Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
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) | 549,396,694 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction | false |
Amendment Flag | false |
Entity Central Index Key | 0001546066 |
Document Fiscal Year Focus | 2023 |
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, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Calgary, Canada |
Auditor Firm ID | 85 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Millions, $ in Billions | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) |
Current assets | ||
Cash and cash equivalents | $ 137 | $ 94 |
Trade receivables and other (Note 5) | 852 | 912 |
Subscription receipts (Note 15) | 1,256 | 0 |
Inventory (Note 6) | 333 | 269 |
Derivative financial instruments (Note 23) | 55 | 87 |
Current assets | 2,633 | 1,362 |
Non-current assets | ||
Property, plant and equipment (Note 7) | 15,798 | 15,518 |
Intangible assets and goodwill (Note 8) | 6,065 | 6,131 |
Investments in equity accounted investees (Note 9) | 6,987 | 7,382 |
Right-of-use assets (Note 12) | 523 | 518 |
Finance lease receivables (Note 12) | 230 | 219 |
Deferred tax assets (Note 10) | 285 | 261 |
Derivative financial instruments (Note 23) | 25 | 42 |
Other assets | 72 | 54 |
Non-current assets | 29,985 | 30,125 |
Total assets | 32,618 | 31,487 |
Current liabilities | ||
Trade payables and other (Note 11) | 1,136 | 1,266 |
Loans and borrowings (Note 13) | 650 | 600 |
Lease liabilities | 77 | 79 |
Subscription receipts (Note 15) | 1,281 | 0 |
Contract liabilities (Note 18) | 33 | 56 |
Income tax payable (Note 10) | 18 | 0 |
Derivative financial instruments (Note 23) | 26 | 57 |
Current liabilities | 3,221 | 2,058 |
Non-current liabilities | ||
Loans and borrowings (Note 13) | 9,253 | 9,405 |
Subordinated hybrid notes (Note 13) | 596 | 595 |
Lease liabilities | 567 | 596 |
Decommissioning provision (Note 14) | 336 | 259 |
Contract liabilities (Note 18) | 126 | 138 |
Deferred tax liabilities (Note 10) | 2,623 | 2,507 |
Other liabilities | 83 | 140 |
Non-current liabilities | 13,584 | 13,640 |
Total liabilities | 16,805 | 15,698 |
Equity | ||
Attributable to shareholders | 15,813 | 15,729 |
Attributable to non-controlling interest | 0 | 60 |
Total equity | 15,813 | 15,789 |
Total liabilities and equity | $ 32,618 | $ 31,487 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Profit or loss [abstract] | ||
Revenue (Note 18) | $ 9,125 | $ 11,611 |
Cost of sales (Note 4) | 6,580 | 8,877 |
Share of profit from equity accounted investees (Note 9) | 316 | 361 |
Gross profit | 2,840 | 3,123 |
General and administrative | 422 | 399 |
Other (income) expense | (6) | 129 |
Gain on Pembina Gas Infrastructure Transaction | 0 | (1,110) |
Impairment reversal (Note 7) | (231) | 0 |
Results from operating activities | 2,655 | 3,705 |
Net finance costs (Note 19) | 466 | 486 |
Earnings before income tax | 2,189 | 3,219 |
Current tax expense (Note 10) | 325 | 227 |
Deferred tax expense (Note 10) | 88 | 21 |
Income tax expense (Note 10) | 413 | 248 |
Earnings | 1,776 | 2,971 |
Other comprehensive (loss) income, net of tax (Note 22) | ||
Exchange (loss) gain on translation of foreign operations | (106) | 295 |
Impact of hedging activities | (3) | 3 |
Re-measurement of defined benefit asset or liability (Note 20) | (11) | 15 |
Other comprehensive (loss) income, net of tax | (120) | 313 |
Total comprehensive income attributable to shareholders | 1,656 | 3,284 |
Earnings attributable to common shareholders, net of preferred share dividends (Note 17) | $ 1,648 | $ 2,842 |
Earnings per common share - basic (in CAD per share) | $ 3 | $ 5.14 |
Earnings per common share - diluted (in CAD per share) | $ 2.99 | $ 5.12 |
Weighted average number of common shares (millions) | ||
Basic (in shares) | 550 | 553 |
Diluted (in shares) | 551 | 554 |
Commodity-related | ||
Profit or loss [abstract] | ||
Loss (gain) on commodity-related derivative financial instruments | $ 21 | $ (28) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Millions | Total | Common share capital | Preferred share capital | Issued capital | Issued capital Common share capital | Issued capital Preferred share capital | Deficit | Deficit Common share capital | Deficit Preferred share capital | AOCI | [1] | Total | Total Common share capital | Total Preferred share capital | Non-Controlling Interest | |||
Equity, beginning balance at Dec. 31, 2021 | $ 14,363 | $ 15,678 | $ 2,517 | $ (3,920) | $ 28 | $ 14,303 | $ 60 | |||||||||||
Total comprehensive income | ||||||||||||||||||
Earnings (loss) | 2,971 | 2,971 | ||||||||||||||||
Other comprehensive (loss) income, net of tax (Note 22) | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | 313 | 313 | 313 | |||||||||||||||
Total comprehensive income attributable to shareholders | 3,284 | 2,971 | 313 | 3,284 | ||||||||||||||
Transactions with shareholders of the Company (Note 16) | ||||||||||||||||||
Part VI.1 tax | (9) | $ (9) | $ (9) | (9) | ||||||||||||||
Repurchase of common shares | (333) | $ (204) | (204) | (129) | (333) | |||||||||||||
Share-based payment transactions | 319 | 319 | 319 | 319 | ||||||||||||||
Dividends declared | (1,409) | (126) | $ (1,409) | $ (126) | $ (1,409) | $ (126) | ||||||||||||
Preferred shares redemption | (300) | (300) | (300) | |||||||||||||||
Total transactions with shareholders of the Company | (1,858) | 115 | (309) | (1,664) | 0 | (1,858) | ||||||||||||
Equity, ending balance at Dec. 31, 2022 | 15,789 | 15,793 | 2,208 | (2,613) | 341 | 15,729 | 60 | |||||||||||
Total comprehensive income | ||||||||||||||||||
Earnings (loss) | 1,776 | 1,776 | ||||||||||||||||
Other comprehensive (loss) income, net of tax (Note 22) | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | (120) | (120) | (120) | |||||||||||||||
Total comprehensive income attributable to shareholders | 1,656 | 1,776 | (120) | 1,656 | 0 | |||||||||||||
Transactions with shareholders of the Company (Note 16) | ||||||||||||||||||
Part VI.1 tax | (9) | (9) | (9) | (9) | ||||||||||||||
Repurchase of common shares | (50) | (34) | (34) | (16) | (50) | |||||||||||||
Share-based payment transactions | 6 | $ 6 | 6 | |||||||||||||||
Dividends declared | $ (1,459) | $ (120) | $ (1,459) | $ (120) | $ (1,459) | $ (120) | ||||||||||||
Derecognition of non-controlling interest | 0 | [2] | 60 | [2] | 60 | (60) | [2] | |||||||||||
Total transactions with shareholders of the Company | (1,632) | (28) | (9) | (1,535) | 0 | (1,572) | (60) | |||||||||||
Equity, ending balance at Dec. 31, 2023 | $ 15,813 | $ 15,765 | $ 2,199 | $ (2,372) | $ 221 | $ 15,813 | $ 0 | |||||||||||
[1]Accumulated Other Comprehensive Income ("AOCI").[2]In the fourth quarter of 2023, Williams Partners Operating, LLC provided notice to Pacific Gas Pipeline, LLC of its intent to withdraw from the Limited Partnership, effective December 31, 2023. As a result, the balance originally recognized in non-controlling interest was reclassified to owner's equity. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||
Earnings | $ 1,776 | $ 2,971 |
Adjustments for items not involving cash: | ||
Share of profit from equity accounted investees (Note 9) | (316) | (361) |
Depreciation and amortization | 663 | 683 |
Impairment reversal (Note 7) | (231) | 0 |
Gain on Pembina Gas Infrastructure Transaction | 0 | (1,110) |
Unrealized loss (gain) on commodity-related derivative financial instruments (Note 23) | 32 | (133) |
Net finance costs (Note 19) | 466 | 486 |
Share-based compensation expense (Note 21) | 72 | 126 |
Income tax expense (Note 10) | 413 | 248 |
(Gain) loss on asset disposal | (20) | 9 |
Cash items paid or received: | ||
Distributions from equity accounted investees (Note 9) | 819 | 673 |
Net interest paid (Note 19) | (447) | (447) |
Share-based compensation payment | (77) | (45) |
Taxes paid | (236) | (334) |
Change in non-cash operating working capital | (210) | 177 |
Net change in contract liabilities (Note 18) | (33) | 0 |
Other | (36) | (14) |
Cash flow from operating activities | 2,635 | 2,929 |
Financing activities | ||
Net increase in bank borrowings (Note 13) | 14 | 339 |
Proceeds from issuance of long-term debt, net of issue costs (Note 13) | 490 | 0 |
Repayment of long-term debt | (600) | (1,000) |
Repayment of lease liability | (76) | (85) |
Exercise of stock options | 1 | 310 |
Repurchase of common shares (Note 16) | (50) | (333) |
Redemption of preferred shares (Note 16) | 0 | (300) |
Cash flow used in financing activities | (1,800) | (2,720) |
Investing activities | ||
Capital expenditures | (606) | (605) |
Contributions to equity accounted investees (Note 9) | (265) | (95) |
Net proceeds from disposition | 0 | 609 |
Proceeds from sale of assets | 17 | 31 |
Receipt of finance lease payments | 13 | 13 |
Interest paid during construction (Note 19) | (15) | (21) |
Long-term loan receivable on asset | (30) | 0 |
Return of capital from equity accounted investees | 61 | 0 |
Changes in non-cash investing working capital and other | 36 | (86) |
Cash flow used in investing activities | (789) | (154) |
Change in cash and cash equivalents | 46 | 55 |
Effect of movement in exchange rates on cash held | (2) | 9 |
Cash and cash equivalents, beginning of period | 107 | 43 |
Cash and cash equivalents, end of period | 151 | 107 |
Long-term restricted cash included in other assets (Note 14) | 14 | 13 |
Short-term cash and cash equivalents, end of period | 137 | 94 |
Common share capital | ||
Financing activities | ||
Dividends paid | (1,459) | (1,525) |
Preferred share capital | ||
Financing activities | ||
Dividends paid | $ (120) | $ (126) |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023. 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 an export terminals business. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2023 | |
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 material 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. The Consolidated Financial Statements were authorized for issue by Pembina's Board of Directors on February 22, 2024. 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 interests 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 when control ceases. Balances and transactions, including any revenue and expenses, with or between subsidiaries have been eliminated in preparing the Consolidated Financial Statements. When there is a loss of control of a subsidiary, the Company derecognizes the assets and liabilities of the subsidiary and other components of equity. However, there is an accounting policy choice to recognize the entirety of any resulting gain or loss in earnings on loss of control or to recognize the gain or loss only to the extent of the unrelated investor's interest in the joint venture. Pembina has elected to recognize the full gain in its entirety. As a result, any interest retained in the former subsidiary is measured at fair value when control is lost. Pembina's non-controlling interest, which related to the Company's Jordan Cove project, was initially recognized at fair value on the acquisition date. The non-controlling interest was derecognized in 2023 when the related equity interest had expired. The derecognition resulted in a re-classification from non-controlling interest to equity attributable to shareholders. ii) Joint Arrangements Joint arrangements represent arrangements where Pembina has joint control established by a contractual agreement. Joint arrangements give rise to either joint operations or joint ventures. The determination of joint control requires significant judgment about each party's substantive rights, exposure to variability of returns, and the power necessary for the party to affect its respective returns. 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. Joint Operations Pembina recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses from the date that joint control commences until the date that joint control ceases. Joint Ventures and the Equity Method Joint ventures are accounted for using the equity method of accounting. The acquisition of interests in a joint venture that is a business are measured and recorded using the acquisition method. Other acquisitions of interests in a joint venture are measured and recorded at cost. Joint ventures are adjusted thereafter for any change in the Company's share of the investees' net assets. Pembina's acquired interest in the joint venture, Pembina Gas Infrastructure Inc. ("PGI"), involved the use of the acquisition method, which required significant estimates to determine the fair values of the consideration exchanged, the newly acquired interest, and the respective assets and liabilities of the investee. Assumptions and estimates of future cash flows, contract renewal rates, and discount rates were made in applying the acquisition method. Pembina's Consolidated Financial Statements include its share of the equity accounted investees' profit or loss and comprehensive income 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. Unrealized gains arising from transactions with joint ventures are eliminated against the investment to the extent of Pembina's interest in the investee. However, unrealized gains that arise in a circumstance where the Company has contributed a business to a joint venture are fully recognized. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. iii) Foreign Currency For each subsidiary and joint venture, Pembina determines the entity's respective functional currency. The assets and liabilities of these entities, whose functional currencies are other than Canadian dollars, are translated into Canadian dollars at the foreign exchange rate as at the reporting date, while revenues and expenses are translated using average monthly foreign exchange rates. Foreign exchange differences arising on translation of these entities are included in exchange gain (loss) on translation of foreign operations in other comprehensive income. Judgments are required concerning the entity's economic environment in which it operates and the nature of the cash flows that materialize, with consideration given to the currency that influences sales prices, financing activities, the country whose competitive forces and regulatory environment has the most influence, and the currency that most significantly impacts operating costs and economics. 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 facts and circumstances as at the date of the Consolidated Financial Statements, which could affect 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. Information about estimates and judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes: Judgments • Note 2(b)(ii): Assessment of joint control for joint arrangements; • Note 3(f)(ii): The determination of cash generating units ("CGUs") in the assessment of non-financial asset impairments; and, • Note 3(i): Identification of performance obligations in revenue arrangements. Estimates • Note 2(b)(ii): Fair value of an acquired interest in the PGI joint venture; • Note 3(f)(ii): Recoverability of non-financial assets; • Note 3(j): Provision for income taxes; and, • Note 23: Fair value of Level 3 derivative instruments . |
MATERIAL ACCOUNTING POLICIES
MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
