierarchy were as follows: For the year ended December 31 ($ millions) 2021 Level 3 net derivative asset at beginning of period — Total gain (loss): Included in earnings 11 Level 3 net derivative asset at end of period 11 |
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) 2021 2020 Derivatives 0.4 - 1.8 0.5 - 0.7 Loans and borrowings 1.1 - 5.0 0.5 - 3.9 |
Disclosure of derivative financial instruments | The maturity and notional amount or quantity outstanding related to Pembina's derivative instruments are as follows: ($ millions) Liquids (bpd) Natural Gas (GJ/d) Power (GWh) Foreign Exchange Interest Rate As at December 31, 2021 Purchases (1) — 62,615 6,166 — — Sales (1) 16,550 — — — — Millions of U.S. dollars — — — 272 250 Maturity dates 2022 2022 2040 2022 2025 As at December 31, 2020 Purchases (1)(2) 1,756 73,557 — — — Sales (1) 25,284 — — — — Millions of U.S. dollars — — — 260 250 Maturity dates 2021 2021 2021 2021 2025 (1) Barrels per day ("bpd"), gigajoules per day ("GJ/d") and gigawatt hours ("GWh"). |
Disclosure of financial instruments designated at fair value through profit or loss | Realized and unrealized losses (gains) on derivative instruments are as follows: For the years ended December 31 ($ millions) 2021 2020 Derivative instruments held at FVTPL (1) Realized loss (gain) Commodity-related 200 (54) Foreign exchange (12) 2 Unrealized (gain) loss Commodity-related (73) 84 Foreign exchange 19 5 Derivative instruments in hedging relationships (2) Unrealized (gain) loss Interest rate (8) — (1) Realized and unrealized losses (gains) on commodity derivative instruments held at FVTPL are included in loss (gain) on commodity-related derivative financial instruments in the Consolidated Financial Statements. Realized and unrealized losses (gains) on foreign exchange derivative instruments held at FVTPL are included in net finance costs in the Consolidated Financial Statements. (2) Unrealized losses (gains) on derivatives in designated cash flow hedging relationships are recognized in the cash flow hedge reserve in accumulated other comprehensive income, with realized (gains) losses being reclassified to net finance costs. Refer to Note 24 for amounts reclassified. No (gains) losses have been recognized in net income relating to discontinued cash flow hedges. |
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) 2021 2020 Notional amount of U.S. debt designated (in U.S. dollars) 250 250 Carrying value of U.S. debt designated 316 317 Maturity date 2025 2025 |
GROUP ENTITIES (Tables)
GROUP ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | Equity Accounted Investees ($ millions) 2021 2020 For the years ended December 31: Services provided 162 136 Services received 31 14 Interest income 15 14 As at December 31: Advances to related parties (1) 8 13 Trade receivables and other 7 7 Trade payables and accrued liabilities 27 18 (1) During the year ended December 31, 2021, Fort Corp. repaid advances of $5 million (2020: $5 million). During the year ended December 31, 2021, Pembina advanced U.S. $10 million (2020: U.S. $24 million) to Ruby and recognized an impairment of U.S. $10 million (2020: U.S. $110 million) on its advances to Ruby (Note 10). ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2021 2020 Defined benefit plan Funding 23 23 |
Disclosure of key management personnel compensation | Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2021 2020 Short-term employee benefits 9 8 Share-based compensation and other (1) 53 3 Total compensation of key management 62 11 (1) Includes termination benefits. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of contingent liabilities | Pembina had the following contractual obligations outstanding at December 31, 2021: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (2) 978 113 181 152 532 Long-term debt (3) 17,409 1,519 2,002 2,146 11,742 Construction commitments (4) 1,042 435 32 24 551 Other 531 92 120 74 245 Total contractual obligations 19,960 2,159 2,335 2,396 13,070 (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) Includes loans and borrowings, subordinated hybrid notes and interest payments on Pembina's senior unsecured medium-term notes and subordinated hybrid notes. Excludes deferred financing costs. (4) Excluding significant projects that are awaiting regulatory approval, projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. |
DETERMINATION OF FAIR VALUES (D
DETERMINATION OF FAIR VALUES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
Period of measure for calculating weighted average share price of share options | 20 days |
TRADE RECEIVABLES AND OTHER (De
TRADE RECEIVABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade receivables from customers | $ 750 | $ 578 |
Other receivables | 30 | 60 |
Prepayments | 32 | 24 |
Total trade receivables and other | $ 812 | $ 662 |
INVENTORY (Details)
INVENTORY (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories [Abstract] | ||
Crude oil and NGL | $ 276 | $ 127 |
Materials, supplies and other | 100 | 94 |
Total current inventories | $ 376 | $ 221 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property Types (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | $ 18,549 | |
Property, plant and equipment, ending balance | 18,193 | $ 18,549 |
Decrease through transfers, property, plant and equipment | (90) | |
Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 974 | |
Property, plant and equipment, ending balance | 934 | 974 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 21,644 | 20,993 |
Additions and transfers | (556) | (1,101) |
Impairment (Note 10) | (357) | |
Change in decommissioning provision | 39 | (11) |
Foreign exchange adjustments | (3) | (37) |
Disposals and other | 118 | 45 |
Property, plant and equipment, ending balance | 22,118 | 21,644 |
Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (3,095) | (2,631) |
Impairment (Note 10) | (380) | |
Depreciation | 511 | 483 |
Disposals and other | (61) | (19) |
Property, plant and equipment, ending balance | (3,925) | (3,095) |
Land and Land Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 408 | |
Property, plant and equipment, ending balance | 430 | 408 |
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 | 8 | |
Property, plant and equipment, ending balance | 8 | 8 |
Land and Land Rights | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 429 | 440 |
Additions and transfers | (28) | (8) |
Impairment (Note 10) | (17) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange adjustments | 0 | (2) |
Disposals and other | 1 | 0 |
Property, plant and equipment, ending balance | 456 | 429 |
Land and Land Rights | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (21) | (16) |
Impairment (Note 10) | 0 | |
Depreciation | 5 | 5 |
Disposals and other | 0 | 0 |
Property, plant and equipment, ending balance | (26) | (21) |
Pipelines | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 7,659 | |
Property, plant and equipment, ending balance | 7,264 | 7,659 |
Pipelines | Property, plant and equipment subject to operating leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 300 | |
Property, plant and equipment, ending balance | 297 | 300 |
Pipelines | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 9,206 | 8,790 |
Additions and transfers | (92) | (454) |
Impairment (Note 10) | 0 | |
Change in decommissioning provision | 8 | (10) |
Foreign exchange adjustments | (5) | (18) |
Disposals and other | 22 | 10 |
Property, plant and equipment, ending balance | 9,279 | 9,206 |
Pipelines | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (1,547) | (1,365) |
Impairment (Note 10) | (283) | |
Depreciation | 192 | 187 |
Disposals and other | (7) | (5) |
Property, plant and equipment, ending balance | (2,015) | (1,547) |
Facilities and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 7,789 | |
Property, plant and equipment, ending balance | 7,963 | 7,789 |
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 | 496 | |
Property, plant and equipment, ending balance | 466 | 496 |
Facilities and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 8,907 | 8,333 |
Additions and transfers | (469) | (622) |
Impairment (Note 10) | 0 | |
Change in decommissioning provision | 25 | (17) |
Foreign exchange adjustments | 2 | (9) |
Disposals and other | 19 | 22 |
Property, plant and equipment, ending balance | 9,384 | 8,907 |
Facilities and Equipment | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (1,118) | (967) |
Impairment (Note 10) | (85) | |
Depreciation | 232 | 156 |
Disposals and other | (14) | (5) |
Property, plant and equipment, ending balance | (1,421) | (1,118) |
Cavern Storage and Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,584 | |
Property, plant and equipment, ending balance | 1,621 | 1,584 |
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 | 170 | |
Property, plant and equipment, ending balance | 163 | 170 |
Cavern Storage and Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,993 | 1,937 |
Additions and transfers | (144) | (57) |
Impairment (Note 10) | 0 | |
Change in decommissioning provision | 6 | 16 |
Foreign exchange adjustments | 0 | (1) |
Disposals and other | 59 | 16 |
Property, plant and equipment, ending balance | 2,084 | 1,993 |
Cavern Storage and Other | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | (409) | (283) |
Impairment (Note 10) | (12) | |
Depreciation | 82 | 135 |
Disposals and other | (40) | (9) |
Property, plant and equipment, ending balance | (463) | (409) |
Assets Under Construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,109 | |
Property, plant and equipment, ending balance | 915 | 1,109 |
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 | 1,109 | 1,493 |
Additions and transfers | (177) | (40) |
Impairment (Note 10) | (340) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange adjustments | 0 | (7) |
Disposals and other | 17 | 3 |
Property, plant and equipment, ending balance | 915 | 1,109 |
Assets Under Construction | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 0 | 0 |
Impairment (Note 10) | 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, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs | $ 25 | $ 46 |
Minimum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs, capitalization rate | 3.60% | 3.63% |
Maximum | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized borrowing costs, capitalization rate | 3.81% | 3.91% |
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 | |
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, 2021 | Dec. 31, 2020 | Dec. 16, 2019 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | $ 6,340 | ||
Intangible assets and goodwill, ending balance | 6,238 | $ 6,340 | |
Intangible assets and goodwill (Note 8) | $ 6,238 | 6,340 | |
Minimum | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Finite-lived intangible asset, useful life | 8 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 | $ 6,824 | 6,820 | |
Additions and other | 26 | 22 | |
Foreign exchange adjustments | (18) | ||
Disposals and other | (8) | ||
Intangible assets and goodwill, ending balance | 6,842 | 6,824 | |
Intangible assets and goodwill (Note 8) | 6,842 | 6,824 | |
Amortization | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (484) | (376) | |
Amortization | 100 | 108 | |