MATERIAL ACCOUNTING POLICIES | MATERIAL ACCOUNTING POLICIES a. 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 financial reporting 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. All changes in the measurement of inventories are reflected in earnings. b. 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 trade receivables, loan receivables, advances to related parties and cash 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 and the related risks and rewards of ownership in a transaction with a third party. Any remaining interest of a transferred financial asset is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount 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. After initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any expected credit losses and impairment loss allowances. Pembina's non-derivative financial assets measured at amortized cost include cash and cash equivalents, trade receivables and other, and other assets. 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. ii) Non-Derivative Financial Liabilities Pembina's non-derivative financial liabilities are comprised of trade payables and other, dividends payable, loans and borrowings, and other liabilities. Pembina initially recognizes non-derivative financial liabilities at fair value less any directly attributable transaction costs, on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. After 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 original financial liability if the terms are substantially different, assessing both qualitative and quantitative factors. If the expected cashflows of an existing non-derivative liability are modified but the modification 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. However, if contractual cashflows include variable market interest payments, such as Pembina's revolving credit facilities, the effective interest rate on the instrument is revised at the same time as the revision to the estimated cashflows resulting in no change to the carrying value of the financial liability. iii) Common Share Capital Common shares and share options arising from share-based payment transactions are classified as equity. 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. v) Derivative and Hedge Accounting Physical and financial contracts with third parties, which meet the definition of a derivative instrument, are recorded at fair value, unless the Company has (a) elected to apply the "own use" (or "normal purchase normal sale") scope exemption, or (b) the derivative instrument has formally been designated as a hedging instrument. To assess whether the own-use scope exemption is appropriate, Pembina uses judgment to evaluate whether (a) the transaction is reasonable in relation to the business needs; and (b) the business has the intent to deliver or take delivery of the underlying item or commodity. Application of the own use scope exemption is reviewed each reporting period to assess whether the qualifying factors continue to be met. Pembina accounts for all contracts that give rise to derivative instruments that are settled by physical delivery of the underlying commodity as revenue from contracts with customers. Derivative instruments that arise from financial contracts do not qualify for the own use scope exemption as such transactions do not result in physical settlement or delivery of the underlying item or commodity. Rather, these arrangements form part of Pembina’s risk management strategy, whereby derivative instruments are used to assist in managing exposure to commodity prices, interest rates, and foreign exchange rates. Derivative instruments executed for such risk management purposes may be designated as hedging instruments. At the inception and formal designation of the hedge relationship, Pembina documents the following: The relationship between the hedging instrument and hedged item; the related risk management strategy and objectives; the nature of the risk being hedged; and, how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements on an ongoing basis. Hedge accounting is discontinued prospectively when the hedging relationship no longer qualifies for hedge accounting, or the hedging instrument is sold or terminated. All derivative instruments that have been formally designated as hedging instruments are accounted for and classified as either: (a) cash flow hedges; or (b) net investment hedges. For both classifications, the effective portion of gains or losses is recognized and accumulated in 'other comprehensive income' ("OCI"), while any ineffective portion is recognized immediately in earnings. For Pembina's current cash flow hedges, the amount accumulated in OCI is reclassified into earnings when the hedged forecasted transaction occurs. For net investment hedges, the amount accumulated in OCI is reclassified to earnings on disposal of the foreign operation. Embedded derivatives in other financial instruments or contracts (host instruments) are recorded separately if the following criteria are met: (a) The economic characteristics and risks are not closely related to the host; (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and, (c) the host instrument is not measured at fair value through profit or loss. The embedded derivative can be formally designated as a hedging instrument or recorded at fair value, with changes in fair value recorded in earnings. c. Property, Plant and Equipment Items of property, plant and equipment are measured initially at cost, or at fair value if acquired as part of a business combination or has been transferred from a customer. Such a fair value is determined using either (a) comparable and observable market values when available, (b) an income approach, or (c) the depreciated replacement cost valuation method. Depreciation is measured on a straight line or declining balance basis over the useful life of the asset, commencing when an asset is placed into service, and is included in cost of sales and general and administrative expense. Estimated useful lives are based on management's assumptions, such as, an asset's economic life and physical life, which can include the relevant commodity reserves in a particular production area that the asset serves. Assets are also assessed to determine whether they may have significant components with different useful lives. Estimated useful lives and depreciation methods are reviewed annually and are subject to revision based on new or additional information. Pembina has assessed the residual values of depreciable assets to be insignificant. d. Intangible Assets and Goodwill Intangible assets that are acquired individually are initially measured at cost or measured at fair value if acquired as part of a business combination. Intangible assets other than goodwill are amortized straight-line over their estimated remaining useful life, based on their remaining carrying value. Amortization expense 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. Goodwill is not amortized. Other intangible assets include purchase and sales contracts, customer relationships and certain software costs. e. Leases A specific asset is the subject of a lease if a 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, on the acquisition date if acquired as part of a business combination, or 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 based on the components' 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 The lease liability is initially measured at the present value of the lease payments, discounted using the 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, or using the interest rate implicit in the lease if readily determinable. Lease payments used in the calculation of the lease liability exclude variable payments unless those payments are in-substance fixed. Lease payments in an optional renewal period are included in the lease liability if Pembina is reasonably certain to exercise such an option. Management applies its best estimate with respect to the likelihood of exercising renewal, extension and termination options in determining the lease term. The lease liability is subsequently increased by interest expense and decreased by lease payments made. The lease liability is remeasured when there is a change in future lease payments arising from a previously-variable payment becoming in-substance fixed, 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. Right-of-use assets are initially recognized at cost then subsequently depreciated over the lease term on a straight-line basis and adjusted for any lease liability remeasurements. The right-of-use assets are included in the respective CGUs for the purposes of impairment testing. 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 at contract inception. 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. Finance lease receivables acquired in a business combination are initially recognized at an amount equal to the fair value of the underlying leased assets. Finance lease receivables outside of a business combination are initially 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 lease income is subsequently recognized using the interest rate implicit in the lease. Operational finance lease income generated from physical assets in the normal course of operations is recorded as a component of revenue. Lease payments received for finance leases include both the finance income and a principal repayment of the finance lease receivable. Payments related to the principal repayment are not recognized in earnings and are classified as investing cashflows in the Consolidated Statements of Cash Flows. 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 and are fully recognized in earnings and operating cash flows in the Consolidated Statements of Cash Flows. f. 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. However, if credit risk has not increased significantly since initial recognition, 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 Non-financial assets, other than inventory, assets arising from employee benefits, and deferred tax assets, are assessed 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. Goodwill is assessed at each reporting date to determine whether there is any indication of impairment. In addition, goodwill is tested for impairment annually, or more frequently, if an impairment indicator exists. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs. CGUs are the smallest group of assets that generate cash inflows from the continued use of the related assets, and are largely independent from other assets. CGUs may incorporate integrated assets from multiple operating segments, 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. In determining CGUs, significant management judgment is required to assess what constitutes independent cash flows. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount. 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. An impairment loss is recognized if the carrying amount of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The estimated recoverable amount is determined as the higher of value in use and fair value less costs of disposal, by using either the income (cash flow) approach or comparable market transactions, if available. When using the income approach, management is required to make significant estimates and assumptions concerning future cash flows, which are impacted by energy transition considerations, access to global markets, and business contracting assumptions. In addition, when determining the appropriate discount rate, management is required to make assumptions concerning the current industry and economic environment, as well as asset and cash-flow specific risk premiums. These estimates and assumptions are susceptible to change and may differ from actual future developments. This estimation uncertainty could impact quantified recoverable amounts; and therefore, any related impairment charges, which may be material. 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. For non-financial assets, excluding goodwill, 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. An impairment reversal is recognized in earnings under impairment (reversal) expense. An impairment loss in respect of goodwill is not reversed. 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. Rather, the investment, including its respective goodwill, is tested for impairment as a single asset when there is objective evidence it may be impaired as a result of one or more events having occurred that could negatively impact the estimated future cash flows from the investment. If the investment does not generate cash flows that are largely independent of those from other Pembina assets, its carrying value is added to a CGU to which the investment relates. g. Employee Benefits i) Defined Benefit Pension Plans 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 of the defined benefit obligation is performed each reporting period; however, the calculation of the actuarial funding valuation 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. 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. ii) Share-Based Payment Transactions For equity settled share-based payment plans ("options"), 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. The fair value of options are measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the option, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the option (based on historical experience and general option holder behavior), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and performance conditions attached to the transactions are not taken into account in determining fair value. The fair value of the long-term share unit award incentive plan and associated distribution units are measured based on the volume-weighted average price of Pembina's shares for the 20 days ending of the relevant financial year. 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. The fair value is determined by using a model that takes into account the extent to which the employees have rendered services or performance conditions to date, share price volatility assumptions, and other market conditions which may impact the number of awards expected to be earned and vest. Any changes in the fair value of the liability are recognized as an expense in earnings. h. 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. 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. Decommissioning costs are recognized as part of the cost of the relevant asset. The unwinding of the discount is expensed as incurred and recognized in net finance costs. To measure the decommissioning provision, estimated future expected cash flows, including assumptions concerning inflation and anticipated changes in environmental laws and regulations, are discounted using a credit-adjusted risk-free rate. Changes in the estimated future expected cash flows used in measuring the decommissioning provision are added to or deducted from the cost of the respective asset to which the decommissioning provision relates. i. Revenue Pembina recognizes revenue equal to the consideration the Company expects to be entitled to for satisfying a performance obligation to transfer control over a good or service to a customer. Certain contracts may arise that require Pembina to apply significant judgment when identifying the contract's performance obligations. In addition, management may be required to apply judgment when determining whether each promised good or service constitutes a distinct and separable performance obligation. Performance obligations in Pembina's contracts with customers include: • promises to perform transportation, gas processing, fractionation, terminalling, and storage services over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities. Contracts may result in Pembina taking control of a product prior to or subsequent to delivering the promised good or service. In contrast, contracts may also result in Pembina never taking control of the related product. Control assessments give consideration to which party has the contractual and practical rights to direct the use of and obtain substantially all of the future economic benefits of the product. If Pembina obtains control of a product only after providing a related service, Pembina is acting as a principal; and therefore, recognizes gross service revenue. However, if Pembina obtains control of the product before a related service, Pembina is concluded to not be providing a service to the counterparty; and therefore, the associated service fees are treated as a reduction in the product purchase cost. If Pembina never obtains control of a product relating to a promised service, Pembina is concluded to be acting as an agent; and therefore, the related purchase costs are presented net against the associated revenues. For contracts where control of commodities transfers to Pembina before services are performed, Pembina generally has no performance obligation for the services, and accordingly, the arrangement is not considered revenue-generating. Correspondingly, all contractually stated fees that are deducted from the payments to counterparties or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Pembina disaggregates its revenue streams into three categories based on the nature of the revenue generating activity and the certainty of the associated cashflows to be received from the customer. Information about the nature of the services provided, consideration received, and timing of the satisfaction of performance obligations for each category is discussed below. 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 is either a set fee for an annual minimum volume or an annual minimum revenue requirement. In addition, the minimum fee may include variable consideration for operating or capital costs incurred by Pembina that are recovered from the customer. Estimating the variable consideration to be recognized involves judgment, particularly in assessing the risk of a significant revenue reversal that could occur. For contracts where management has identified multiple performance obligations, management estimates the stand-alone selling price of each performance obligation 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, stored, or capacity utilized. 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 breakage has occurred. 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 substantially all of the related contract years follow the calendar year. As a result of deferring revenue related to customer underutilization until the earlier of when the customer uses the volumes or the customers' make-up rights expire, a portion of cashflows received from the customer in early quarters of the year are deferred and not recognized in revenue until later quarters, although there is no impact on cash flows received from the customers. 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 when received. ii) Fee-for-Service Fee-for-service revenue includes firm contracted revenue that is not subject to take-or-pay commitments and interruptible service. 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 generally due in the month following Pembina's provision of service and revenue is recognized as its performance obligation is satisfied. iii) Product Sales Pembina's performance obligation in a product sale is to transfer control of a distinct product or products to the customer. Pembina satisfies its performance obligation on product sales and recognizes the associated revenue when the customer obtains control of the product, which may differ from when legal title or physical custody transfers. The determination of control requires judgments in determining who has the rights to direct the use of and obtain substantially all of the remaining economic benefits from the specified product. Such judgments give consideration to the specific nature and purpose of the product in relation to Pembina's operations and business model, the location and point of sale, and what purpose the product serves for the customer. j. 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 that are recognized directly in equity or in other comprehensive income. 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 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 ca |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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 CEO, CFO and other SVPs. 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, 2023 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,542 449 6,087 47 9,125 Inter-segment revenue 165 460 — (625) — Total revenue (4) 2,707 909 6,087 (578) 9,125 Operating expenses (5) 695 360 7 (237) 825 Cost of goods sold, including product purchases 17 — 5,509 (395) 5,131 Depreciation and amortization included in operations 414 159 46 5 624 Cost of sales 1,126 519 5,562 (627) 6,580 Realized gain on commodity-related derivative financial instruments — — (11) — (11) Unrealized loss on commodity-related derivative financial instruments — — 32 — 32 Share of profit (loss) from equity accounted investees 109 233 (26) — 316 Gross profit 1,690 623 478 49 2,840 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 42 23 43 275 383 Other expense (income) 11 (19) (4) 6 (6) Impairment reversal (231) — — — (231) Reportable segment results from operating activities 1,868 619 439 (271) 2,655 Net finance costs 28 9 4 425 466 Reportable segment earnings (loss) before tax 1,840 610 435 (696) 2,189 Capital expenditures 448 102 10 46 606 Contributions to equity accounted investees 20 33 218 — 271 For the year ended December 31, 2022 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,342 798 8,471 — 11,611 Inter-segment revenue 166 470 — (636) — Total revenue (4) 2,508 1,268 8,471 (636) 11,611 Operating expenses (5) 677 511 — (319) 869 Cost of goods sold, including product purchases — 6 7,682 (324) 7,364 Depreciation and amortization included in operations 396 196 44 8 644 Cost of sales 1,073 713 7,726 (635) 8,877 Realized (gain) loss on commodity-related derivative financial instruments — (20) 125 — 105 Unrealized gain on commodity-related derivative financial instruments — (50) (83) — (133) Share of profit from equity accounted investees 171 108 82 — 361 Gross profit (loss) 1,606 733 785 (1) 3,123 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 57 15 42 246 360 Other expense 106 11 8 4 129 Gain on Pembina Gas Infrastructure Transaction — (1,110) — — (1,110) Reportable segment results from operating activities 1,443 1,817 735 (290) 3,705 Net finance costs 28 13 27 418 486 Reportable segment earnings (loss) before tax 1,415 1,804 708 (708) 3,219 Capital expenditures 342 153 59 51 605 Contributions to equity accounted investees 4 62 29 — 95 (1) Pipelines transportation revenue includes $302 million (2022: $247 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $277 million (2022: $407 million) associated with U.S. midstream sales. (3) Includes $63 million of fixed fee income (2022: nil) related to shared service agreements with joint ventures following the PGI Transaction. $24 million was netted against general and administrative in 2022. (4) During 2023 and 2022, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (5) Pembina incurred $486 million (2022: $479 million) of employee costs, of which $243 million (2022: $261 million) was recorded in operating expenses and $243 million (2022: $218 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. Geographical Information Non-Current Assets For the years ended December 31 ($ millions) 2023 2022 Canada 25,954 25,914 United States 3,721 3,900 Total non-current assets (1) 29,675 29,814 (1) Excludes deferred income tax assets, derivative financial instruments, and post-employment benefit assets. |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE RECEIVABLES AND OTHER | TRADE RECEIVABLES AND OTHER As at December 31 ($ millions) 2023 2022 Trade and accrued receivables from customers 698 696 Other receivables 64 51 Income tax receivable — 73 Prepayments 28 32 Prepaid share issuance costs (Note 15) 26 — Advances to related parties — 18 Related party receivables 36 42 Total trade receivables and other 852 912 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
INVENTORY | INVENTORY As at December 31 ($ millions) 2023 2022 Crude oil and NGL 249 184 Materials, supplies and other 84 85 Total inventory 333 269 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
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 (1) Assets Under Construction (2) Total Cost Balance at December 31, 2021 456 9,279 9,384 2,084 915 22,118 Additions and transfers 22 703 264 83 (499) 573 Disposition (1) (475) (2,440) (104) (20) (3,040) Change in decommissioning provision — (17) (84) (18) — (119) Foreign exchange 6 61 26 — — 93 Other (2) (56) (201) (31) (29) (319) Balance at December 31, 2022 481 9,495 6,949 2,014 367 19,306 Additions and transfers — 150 112 81 230 573 Change in decommissioning provision — 4 29 8 — 41 Dispositions and other — (15) (33) (76) (9) (133) Foreign exchange (1) (21) (9) — — (31) Balance at December 31, 2023 480 9,613 7,048 2,027 588 19,756 Depreciation Balance at December 31, 2021 26 2,015 1,421 463 — 3,925 Depreciation 6 194 211 78 — 489 Disposition — (85) (384) (38) — (507) Other — (37) (63) (19) — (119) Balance at December 31, 2022 32 2,087 1,185 484 — 3,788 Depreciation 6 195 177 75 — 453 Impairment reversal — (190) (35) (4) — (229) Dispositions and other — (9) (11) (34) — (54) Balance at December 31, 2023 38 2,083 1,316 521 — 3,958 Carrying amounts Balance at December 31, 2022 449 7,408 5,764 1,530 367 15,518 Balance at December 31, 2023 442 7,530 5,732 1,506 588 15,798 Assets subject to operating leases Balance at December 31, 2022 41 629 509 156 — 1,335 Balance at December 31, 2023 39 607 521 119 — 1,286 (1) At December 31, 2023, the movement in Cavern Storage and Other includes $25 million in net assets transferred to finance lease receivables (2022: nil). (2) At December 31, 2023, the movement in Assets Under Construction includes nil in net assets transferred to finance lease receivables (2022: $14 million). Nipisi Impairment Reversal During the year ended December 31, 2023, Pembina recognized an impairment reversal in the Pipelines Division of $231 million related to successful contract negotiations on the Nipisi Pipeline and the pipeline being put back into service in October 2023. In 2021, Pembina recorded a total impairment of $266 million due to contracts expiring. The recoverable amount of the Nipisi Pipeline was calculated using the fair value less costs of disposal, discounting cashflows to the end of the expected useful life of the asset. The recoverable amount is above the carrying value resulting in a full reversal of the previously recorded impairment less depreciation that would have been incurred had no impairment been recognized. The recoverable amount is most sensitive to the following key assumptions: forecasted cashflows which are projected based on management estimated future contracted rates and volumes for the pipeline, and after-tax discount rate of 7.8 percent. In determining the key assumptions, Pembina used contracted and forecasted cashflows based on internal sources and market trends. Property, Plant and Equipment Under Construction Depreciation one ten |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2021 4,693 288 1,861 2,149 6,842 Additions — 138 — 138 138 Disposition (153) (23) (66) (89) (242) Foreign exchange adjustments 17 1 48 49 66 Balance at December 31, 2022 4,557 404 1,843 2,247 6,804 Additions — 47 — 47 47 Dispositions and other — (155) — (155) (155) Foreign exchange adjustments (6) — (17) (17) (23) Balance at December 31, 2023 4,551 296 1,826 2,122 6,673 Amortization Balance at December 31, 2021 — 189 415 604 604 Amortization — 9 84 93 93 Disposition — (8) (22) (30) (30) Foreign exchange adjustments — — 6 6 6 Balance at December 31, 2022 — 190 483 673 673 Amortization — 13 81 94 94 Dispositions and other — (155) (4) (159) (159) Balance at December 31, 2023 — 48 560 608 608 Carrying amounts Balance at December 31, 2022 4,557 214 1,360 1,574 6,131 Balance at December 31, 2023 4,551 248 1,266 1,514 6,065 Intangible assets have a finite useful life and are amortized using the straight-line method over 8 to 50 years. The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2023 2022 ($ millions) Pipelines 2,716 2,722 Facilities 396 396 Marketing & New Ventures 1,439 1,439 Total goodwill 4,551 4,557 Goodwill Impairment Testing For the purpose of impairment testing, goodwill is allocated to Pembina's operating segments which represent the groups of CGUs at which goodwill is monitored for management purposes. Annually, impairment testing for goodwill is performed in the fourth quarter. The goodwill test was performed and no impairment was identified as it was determined that the recoverable amount for each operating segment exceeded the carrying amount, including goodwill. 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 impact the recoverable amount include the following: • 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 60 years (2022: 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 is more appropriate. • After-tax discount rates are applied in determining the recoverable amount of operating segments. Discount rates are estimated based on 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, asset risk, and betas. For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments As at December 31, 2023 Pipelines Facilities Marketing & New Ventures Key assumptions used Average annual pre-tax cash flow ($ millions) 1,845 1,500 418 After-tax discount rate (percent) 7.7 7.6 9.7 Long-term growth rate (percent) 1.6 1.8 2.3 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate (percent) 2.4 1.0 4.0 |
INVESTMENTS IN EQUITY ACCOUNTED
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | INVESTMENTS IN EQUITY ACCOUNTED INVESTEES Ownership Interest at December 31 (percent) Share of Profit from Equity Investments Investment in Equity Accounted For the years ended December 31 ($ millions) 2023 2022 2023 2022 2023 2022 PGI 60 60 226 49 3,894 4,158 Alliance 50 50 109 167 2,427 2,609 Aux Sable 42.7 - 50 42.7 - 50 (16) 91 362 360 Veresen Midstream (1) — — — 51 — — Cedar LNG (2) 49.9 49.9 (9) — 202 167 Other (3) 50 - 75 50 - 75 6 3 102 88 Total 316 361 6,987 7,382 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction (as defined below) on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) The Investment in equity accounted investees balance as at December 31, 2022 has been restated to include an additional $12 million related to the initial adoption of IFRS 17 Insurance Contracts . Refer to Note 3 for further information. (3) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section below for further details on Ruby. On December 31, 2023, CKPC was dissolved. PGI is a premier gas processing entity in western Canada positioned to serve customers throughout the Montney and Duvernay trends from central Alberta to northeast British Columbia. Alliance owns and operates a high-pressure natural gas pipeline connecting areas primarily in northern Alberta and northeast British Columbia to delivery points near Chicago, Illinois, which connects to the Aux Sable natural gas liquids extraction facility in Channahon, Illinois. Cedar LNG was formed to construct a floating liquid natural gas processing and export facility in Kitimat, British Columbia. 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 $1.1 billion (2022: $1.1 billion) in goodwill and $1.7 billion (2022: $1.7 billion) in property, plant and equipment and intangible assets. Pembina has U.S. $1.2 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, 2023 of $41 million (2022: $118 million gain) has been included in Other Comprehensive Income. Distributions and Contributions The following table summarizes distributions from and contributions to Pembina's investments in equity accounted investees: For the years ended December 31 Distributions (3) Contributions ($ millions) 2023 2022 2023 2022 PGI 463 125 33 49 Alliance 279 342 20 4 Aux Sable 70 134 163 3 Veresen Midstream (1) — 66 — 13 Cedar LNG — — 41 26 Other (2) 7 6 14 — Total 819 673 271 95 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction (as defined below) on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section below for further details on Ruby. On December 31, 2023, CKPC was dissolved. (3) Distributions exclude returns of capital. In 2023, Pembina received an incremental $61 million from PGI as a return of capital (2022: nil). Distributions received from equity accounted investees, excluding returns of capital, are included in operating activities in the Consolidated Statement of Cash Flows. Distributions from Alliance are subject to satisfying certain financing conditions including complying with financial covenants. PGI Transaction On August 15, 2022, Pembina acquired a 60 percent equity interest in PGI, a newly formed joint venture that is jointly controlled by Pembina and KKR (the "PGI Transaction"). Pembina serves as PGI's operator and manager. As at August 15, 2022 Previously reported Adjustments Final ($ millions) in Q4 2022 Current assets 641 (6) 635 Non-current assets 6,641 19 6,660 Current liabilities 1,164 (2) 1,162 Non-current liabilities 2,834 16 2,850 Allocated to PGI assets and liabilities 3,284 (1) 3,283 Goodwill 899 1 900 Pembina's cost of investment in PGI 4,183 — 4,183 PGI Goodwill Impairment Testing Following the PGI Transaction the acquired assets and assumed liabilities were measured at fair value and goodwill of $900 million was recognized. Pembina determines whether there is objective evidence that its equity accounted investments are impaired at each reporting date; if objective evidence is identified, Pembina is required to determine the recoverable amount of its investment in PGI. A decrease in PGI's forecasted cash flows, a decrease in the long-term growth rate, or an increase in the after-tax discount rate could be objective evidence that Pembina's equity accounted investment in PGI is impaired. Pembina also believes an impairment loss recognized by PGI as a result of its annual goodwill impairment test would provide objective evidence that Pembina's equity accounted investment in PGI is impaired. PGI recorded the assets and liabilities, including goodwill, of the contributed businesses at their fair value. PGI is required to estimate the recoverable amount of its goodwill at least annually, or whenever PGI identifies an impairment indicator. An impairment loss recognized by PGI could be material to Pembina. PGI performed its annual goodwill impairment test in the third quarter of 2023 calculating the recoverable amount based on the fair value less cost to sell. No impairment loss was recognized. There is measurement uncertainty associated with PGI's annual impairment test. The key assumptions used by PGI that impact the recoverable amount were the forecasted cash flows for the remaining useful life of the assets, the after-tax discount rate and the long-term growth rate. The following table provides sensitivities to reasonably possible changes in each assumption that could result in an impairment of PGI's goodwill. Actual Change required for impairment (percent) Key assumptions used Average annual pre-tax cash flow ($ millions) (1) 1,188 (6.1) After-tax discount rate (percent) 7.6 0.6 Long-term growth rate (percent) 1.4 (0.8) (1) Average annual forecasted pre-tax cash flows represent 100 percent of PGI's forecasted cash flows. Financing Activities for Equity Accounted Investees Ruby In January 2023, the United States Bankruptcy Court for the District of Delaware approved the Ruby Subsidiary 's Chapter 11 plan of reorganization (the "Ruby Subsidiary Plan") and the Ruby Settlement Agreement. The Ruby Subsidiary Plan provided for the sale of the Ruby Subsidiary 's reorganized equity to a third-party, which sale was completed on January 13, 2023, and the distribution of the sales proceeds and cash on hand of the Ruby Subsidiary to the creditors of the Ruby Subsidiary , including approximately U.S. $14 million to an affiliate of Pembina in respect of the subordinated notes issued by the Ruby Subsidiary to that Pembina affiliate. Following the completion of the sale of the Ruby Subsidiary 's reorganized equity, Pembina ceased to have any ownership interest in the Ruby Pipeline. Cedar LNG Cedar LNG continued to progress pre-FID activities on the LNG project during 2023 with an FID decision expected in the middle of 2024. During the third quarter of 2023, Pembina entered into amending agreements with Cedar LNG for incremental funding of pre-FID costs. As at December 31, 2023, Pembina has a remaining commitment of U.S. $13 million under the amending agreements. As additional pre-FID funding will be required, Pembina has executed a new funding agreement with its partner. Under the terms of the new agreement, if additional pre-FID spending is approved and the project continues to advance, Pembina may fund incremental spending and in return would receive a promissory note from its partner for the partner's 50.1 percent share of funding. The promissory note will be contingent on the project reaching positive FID. During 2023, Pembina contributed $41 million into Cedar LNG for pre-FID spending, which has been recorded as part of Pembina's equity accounted investment. Cedar LNG directly executed several contracts and entered into commitments necessary to facilitate the FID decision. As at December 31, 2023, Pembina has provided insurance contracts in support of the project with an aggregate maximum exposure of $160 million and has also made commitments under executed contracts for an additional $229 million to Cedar LNG for pre-FID costs. Included in both amounts is $60 million (U.S. $45 million) which was in the form of an issued letter of credit at year-end and was extinguished in January 2024 through an equity contribution by Pembina to Cedar LNG. Additional financial guarantees and commitments will be required prior to the FID decision. Under Pembina's insurance contracts issued in support of the Cedar LNG project, Pembina is obligated to reimburse the costs incurred by certain of Cedar LNG's counterparties