Impairment (Note 10) | 24 | ||
Disposals and other | 4 | ||
Intangible assets and goodwill, ending balance | (604) | (484) | |
Intangible assets and goodwill (Note 8) | (604) | (484) | |
Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 4,694 | ||
Intangible assets and goodwill, ending balance | 4,693 | 4,694 | |
Intangible assets and goodwill (Note 8) | 4,693 | 4,694 | |
Goodwill | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 4,694 | 4,699 | |
Additions and other | 0 | 0 | |
Foreign exchange adjustments | (5) | ||
Disposals and other | (1) | ||
Intangible assets and goodwill, ending balance | 4,693 | 4,694 | |
Intangible assets and goodwill (Note 8) | 4,693 | 4,694 | |
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 | |
Intangible assets and goodwill (Note 8) | 0 | 0 | |
Intangible Assets | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 1,646 | ||
Intangible assets and goodwill, ending balance | 1,545 | 1,646 | |
Intangible assets and goodwill (Note 8) | 1,545 | 1,646 | |
Intangible Assets | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 2,130 | 2,121 | |
Additions and other | 26 | 22 | |
Foreign exchange adjustments | (13) | ||
Disposals and other | (7) | ||
Intangible assets and goodwill, ending balance | 2,149 | 2,130 | |
Intangible assets and goodwill (Note 8) | 2,149 | 2,130 | |
Intangible Assets | Amortization | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (484) | (376) | |
Amortization | 100 | 108 | |
Impairment (Note 10) | 24 | ||
Disposals and other | 4 | ||
Intangible assets and goodwill, ending balance | (604) | (484) | |
Intangible assets and goodwill (Note 8) | (604) | (484) | |
Purchase and Sale Contracts and Other | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 81 | ||
Intangible assets and goodwill, ending balance | 99 | 81 | |
Intangible assets and goodwill (Note 8) | 99 | 81 | |
Purchase and Sale Contracts and Other | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 261 | 240 | |
Additions and other | 26 | 22 | |
Foreign exchange adjustments | (1) | ||
Disposals and other | 1 | ||
Intangible assets and goodwill, ending balance | 288 | 261 | |
Intangible assets and goodwill (Note 8) | 288 | 261 | |
Purchase and Sale Contracts and Other | Amortization | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (180) | (174) | |
Amortization | 7 | 6 | |
Impairment (Note 10) | 1 | ||
Disposals and other | (1) | ||
Intangible assets and goodwill, ending balance | (189) | (180) | |
Intangible assets and goodwill (Note 8) | (189) | (180) | |
Customer Relationships | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 1,565 | ||
Intangible assets and goodwill, ending balance | 1,446 | 1,565 | |
Intangible assets and goodwill (Note 8) | $ 1,446 | 1,565 | |
Customer Relationships | Minimum | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Finite-lived intangible asset, useful life | 14 years | ||
Customer Relationships | Maximum | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Finite-lived intangible asset, useful life | 36 years | ||
Customer Relationships | Kinder Morgan Canada Limited | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill (Note 8) | $ 1,100 | ||
Customer Relationships | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | $ 1,869 | 1,881 | |
Additions and other | 0 | 0 | |
Foreign exchange adjustments | (12) | ||
Disposals and other | (8) | ||
Intangible assets and goodwill, ending balance | 1,861 | 1,869 | |
Intangible assets and goodwill (Note 8) | 1,861 | 1,869 | |
Customer Relationships | Amortization | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (304) | (202) | |
Amortization | 93 | 102 | |
Impairment (Note 10) | 23 | ||
Disposals and other | 5 | ||
Intangible assets and goodwill, ending balance | (415) | (304) | |
Intangible assets and goodwill (Note 8) | $ (415) | $ (304) |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of operating segments [line items] | ||
Goodwill | $ 4,693 | $ 4,694 |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Goodwill | 2,714 | 2,713 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Goodwill | 540 | 541 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Goodwill | $ 1,439 | $ 1,440 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Key Assumptions of Goodwill Impairment (Details) - Goodwill | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 6.50% | |
Long-term growth rate | 1.30% | |
Increase in after-tax discount rate | 2.90% | |
Facilities | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
After-tax discount rate | 6.40% | |
Long-term growth rate | 1.80% | |
Increase in after-tax discount rate | 4.10% | |
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 | 8.90% | |
Long-term growth rate | 1.90% | |
Increase in after-tax discount rate | 2.50% |
INVESTMENTS IN EQUITY ACCOUNT_3
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Investment Interest (Details) - CAD ($) $ in Millions | Jun. 04, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | $ 281 | $ (32) | ||
Investments in equity accounted investees | $ 4,377 | 4,622 | 4,377 | |
Impairment expense | $ 474 | $ 1,776 | ||
Alliance | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 111 | $ 105 | ||
Investments in equity accounted investees | 2,498 | 2,686 | 2,498 | |
Aux Sable | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 77 | 0 | ||
Investments in equity accounted investees | $ 401 | $ 377 | $ 401 | |
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 | $ 12 | $ 122 | ||
Investments in equity accounted investees | $ 0 | $ 0 | ||
Impairment expense | $ 8 | |||
Veresen Midstream | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 45.00% | 45.00% | ||
Share of Profit (Loss) from Equity Investments | $ 77 | $ 50 | ||
Investments in equity accounted investees | 1,374 | $ 1,349 | $ 1,374 | |
CKPC | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 0 | $ (314) | ||
Investments in equity accounted investees | 0 | 0 | ||
Impairment expense | $ 0 | 314 | ||
Cedar LNG | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 (percent) | 49.90% | 49.90% | ||
Investments in equity accounted investees | $ 130 | |||
Other | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 4 | 5 | ||
Investments in equity accounted investees | $ 104 | $ 80 | $ 104 | |
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, $ in Millions | Dec. 10, 2021CAD ($) | Dec. 10, 2021USD ($) | Jun. 04, 2021CAD ($) | Apr. 19, 2021CAD ($) | Jun. 30, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Dec. 10, 2021USD ($) | |
Disclosure of joint ventures [line items] | |||||||||||
Goodwill | $ 4,694 | $ 4,693 | $ 4,694 | ||||||||
Property, plant and equipment | 18,549 | 18,193 | 18,549 | ||||||||
Long-term debt | 10,276 | 9,645 | 10,276 | ||||||||
Investments in equity accounted investees | 4,377 | 4,622 | 4,377 | ||||||||
Exchange loss on translation of foreign operations | (18) | (117) | [1] | ||||||||
Purchase of interests in investments accounted for using equity method | 335 | 202 | |||||||||
Impairment expense (Note 10) | 474 | 1,776 | |||||||||
Contributions | 335 | 224 | |||||||||
Current portion of non-current borrowings | 600 | 1,000 | 600 | ||||||||
Payments to acquire or redeem entity's shares | 17 | 0 | |||||||||
Joint ventures | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Goodwill | 98 | 223 | 98 | ||||||||
Property, plant and equipment | 2,800 | 2,700 | 2,800 | ||||||||
Long-term debt | 33 | 0 | 33 | ||||||||
Investments in equity accounted investees | $ 1,300 | ||||||||||
Exchange loss on translation of foreign operations | (11) | 51 | |||||||||
Cedar LNG | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Investments in equity accounted investees | $ 130 | ||||||||||
Purchase of interests in investments accounted for using equity method | $ 125 | ||||||||||
Proportion of ownership interest in joint venture (percent) | 49.90% | 49.90% | |||||||||
Contingent consideration recognised as of acquisition date | $ 70 | ||||||||||
Contributions | $ 5 | 0 | |||||||||
CKPC | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Investments in equity accounted investees | 0 | $ 0 | |||||||||
Proportion of ownership interest in joint venture (percent) | 50.00% | 50.00% | |||||||||
Impairment expense (Note 10) | $ 0 | $ 314 | |||||||||
Contributions | $ 0 | 152 | |||||||||
Ruby Pipeline | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Investments in equity accounted investees | $ 0 | 0 | |||||||||
Proportion of ownership interest in joint venture (percent) | 50.00% | 50.00% | |||||||||
Impairment expense (Note 10) | $ 8 | ||||||||||
Contributions | 0 | 0 | |||||||||
Fort Corp | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Impairment expense (Note 10) | $ 22 | ||||||||||
Alliance | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Investments in equity accounted investees | $ 2,498 | $ 2,686 | $ 2,498 | ||||||||
Proportion of ownership interest in joint venture (percent) | 50.00% | 50.00% | |||||||||
Contributions | $ 299 | $ 0 | |||||||||
Payments to acquire or redeem entity's shares | $ 367 | $ 175 | |||||||||
Term Loan | Ruby Pipeline | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Repayments of non-current borrowings | $ 16 | ||||||||||
Term Loan | Alliance | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Long-term debt | 315 | $ 250 | |||||||||
Revolving Credit Facility | CKPC | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Contributions | $ 22 | ||||||||||
Revolving Credit Facility | Alliance | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Long-term debt | $ 30 | $ 30 | |||||||||
Senior Notes | Ruby Pipeline | |||||||||||
Disclosure of joint ventures [line items] | |||||||||||
Current portion of non-current borrowings | $ 475 | ||||||||||
[1] | Accumulated Other Comprehensive Income (loss) ("AOCI"). |
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, 2021 | Dec. 31, 2020 | |
Disclosure of joint ventures [line items] | ||
Distributions | $ 461 | $ 459 |
Contributions | 335 | 224 |
Alliance | ||
Disclosure of joint ventures [line items] | ||
Distributions | 212 | 217 |
Contributions | 299 | 0 |
Aux Sable | ||
Disclosure of joint ventures [line items] | ||
Distributions | 100 | 19 |
Contributions | 2 | 3 |
Ruby Pipeline | ||
Disclosure of joint ventures [line items] | ||
Distributions | 13 | 122 |
Contributions | 0 | 0 |
Veresen Midstream | ||
Disclosure of joint ventures [line items] | ||
Distributions | 131 | 97 |
Contributions | 29 | 69 |
CKPC | ||
Disclosure of joint ventures [line items] | ||
Distributions | 0 | 0 |
Contributions | 0 | 152 |
Cedar LNG | ||
Disclosure of joint ventures [line items] | ||
Distributions | 0 | 0 |
Contributions | 5 | 0 |
Other | ||
Disclosure of joint ventures [line items] | ||
Distributions | 5 | 4 |
Contributions | $ 0 | $ 0 |
INVESTMENTS IN EQUITY ACCOUNT_6
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Financial Information of Investments (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings and Comprehensive Income | |||
Revenue | $ 8,627,000,000 | $ 5,953,000,000 | |
Impairment | (1,776,000,000) | ||
Finance costs and other | (450,000,000) | (420,000,000) | |
Earnings (loss) | 1,242,000,000 | (316,000,000) | |
Statement of financial position [abstract] | |||