if, and only if, Cedar LNG fails to satisfy its obligations under its contracts with those counterparties. Payment under these insurance contracts, if required, would be capped at the amount of costs actually incurred by the counterparty. Refer to Note 3(l)(i) for further information on Pembina's insurance contracts provided to Cedar LNG. Summarized Financial Information Financial information for Pembina's equity accounted investees is presented (at 100 percent) in the following tables and is prepared under the financial reporting framework adopted by each equity accounted investee (IFRS except for Alliance, Aux Sable, Grand Valley, and Veresen Midstream which are in accordance with U.S. GAAP). Differences between the equity accounted investee's earnings (loss) and earnings attributable to Pembina relate to the different accounting standards applied and amortization of the excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date. For the year ended December 31, 2023 ($ millions) PGI Alliance Aux Sable Cedar LNG Other (1) Earnings and Comprehensive Income Revenue 1,584 885 798 — 49 Expenses (547) (330) (919) (17) (24) Depreciation and amortization (356) (151) (49) — (15) Interest expense (259) (42) (1) — (1) Finance costs and other (8) 7 — — (3) Income tax expense (67) (1) — — — Earnings (loss) 347 368 (171) (17) 6 Earnings (loss) attributable to Pembina 226 109 (16) (9) 6 As at December 31, 2023 ($ millions) PGI Alliance Aux Sable Cedar LNG Other (1) Statements of Financial Position Cash and cash equivalents 8 74 19 — 17 Other current assets 521 112 85 — 5 Non-current assets 12,342 1,532 696 161 92 Current trade, other payables and provisions 199 51 74 64 10 Other current liabilities 39 79 31 1 3 Non-current trade, other payables and provisions 102 8 — — — Other non-current liabilities 6,032 810 123 — 25 (1) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section above for further details on Ruby. On December 31, 2023, CKPC was dissolved. For the year ended December 31, 2022 ($ millions) PGI Alliance Aux Sable Veresen Midstream (1) Cedar LNG Other (2) Earnings and Comprehensive Income Revenue 625 1,115 2,283 449 — 56 Expenses (307) (480) (2,026) (151) (1) (41) Depreciation and amortization (133) (140) (47) (122) — (16) Interest expense (94) (21) (1) (58) — (2) Finance costs and other 5 7 4 (2) — 2 Income tax expense (24) — — — — — Earnings (loss) 72 481 213 116 (1) (1) Earnings (loss) attributable to Pembina 49 167 91 51 — 3 As at December 31, 2022 ($ millions) PGI Alliance Aux Sable Veresen Midstream (1) Cedar LNG Other (2) Statements of Financial Position Cash and cash equivalents — 95 16 — — 29 Other current assets 1,125 118 68 — 2 13 Non-current assets 12,578 1,612 725 — 67 90 Current trade, other payables and provisions 257 57 65 — 7 56 Other current liabilities 578 23 4 — 2 14 Non-current trade, other payables and provisions 106 7 6 — — — Other non-current liabilities 5,799 832 184 — — 28 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) Other includes Ruby, CKPC, Grand Valley, and Fort Corp. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES The movements in the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2022 Recognized in Earnings Recognized in Other Comprehensive Income (Loss) Disposition Other Balance at December 31, 2023 Deferred income tax assets Employee benefits (2) 1 3 — — 2 Share-based payments 41 (2) — — — 39 Provisions 64 20 — — — 84 Benefit of loss carryforwards 450 260 — — — 710 Other deductible temporary differences 118 (39) — — (9) 70 Taxable limited partnership income deferral (68) 95 — — — 27 Deferred income tax liabilities Property, plant and equipment 2,029 174 — — — 2,203 Intangible assets 262 — — — — 262 Investments in equity accounted investees 535 251 — — — 786 Derivative financial instruments 23 (2) (2) — — 19 Total net deferred tax liabilities (1) 2,246 88 (5) — 9 2,338 ($ millions) Balance at December 31, 2021 Recognized in Earnings Recognized in Other Disposition Other Balance at December 31, 2022 Deferred income tax assets Employee benefits 2 1 (5) — — (2) Share-based payments 24 17 — — — 41 Provisions 100 (31) — (5) — 64 Benefit of loss carryforwards 385 65 — — — 450 Other deductible temporary differences 7 93 — 1 17 118 Deferred income tax liabilities Property, plant and equipment 2,250 229 — (450) — 2,029 Intangible assets 251 24 — (13) — 262 Investments in equity accounted investees 709 (174) — — — 535 Derivative financial instruments 16 37 (3) (27) — 23 Taxable limited partnership income deferral 46 50 — (28) — 68 Total net deferred tax liabilities (1) 2,754 21 2 (514) (17) 2,246 (1) Comprised of deferred tax liabilities of $2.6 billion (2022: $2.5 billion) net of deferred tax assets of $285 million (2022: $261 million). Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2023 2022 Earnings before income tax 2,189 3,219 Canadian statutory tax rate (percent) 23.6 23.6 Income tax at statutory rate 517 760 Tax rate changes and foreign rate differential (20) (27) Changes in estimate and other (4) (40) Permanent items 3 19 Unrecognized tax benefit (30) 6 Income in equity accounted investee (53) (10) Non-taxable gain on PGI Transaction — (260) Deferred tax transferred due to PGI Transaction — (200) Income tax expense 413 248 The increase in the effective tax rate from 7.7 percent to 18.9 percent is primarily due to the tax impact of the PGI Transaction recognized in 2022. Under the Pillar Two legislation, Pembina is liable to pay a top-up for differences between the Global Anti-Base Erosion effective tax rate and the 15.0 percent minimum tax rate. For jurisdictions where Pembina operates that have substantially enacted the Pillar Two legislation, it was determined that there is no material impact to the Company. Pembina also operates in jurisdictions where it is anticipated that the Pillar Two legislation will be enacted in the future. For these jurisdictions, the company has assessed its exposure to the Pillar Two legislation and foresees no material impact to Pembina. Income Tax Expense For the years ended December 31 ($ millions) 2023 2022 Current tax expense 325 227 Deferred tax expense Origination and reversal of temporary differences 337 57 Tax rate changes on deferred tax balances 8 1 Increase in tax loss carry forward (257) (37) Total deferred tax expense 88 21 Total income tax expense 413 248 Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2023 2022 Other comprehensive loss (Note 22) : Change in fair value of net investment hedges 2 3 Remeasurements of defined benefit asset or liability 3 (5) Deferred tax items recovered directly in equity 5 (2) Pembina has temporary differences associated with its investments in subsidiaries. At December 31, 2023, Pembina has not recorded a deferred tax asset or liability for these temporary differences (2022: 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, 2023, Pembina had U.S. $1.8 billion (2022: U.S. $1.2 billion) of U.S. tax losses that do not expire and $40 million (2022: $42 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, 2023 is nil (2022: $27 million). |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES AND OTHER | TRADE PAYABLES AND OTHER As at December 31 ($ millions) 2023 2022 Trade payables 555 571 Other payables & accrued liabilities 580 545 Related party payables 1 150 Total trade payables and other 1,136 1,266 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of leases [Abstract] | |
LEASES | LEASES Lessee Leases Right-of-Use Assets ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2022 168 177 143 93 581 Additions and adjustments 26 — 1 (10) 17 Disposals and other — 2 — — 2 Depreciation (18) (37) (17) (10) (82) Balance at December 31, 2022 176 142 127 73 518 Additions and adjustments — 39 1 40 80 Depreciation (18) (35) (15) (7) (75) Balance at December 31, 2023 158 146 113 106 523 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, and storage assets. Maturity of Lease Receivables As at December 31 2023 2022 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 208 39 213 40 One to two years 180 32 193 42 Two to three years 167 31 170 32 Three to four years 158 31 168 32 Four to five years 147 31 162 31 More than five years 687 326 834 294 Total undiscounted lease receipts 1,547 490 1,740 471 Unearned finance income on lease receipts (266) (256) Discounted unguaranteed residual value 19 16 Finance lease receivable 243 231 Less current portion (1) (13) (12) Total non-current 230 219 (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, 2023 | |
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 is measured at amortized cost. Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2023 Nominal Interest Rate Year of Maturity December 31, 2023 December 31, 2022 Variable rate debt Senior unsecured credit facilities (1)(2)(3) 2,881 6.65 (4) Various (1) 778 771 Fixed rate debt Senior unsecured medium-term notes series 3 450 4.75 2043 450 450 Senior unsecured medium-term notes series 4 600 4.81 2044 600 600 Senior unsecured medium-term notes series 5 550 3.54 2025 550 450 Senior unsecured medium-term notes series 6 600 4.24 2027 600 500 Senior unsecured medium-term notes series 7 600 3.71 2026 600 600 Senior unsecured medium-term notes series 8 650 2.99 2024 650 650 Senior unsecured medium-term notes series 9 550 4.74 2047 550 550 Senior unsecured medium-term notes series 10 650 4.02 2028 650 650 Senior unsecured medium-term notes series 11 800 4.75 2048 800 800 Senior unsecured medium-term notes series 12 650 3.62 2029 650 650 Senior unsecured medium-term notes series 13 700 4.54 2049 700 700 Senior unsecured medium-term notes series 14 — 2.56 2023 — 600 Senior unsecured medium-term notes series 15 600 3.31 2030 600 600 Senior unsecured medium-term notes series 16 400 4.67 2050 400 400 Senior unsecured medium-term notes series 17 500 3.53 2031 500 500 Senior unsecured medium-term notes series 18 500 4.49 2051 500 500 Senior unsecured medium-term notes series 19 300 5.72 2026 300 — Total fixed rate loans and borrowings outstanding 9,100 9,200 Deferred financing costs 25 34 Total loans and borrowings 9,903 10,005 Less current portion loans and borrowings (650) (600) Total non-current loans and borrowings 9,253 9,405 Subordinated hybrid notes Subordinated notes, series 1 600 4.80 2081 596 595 (1) Pembina's unsecured credit facilities include a $1.5 billion revolving facility that matures in June 2028, a $1.0 billion sustainability linked revolving facility that matures in June 2027, a U.S. $250 million non-revolving term loan that matures in May 2025 and a $50 million operating facility that matures in June 2024, which is typically renewed on an annual basis. (2) Includes U.S. $250 million variable rate debt outstanding at December 31, 2023 (2022: U.S. $250 million), with the full notional amount hedged using an interest rate swap at 1.47 percent. (3) 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. (4) The nominal interest rate is the weighted average of all drawn credit facilities based on Pembina's credit rating at December 31, 2023. Borrowings under the credit facilities bear interest at prime, Bankers' Acceptance or SOFR rates, plus applicable margins. The impact of interest rate hedges described in the footnote above are not reflected in this figure. On May 31, 2023, Pembina completed an extension on its $1.5 billion Revolving Facility, which now matures in June 2028, and an extension on its $1.0 billion SLL Credit Facility, which now matures in June 2027. On June 1, 2023, Pembina's $600 million aggregate principal amount of senior unsecured medium-term notes, series 14, matured and were fully repaid. On June 22, 2023, Pembina closed an offering of $500 million aggregate principal amount of senior unsecured medium-term notes. The offering was conducted in three tranches, consisting of the issuance of $300 million aggregate principal amount of senior unsecured medium-term notes, series 19, having a fixed coupon of 5.72 percent per annum, payable semi-annually and maturing on June 22, 2026; $100 million aggregate principal amount issued through a re-opening of Pembina's senior unsecured medium-term notes, series 5, having a fixed coupon of 3.54 percent per annum, paid semi-annually, and maturing on February 3, 2025; and $100 million aggregate principal amount issued through a re-opening of Pembina's senior unsecured medium-term notes, series 6, having a fixed coupon of 4.24 percent per annum, paid semi-annually, and maturing on June 15, 2027. On December 19, 2023, Pembina closed the Subscription Receipt Offering for total gross proceeds of approximately $1.3 billion. The net proceeds of the Subscription Receipt Offering will be used to finance a portion of the purchase price for the Alliance/Aux Sable Acquisition. Refer to Note 15 Subscription Receipts for further information. Subsequent to year-end, on January 12, 2024, Pembina closed an offering of $1.8 billion aggregate principal amount of senior unsecured medium-term notes (the "MTN Offering"). The MTN Offering was conducted in three tranches, consisting of the issuance of $600 million aggregate principal amount of senior unsecured medium-term notes, series 20 ("Series 20 notes"), having a fixed coupon of 5.02 percent per annum, payable semi-annually and maturing on January 12, 2032; $600 million aggregate principal amount of senior unsecured medium-term notes, series 21 ("Series 21 notes"), having a fixed coupon of 5.21 percent per annum, payable semi-annually and maturing on January 12, 2034; and $600 million aggregate principal amount of senior unsecured medium-term notes, series 22 ("Series 22 notes"), having a fixed coupon of 5.67 percent per annum, payable semi-annually and maturing on January 12, 2054. Pembina used a portion of the net proceeds of the MTN Offering to repay indebtedness of the Company under the Revolving Facility and for general corporate purposes. Pembina intends to use the remaining net proceeds of the MTN Offering to fund a portion of the purchase price for the Alliance/Aux Sable Acquisition. Pembina will be required to redeem the Series 20 and Series 21 notes pursuant to a special mandatory redemption at a redemption price equal to 101 percent of the aggregate principal amount of the Series 20 and Series 21 notes, plus accrued and unpaid interest to, but excluding, the date of such special mandatory redemption, if (i) the closing of the Alliance/Aux Sable Acquisition (refer to Note 15) has not occurred on or prior to 5:00 p.m. (MST) on October 1, 2024 (the "Outside Date"); (ii) the purchase and sale agreement in respect of the Alliance/Aux Sable Acquisition is terminated at any time prior to the Outside Date; (iii) Pembina gives notice to Computershare Trust Company of Canada, as trustee for the Series 21 and 22 notes, that it does not intend to proceed with the Alliance/Aux Sable Acquisition; or (iv) Pembina announces to the public that it does not intend to proceed with the Alliance/Aux Sable Acquisition. Subsequent to year-end, on January 22, 2024, Pembina's $650 million aggregate principal amount of senior unsecured medium-term notes, series 8, matured and were fully repaid. For more information about Pembina's exposure to interest rate, foreign currency and liquidity risk, see Note 23 Financial Instruments & Risk Management . |
DECOMISSIONING PROVISION
DECOMISSIONING PROVISION | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
DECOMMISSIONING PROVISION | DECOMMISSIONING PROVISION The decommissioning provision reflects the discounted cash flows expected to be incurred to decommission Pembina's pipeline systems, gas processing and fractionation plants, storage and terminalling hubs, including estimated environmental reclamation and remediation costs. The undiscounted cash flows at the time of decommissioning are calculated using an estimated timing of economic outflows ranging from one ($ millions) 2023 2022 Balance at January 1 261 412 Unwinding of discount rate 16 15 Change in rates 65 (158) Disposition — (20) Additions 4 1 Change in cost estimates and other (4) 11 Total 342 261 Current portion of provision (1) 6 2 Balance at December 31 336 259 (1) Included in trade payables and other on the Consolidated Statement of Financial Position. |
SUBSCRIPTION RECEIPTS
SUBSCRIPTION RECEIPTS | 12 Months Ended |
Dec. 31, 2023 | |
Subscription Receipts [Abstract] | |
SUBSCRIPTION RECEIPTS | SUBSCRIPTION RECEIPTS On December 13, 2023, Pembina announced that it had entered into an an agreement with Enbridge Inc. ("Enbridge") to acquire all of Enbridge's interests in the Alliance, Aux Sable and NRGreen joint ventures (the "Alliance/Aux Sable Acquisition"). The Alliance/Aux Sable Acquisition is expected to close in the first half of 2024, subject to the satisfaction or waiver of customary closing conditions, including the receipt of required regulatory approvals. In connection with the Alliance/Aux Sable Acquisition, on December 19, 2023, Pembina closed a bought deal offering in Canada and the United States of subscription receipts (the "Subscription Receipt Offering"), pursuant to which Pembina issued and sold 29.9 million subscription receipts (including 3.9 million subscription receipts issued pursuant to the exercise in full by the underwriters for the Subscription Receipt Offering of the over-allotment option granted to them by Pembina) at a price of $42.85 per subscription receipt for total gross proceeds of approximately $1.3 billion. The net proceeds of the Offering will be held in escrow and are expected to be used by Pembina to fund a portion of the purchase price of the Alliance/Aux Sable Acquisition. The subscription receipts entitle the holder thereof to receive (i) automatically, upon the closing of the Alliance/Aux Sable Acquisition, without any further action on the part of the holder thereof and without payment of additional consideration, one common share, and (ii) payments per subscription receipt equal to the cash dividends per common share for any dividends declared from December 19, 2023 to, but excluding, the closing date of the Alliance/Aux Sable Acquisition or to, and including, the date of the termination or cancellation of the Alliance/Aux Sable Acquisition, as applicable. These dividend equivalent payments are to be paid to subscription receipt holders of record on the record date for the corresponding dividend on the common shares and are paid on the date on which such dividend is paid to holders of common shares, net of any applicable withholding taxes. The subscription receipts create a separate non-cash financial asset, net of prepaid share issuance costs, for the proceeds expected to be received by Pembina upon the closing of the Alliance/Aux Sable Acquisition and a financial liability for the obligation to reimburse the holders of subscription receipts pursuant to the terms of the subscription receipts. In certain situations, the settlement of the asset and the liability may not happen simultaneously. Therefore, the asset and liability are presented gross. For more information regarding the subscription receipts and the terms thereof, refer to "Description of the Capital Structure of Pembina – Subscription Receipts" in Pembina's annual information form for the year ended December 31, 2023. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL Pembina 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, 2021 550 15,678 Share-based payment transactions (1) 7 319 Repurchased (7) (204) Balance at December 31, 2022 550 15,793 Share-based payment transactions (1) — 6 Repurchased (1) (34) Balance at December 31, 2023 549 15,765 Share Repurchase Program On March 7, 2023, the Toronto Stock Exchange ("TSX") accepted the renewal of Pembina's normal course issuer bid (the "NCIB") that allows the Company to repurchase, at its discretion, up to five percent of the Company's outstanding common shares (representing 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 under the NCIB are cancelled. The NCIB commenced on March 10, 2023 and will terminate on March 9, 2024 or on such earlier date as the Company has purchased the maximum number of common shares permitted pursuant to the NCIB or at such time Pembina determines to no longer make purchases thereunder. The following table summarizes Pembina's share repurchases under its NCIB: For the years ended December 31 (millions, except as noted) 2023 2022 Number of common shares repurchased for cancellation (thousands) 1,197 7,154 Average price per share $41.76 $46.55 Total cost (1) 50 333 (1) Total cost includes $34 million (2022: $204 million) charged to share capital and $16 million (2022: $129 million) charged to deficit. Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2021 105 2,517 Class A, Series 23 Preferred shares redeemed, net of issue costs (12) (300) Part VI.1 tax — (9) Balance at December 31, 2022 93 2,208 Part VI.1 tax — (9) Balance at December 31, 2023 93 2,199 On October 3, 2022, none of the eight million issued and outstanding Cumulative Redeemable Rate Reset Class A Preferred Series 15 Shares were converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 16. On November 15, 2022, Pembina redeemed all of the 12 million issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 23 (the "Series 23 Class A Preferred Shares") for a redemption price equal to $25.00 per Series 23 Class A Preferred Share. The total redemption price for the Series 23 Class A Preferred Shares was $300 million. On February 14, 2023, holders of an aggregate of 1,028,130 of the 16 million issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 21 (the "Series 21 Class A Preferred Shares") elected to convert, on a one-for-one basis, their Series 21 Class A Preferred Shares into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 22 ("Series 22 Class A Preferred Shares"). As a result of the exercise of such conversion rights, Pembina has 14,971,870 Series 21 Class A Preferred Shares and 1,028,130 Series 22 Class A Preferred Shares issued and outstanding. The annual dividend rate applicable to the Series 22 Class A Preferred Shares for the three-month floating rate period from and including March 1, 2024 to, but excluding June 1, 2024 is 8.291 percent. On February 15, 2023, none of the Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 25 ("Series 25 Class A Preferred Shares") outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 26. The annual dividend rate for the Series 25 Class A Preferred Shares for the five-year period from and including February 15, 2023 to, but excluding, February 15, 2028 is 6.481 percent. On December 1, 2023, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 1 ("Series 1 Class A Preferred Shares") outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 2. The annual dividend rate for the Series 1 Class A Preferred Shares for the five-year period from and including December 1, 2023 to, but excluding, December 1, 2028 is 6.525 percent. Subsequent to the end of the year, on February 15, 2024, none of the six million Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 3 ("Series 3 Class A Preferred Shares") outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 4. The annual dividend rate for the Series 3 Class A Preferred Shares for the five-year period from and including March 1, 2024 to, but excluding March 1, 2029 will be 6.019 percent. Dividends The following dividends were declared and paid by Pembina: For the years ended December 31 ($ millions) 2023 2022 Common shares $2.66 per common share (2022: $2.55) 1,459 1,409 Class A preferred shares $1.23 per Series 1 Class A Preferred Share (2022: $1.23) 12 12 $1.12 per Series 3 Class A Preferred Share (2022: $1.12) 7 7 $1.14 per Series 5 Class A Preferred Share (2022: $1.14) 11 11 $1.10 per Series 7 Class A Preferred Share (2022: $1.10) 11 11 $1.08 per Series 9 Class A Preferred Share (2022: $1.08) 10 10 $1.54 per Series 15 Class A Preferred Share (2022: $1.22) 12 10 $1.21 per Series 17 Class A Preferred Share (2022: $1.21) 7 7 $1.17 per Series 19 Class A Preferred Share (2022: $1.17) 9 9 $1.49 per Series 21 Class A Preferred Share (2022: $1.23) 23 20 $1.49 per Series 22 Class A Preferred Share (2022: nil) 2 — nil per Series 23 Class A Preferred Share (2022: $1.15) — 16 $1.54 per Series 25 Class A Preferred Share (2022: $1.30) 16 13 120 126 On February 22, 2024, Pembina announced that its Board of Directors had declared a common share cash dividend for the first quarter of 2024 of $0.6675 per share to be paid on March 28, 2024, to shareholders of record on March 15, 2024. Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares on January 8, 2024 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2024 March 1, 2024 $0.407813 4 Series 3 February 1, 2024 March 1, 2024 $0.279875 2 Series 5 February 1, 2024 March 1, 2024 $0.285813 3 Series 7 February 1, 2024 March 1, 2024 $0.273750 3 Series 9 February 1, 2024 March 1, 2024 $0.268875 2 Series 15 March 15, 2024 April 1, 2024 $0.385250 3 Series 17 March 15, 2024 April 1, 2024 $0.301313 2 Series 19 March 15, 2024 April 1, 2024 $0.292750 2 Series 21 February 1, 2024 March 1, 2024 $0.393875 6 Series 22 February 1, 2024 March 1, 2024 $0.523436 1 Series 25 January 31, 2024 February 15, 2024 $0.405063 4 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic Earnings Per Common Share The calculation of basic earnings per common share at December 31, 2023 was based on the earnings attributable to common shareholders of $1.6 billion (2022: $2.8 billion) and a weighted average number of common shares outstanding of 550 million (2022: 553 million). Diluted Earnings Per Common Share The calculation of diluted earnings per common share at December 31, 2023 was based on earnings attributable to common shareholders of $1.6 billion (1) (2022: $2.8 billion (1) ), and a weighted average number of common shares outstanding after adjustment for the effects of all dilutive potential common shares of 551 million (2022: 554 million). Earnings Attributable to Common Shareholders For the years ended December 31 ($ millions) 2023 2022 Earnings 1,776 2,971 Dividends on preferred shares (128) (129) Basic and diluted earnings attributable to common shareholders 1,648 2,842 Weighted Average Number of Common Shares (In millions of shares, except as noted) 2023 2022 Issued common shares at January 1 550 550 Effect of shares repurchased (1) (2) Effect of shares issued on exercise of options 1 5 Basic weighted average number of common shares at December 31 550 553 Dilutive effect of share options on issue (1) 1 1 Diluted weighted average number of common shares at December 31 551 554 Basic earnings per common share (dollars) 3.00 5.14 Diluted earnings per common share (dollars) 2.99 5.12 (1) The average market value of Pembina's shares for purposes of calculating the dilutive effect of share options for the years ended December 31, 2023 and 2022 was based on quoted market prices for the period during which the options were outstanding. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Corporate Corporate Take-or-pay (1) 1,816 273 — — 2,089 1,741 622 — — 2,363 Fee-for-service (1) 490 120 62 — 672 458 137 — — 595 Product sales (2) — — 6,025 — 6,025 — — 8,471 — 8,471 Revenue from contracts with customers 2,306 393 6,087 — 8,786 2,199 759 8,471 — 11,429 Operational finance lease income 24 4 — — 28 26 3 — — 29 Fixed operating lease income 185 35 — — 220 117 36 — — 153 Variable lease income 16 — — — 16 — — — — — Shared service revenue (3) and other 11 17 — 47 75 — — — — — Total external revenue 2,542 449 6,087 47 9,125 2,342 798 8,471 — 11,611 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Includes $63 million of fixed fee income (2022: nil) related to shared service agreements with joint ventures following the PGI Transaction. Contract Liabilities Significant changes in the contract liabilities balances during the period are as follows: 2023 2022 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 3 191 194 3 288 291 Additions (net in the period) (2) 21 19 2 57 59 Disposition — — — (2) (90) (92) Revenue recognized from contract liabilities (1) — (54) (54) — (64) (64) Closing balance 1 158 159 3 191 194 Less current portion (2) (1) (32) (33) (3) (53) (56) Ending balance — 126 126 — 138 138 (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, 2023, the balance includes $1 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 have been received from customers. Contract liabilities include up-front payments or non-cash consideration received from customers for future transportation, gas processing, fractionation, terminalling, and storage services. Contract liabilities also include consideration received from customers for take-or-pay commitments where the customer has a make-up right to ship or process future volumes under a firm contract. These amounts are non-refundable should the customer not use its make-up rights. In 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. Revenue Allocated to Remaining Performance Obligations Pembina expects to recognize revenue in future periods that includes current unsatisfied remaining performance obligations totaling $11.7 billion (2022: $11.1 billion). Over the next five years, these remaining performance obligations will be recognized annually ranging from $1.7 billion (2022: $1.8 billion) declining to $1.0 billion (2022: $1.0 billion). Subsequently, up to 2047 (2022: 2046), Pembina will recognize $955 million (2022: $765 million) declining to $3 million (2022: $7 million) per year. |
NET FINANCE COSTS
NET FINANCE COSTS | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
NET FINANCE COSTS | NET FINANCE COSTS For the years ended December 31 ($ millions) 2023 2022 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 395 385 Subordinated hybrid notes 29 29 Leases 30 32 Unwinding of discount rate 16 16 (Gain) loss in fair value of non-commodity-related derivative financial instruments (19) 12 Foreign exchange losses and other 15 12 Net finance costs 466 486 Net interest paid of $462 million (2022: $468 million) includes interest paid during construction and capitalized of $15 million (2022: $21 million). |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits [Abstract] | |
PENSION PLAN | PENSION PLAN As at December 31 ($ millions) 2023 2022 Registered defined benefit net asset (5) (17) Supplemental defined benefit net obligation 14 11 Net employee benefit obligations (assets) 9 (6) 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 has ended eligibility for new entrants to the defined benefit plan for those whose age and years of service did not equal 40 as at January 1, 2021. Pembina recognized $14 million in expense for the defined contribution plan during the year (2022: $12 million). The defined benefit plans include a funded registered plan for all eligible employees and an unfunded supplemental retirement plan for those employees affected by the Canada Revenue Agency maximum pension limits. The defined benefit plans are administered by separate pension funds that are legally separated from Pembina. Benefits under the plans are based on the length of service and the annual average best three years of earnings during the last 10 years of service of the employee. Benefits paid out of the plans are not indexed. Pembina measures its accrued benefit obligations and the fair value of plan assets for accounting purposes as at December 31 of each year. The most recent actuarial funding valuation was at December 31, 2022. The defined benefit plans expose Pembina to actuarial risks such as longevity risk, interest rate risk, and market (investment) risk. Defined Benefit Obligations As at December 31 ($ millions) 2023 2022 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 14 — 11 Present value of funded obligations 250 — 207 — Total present value of obligations 250 14 207 11 Fair value of plan assets 255 — 224 — Recognized defined benefit assets (obligations) 5 (14) 17 (11) 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 $17 million for the year ended December 31, 2023 (2022: $15 million). Pembina has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements of the plans, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at December 31, 2023 (2022: nil). Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2023 2022 Equity securities 59 59 Debt 35 34 Other 6 7 100 100 Movement in the Present Value of the Defined Benefit Pension Obligation 2023 2022 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 207 11 257 17 Benefits paid by the plan (11) (1) (19) (1) Current service costs 18 1 23 1 Interest expense 11 1 8 — Actuarial losses (gains) in other comprehensive income 25 2 (62) (6) Defined benefit obligations at December 31 250 14 207 11 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2023 2022 Fair value of plan assets at January 1 224 268 Contributions paid into the plan 17 15 Benefits paid by the plan (11) (19) Return on plan assets 13 (49) Interest income 12 9 Fair value of registered plan assets at December 31 255 224 Expense Recognition in Earnings For the years ended December 31 ($ millions) 2023 2022 Registered Plan Current service costs 19 24 Interest on obligation 11 8 Interest on plan assets (12) (9) 18 23 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2023 2022 Registered Plan Operating expenses 8 11 General and administrative expense 10 12 18 23 Expense recognized for the Supplemental Plan was less than $2 million for each of the years ended December 31, 2023 and 2022. Actuarial Gains and Losses Recognized in Other Comprehensive Income 2023 2022 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 1 3 4 (9) (2) (11) Remeasurements: Financial assumptions (16) (1) (17) 54 3 57 Experience adjustments (3) (1) (4) (7) 2 (5) Return on plan assets excluding interest income 10 — 10 (37) — (37) Recognized gain during the period after tax (9) (2) (11) 10 5 15 Balance at December 31 (8) 1 (7) 1 3 4 Principal actuarial assumptions used: As at December 31 (weighted average percent) 2023 2022 Discount rate 4.6 5.3 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) 2023 2022 Longevity at age 65 for current pensioners Males 22.1 22.0 Females 24.4 24.4 Longevity at age 65 for current member aged 45 Males 23.0 23.0 Females 25.4 25.3 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 4.6 percent by 100 basis points at December 31, 2023 is considered reasonably possible in the next financial year. An increase by 100 basis points would result in a $29 million reduction to the obligation whereas, a decrease would lead to a $37 million increase to the obligation. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS At December 31, 2023, 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 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-year period and expire seven years after issuance. 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 2022 623 1,202 39 1,864 2023 626 1,217 34 1,877 (1) Distribution units are granted in addition to RSU and PSU grants based on notional accrued dividends. (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 is as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Balance at December 31, 2021 19,971 $41.33 Granted 599 $45.61 Exercised (1) (7,722) $41.42 Forfeited (332) $38.60 Expired (431) $41.31 Balance at December 31, 2022 12,085 $41.56 Granted 577 $45.37 Exercised (1) (1,412) $36.24 Forfeited (181) $39.85 Expired (387) $44.80 Balance at December 31, 2023 10,682 $42.38 (1) Exercise represents the gross number of options exercised by the employee. Beginning in the fourth quarter of 2022, Pembina issued the net number of common shares equivalent to the employee's gain upon exercise. As of December 31, 2023, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2023 Options Exercisable Weighted Average Remaining Life $26.83 – $37.03 2,058 1,714 4 $37.04 – $43.56 2,010 740 3 $43.57 – $45.50 2,482 2,154 3 $45.51 – $48.08 2,031 1,483 3 $48.09 – $49.78 2,101 2,102 2 Total 10,682 8,193 3 Options are exercised regularly throughout the year. Therefore, the weighted average share price during the year of $44.68 (2022: $48.62) is representative of the weighted average share price at the date of exercise. Expected volatility is estimated by considering historic average share price volatility. The weighted average inputs used in the measurement of the fair values at grant date of share options are the following: Share Options Granted For the years ended December 31 (dollars, except as noted) 2023 2022 Weighted average Fair value at grant date 8.96 11.43 Expected volatility (percent) 35.7 46.6 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.66 2.55 Expected forfeitures (percent) 7.4 7.3 Risk-free interest rate (based on government bonds) (percent) 3.9 1.7 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 the 20 days ending December 31, 2023 of $45.13 (2022: $46.26). Actual payment may differ from the amount valued based on market price and company performance. Employee Expenses For the years ended December 31 ($ millions) 2023 2022 Share option plan, equity settled 5 10 Long-term share unit award incentive plan 67 116 Share-based compensation expense 72 126 Total carrying amount of liabilities for cash settled arrangements 163 161 Total intrinsic value of liability for vested benefits 108 97 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total Balance at December 31, 2021 32 8 (12) 28 Other comprehensive gain before hedging activities 295 — 15 310 Other comprehensive (loss) gain resulting from hedging activities (1) (20) 23 — 3 Balance at December 31, 2022 307 31 3 341 Other comprehensive loss before hedging activities (106) — (11) (117) Other comprehensive gain (loss) resulting from hedging activities (1) 10 (13) — (3) Balance at December 31, 2023 211 18 (8) 221 (1) Amounts relate to hedges of the Company's net investment in foreign operations (reported in Currency Translation Reserve) and interest rate forward swaps (reported in Cash Flow Hedge Reserve) (Note 23). At December 31, 2023, the other comprehensive loss resulting from hedging activities for interest rate forward swaps includes a realized gain of $16 million that was reclassified to net finance costs (2022: $5 million realized gain). (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, 2023 | |