Current assets | 1,245,000,000 | 989,000,000 | |
Non-current assets | 30,211,000,000 | 30,427,000,000 | |
Current liabilities | 2,390,000,000 | 1,781,000,000 | |
Non-current liabilities | 14,703,000,000 | 14,620,000,000 | |
Cash and cash equivalents | 43,000,000 | 81,000,000 | $ 129,000,000 |
Alliance | |||
Earnings and Comprehensive Income | |||
Revenue | 905,000,000 | 840,000,000 | |
Expenses | (353,000,000) | (296,000,000) | |
Depreciation and amortization | (138,000,000) | (141,000,000) | |
Finance costs and other | (115,000,000) | (61,000,000) | |
Earnings (loss) | 299,000,000 | 342,000,000 | |
Net Income Attributable To Pembina | 111,000,000 | 105,000,000 | |
Statement of financial position [abstract] | |||
Current assets | 264,000,000 | 122,000,000 | |
Non-current assets | 1,690,000,000 | 1,816,000,000 | |
Current liabilities | 67,000,000 | 206,000,000 | |
Non-current liabilities | 814,000,000 | 1,121,000,000 | |
Interest income | 0 | 2,000,000 | |
Interest expense | 118,000,000 | 66,000,000 | |
Cash and cash equivalents | 168,000,000 | 25,000,000 | |
Alliance | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 48,000,000 | 71,000,000 | |
Alliance | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 9,000,000 | 128,000,000 | |
Aux Sable | |||
Earnings and Comprehensive Income | |||
Revenue | 1,967,000,000 | 1,059,000,000 | |
Expenses | (1,747,000,000) | (1,019,000,000) | |
Depreciation and amortization | (43,000,000) | (49,000,000) | |
Earnings (loss) | 177,000,000 | (9,000,000) | |
Net Income Attributable To Pembina | 77,000,000 | 0 | |
Statement of financial position [abstract] | |||
Current assets | 196,000,000 | 162,000,000 | |
Non-current assets | 707,000,000 | 757,000,000 | |
Current liabilities | 143,000,000 | 107,000,000 | |
Non-current liabilities | 164,000,000 | 155,000,000 | |
Cash and cash equivalents | 24,000,000 | 50,000,000 | |
Aux Sable | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 98,000,000 | 103,000,000 | |
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 | 286,000,000 | 432,000,000 | |
Expenses | (8,000,000) | (29,000,000) | |
Depreciation and amortization | (26,000,000) | (143,000,000) | |
Impairment | 0 | (2,953,000,000) | |
Finance costs and other | (21,000,000) | (130,000,000) | |
Earnings (loss) | 231,000,000 | (2,823,000,000) | |
Net Income Attributable To Pembina | 12,000,000 | 122,000,000 | |
Statement of financial position [abstract] | |||
Current assets | 137,000,000 | 50,000,000 | |
Non-current assets | 662,000,000 | 688,000,000 | |
Current liabilities | 622,000,000 | 77,000,000 | |
Non-current liabilities | 302,000,000 | 928,000,000 | |
Interest expense | 79,000,000 | 104,000,000 | |
Cash and cash equivalents | 113,000,000 | 6,000,000 | |
Ruby Pipeline | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 1,000,000 | 2,000,000 | |
Ruby Pipeline | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 296,000,000 | 278,000,000 | |
Veresen Midstream | |||
Earnings and Comprehensive Income | |||
Revenue | 661,000,000 | 565,000,000 | |
Expenses | (216,000,000) | (177,000,000) | |
Depreciation and amortization | (191,000,000) | (177,000,000) | |
Finance costs and other | (67,000,000) | (84,000,000) | |
Earnings (loss) | 187,000,000 | 127,000,000 | |
Net Income Attributable To Pembina | 77,000,000 | 50,000,000 | |
Statement of financial position [abstract] | |||
Current assets | 211,000,000 | 167,000,000 | |
Non-current assets | 4,605,000,000 | 4,671,000,000 | |
Current liabilities | 147,000,000 | 114,000,000 | |
Non-current liabilities | 2,674,000,000 | 2,689,000,000 | |
Interest expense | 71,000,000 | 80,000,000 | |
Cash and cash equivalents | 1,000,000 | 0 | |
Veresen Midstream | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 63,000,000 | 80,000,000 | |
Veresen Midstream | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 61,000,000 | 56,000,000 | |
CKPC | |||
Earnings and Comprehensive Income | |||
Expenses | (6,000,000) | (4,000,000) | |
Impairment | 0 | (589,000,000) | |
Finance costs and other | (1,000,000) | (33,000,000) | |
Earnings (loss) | (7,000,000) | (626,000,000) | |
Net Income Attributable To Pembina | 0 | (314,000,000) | |
Statement of financial position [abstract] | |||
Current assets | 33,000,000 | 83,000,000 | |
Non-current assets | 0 | 0 | |
Current liabilities | 57,000,000 | 99,000,000 | |
Non-current liabilities | 10,000,000 | 11,000,000 | |
Interest income | 0 | 1,000,000 | |
Cash and cash equivalents | 29,000,000 | 75,000,000 | |
CKPC | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 57,000,000 | 99,000,000 | |
CKPC | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 10,000,000 | 11,000,000 | |
Other | |||
Earnings and Comprehensive Income | |||
Revenue | 57,000,000 | 51,000,000 | |
Expenses | (23,000,000) | (16,000,000) | |
Depreciation and amortization | (15,000,000) | (16,000,000) | |
Finance costs and other | 0 | (5,000,000) | |
Earnings (loss) | 19,000,000 | 14,000,000 | |
Net Income Attributable To Pembina | 4,000,000 | 5,000,000 | |
Statement of financial position [abstract] | |||
Current assets | 6,000,000 | 6,000,000 | |
Non-current assets | 104,000,000 | 117,000,000 | |
Current liabilities | 25,000,000 | 25,000,000 | |
Non-current liabilities | 42,000,000 | 64,000,000 | |
Interest expense | 1,000,000 | 2,000,000 | |
Cash and cash equivalents | 1,000,000 | 1,000,000 | |
Other | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 4,000,000 | 3,000,000 | |
Other | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 1,000,000 | 1,000,000 | |
Cedar LNG | |||
Statement of financial position [abstract] | |||
Current assets | 2,000,000 | 0 | |
Non-current assets | 50,000,000 | 0 | |
Current liabilities | 6,000,000 | 0 | |
Non-current liabilities | 36,000,000 | $ 0 | |
Cedar LNG | Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | 3,000,000 | ||
Cedar LNG | Non-Current Liabilities | |||
Statement of financial position [abstract] | |||
Trade and other payables | $ 34,000,000 |
IMPAIRMENTS - Summary of Impair
IMPAIRMENTS - Summary of Impairment Expense (Details) - CAD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 474 | $ 2,090 | |
Impairment in share of profit from equity accounted investees (Note 9) | 0 | 314 | |
Recognized as impairment expense | 1,776 | ||
Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 380 | 357 | |
Intangible Assets and Goodwill (Note 8) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 24 | ||
Right-of-use Assets (Note 13) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 27 | ||
Equity Accounted Investees (Note 9) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 22 | 1,591 | |
Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 21 | 142 | |
Jordan Cove | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 349 | 349 | |
Jordan Cove | Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 344 | ||
Jordan Cove | Equity Accounted Investees (Note 9) | |||
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 | ||
Pembina Oil Sands Pipeline L.P. | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 424 | ||
Pembina Oil Sands Pipeline L.P. | Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 368 | ||
Pembina Oil Sands Pipeline L.P. | Intangible Assets and Goodwill (Note 8) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 24 | ||
Pembina Oil Sands Pipeline L.P. | Right-of-use Assets (Note 13) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 27 | ||
Pembina Oil Sands Pipeline L.P. | Equity Accounted Investees (Note 9) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Pembina Oil Sands Pipeline L.P. | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 5 | ||
Investment in Ruby | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 1,396 | ||
Investment in Ruby | Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Investment in Ruby | Equity Accounted Investees (Note 9) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 1,257 | ||
Investment in Ruby | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 139 | ||
Investment in CKPC | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 321 | ||
Investment in CKPC | Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Investment in CKPC | Equity Accounted Investees (Note 9) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 323 | ||
Investment in 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 | 50 | 24 | |
Other | Property, Plant & Equipment (Note 7) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 12 | 13 | |
Other | Intangible Assets and Goodwill (Note 8) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Other | Right-of-use Assets (Note 13) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 0 | ||
Other | Equity Accounted Investees (Note 9) | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | 22 | 11 | |
Other | Other | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | $ 16 | $ 0 |
IMPAIRMENTS - Narrative (Detail
IMPAIRMENTS - Narrative (Details) - CAD ($) $ in Millions | Dec. 14, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||||
Impairment loss | $ 474 | $ 2,090 | |||
Impairment of investment in equity accounted investees, net | 361 | ||||
Impairment in share of profit from equity accounted investees (Note 9) | 0 | 314 | |||
Equity Accounted Investees | |||||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||||
Impairment loss | 22 | 1,591 | |||
Other | |||||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||||
Impairment loss | $ 21 | $ 142 | |||
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% | 8.00% | ||
Ruby Blocker LLC | Other | |||||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||||
Impairment loss | $ 139 | ||||
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 | ||||
CKPC | |||||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||||
Impairment in share of profit from equity accounted investees (Note 9) | $ 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 |
INCOME TAXES - Movement in Comp
INCOME TAXES - Movement in Components of Deferred Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | $ 2,603 | $ 2,945 |
Recognized in Earnings (Loss) | 137 | (340) |
Recognized in Other Comprehensive Loss | 11 | 0 |
Equity | 0 | 2 |
Other | 3 | (4) |
Deferred tax liability (asset) at end of period | 2,754 | 2,603 |
Derivative financial instruments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (4) | 13 |
Recognized in Earnings (Loss) | (20) | 21 |
Recognized in Other Comprehensive Loss | (4) | |
Deferred tax liability (asset) at end of period | 16 | (4) |
Employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (11) | (9) |
Recognized in Earnings (Loss) | 2 | (2) |
Recognized in Other Comprehensive Loss | (11) | 4 |
Deferred tax liability (asset) at end of period | (2) | (11) |
Share-based payments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (14) | (24) |
Recognized in Earnings (Loss) | 10 | (10) |
Deferred tax liability (asset) at end of period | (24) | (14) |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (83) | (79) |
Recognized in Earnings (Loss) | 17 | 4 |
Deferred tax liability (asset) at end of period | (100) | (83) |
Benefit of loss carryforwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (275) | (400) |
Recognized in Earnings (Loss) | 110 | (125) |
Deferred tax liability (asset) at end of period | (385) | (275) |