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 and oversees how management monitors compliance with the organization's risk management policies and procedures. In addition, the Board of Directors 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 in accordance with the respective terms and conditions of the arrangement. Counterparty credit risk arises primarily from Pembina's cash and cash equivalents, trade receivables and other, finance lease receivables, and derivative financial instruments. The carrying amounts of these financial assets represents the maximum counterparty credit exposure, without taking into account security held. Pembina manages counterparty credit risk through established credit management techniques. These techniques include conducting comprehensive financial and other assessments for new high exposure counterparties, regular reviews of existing counterparties to 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. This information includes 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, 2023, letters of credit totaling $124 million (2022: $168 million) were held primarily in respect of customer trade receivables. Pembina typically has collected its trade receivables in full and at December 31, 2023, 98 percent were current (2022: 98 percent). Management defines current as outstanding accounts receivable under 30 days past due. Pembina has a general lien, a continuing and first priority security interest in, and a secured charge on all of the shipper's petroleum products in its custody. At December 31, the aging of past due trade and other receivables was as follows: ($ millions) 2023 2022 31-60 days past due 2 3 Greater than 61 days past due 3 — 5 3 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. 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, 2023 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and other 1,136 1,136 1,136 — — — Loans and borrowings 9,903 15,027 1,010 2,443 2,238 9,336 Subordinated hybrid notes 596 804 29 57 58 660 Income tax payable 18 18 18 — — — Derivative financial liabilities 40 40 26 1 — 13 Lease liabilities 644 857 102 181 152 422 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, which includes 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. 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 market access 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 net realizable value assessments of the related stored product inventory. Primarily, Pembina enters into contracts to purchase and sell crude oil, condensate, NGL, power and natural gas at floating market prices. As a result, the prices of products that are marketed by Pembina are subject to volatility due to factors such as seasonal demand changes, extreme weather conditions, market inventory levels, general economic conditions, changes in global 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 mitigate 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 those products. These exposures could result in variability of cash flow generated by the Marketing business, which could affect 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 frac spread margins through the use of derivative financial instruments. Pembina has also entered into power purchase agreements to secure cost-competitive renewable energy, fix the price for a portion of the power Pembina consumes, and reduce its emissions. Pembina's Marketing business is 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. The following table shows the impact on earnings if the underlying forward commodity prices of the derivative financial instruments increased or decreased by 15 percent, with other variables held constant. As at December 31, 2023 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (1) (38) 38 Natural gas 5 (5) NGL (2) (21) 21 (1) Includes condensate. (2) Includes propane and butane. 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, 2023 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (17) 17 (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 floating interest rate debt in the form of its Credit Facilities, 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 and Pembina's interest rate swaps have variable rate components that reference the USD secured overnight financing rate ("SOFR"). Pembina's Canadian dollar drawings on its Credit Facilities have variable rate components that reference the Canadian Dollar Offered Rate ("CDOR"). CDOR rates will cease to be published at the end of June 2024. CDOR is expected to be replaced by the Canadian Overnight Repo Rate Average. 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) 2023 2022 Carrying amounts of financial liability Fixed rate instruments (1) 10,365 10,507 Variable rate instruments (2) 778 771 11,143 11,278 (1) Includes lease liabilities and subordinated hybrid notes. (2) Includes financial derivative contracts designated as cash flow hedging instruments, fixing the interest rates on U.S. $250 million of variable rate debt as at December 31, 2023 (2022: U.S. $250 million). Cash Flow Sensitivity Analysis for Variable Rate Instruments The following table shows the impact on earnings if interest rates at the reporting date would have increased or decreased by 100 basis points, with other variables held constant. As at December 31, 2023 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (4) 4 Fair Values The fair value of financial instruments utilizes a variety of valuation inputs. When measuring fair value, Pembina uses observable market data to the greatest extent possible. Depending on the nature of these valuation inputs, financial instruments are categorized as follows: a. Level 1 Level 1 fair values are based on inputs that are unadjusted observable quoted prices from active markets for identical assets or liabilities as at the measurement date. b. Level 2 Level 2 fair values are based on inputs, other than quoted market prices included in Level 1, that are either directly or indirectly observable. Level 2 fair value inputs include quoted forward market prices, time value, and broker quotes that are observable for the duration of the financial instrument's contractual term. These inputs are often adjusted for factors specific to the asset or liability, such as, location differentials and credit risk. Financial instruments that utilize Level 2 fair valuation inputs, include derivatives arising from physical commodity forward contracts, commodity swaps and options, and forward interest rate and foreign-exchange swaps. In addition, Pembina’s loans and borrowings utilize Level 2 fair valuation inputs, whereby the valuation technique is based on discounted future interest and principal payments using the current market interest rates of instruments with similar terms. c. Level 3 Level 3 fair values utilize inputs that are not based on observable market data. Rather, various valuation techniques are used to develop inputs. Financial instruments that utilize Level 3 fair valuation inputs include embedded derivative instruments arising from long-term power purchase agreements, whereby Pembina has purchased a proportionate interest of wind power. The fair value of these instruments is measured using a pricing and cash flow model that accounts for forward power prices, renewable wind power pricing discounts and differentials, and inflationary metrics. The rate used to discount the respective estimated cash flows is a government risk-free interest rate that is adjusted for an appropriate credit spread. The fair valuation of the embedded derivative instruments is judged to be a significant management estimate. These assumptions and inputs are susceptible to change and may differ from actual future developments. This estimation uncertainty could materially impact the quantified fair value; and therefore, the gains and losses on commodity-related derivative financial instruments. As at December 31, 2023, a ten percent increase or decrease of wind power pricing discounts and forward power prices would increase or decrease earnings by $80 million (2022: $75 million) due to the resulting unrealized mark-to-market adjustment. The carrying values of financial assets and liabilities in relation to their respective fair values, together with their appropriate fair value categorization are illustrated in the table below. Certain other non-derivative financial instruments measured at amortized cost, including cash and cash equivalents, trade receivables and other, trade payables and other, and other liabilities have been excluded since their carrying values are judged to approximate their fair values due to their nature and short maturity. These instruments would be categorized as Level 2 in the fair value hierarchy. 2023 2022 As at December 31 Carrying Fair Value Carrying Value Fair Value ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments (1) 80 — 51 29 129 — 92 37 Financial liabilities carried at fair value Derivative financial instruments (1) 40 — 26 14 64 — 57 7 Contingent consideration (2) 39 — — 39 49 — 12 37 Financial liabilities carried at amortized cost Long-term debt (3) 10,499 — 9,989 — 10,600 — 9,590 — (1) At December 31, 2023 all derivative financial instruments are carried at fair value through earnings, except for $18 million in interest rate derivative financial assets that have been designated as cash flow hedges. (2) Included in trade payables and other. Under the terms of the agreements on Pembina's investment in the Cedar LNG Project, Pembina has commitments to make additional payments on a positive final investment decision. As at December 31, 2023, Pembina has met its commitments to fund development costs and annual operating budgets. (3) Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes. Changes in fair value of the derivative net assets classified as Level 3 in the fair value hierarchy were as follows: For the year ended December 31 ($ millions) 2023 2022 Level 3 derivative net asset at January 1 30 11 (Loss) gain on commodity-related derivative financial instruments included in earnings (15) 19 Level 3 derivative net asset at December 31 15 30 There were no transfers into or out of Level 3 during the year ended December 31, 2023. Hedge Accounting a. 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. This hedging activity is in aid of Pembina’s risk management strategy for foreign exchange risk. The designated debt has been assessed as having no ineffectiveness as the U.S. dollar denominated debt has an equal and opposite exposure to U.S. dollar fluctuations. The designated debt is recorded in loans and borrowings on the Consolidated Statements of Financial Position and all related gains and losses are recorded directly in other comprehensive income. The details of the U.S. dollar denominated debt are as follows: For the years ended December 31 ($ millions) 2023 2022 Notional amount of U.S. debt designated (in U.S. dollars) 250 250 Carrying value of U.S. debt designated 330 337 Maturity date 2025 2025 b. Cash Flow Hedges Pembina has designated interest rate forward swaps as hedging instruments to manage interest rate risk exposure related to Credit Facilities. The designated interest rate forward swaps are recorded in derivative financial instruments on the Consolidated Statements of Financial Position and all related gains or losses are recorded directly in other comprehensive income, with realized gains or losses reclassified to net finance costs. The details of the interest rate forward swap derivative instruments are as follows: For the years ended December 31 ($ millions) 2023 2022 Notional amount of interest rate forward swaps 331 338 Carrying value of interest rate forward swaps 18 31 Maturity date 2025 2025 Gains and Losses on Derivative Instruments Realized and unrealized losses (gains) on derivative instruments are as follows: For the years ended December 31 ($ millions) 2023 2022 Derivative instruments held at FVTPL (1) Realized (gain) loss Commodity-related (11) 105 Foreign exchange 15 14 Unrealized loss (gain) Commodity-related 32 (133) Foreign exchange (18) 12 Derivative instruments in hedging relationships Interest rate loss (gain) recorded in other comprehensive income (2) 13 (23) (1) Realized and unrealized losses or gains on commodity derivative instruments held at FVTPL are included in loss (gain) on commodity-related derivative financial instruments in the Consolidated Statements of Earnings and Comprehensive Income. Realized and unrealized losses or gains on foreign exchange derivative instruments that are not designated as hedging instruments, but rather held at FVTPL, are included in net finance costs in the Consolidated Statements of Earnings and Comprehensive Income. (2) Unrealized losses or gains for designated cash flow hedges are recognized in impact of hedging activities in the Consolidated Statements of Earnings and Comprehensive Income, with realized losses or gains being reclassified to net finance costs. At December 31, 2023, the movement in other comprehensive income includes a realized gain of $16 million that was reclassified to net finance costs (2022: $5 million realized gain) (Note 22). No losses or gains have been recognized in net income relating to discontinued cash flow hedges. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT Pembina's objective when managing capital is to ensure a strong financial position and 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, debt to equity, and rating agency metrics such as funds from operations to debt. 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 appropriate given the characteristics and operations of the underlying asset base. 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, and long-term debt. Long-term debt is comprised of bank credit facilities, unsecured notes, and subordinated hybrid 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, 2023. Note 16 of these financial statements shows the change in share capital for the year ended December 31, 2023. |
GROUP ENTITIES
GROUP ENTITIES | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
GROUP ENTITIES | GROUP ENTITIES Significant Subsidiaries As at December 31 Ownership Interest (percentages) Jurisdiction 2023 2022 Pembina Cochin LLC Delaware U.S. 100 100 Pembina Empress NGL Partnership Alberta 100 100 Pembina Holding Canada L.P. Alberta 100 100 Pembina Infrastructure and Logistics L.P. Alberta 100 100 Pembina Midstream Limited Partnership Alberta 100 100 Pembina Oil Sands Pipeline L.P. Alberta 100 100 Pembina Pipeline Alberta 100 100 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party [Abstract] | |
RELATED PARTIES | RELATED PARTIES Pembina enters into transactions with related parties in the normal course of business and all transactions are measured at their exchange amount, unless otherwise noted. Pembina provides management and operational oversight services, on a fixed fee and cost recovery basis, to certain equity accounted investees. Pembina also contracts for services and capacity from certain of its equity accounted investees, advances funds to support operations and provides letters of credit, including financial guarantees. A summary of the significant related party transactions and balances are as follows: For the years ended December 31 ($ millions) 2023 2022 Services provided (1) PGI 272 106 Aux Sable 132 104 Alliance 15 16 Cedar LNG 12 7 Veresen Midstream — 35 Other (2) 2 1 Total services provided 433 269 Services received PGI 12 11 Alliance 12 12 Other (2) — 3 Total services received 24 26 As at December 31 ($ millions) 2023 2022 Advances to related parties (3) — 22 Trade receivables and other (4) 36 42 Trade payables and other (5) 1 150 (1) Services provided by Pembina include payments made by Pembina on behalf of related parties. (2) Other includes transactions with CKPC, Grand Valley, and ACG (for 2023 only). Excluded are amounts recorded on the transfer of assets and liabilities as part of the dissolution of CKPC. (3) During the year ended December 31, 2023, Pembina settled an advance due from Ruby for U.S. $14 million and Fort Corp repaid advances of $4 million. (4) As at December 31, 2023, trade receivables and other includes $33 million due from PGI (2022: $41 million). (5) As at December 31, 2022, trade payables and other included U.S. $102 million related to the Ruby Settlement Agreement with Ruby, which was settled in January 2023. Key Management Personnel and Director Compensation Key management consists of Pembina's directors and certain key officers. Compensation In addition to short-term employee benefits, including salaries, director fees and short-term incentives, Pembina also provides key management personnel with share-based compensation, contributes to post employment pension plans and provides car allowances, parking and business club memberships. Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2023 2022 Short-term employee benefits 16 12 Share-based compensation and other (1) 13 34 Total compensation of key management 29 46 (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, 2023 (2022: nil). ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2023 2022 Defined benefit plan Funding 17 15 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Pembina was committed for the following amounts under its contracts and arrangements as at December 31, 2023: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 year 1 – 3 years 3 – 5 years After 5 years Construction commitments (2) 707 525 182 — — Other commitments related to lease contracts (3) 502 79 100 75 248 Transportation and processing (4) 176 38 98 31 9 Funding commitments (5) 315 289 13 13 — Software, cloud computing and other 26 11 11 3 1 Total contractual obligations 1,726 942 404 122 258 (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) Excludes significant projects that are awaiting regulatory approval, projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. (3) Relates to expected variable lease payments excluded from the measurements of the lease liability, payments under lease contracts which have not yet commenced, and payments related to non-lease components in lessee lease contracts. (4) Take-or-pay payments for minimum volumes to be transported or processed, including $10 million of contract transportation on the Alliance Pipeline. (5) Pembina has committed to fund the construction of an asset that will connect Pembina's assets into a third-party pipeline, as well as fund the development of an asset. At December 31, 2023, Pembina has a remaining commitment of $229 million to Cedar LNG for pre-FID costs. 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. Pembina represents its interests vigorously in all proceedings in which it is involved. Legal and administrative proceedings involving possible losses are inherently complex, and the company applies significant judgment in estimating probable outcomes. Of significance was a claim filed against Aux Sable by a counterparty to an NGL supply agreement. In the fourth quarter of 2023, the claim was settled and discontinued. Pembina contributed $145 million to Aux Sable, representing Pembina's proportionate share of the settlement. In the third quarter of 2023, a $58 million provision was recognized in share of profit from equity accounted investees for the claim, net of provisions recorded in prior years. 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, 2023, Pembina had $201 million (2022: $198 million) in letters of credit issued. |
MATERIAL ACCOUNTING POLICIES (P
MATERIAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 interests 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 when control ceases. Balances and transactions, including any revenue and expenses, with or between subsidiaries have been eliminated in preparing the Consolidated Financial Statements. When there is a loss of control of a subsidiary, the Company derecognizes the assets and liabilities of the subsidiary and other components of equity. However, there is an accounting policy choice to recognize the entirety of any resulting gain or loss in earnings on loss of control or to recognize the gain or loss only to the extent of the unrelated investor's interest in the joint venture. Pembina has elected to recognize the full gain in its entirety. As a result, any interest retained in the former subsidiary is measured at fair value when control is lost. Pembina's non-controlling interest, which related to the Company's Jordan Cove project, was initially recognized at fair value on the acquisition date. The non-controlling interest was derecognized in 2023 when the related equity interest had expired. The derecognition resulted in a re-classification from non-controlling interest to equity attributable to shareholders. ii) Joint Arrangements Joint arrangements represent arrangements where Pembina has joint control established by a contractual agreement. Joint arrangements give rise to either joint operations or joint ventures. The determination of joint control requires significant judgment about each party's substantive rights, exposure to variability of returns, and the power necessary for the party to affect its respective returns. 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. Joint Operations Pembina recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses from the date that joint control commences until the date that joint control ceases. Joint Ventures and the Equity Method Joint ventures are accounted for using the equity method of accounting. The acquisition of interests in a joint venture that is a business are measured and recorded using the acquisition method. Other acquisitions of interests in a joint venture are measured and recorded at cost. Joint ventures are adjusted thereafter for any change in the Company's share of the investees' net assets. Pembina's acquired interest in the joint venture, Pembina Gas Infrastructure Inc. ("PGI"), involved the use of the acquisition method, which required significant estimates to determine the fair values of the consideration exchanged, the newly acquired interest, and the respective assets and liabilities of the investee. Assumptions and estimates of future cash flows, contract renewal rates, and discount rates were made in applying the acquisition method. Pembina's Consolidated Financial Statements include its share of the equity accounted investees' profit or loss and comprehensive income 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. Unrealized gains arising from transactions with joint ventures are eliminated against the investment to the extent of Pembina's interest in the investee. However, unrealized gains that arise in a circumstance where the Company has contributed a business to a joint venture are fully recognized. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. iii) Foreign Currency For each subsidiary and joint venture, Pembina determines the entity's respective functional currency. The assets and liabilities of these entities, whose functional currencies are other than Canadian dollars, are translated into Canadian dollars at the foreign exchange rate as at the reporting date, while revenues and expenses are translated using average monthly foreign exchange rates. Foreign exchange differences arising on translation of these entities are included in exchange gain (loss) on translation of foreign operations in other comprehensive income. Judgments are required concerning the entity's economic environment in which it operates and the nature of the cash flows that materialize, with consideration given to the currency that influences sales prices, financing activities, the country whose competitive forces and regulatory environment has the most influence, and the currency that most significantly impacts operating costs and economics. |
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 facts and circumstances as at the date of the Consolidated Financial Statements, which could affect 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. Information about estimates and judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes: Judgments • Note 2(b)(ii): Assessment of joint control for joint arrangements; • Note 3(f)(ii): The determination of cash generating units ("CGUs") in the assessment of non-financial asset impairments; and, • Note 3(i): Identification of performance obligations in revenue arrangements. Estimates • Note 2(b)(ii): Fair value of an acquired interest in the PGI joint venture; • Note 3(f)(ii): Recoverability of non-financial assets; • Note 3(j): Provision for income taxes; and, • Note 23: Fair value of Level 3 derivative instruments . |
Inventories | 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 financial reporting 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. All changes in the measurement 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 trade receivables, loan receivables, advances to related parties and cash 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 and the related risks and rewards of ownership in a transaction with a third party. Any remaining interest of a transferred financial asset is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount 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. After initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any expected credit losses and impairment loss allowances. Pembina's non-derivative financial assets measured at amortized cost include cash and cash equivalents, trade receivables and other, and other assets. 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. ii) Non-Derivative Financial Liabilities Pembina's non-derivative financial liabilities are comprised of trade payables and other, dividends payable, loans and borrowings, and other liabilities. Pembina initially recognizes non-derivative financial liabilities at fair value less any directly attributable transaction costs, on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. After 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 original financial liability if the terms are substantially different, assessing both qualitative and quantitative factors. If the expected cashflows of an existing non-derivative liability are modified but the modification 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. However, if contractual cashflows include variable market interest payments, such as Pembina's revolving credit facilities, the effective interest rate on the instrument is revised at the same time as the revision to the estimated cashflows resulting in no change to the carrying value of the financial liability. iii) Common Share Capital Common shares and share options arising from share-based payment transactions are classified as equity. 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. v) Derivative and Hedge Accounting Physical and financial contracts with third parties, which meet the definition of a derivative instrument, are recorded at fair value, unless the Company has (a) elected to apply the "own use" (or "normal purchase normal sale") scope exemption, or (b) the derivative instrument has formally been designated as a hedging instrument. To assess whether the own-use scope exemption is appropriate, Pembina uses judgment to evaluate whether (a) the transaction is reasonable in relation to the business needs; and (b) the business has the intent to deliver or take delivery of the underlying item or commodity. Application of the own use scope exemption is reviewed each reporting period to assess whether the qualifying factors continue to be met. Pembina accounts for all contracts that give rise to derivative instruments that are settled by physical delivery of the underlying commodity as revenue from contracts with customers. Derivative instruments that arise from financial contracts do not qualify for the own use scope exemption as such transactions do not result in physical settlement or delivery of the underlying item or commodity. Rather, these arrangements form part of Pembina’s risk management strategy, whereby derivative instruments are used to assist in managing exposure to commodity prices, interest rates, and foreign exchange rates. Derivative instruments executed for such risk management purposes may be designated as hedging instruments. At the inception and formal designation of the hedge relationship, Pembina documents the following: The relationship between the hedging instrument and hedged item; the related risk management strategy and objectives; the nature of the risk being hedged; and, how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements on an ongoing basis. Hedge accounting is discontinued prospectively when the hedging relationship no longer qualifies for hedge accounting, or the hedging instrument is sold or terminated. All derivative instruments that have been formally designated as hedging instruments are accounted for and classified as either: (a) cash flow hedges; or (b) net investment hedges. For both classifications, the effective portion of gains or losses is recognized and accumulated in 'other comprehensive income' ("OCI"), while any ineffective portion is recognized immediately in earnings. For Pembina's current cash flow hedges, the amount accumulated in OCI is reclassified into earnings when the hedged forecasted transaction occurs. For net investment hedges, the amount accumulated in OCI is reclassified to earnings on disposal of the foreign operation. |
Property, Plant and Equipment | Property, Plant and Equipment Items of property, plant and equipment are measured initially at cost, or at fair value if acquired as part of a business combination or has been transferred from a customer. Such a fair value is determined using either (a) comparable and observable market values when available, (b) an income approach, or (c) the depreciated replacement cost valuation method. Depreciation is measured on a straight line or declining balance basis over the useful life of the asset, commencing when an asset is placed into service, and is included in cost of sales and general and administrative expense. Estimated useful lives are based on management's assumptions, such as, an asset's economic life and physical life, which can include the relevant commodity reserves in a particular production area that the asset serves. Assets are also assessed to determine whether they may have significant components with different useful lives. Estimated useful lives and depreciation methods are reviewed annually and are subject to revision based on new or additional information. Pembina has assessed the residual values of depreciable assets to be insignificant. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets that are acquired individually are initially measured at cost or measured at fair value if acquired as part of a business combination. Intangible assets other than goodwill are amortized straight-line over their estimated remaining useful life, based on their remaining carrying value. Amortization expense 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. Goodwill is not amortized. Other intangible assets include purchase and sales contracts, customer relationships and certain software costs. |
Leases | Leases A specific asset is the subject of a lease if a 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, on the acquisition date if acquired as part of a business combination, or 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 based on the components' 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 The lease liability is initially measured at the present value of the lease payments, discounted using the 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, or using the interest rate implicit in the lease if readily determinable. Lease payments used in the calculation of the lease liability exclude variable payments unless those payments are in-substance fixed. Lease payments in an optional renewal period are included in the lease liability if Pembina is reasonably certain to exercise such an option. Management applies its best estimate with respect to the likelihood of exercising renewal, extension and termination options in determining the lease term. The lease liability is subsequently increased by interest expense and decreased by lease payments made. The lease liability is remeasured when there is a change in future lease payments arising from a previously-variable payment becoming in-substance fixed, 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. Right-of-use assets are initially recognized at cost then subsequently depreciated over the lease term on a straight-line basis and adjusted for any lease liability remeasurements. The right-of-use assets are included in the respective CGUs for the purposes of impairment testing. 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 at contract inception. 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. Finance lease receivables acquired in a business combination are initially recognized at an amount equal to the fair value of the underlying leased assets. Finance lease receivables outside of a business combination are initially 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 lease income is subsequently recognized using the interest rate implicit in the lease. Operational finance lease income generated from physical assets in the normal course of operations is recorded as a component of revenue. Lease payments received for finance leases include both the finance income and a principal repayment of the finance lease receivable. Payments related to the principal repayment are not recognized in earnings and are classified as investing cashflows in the Consolidated Statements of Cash Flows. 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 and are fully recognized in earnings and operating cash flows in the Consolidated Statements of Cash Flows. |