Other deductible temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (66) | (52) |
Recognized in Earnings (Loss) | 16 | |
Equity | (2) | |
Deferred tax liability (asset) at end of period | (66) | |
Other deductible temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (51) | |
Recognized in Earnings (Loss) | (41) | |
Other | (3) | |
Deferred tax liability (asset) at end of period | (7) | (51) |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 2,091 | 2,036 |
Recognized in Earnings (Loss) | 159 | 55 |
Deferred tax liability (asset) at end of period | 2,250 | 2,091 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 260 | 263 |
Recognized in Earnings (Loss) | (9) | (3) |
Deferred tax liability (asset) at end of period | 251 | 260 |
Investments in equity accounted investees | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 692 | 1,109 |
Recognized in Earnings (Loss) | 17 | (417) |
Deferred tax liability (asset) at end of period | 709 | 692 |
Taxable limited partnership income deferral | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (2) | 101 |
Recognized in Earnings (Loss) | 48 | (103) |
Deferred tax liability (asset) at end of period | 46 | (2) |
Other taxable temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | $ 15 | (13) |
Recognized in Earnings (Loss) | 32 | |
Other | (4) | |
Deferred tax liability (asset) at end of period | $ 15 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Earnings (loss) before income tax | $ 1,665 | $ (416) |
Canadian statutory tax rate (percent) | 23.30% | 24.60% |
Income tax at statutory rate | $ 388 | $ (102) |
Tax rate changes and foreign rate differential | (19) | (5) |
Changes in estimate and other | 21 | (5) |
Permanent items | 12 | 12 |
Unrecognized tax attribute | 21 | 0 |
Income tax expense (recovery) (Note 11) | $ 423 | $ (100) |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Current tax expense | $ 286 | $ 240 |
Deferred tax expense | ||
Origination and reversal of temporary differences | 235 | (485) |
Tax rate changes on deferred tax balances | 14 | 32 |
Increase (Decrease) in Tax Loss Carry Forward | (112) | 113 |
For the years ended December 31 | 137 | (340) |
Income tax expense (recovery) (Note 11) | $ 423 | $ (100) |
INCOME TAXES - Deferred Tax Ite
INCOME TAXES - Deferred Tax Items Recovered Directly in Equity (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | |
Income Taxes [Abstract] | |||||
Share issue costs | $ 0 | $ (2,000,000) | |||
Change in fair value of net investment hedges | 0 | (4,000,000) | |||
Remeasurements of defined benefit (asset) liability | (11,000,000) | 4,000,000 | |||
Deferred tax items recovered directly in equity | (11,000,000) | (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 | 2,754,000,000 | 2,603,000,000 | $ 2,945,000,000 | ||
Unrecognized tax attribute | 21,000,000 | 0 | |||
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 | (385,000,000) | (275,000,000) | $ (400,000,000) | ||
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 | $ 1,100 | $ 758 | |||
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 | $ 42,000,000 | $ 43,000,000 |
TRADE PAYABLES AND OTHER (Detai
TRADE PAYABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 652 | $ 434 |
Other payables & accrued liabilities | 411 | 346 |
Total trade payables and other | $ 1,063 | $ 780 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of leases [Abstract] | ||
Cash outflow for leases | $ 127 | $ 131 |
LEASES - Right-of-use assets (D
LEASES - Right-of-use assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | $ 651 | $ 691 |
Additions to right-of-use assets | 61 | 46 |
Disposals and other | (13) | |
Amortization | (91) | (86) |
Impairment | (27) | |
Ending balance, right-of-use assets | 581 | 651 |
Terminals | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 213 | 225 |
Additions to right-of-use assets | 2 | 0 |
Disposals and other | 0 | |
Amortization | (20) | (12) |
Impairment | (27) | |
Ending balance, right-of-use assets | 168 | 213 |
Rail | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 221 | 238 |
Additions to right-of-use assets | 1 | 24 |
Disposals and other | (4) | |
Amortization | (41) | (41) |
Impairment | 0 | |
Ending balance, right-of-use assets | 177 | 221 |
Buildings | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 121 | 118 |
Additions to right-of-use assets | 40 | 22 |
Disposals and other | 0 | |
Amortization | (18) | (19) |
Impairment | 0 | |
Ending balance, right-of-use assets | 143 | 121 |
Land & Other | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 96 | 110 |
Additions to right-of-use assets | 18 | 0 |
Disposals and other | (9) | |
Amortization | (12) | (14) |
Impairment | 0 | |
Ending balance, right-of-use assets | $ 93 | $ 96 |
LEASES - Maturity of operating
LEASES - Maturity of operating leases (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 1,349 | $ 1,531 |
Less than 1 Year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 146 | 146 |
One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 140 | 142 |
Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 121 | 139 |
Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 109 | 121 |
Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 108 | 109 |
More than 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 725 | $ 874 |
LEASES - Maturity of finance le
LEASES - Maturity of finance leases (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | $ 475 | $ 336 |
Unearned finance income on lease receipts | (270) | (199) |
Discounted unguaranteed residual value | 15 | 8 |
Finance lease receivable | 220 | 145 |
Less current portion | (9) | (7) |
Total non-current | 211 | 138 |
Less than 1 Year | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 23 |
One to two years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 23 |
Two to three years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 22 |
Three to four years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 32 | 22 |
Four to five years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 22 |
More than 5 years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | $ 319 | $ 224 |
LONG-TERM DEBT - Carrying Value
LONG-TERM DEBT - Carrying Value, Terms and Conditions, and Debt Maturity Schedule (Details) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 10, 2021CAD ($) | Apr. 30, 2021CAD ($) | Jan. 25, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Carrying value | $ 10,645,000,000 | $ 10,876,000,000 | |||||
Less current portion loans and borrowings | (1,000,000,000) | (600,000,000) | |||||
Total non-current loans and borrowings | 9,645,000,000 | 10,276,000,000 | |||||
Senior unsecured credit facilities | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 3,336,000,000 | ||||||
Nominal interest rate | 120.00% | 120.00% | |||||
Carrying value | $ 907,000,000 | 1,530,000,000 | |||||
Senior unsecured medium-term notes series 1 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 0 | ||||||
Nominal interest rate | 489.00% | 489.00% | |||||
Carrying value | $ 0 | 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 | $ 450,000,000 | 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 | 447,000,000 | |||||
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 | 597,000,000 | |||||
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 | |||||
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 | $ 499,000,000 | 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 | ||||||
Nominal interest rate | 371.00% | 371.00% | |||||
Carrying value | $ 602,000,000 | 603,000,000 | |||||
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 | $ 648,000,000 | 647,000,000 | |||||
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 | |||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 650,000,000 | $ 1,000,000,000 | |||||
Nominal interest rate | 402.00% | 402.00% | |||||
Carrying value | $ 660,000,000 | 661,000,000 | |||||
Senior unsecured medium-term notes series 11 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 800,000,000 | ||||||
Nominal interest rate | 475.00% | 475.00% | |||||
Carrying value | $ 841,000,000 | 842,000,000 | |||||
Senior unsecured medium-term notes series 12 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 650,000,000 | ||||||
Nominal interest rate | 362.00% | 362.00% | |||||
Carrying value | $ 654,000,000 | 654,000,000 | |||||
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 | $ 712,000,000 | 713,000,000 | |||||
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 | 599,000,000 | |||||
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 | |||||
Senior unsecured medium-term notes series 16 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 400,000,000 | ||||||
Nominal interest rate | 467.00% | 467.00% | |||||
Carrying value | $ 397,000,000 | 397,000,000 | |||||
Senior unsecured medium-term notes series 17 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 500,000,000 | ||||||
Nominal interest rate | 353.00% | 353.00% | |||||
Carrying value | $ 497,000,000 | 0 | |||||
Senior unsecured medium-term notes series 18 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 500,000,000 | ||||||
Nominal interest rate | 449.00% | 449.00% | |||||
Carrying value | $ 497,000,000 | 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 | $ 50,000,000 | 51,000,000 | |||||
Senior unsecured medium-term notes series 5A | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 0 | ||||||
Nominal interest rate | 343.00% | 343.00% | |||||
Carrying value | $ 0 | 350,000,000 | |||||
Subordinated notes, series 1 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 600,000,000 | $ 600,000,000 | |||||
Nominal interest rate | 480.00% | 480.00% | 480.00% | ||||
Carrying value | $ 594,000,000 | $ 0 | |||||
Revolving unsecured credit facility maturing in June 2026 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | 2,500,000,000 | $ 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 | ||||||
Non-revolving term loan facility maturing in May 2025 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 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 | $ 250,000,000 | |||||
Operating facility | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Authorized | $ 20,000,000 |
LONG-TERM DEBT- Narrative (Deta
LONG-TERM DEBT- Narrative (Details) - CAD ($) | Dec. 31, 2021 | Dec. 10, 2021 | Apr. 30, 2021 | Mar. 25, 2021 | Jan. 25, 2021 |
Subordinated notes, series 1 | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 600,000,000 | $ 600,000,000 | |||
Nominal interest rate | 480.00% | 480.00% | |||
Subordinated notes, series 1 | Fixed rate instruments | January 25, 2031 to, but excluding January 25, 2051 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Nominal interest rate | 417.00% | ||||
Subordinated notes, series 1 | Fixed rate instruments | January 25, 2051 to, but excluding January 25, 2081 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Nominal interest rate | 492.00% | ||||
Revolving Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 800,000,000 | ||||
Revolving unsecured credit facility maturing in June 2026 | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 2,500,000,000 | $ 2,500,000,000 | |||
Senior unsecured medium-term notes series 5A | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 0 | ||||
Nominal interest rate | 343.00% | ||||
Senior Unsecured Medium-Term Notes | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 650,000,000 | $ 1,000,000,000 | |||
Nominal interest rate | 402.00% | ||||
Senior Unsecured Medium-Term Notes Series 17 | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 500,000,000 | ||||
Nominal interest rate | 3.53% | ||||
Senior Unsecured Medium-Term Notes Series 18 | Fixed rate instruments | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 500,000,000 | ||||
Nominal interest rate | 4.49% |
DECOMISSIONING PROVISION - Deta
DECOMISSIONING PROVISION - Detailed Disclosure (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 348 | $ 337 |
Unwinding of discount rate | 16 | 15 |
Additions | 29 | 11 |
Change in cost estimates and other | 19 | (15) |
Other provisions, ending balance | $ 412 | $ 348 |
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% | 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% | 4.70% |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | Feb. 03, 2022 | Jan. 06, 2022 | Jun. 01, 2021 | Mar. 01, 2021 | Feb. 25, 2021 | Nov. 16, 2020 | Jun. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 25, 2021 | Dec. 31, 2019 |
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% | ||||||||||
Number of shares authorized to be repurchased | 27,500,000 | ||||||||||
Number of shares issued (in shares) | 550,000,000 | 548,000,000 | |||||||||
Preferred share capital | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares outstanding (in shares) | 105,000,000 | 122,000,000 | 122,000,000 | ||||||||
Dividends declared | $ 135 | $ 151 | |||||||||
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 | 10 | 11 | |||||||||
Series 2021 Class A Preferred Shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares issued (in shares) | 600,000 | ||||||||||
Series 11 preferred share | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Stock redeemed during period, shares | 6,800,000 | ||||||||||
Preferred stock, redemption price per share (in CAD per share) | $ 25 | ||||||||||
Dividends declared | $ 2 | $ 10 | |||||||||
Cumulative Redeemable Rate Reset Class A Preferred Shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Stock redeemed during period, shares | 10,000,000 | ||||||||||
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 | 550,000,000 | 548,000,000 | ||||||||
Dividends declared | $ 1,386 | $ 1,385 | |||||||||
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 | $ 116 | $ 116 |
SHARE CAPITAL - Share Repurchas
SHARE CAPITAL - Share Repurchase Program (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | ||
Number of common shares repurchased for cancellation (thousands) | 450 | 0 |
Average price per share (in dollars per share) | $ 37.77 | $ 0 |
Total cost | $ 17 | $ 0 |
Deficit | ||
Disclosure of classes of share capital [line items] | ||
Total cost | 4 | 0 |
Issued capital | ||
Disclosure of classes of share capital [line items] | ||
Total cost | $ 13 | $ 0 |
SHARE CAPITAL - Common and Pref
SHARE CAPITAL - Common and Preferred Share Capital (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of number of shares outstanding [abstract] | ||
Repurchased | $ (17) | |
Share-based payment transactions | $ 47 | $ 105 |
Common share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 550 | 548 |
Share-based payment transactions (in shares) | 0 | 2 |
Repurchased (in shares) | 0 | |
Number of shares, Ending balance (in shares) | 550 | 550 |
Share capital, beginning balance | $ 15,644 | $ 15,539 |
Repurchased | (13) | |
Share capital, ending balance | $ 15,678 | 15,644 |
Share-based payment transactions | $ 105 | |
Preferred share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 122 | 122 |
Issued, net of issue costs (in shares) | 0 | 0 |
Number of shares, Ending balance (in shares) | 105 | 122 |
Share capital, beginning balance | $ 2,946 | $ 2,956 |
Part VI.1 tax | (9) | (10) |
Share capital, ending balance | $ 2,517 | $ 2,946 |
Series 11 preferred share | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued, net of issue costs (in shares) | (7) | |
Issued, net of issue costs (in shares) | $ (170) | |
Series 13 preferred share | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued, net of issue costs (in shares) | (10) | |
Issued, net of issue costs (in shares) | $ (250) |
SHARE CAPITAL - Dividends (Deta
SHARE CAPITAL - Dividends (Details) - CAD ($) $ / shares in Units, $ in Millions | Mar. 15, 2022 | Feb. 01, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Common share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 2.52 | $ 2.52 | |||
Dividends paid | $ 1,386 | $ 1,385 | |||
Preferred share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 135 | $ 151 | |||
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 | $ 1.12 | |||
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 | $ 1.14 | |||
Dividends paid | $ 11 | $ 11 | |||
Series 7 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.10 | $ 1.10 | |||
Dividends paid | $ 11 | $ 11 | |||
Series 9 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.08 | $ 1.18 | |||
Dividends paid | $ 10 | $ 11 | |||
Series 11 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 0.36 | $ 1.44 | |||
Dividends paid | $ 2 | $ 10 | |||
Series 13 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 0.72 | $ 1.44 | |||
Dividends paid | $ 7 | $ 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 | $ 1.21 | |||
Dividends paid | $ 7 | $ 7 | |||
Series 19 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.17 | $ 1.21 | |||
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 | $ 1.31 | |||
Dividends paid | $ 16 | $ 16 | |||
Series 25 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.30 | $ 1.30 | |||
Dividends paid | $ 13 | $ 13 | |||
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) | $ 0.268875 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | ||||
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, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 8,459 | $ 5,772 |
Operational finance lease income | 19 | 15 |
Lease and other revenue | 149 | 166 |
Revenue | 8,627 | 5,953 |
Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,990 | 1,959 |
Operational finance lease income | 17 | 15 |
Lease and other revenue | 116 | 131 |
Revenue | 2,123 | 2,105 |
Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 892 | 857 |
Operational finance lease income | 2 | 0 |
Lease and other revenue | 33 | 35 |
Revenue | 927 | 892 |
Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 5,577 | 2,956 |
Operational finance lease income | 0 | 0 |
Lease and other revenue | 0 | 0 |
Revenue | 5,577 | 2,956 |
Take-or-Pay | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,396 | 2,404 |
Take-or-Pay | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,642 | 1,664 |
Take-or-Pay | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 754 | 740 |
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 | 486 | 412 |
Fee-for-Service | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 348 | 295 |
Fee-for-Service | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 138 | 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 | 5,577 | 2,956 |
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 | 0 |
Product Sales | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 5,577 | $ 2,956 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contract balances [Line Items] | ||
Opening balance | $ 292 | $ 231 |
Additions (net in the period) | 64 | 120 |
Revenue recognized from contract liabilities | (65) | (59) |
Closing balance | 291 | 292 |
Less current portion | (71) | (62) |
Ending balance | 220 | 230 |
Take-or-Pay | ||
Contract balances [Line Items] | ||
Opening balance | 3 | 8 |
Additions (net in the period) | 0 | 3 |
Revenue recognized from contract liabilities | 0 | (8) |
Closing balance | 3 | 3 |
Less current portion | (3) | (3) |
Ending balance | 0 | 0 |
Other Contract Liabilities | ||
Contract balances [Line Items] | ||
Opening balance | 289 | 223 |
Additions (net in the period) | 64 | 117 |
Revenue recognized from contract liabilities | (65) | (51) |
Closing balance | 288 | 289 |
Less current portion | (68) | (59) |
Ending balance | $ 220 | $ 230 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 14,500 | $ 16,100 |
Maximum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 2,000 | 1,900 |
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 | 1,100 | 1,300 |
Minimum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,300 | 1,500 |
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 | $ 7 | $ 7 |
OTHER INCOME (Details)
OTHER INCOME (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Analysis of income and expense [abstract] | |
Other income | $ 350 |
NET FINANCE COSTS (Details)
NET FINANCE COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense on financial liabilities measured at amortized cost: | ||
Loans and borrowings | $ 362 | $ 362 |
Subordinated hybrid notes | 27 | 0 |
Leases | 35 | 39 |
Unwinding of discount rate | 16 | 15 |
Loss (gain) in fair value of non-commodity-related derivative financial instruments | 19 | |
Loss (gain) in fair value of non-commodity-related derivative financial instruments | (5) | |
Foreign exchange (gains) losses and other | (9) | 9 |
Net finance costs (income) | $ 450 | $ 420 |
NET FINANCE COSTS - Narrative (
NET FINANCE COSTS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Net interest paid | $ 443 | $ 429 |
Interest paid during construction | $ 25 | $ 46 |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($)segment | Dec. 31, 2020CAD ($) | |
Operating Segments [Abstract] | ||
Number of operating segments | segment | 3 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 8,627 | $ 5,953 |
Salaries and wages | 440 | 370 |
Operating expense | 265 | 244 |
General and administrative expense | 175 | 126 |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,123 | 2,105 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 5,577 | 2,956 |
United States | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 207 | 228 |
United States | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 265 | $ 143 |
OPERATING SEGMENTS - Financial
OPERATING SEGMENTS - Financial Information by Segment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 8,627 | $ 5,953 |
Operating expenses | 761 | 712 |
Cost of goods sold, including product purchases | 4,689 | 2,509 |
Depreciation and amortization included in operations | 684 | 662 |
Cost of sales | 6,134 | 3,883 |
Realized (gain) loss on commodity-related derivative financial instruments | 200 | (54) |
Unrealized gain on commodity-related derivative financial instruments | (73) | 84 |
Share of profit from equity accounted investees | 281 | 282 |
Adjusted gross profit | 2,322 | |
Impairment in share of profit from equity accounted investees | 0 | (314) |
Gross profit | 2,647 | 2,008 |
Depreciation included in general and administrative | 39 | 38 |
Other general and administrative | 267 | 208 |
Other expense (income) | (248) | (18) |
Impairment expense | 474 | 1,776 |
Results from operating activities | 2,115 | 4 |
Net finance costs (income) | 450 | 420 |
Earnings (loss) before income tax | 1,665 | (416) |
Capital expenditures | 658 | 1,029 |
Contributions to equity accounted investees | 335 | 224 |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,123 | 2,105 |
Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 927 | 892 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 5,577 | 2,956 |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,279 | 2,251 |
Operating expenses | 556 | 498 |
Depreciation and amortization included in operations | 413 | 402 |
Cost of sales | 969 | 900 |
Share of profit from equity accounted investees | 124 | 227 |
Adjusted gross profit | 1,578 | |
Gross profit | 1,434 | 1,578 |
Other general and administrative | 30 | 24 |
Other expense (income) | 11 | (1) |
Impairment expense | 447 | 1,396 |
Results from operating activities | 946 | 159 |
Net finance costs (income) | 29 | 31 |
Earnings (loss) before income tax | 917 | 128 |
Capital expenditures | 475 | 587 |
Contributions to equity accounted investees | 299 | 0 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 1,363 | 1,231 |
Operating expenses | 471 | 392 |
Cost of goods sold, including product purchases | 6 | 11 |
Depreciation and amortization included in operations | 214 | 199 |
Cost of sales | 691 | 602 |
Realized (gain) loss on commodity-related derivative financial instruments | (10) | |
Unrealized gain on commodity-related derivative financial instruments | (38) | (4) |
Share of profit from equity accounted investees | 80 | 55 |
Adjusted gross profit | 688 | |
Gross profit | 800 | 688 |
Other general and administrative | 14 | 10 |
Other expense (income) | 14 | 2 |
Impairment expense | 22 | 10 |
Results from operating activities | 750 | 666 |
Net finance costs (income) | 35 | 24 |
Earnings (loss) before income tax | 715 | 642 |
Capital expenditures | 136 | 370 |
Contributions to equity accounted investees | 29 | 69 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 5,577 | 2,956 |
Cost of goods sold, including product purchases | 5,017 | 2,815 |
Depreciation and amortization included in operations | 50 | 50 |
Cost of sales | 5,067 | 2,865 |
Realized (gain) loss on commodity-related derivative financial instruments | 210 | (54) |
Unrealized gain on commodity-related derivative financial instruments | (35) | 88 |
Share of profit from equity accounted investees | 77 | 0 |
Adjusted gross profit | 57 | |
Impairment in share of profit from equity accounted investees | (314) | |
Gross profit | 412 | (257) |
Other general and administrative | 29 | 28 |
Other expense (income) | (5) | 4 |
Impairment expense | 5 | 370 |
Results from operating activities | 383 | (659) |
Net finance costs (income) | (8) | (13) |
Earnings (loss) before income tax | 391 | (646) |
Capital expenditures | 21 | 38 |
Contributions to equity accounted investees | 7 | 155 |
Inter-segment revenue | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | (156) | (146) |
Inter-segment revenue | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | (436) | (339) |
Corporate & Inter-segment Eliminations | ||
Disclosure of operating segments [line items] | ||
Revenue | (592) | (485) |
Operating expenses | (266) | (178) |
Cost of goods sold, including product purchases | (334) | (317) |
Depreciation and amortization included in operations | 7 | 11 |
Cost of sales | (593) | (484) |
Adjusted gross profit | (1) | |
Gross profit | 1 | (1) |
Depreciation included in general and administrative | 39 | 38 |
Other general and administrative | 194 | 146 |
Other expense (income) | (268) | (23) |
Results from operating activities | 36 | (162) |
Net finance costs (income) | 394 | 378 |
Earnings (loss) before income tax | (358) | (540) |
Capital expenditures | $ 26 | $ 34 |
OPERATING SEGMENTS - Non-Curren
OPERATING SEGMENTS - Non-Current Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of operating segments [line items] | ||
Non-current assets | $ 29,954 | $ 30,105 |
Canada | ||
Disclosure of operating segments [line items] | ||
Non-current assets | 26,128 | 26,504 |
United States | ||
Disclosure of operating segments [line items] | ||
Non-current assets | $ 3,826 | $ 3,601 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE - Narrative (Details) - CAD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | ||
Earnings (loss) attributable to common shareholders | $ 1,098 | $ (476) |
Weighted average number of common shares (in shares) | 550,000 | 550,000 |
Profit (loss), attributable to ordinary equity holders of parent entity including dilutive effects | $ 1,098 | $ (476) |
Adjusted weighted average number of ordinary shares outstanding (in shares) | 551,000 | 550,000 |
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 277 |
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, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | ||
Earnings (loss) | $ 1,242 | $ (316) |
Dividends on preferred shares | (135) | (148) |
Cumulative dividends on preferred shares, not yet declared | (9) | (12) |
Basic and diluted earnings (loss) attributable to common shareholders | $ 1,098 | $ (476) |
EARNINGS (LOSS) PER COMMON SH_5
EARNINGS (LOSS) PER COMMON SHARE - Weighted Average Number of Common Shares (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | ||
Number of shares issued (in shares) | 550 | 548 |
Effect of shares issued on exercise of options (in shares) | 0 | 2 |
Basic (in shares) | 550 | 550 |
Dilutive effect of share options on issue (in shares) | 1 | 0 |
Weighted average number of common shares at December 31 (diluted) (in shares) | 551 | 550 |
Basic earnings (loss) per common share (in CAD per share) | $ 2 | $ (0.86) |
Diluted earnings (loss) per common share (in CAD per share) | $ 1.99 | $ (0.86) |
PENSION PLAN - Employee Benefit
PENSION PLAN - Employee Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 6 | $ 44 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | (11) | |
Net employee benefit obligations | 26 | |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 17 | $ 18 |
PENSION PLAN - Narrative (Detai
PENSION PLAN - Narrative (Details) - CAD ($) | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Post-employment benefit expense, defined contribution plans | $ 11,000,000 | $ 12,000,000 | ||
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) | 3.20% | |||
Increase (decrease) of estimated discount rate (percent) | 0.0100 | |||
Effect of one percentage point increase on defined benefit obligation | $ (37,000,000) | |||
Effect of one percentage point decrease on defined benefit obligation | 46,000,000 | |||
Expected future contributions to plan in 2022 | 22,000,000 | |||
Registered Plans | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Pension plan expense | 30,000,000 | 20,000,000 | ||
Plan assets | Registered Plans | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Contributions paid into the plan | $ (23,000,000) | (23,000,000) | ||
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, 2021 | Dec. 31, 2020 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | $ 257 | $ 278 |
Fair value of plan assets | 268 | 252 |
Recognized defined benefit assets (obligations) | 11 | (26) |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | 17 | 18 |
Fair value of plan assets | 0 | 0 |
Recognized defined benefit assets (obligations) | $ (17) | $ (18) |
PENSION PLAN - Plan Assets (Det
PENSION PLAN - Plan Assets (Details) - Registered Plans | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 61.00% | 63.00% |
Debt | 39.00% | 37.00% |
Total | 100.00% | 100.00% |
PENSION PLAN - Movement in Plan
PENSION PLAN - Movement in Plan (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 28 | $ 19 |
Return on plan assets | 6 | 8 |
Interest expense (income) | 8 | 9 |
Registered Plans | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 278 | 250 |
Benefits paid by the plan | (28) | (28) |
Current service costs | 27 | 18 |
Interest expense (income) | 7 | 8 |
Actuarial (gains) losses in other comprehensive income | (27) | 30 |
Net defined benefit liability (asset), ending balance | 257 | 278 |
Registered Plans | Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (252) | (231) |
Contributions paid into the plan | 23 | 23 |
Benefits paid by the plan | (28) | (28) |
Return on plan assets | 15 | 18 |
Interest expense (income) | (6) | (8) |
Net defined benefit liability (asset), ending balance | (268) | (252) |
Supplemental Plan | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 18 | 16 |
Benefits paid by the plan | (1) | (2) |
Current service costs | 1 | 1 |
Interest expense (income) | 1 | 1 |
Actuarial (gains) losses in other comprehensive income | (2) | 2 |
Net defined benefit liability (asset), ending balance | $ 17 | $ 18 |
PENSION PLAN - Expense Recogniz
PENSION PLAN - Expense Recognized in Earnings (Details) - Registered Plans - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 28 | $ 19 |
Interest on obligation | 8 | 9 |
Interest on plan assets | (6) | (8) |
Pension plan expense | 30 | 20 |
Operating expenses | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | 16 | 10 |
General and administrative expense | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | $ 14 | $ 10 |
PENSION PLAN - Actuarial Gains
PENSION PLAN - Actuarial Gains and Losses Recognized in OCI (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | $ (45) | $ (35) |
Actuarial gain (loss) arising from | ||
Financial assumptions | 21 | (14) |
Experience adjustments | 2 | (11) |
Return on plan assets excluding interest income | 11 | 15 |
Recognized gain (loss) during the period after tax | 34 | (10) |
Net defined benefit liability (asset), ending balance | (11) | (45) |
Registered Plans | ||
Actuarial gain (loss) arising from | ||
Return on plan assets excluding interest income | (6) | (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 | (41) | (33) |
Actuarial gain (loss) arising from | ||
Financial assumptions | 19 | (13) |
Experience adjustments | 2 | (10) |
Return on plan assets excluding interest income | 11 | 15 |
Recognized gain (loss) during the period after tax | 32 | (8) |
Net defined benefit liability (asset), ending balance | (9) | (41) |
Supplemental Plan | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (4) | (2) |
Actuarial gain (loss) arising from | ||
Financial assumptions | 2 | (1) |
Experience adjustments | 0 | (1) |
Return on plan assets excluding interest income | 0 | 0 |
Recognized gain (loss) during the period after tax | 2 | (2) |
Net defined benefit liability (asset), ending balance | $ (2) | $ (4) |
PENSION PLAN - Actuarial Assump
PENSION PLAN - Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits [Abstract] | ||
Discount rate | 3.20% | 2.60% |
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) | 22 years | 21 years 10 months 24 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 3 months 18 days |
Current male members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 23 years | 22 years 10 months 24 days |
Current female members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 25 years 3 months 18 days | 25 years 2 months 12 days |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / 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 4 months 24 days | |
Number of share options granted in share-based payment arrangement | 2,695,000 | 7,316,000 |
Number of other equity instruments granted in share-based payment arrangement | 2,177,000 | 987,000 |
Measurement period for weighted average exercise price of long-term share unit award incentive plans | 20 days | |
Weighted average exercise price long-term share unit award incentive plans (in CAD per share) | $ / shares | $ 37.99 | $ 32.53 |
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] | ||
Weighted average remaining contractual life of outstanding other equity instruments (years) | 3 years | |
Number of other equity instruments granted in share-based payment arrangement | 704,000 | 469,000 |
RSUs | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of other equity instruments granted in share-based payment arrangement | 1,429,000 | 487,000 |
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 | |
Vesting period (years) | 4 years | |
Expiration period (years) | 7 years |
SHARE-BASED PAYMENTS - Long-ter
SHARE-BASED PAYMENTS - Long-term Share Unit Aware Incentive Plan (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 2,177 | 987 |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 704 | 469 |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 1,429 | 487 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 44 | 31 |
SHARE-BASED PAYMENTS - Share Op
SHARE-BASED PAYMENTS - Share Option Plan (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Share-based Payment Arrangements [Abstract] | ||
Options outstanding, beginning balance (in shares) | shares | 21,776 | 18,584 |
Granted (in shares) | shares | 2,695 | 7,316 |
Exercised (in shares) | shares | (464) | (2,188) |
Forfeited (in shares) | shares | (835) | (1,103) |
Expired (in shares) | shares | (3,201) | (833) |
Options outstanding, ending balance (in shares) | shares | 19,971 | 21,776 |
Weighted average exercise price, outstanding, beginning balance (in CAD per share) | $ / shares | $ 42.68 | $ 44.65 |
Weighted average exercise price of share options granted in share-based payment arrangement (in CAD per share) | $ / shares | 36.36 | 37.55 |
Weighted average exercise price of share options exercised in share-based payment arrangement (in CAD per share) | $ / shares | 34.41 | 40.17 |
Weighted average exercise price of share options forfeited in share-based payment arrangement (in CAD per share) | $ / shares | 39.23 | 44.86 |
Weighted average exercise price of share options expired in share-based payment arrangement (in CAD per share) | $ / shares | 47.87 | 45.24 |
Weighted average exercise price, outstanding, ending balance (in CAD per share) | $ / shares | $ 41.33 | $ 42.68 |
SHARE-BASED PAYMENTS - Exercise
SHARE-BASED PAYMENTS - Exercise Price Range of Outstanding Share Options (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 19,971 | 21,776 | 18,584 |
Options Exercisable (in shares) | shares | 11,776 | ||
Weighted average remaining life (in years) | 4 years 4 months 24 days | ||
$26.83 – $35.25 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 3,517 | ||
Options Exercisable (in shares) | shares | 1,102 | ||
Weighted average remaining life (in years) | 5 years 2 months 12 days | ||
$35.26 – $41.38 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 4,149 | ||
Options Exercisable (in shares) | shares | 1,700 | ||
Weighted average remaining life (in years) | 4 years 7 months 6 days | ||
$41.39 – $43.41 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 2,677 | ||
Options Exercisable (in shares) | shares | 2,677 | ||
Weighted average remaining life (in years) | 2 years 8 months 12 days | ||
$43.42 – $46.00 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 4,618 | ||
Options Exercisable (in shares) | shares | 2,722 | ||
Weighted average remaining life (in years) | 4 years 6 months | ||
$46.01 – $49.78 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | shares | 5,010 | ||
Options Exercisable (in shares) | shares | 3,575 | ||
Weighted average remaining life (in years) | 4 years 3 months 18 days | ||
Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 40.17 | ||
Minimum | $26.83 – $35.25 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 26.83 | ||
Minimum | $35.26 – $41.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 35.26 | ||
Minimum | $41.39 – $43.41 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 41.39 | ||
Minimum | $43.42 – $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.42 | ||
Minimum | $46.01 – $49.78 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 46.01 | ||
Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 49.79 | ||
Maximum | $26.83 – $35.25 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 35.25 | ||
Maximum | $35.26 – $41.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 41.38 | ||
Maximum | $41.39 – $43.41 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.41 | ||
Maximum | $43.42 – $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 46 | ||
Maximum | $46.01 – $49.78 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 49.78 |
SHARE-BASED PAYMENTS - Share _2
SHARE-BASED PAYMENTS - Share Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)year | Dec. 31, 2020CAD ($)year | |
Graded Vesting | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Weighted average fair value at grant date | $ 7.78 | $ 3.82 |
Weighted average expected volatility (percent) | 49.06% | 36.61% |
Weighted average expected option life (years) | year | 3.67 | 3.67 |
Expected annual dividends per option | $ 2.52 | $ 2.52 |
Expected forfeitures (percent) | 7.10% | 6.90% |
Risk-free interest rate (based on government bonds)(percent) | 0.60% | 0.50% |
Cliff Vesting | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Weighted average fair value at grant date | $ 6.59 | |
Weighted average expected volatility (percent) | 40.01% | |
Weighted average expected option life (years) | year | 5 | |
Expected annual dividends per option | $ 2.52 | |
Expected forfeitures (percent) | 7.10% | |
Risk-free interest rate (based on government bonds)(percent) | 1.00% |
SHARE-BASED PAYMENTS - Employee
SHARE-BASED PAYMENTS - Employee Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangements [Abstract] | ||
Share option plan, equity settled | $ 31 | $ 17 |
Long-term share unit award incentive plan | 69 | 11 |
Share-based compensation expense | 100 | 28 |
Total carrying amount of liabilities for cash settled arrangements | 88 | 60 |
Total intrinsic value of liability for vested benefits | $ 56 | $ 39 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | $ 2 | $ 98 |
Other comprehensive loss before hedging activities | 16 | (127) |
Other comprehensive gain (loss) resulting from hedging activities | 10 | 32 |
Tax impact | (1) | |
Accumulated other comprehensive income, ending balance | 28 | 2 |
Currency Translation Reserve | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 48 | 134 |
Other comprehensive loss before hedging activities | (18) | (117) |
Other comprehensive gain (loss) resulting from hedging activities | 2 | 32 |
Tax impact | (1) | |
Accumulated other comprehensive income, ending balance | 32 | 48 |
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 | 8 | 0 |
Tax impact | 0 | |
Accumulated other comprehensive income, ending balance | 8 | 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 | (46) | (36) |
Other comprehensive loss before hedging activities | 34 | (10) |
Other comprehensive gain (loss) resulting from hedging activities | 0 | 0 |
Tax impact | 0 | |
Accumulated other comprehensive income, ending balance | $ (12) | $ (46) |
FINANCIAL INSTRUMENTS & RISK _3
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments [Abstract] | ||
Letters of credit outstanding, amount | $ 100 | $ 130 |
Trade receivables, current percentage | 9800.00% | 9400.00% |
Disclosure of transactions between related parties [line items] | ||
Impairment expense (Note 10) | $ 474 | $ 1,776 |
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, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 4 | $ 11 |
31-60 days past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 2 | 3 |
Greater than 61 days past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 2 | $ 8 |
FINANCIAL INSTRUMENTS & RISK _5
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Sensitivity Analysis of Market Risk (Details) $ in Millions | Dec. 31, 2021CAD ($) |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (27) |
Increase (decrease) in earnings due to reasonably possible decrease in price | 27 |
Crude oil | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | (40) |
Value of reasonably possible decrease in price | 40 |
Natural Gas | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | 11 |
Value of reasonably possible decrease in price | (11) |
Liquids (bpd) | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | (39) |
Value of reasonably possible decrease in price | $ 39 |
FINANCIAL INSTRUMENTS & RISK _6
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Liquidity Risk (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade payables and other | $ 1,063 | $ 780 |
Loans and borrowings | 10,645 | 10,876 |
Dividends payable | 115 | $ 115 |
Lease liabilities | 723 | |
Trade payables and accrued liabilities, Expected Cash Flows | 1,063 | |
Loans and borrowings, Expected Cash Flows | 16,535 | |
Dividends payable, Expected Cash Flows | 115 | |
Finance leases, Expected Cash Flows | 978 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 59 | |
Derivative financial liabilities, Expected Cash Flows | 59 | |
Less than 1 Year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade payables and accrued liabilities, Expected Cash Flows | 1,063 | |
Loans and borrowings, Expected Cash Flows | 1,478 | |
Dividends payable, Expected Cash Flows | 115 | |
Finance leases, Expected Cash Flows | 113 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities, Expected Cash Flows | 59 | |
1 - 3 Years | ||
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 | 1,944 | |
Dividends payable, Expected Cash Flows | 0 | |
Finance leases, Expected Cash Flows | 181 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities, Expected Cash Flows | 0 | |
3 – 5 Years | ||
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 | 2,088 | |
Dividends payable, Expected Cash Flows | 0 | |
Finance leases, Expected Cash Flows | 152 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities, Expected Cash Flows | 0 | |
More than 5 years | ||
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 | 11,025 | |
Dividends payable, Expected Cash Flows | 0 | |
Finance leases, Expected Cash Flows | 532 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities, Expected Cash Flows | 0 | |
Subordinated Hybrid Notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings | 594 | |
Loans and borrowings, Expected Cash Flows | 874 | |
Subordinated Hybrid Notes | Less than 1 Year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | 41 | |
Subordinated Hybrid Notes | 1 - 3 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | 58 | |
Subordinated Hybrid Notes | 3 – 5 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | 58 | |
Subordinated Hybrid Notes | More than 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | $ 717 |
FINANCIAL INSTRUMENTS & RISK _7
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Interest Rate Risk (Details) $ in Millions, $ in Millions | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of financial instruments by type of interest rate [line items] | ||||
Fixed interest rates under derivative contracts, portion of underlying instrument | $ 250 | $ 250 | ||
Fixed rate instruments | ||||
Disclosure of financial instruments by type of interest rate [line items] | ||||
Financial liabilities | $ 11,055 | $ 10,120 | ||
Variable rate instruments | ||||
Disclosure of financial instruments by type of interest rate [line items] | ||||
Financial liabilities | 907 | 1,530 | ||
Fixed and variable rate instruments | ||||
Disclosure of financial instruments by type of interest rate [line items] | ||||
Financial liabilities | $ 11,962 | $ 11,650 |
FINANCIAL INSTRUMENTS & RISK _8
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Cash Flow Sensitivity Analysis for Variable Rate Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
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 | $ (11) | |
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 | $ 11 |
FINANCIAL INSTRUMENTS & RISK _9
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Fair Value of Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash Flow Hedges | Interest rate | ||
Disclosure of financial assets [line items] | ||
Hedging instrument, assets | $ 8 | |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 59 | $ 69 |
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 | 59 | 69 |
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 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 70 | 0 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | Level 1 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 0 | 0 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | Level 2 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 35 | 0 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | Level 3 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 35 | 0 |
Loans and borrowings | Financial liabilities carried at amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 11,239 | 10,876 |
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 | 11,814 | 11,902 |
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 | 95 | 53 |
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 | 84 | 53 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 3 | ||
Disclosure of financial assets [line items] | ||
Fair Value | $ 11 | $ 0 |
FINANCIAL INSTRUMENTS & RISK_10
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Significant Unobservable Inputs used in Fair Value Measurement (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Wind discount | |
Disclosure of detailed information about financial instruments [line items] | |
Measurement input | 29 |
Increase | $ 38 |
Decrease | $ (38) |
Wind escalation rate | |
Disclosure of detailed information about financial instruments [line items] | |
Measurement input | 4.5 |
Increase | $ 8 |
Decrease | $ (8) |
Wind capacity | |
Disclosure of detailed information about financial instruments [line items] | |
Measurement input | 38.2 |
FINANCIAL INSTRUMENTS & RISK_11
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Assets and Liabilities Unobservable Input Reconciliation (Details) - Derivative Financial Instruments, Assets $ in Millions | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Disclosure of financial assets [line items] | |
Level 3 net derivative asset at beginning of period | $ 0 |
Included in earnings | 11 |
Level 3 net derivative asset at end of period | $ 11 |
FINANCIAL INSTRUMENTS & RISK_12
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Interest Rates Used for Determining Fair Values (Details) - Interest rate, measurement input - Discounted cash flow | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives | Minimum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.004 | 0.005 |
Derivatives | Maximum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.018 | 0.007 |
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 | 0.011 | 0.005 |
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 | 0.050 | 0.039 |
FINANCIAL INSTRUMENTS & RISK_13
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Summary of Net Derivative Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial assets | $ 14 | $ 25 |
Non-current derivative financial assets | 81 | 28 |
Current derivative financial liabilities | (53) | (69) |
Non-current derivative financial liabilities | (6) | |
Total | 36 | (16) |
Gross financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | 11 | 6 |
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | 11 | 6 |
Commodity, power, storage and rail financial instruments | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial assets | 13 | 11 |
Non-current derivative financial assets | 73 | 27 |
Interest rate | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial assets | 1 | 0 |
Non-current derivative financial assets | 8 | 1 |
Foreign exchange | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial assets | 0 | 14 |
Non-current derivative financial assets | 0 | 0 |
Commodity, power, storage and rail financial instruments | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial liabilities | (48) | (68) |
Non-current derivative financial liabilities | (6) | |
Total | 32 | (30) |
Interest rate | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial liabilities | 0 | (1) |
Non-current derivative financial liabilities | 0 | |
Total | 9 | 0 |
Foreign exchange | ||
Disclosure of Financial Assets and Liabilities [Line Items] | ||
Current derivative financial liabilities | (5) | 0 |
Non-current derivative financial liabilities | 0 | |
Total | $ (5) | $ 14 |
FINANCIAL INSTRUMENTS & RISK_14
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Notional and Maturity Summary (Details) gigajoule in Millions, bbl in Millions, $ in Millions | Dec. 31, 2021USD ($)gigajouleMWhbbl | Dec. 31, 2020USD ($)bblgigajouleMWh |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Number of megawatt hours | MWh | 6 | |
Foreign Exchange Contract | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Notional amount | $ | $ 272 | $ 260 |
Interest rate | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Notional amount | $ | $ 250 | $ 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 | |
Purchases | Natural Gas | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | gigajoule | 62,615 | 73,557 |
Purchases | Power (GWh) | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | MWh | 6,166,000,000 | |
Sales | Liquids (bpd) | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Derivative, nonmonetary notional amount | bbl | 16,550 | 25,284 |
FINANCIAL INSTRUMENTS & RISK_15
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Unrealized and Realized Gains (Losses) on Derivative Instruments (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commodity-related | Financial assets at fair value through profit or loss, category | Financial liabilities at fair value through profit or loss, category | ||
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 | $ 200 | $ (54) |
Unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss | (73) | 84 |
Foreign exchange | Financial assets at fair value through profit or loss, category | Financial liabilities at fair value through profit or loss, category | ||
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 | (12) | 2 |
Unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss | 19 | 5 |
Interest rate | Cash Flow Hedges | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss | $ (8) | $ 0 |
FINANCIAL INSTRUMENTS & RISK_16
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, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||||
Notional amount | $ 250 | $ 250 | ||
Hedging instrument, assets | $ 316 | $ 317 |
GROUP ENTITIES (Details)
GROUP ENTITIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 | |
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, 2021 | Dec. 31, 2020 | |
Related Party [Abstract] | ||
Services provided | $ 162 | $ 136 |
Services received | 31 | 14 |
Interest income | 15 | 14 |
Advances to related parties | 8 | 13 |
Trade receivables and other | 7 | 7 |
Trade payables and accrued liabilities | $ 27 | $ 18 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Disclosure of transactions between related parties [line items] | ||||
Contributions to equity accounted investees | $ 335,000,000 | $ 202,000,000 | ||
Impairment expense (Note 10) | $ 474,000,000 | 1,776,000,000 | ||
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 | $ 10 | $ 24 | ||
Impairment expense (Note 10) | $ 10 | $ 110 | ||
Fort Saskatchewan Ethylene Storage Limited Partnership | ||||
Disclosure of transactions between related parties [line items] | ||||
Contributions to equity accounted investees | $ 5,000,000 | $ 5,000,000 |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 9 | $ 8 |
Share-based compensation and other(1) | 53 | 3 |
Total compensation of key management | $ 62 | $ 11 |
RELATED PARTIES - Post-employme
RELATED PARTIES - Post-employment Benefit Plans (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party [Abstract] | ||
Defined benefit plan | $ 23 | $ 23 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021CAD ($)MWMBbls | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 19,960 |
Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 978 |
Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 17,409 |
Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,042 |
Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 531 |
Less than 1 Year | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,159 |
Less than 1 Year | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 113 |
Less than 1 Year | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,519 |
Less than 1 Year | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 435 |
Less than 1 Year | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 92 |
1 - 3 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,335 |
1 - 3 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 181 |
1 - 3 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,002 |
1 - 3 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 32 |
1 - 3 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 120 |
3 – 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,396 |
3 – 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 152 |
3 – 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,146 |
3 – 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 24 |
3 – 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 74 |
After 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 13,070 |
After 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 532 |
After 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 11,742 |
After 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 551 |
After 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 245 |
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 | 18 |
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 | 190 |
Maximum | Electrical Power | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 23 years |
Maximum | Electrical Power | Not More than Nine Years | |
Disclosure of contingent liabilities [line items] | |
Daily power required (mw) | MW | 79 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | ||
Letters of credit outstanding, amount | $ 135 | $ 91 |