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. However, if credit risk has not increased significantly since initial recognition, 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 Non-financial assets, other than inventory, assets arising from employee benefits, and deferred tax assets, are assessed 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. Goodwill is assessed at each reporting date to determine whether there is any indication of impairment. In addition, goodwill is tested for impairment annually, or more frequently, if an impairment indicator exists. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs. CGUs are the smallest group of assets that generate cash inflows from the continued use of the related assets, and are largely independent from other assets. CGUs may incorporate integrated assets from multiple operating segments, 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. In determining CGUs, significant management judgment is required to assess what constitutes independent cash flows. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount. 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. An impairment loss is recognized if the carrying amount of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The estimated recoverable amount is determined as the higher of value in use and fair value less costs of disposal, by using either the income (cash flow) approach or comparable market transactions, if available. When using the income approach, management is required to make significant estimates and assumptions concerning future cash flows, which are impacted by energy transition considerations, access to global markets, and business contracting assumptions. In addition, when determining the appropriate discount rate, management is required to make assumptions concerning the current industry and economic environment, as well as asset and cash-flow specific risk premiums. These estimates and assumptions are susceptible to change and may differ from actual future developments. This estimation uncertainty could impact quantified recoverable amounts; and therefore, any related impairment charges, which may be material. 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. For non-financial assets, excluding goodwill, 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. An impairment reversal is recognized in earnings under impairment (reversal) expense. An impairment loss in respect of goodwill is not reversed. 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. Rather, the investment, including its respective goodwill, is tested for impairment as a single asset when there is objective evidence it may be impaired as a result of one or more events having occurred that could negatively impact the estimated future cash flows from the investment. If the investment does not generate cash flows that are largely independent of those from other Pembina assets, its carrying value is added to a CGU to which the investment relates. |
Employee Benefits | Employee Benefits i) Defined Benefit Pension Plans 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 of the defined benefit obligation is performed each reporting period; however, the calculation of the actuarial funding valuation 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. 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. ii) Share-Based Payment Transactions For equity settled share-based payment plans ("options"), 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. The fair value of options are measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the option, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the option (based on historical experience and general option holder behavior), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and performance conditions attached to the transactions are not taken into account in determining fair value. The fair value of the long-term share unit award incentive plan and associated distribution units are measured based on the volume-weighted average price of Pembina's shares for the 20 days ending of the relevant financial year. 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. The fair value is determined by using a model that takes into account the extent to which the employees have rendered services or performance conditions to date, share price volatility assumptions, and other market conditions which may impact the number of awards expected to be earned and vest. Any changes in the fair value of the liability are recognized as an expense in earnings. |
Provisions | 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. 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. Decommissioning costs are recognized as part of the cost of the relevant asset. The unwinding of the discount is expensed as incurred and recognized in net finance costs. To measure the decommissioning provision, estimated future expected cash flows, including assumptions concerning inflation and anticipated changes in environmental laws and regulations, are discounted using a credit-adjusted risk-free rate. Changes in the estimated future expected cash flows used in measuring the decommissioning provision are added to or deducted from the cost of the respective asset to which the decommissioning provision relates. |
Revenue | Revenue Pembina recognizes revenue equal to the consideration the Company expects to be entitled to for satisfying a performance obligation to transfer control over a good or service to a customer. Certain contracts may arise that require Pembina to apply significant judgment when identifying the contract's performance obligations. In addition, management may be required to apply judgment when determining whether each promised good or service constitutes a distinct and separable performance obligation. Performance obligations in Pembina's contracts with customers include: • promises to perform transportation, gas processing, fractionation, terminalling, and storage services over a specified contractual term and/or for a specified volume of commodities; and • promises to sell a specified volume of commodities. Contracts may result in Pembina taking control of a product prior to or subsequent to delivering the promised good or service. In contrast, contracts may also result in Pembina never taking control of the related product. Control assessments give consideration to which party has the contractual and practical rights to direct the use of and obtain substantially all of the future economic benefits of the product. If Pembina obtains control of a product only after providing a related service, Pembina is acting as a principal; and therefore, recognizes gross service revenue. However, if Pembina obtains control of the product before a related service, Pembina is concluded to not be providing a service to the counterparty; and therefore, the associated service fees are treated as a reduction in the product purchase cost. If Pembina never obtains control of a product relating to a promised service, Pembina is concluded to be acting as an agent; and therefore, the related purchase costs are presented net against the associated revenues. For contracts where control of commodities transfers to Pembina before services are performed, Pembina generally has no performance obligation for the services, and accordingly, the arrangement is not considered revenue-generating. Correspondingly, all contractually stated fees that are deducted from the payments to counterparties or other suppliers for commodities purchased are reflected as a reduction in the cost of such commodity purchases. Pembina disaggregates its revenue streams into three categories based on the nature of the revenue generating activity and the certainty of the associated cashflows to be received from the customer. Information about the nature of the services provided, consideration received, and timing of the satisfaction of performance obligations for each category is discussed below. 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 is either a set fee for an annual minimum volume or an annual minimum revenue requirement. In addition, the minimum fee may include variable consideration for operating or capital costs incurred by Pembina that are recovered from the customer. Estimating the variable consideration to be recognized involves judgment, particularly in assessing the risk of a significant revenue reversal that could occur. For contracts where management has identified multiple performance obligations, management estimates the stand-alone selling price of each performance obligation 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, stored, or capacity utilized. 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 breakage has occurred. 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 substantially all of the related contract years follow the calendar year. As a result of deferring revenue related to customer underutilization until the earlier of when the customer uses the volumes or the customers' make-up rights expire, a portion of cashflows received from the customer in early quarters of the year are deferred and not recognized in revenue until later quarters, although there is no impact on cash flows received from the customers. 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 when received. ii) Fee-for-Service Fee-for-service revenue includes firm contracted revenue that is not subject to take-or-pay commitments and interruptible service. 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 generally due in the month following Pembina's provision of service and revenue is recognized as its performance obligation is satisfied. iii) Product Sales |
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 that are recognized directly in equity or in other comprehensive income. 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 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 taxable 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. 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 judgment are used in assessing the recognition. 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. 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. In determining the amount of current and deferred tax, Pembina considers income tax exposures and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes Pembina to change its judgment regarding the adequacy of existing tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination is made. As provided in the amendments to IAS 12, Pembina applies the mandatory exception to recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The mandatory exception has been applied retrospectively with no material impact to Pembina's Consolidated Financial Statements. |
Segment Reporting | Segment Reporting An 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"), Senior Vice President and 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 Adopted in the Current Year | New Standards and Interpretations Adopted in the Current Year i) Insurance Contracts The Company adopted IFRS 17 Insurance Contracts effective January 1, 2023. IFRS 17 establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts. IFRS 17 has been applied using a full retrospective approach and as result, the Company has restated certain comparative amounts. Pembina's insurance contracts are comprised of a parental guarantee and letters of credit that it provides to the Company's joint venture, Cedar LNG. Under the contracts, Pembina will reimburse Cedar LNG's counterparties in the event that Cedar LNG is unable to pay its obligations when due. Pembina does not receive premiums from the counterparties for providing the insurance contract, and as a result the contracts are considered onerous. On initial recognition or when the contract is modified, Pembina recognizes the cost of providing the contract on behalf of the joint venture as an in-substance contribution to the joint venture. All other changes to the insurance liability are recognized in earnings. Pembina applies judgments to determine the future probability and expected cashflows related to its insurance contracts. These judgments include assessing different scenarios for the likelihood that the Cedar LNG project will reach a positive final investment decision ("FID") and assessing the potential cash outflows that Pembina would be required to make under the different scenarios. A risk adjustment is then applied to the probability weighted cash outflows for the non-financial risks inherent in the scenarios, and a credit-adjusted discount rate is used to incorporate the financial risks of non-performance. Following a positive FID, Cedar may replace the Pembina guarantees and letters of credit with Cedar's own security. In this situation, Pembina's insurance contract obligations would be extinguished and a corresponding recovery recognized in net finance costs. As a result of the initial adoption, Pembina's Consolidated Statement of Financial Position as at December 31, 2022, was restated to include an additional $12 million in investments in equity accounted investees and trade payables and other. As at December 31, 2023, trade payables and other related to insurance contracts was $17 million. ii) Amendments to IAS 1 – Disclosure of Accounting Policies The Company adopted Amendments to IAS 1 Disclosure of Accounting Policies effective January 1, 2023. The amendments replace the requirement to disclose 'significant' accounting policies with a requirement to disclose 'material' accounting policies and establish guidance on how to apply the concept of materiality in determining material accounting policy disclosures. The amendments have been reflected by emphasizing the most relevant aspects of Pembina's accounting policies above. |
New Standards and Interpretations Not Yet Adopted | New Standards and Interpretations Not Yet Adopted Pembina continually monitors for new accounting standards and amendments to existing accounting standards issued by the IASB. To date, such developments are concluded to either not be applicable or concluded to not have a future material impact on Pembina's financial reporting. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | For the year ended December 31, 2023 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,542 449 6,087 47 9,125 Inter-segment revenue 165 460 — (625) — Total revenue (4) 2,707 909 6,087 (578) 9,125 Operating expenses (5) 695 360 7 (237) 825 Cost of goods sold, including product purchases 17 — 5,509 (395) 5,131 Depreciation and amortization included in operations 414 159 46 5 624 Cost of sales 1,126 519 5,562 (627) 6,580 Realized gain on commodity-related derivative financial instruments — — (11) — (11) Unrealized loss on commodity-related derivative financial instruments — — 32 — 32 Share of profit (loss) from equity accounted investees 109 233 (26) — 316 Gross profit 1,690 623 478 49 2,840 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 42 23 43 275 383 Other expense (income) 11 (19) (4) 6 (6) Impairment reversal (231) — — — (231) Reportable segment results from operating activities 1,868 619 439 (271) 2,655 Net finance costs 28 9 4 425 466 Reportable segment earnings (loss) before tax 1,840 610 435 (696) 2,189 Capital expenditures 448 102 10 46 606 Contributions to equity accounted investees 20 33 218 — 271 For the year ended December 31, 2022 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,342 798 8,471 — 11,611 Inter-segment revenue 166 470 — (636) — Total revenue (4) 2,508 1,268 8,471 (636) 11,611 Operating expenses (5) 677 511 — (319) 869 Cost of goods sold, including product purchases — 6 7,682 (324) 7,364 Depreciation and amortization included in operations 396 196 44 8 644 Cost of sales 1,073 713 7,726 (635) 8,877 Realized (gain) loss on commodity-related derivative financial instruments — (20) 125 — 105 Unrealized gain on commodity-related derivative financial instruments — (50) (83) — (133) Share of profit from equity accounted investees 171 108 82 — 361 Gross profit (loss) 1,606 733 785 (1) 3,123 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 57 15 42 246 360 Other expense 106 11 8 4 129 Gain on Pembina Gas Infrastructure Transaction — (1,110) — — (1,110) Reportable segment results from operating activities 1,443 1,817 735 (290) 3,705 Net finance costs 28 13 27 418 486 Reportable segment earnings (loss) before tax 1,415 1,804 708 (708) 3,219 Capital expenditures 342 153 59 51 605 Contributions to equity accounted investees 4 62 29 — 95 (1) Pipelines transportation revenue includes $302 million (2022: $247 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $277 million (2022: $407 million) associated with U.S. midstream sales. (3) Includes $63 million of fixed fee income (2022: nil) related to shared service agreements with joint ventures following the PGI Transaction. $24 million was netted against general and administrative in 2022. (4) During 2023 and 2022, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (5) Pembina incurred $486 million (2022: $479 million) of employee costs, of which $243 million (2022: $261 million) was recorded in operating expenses and $243 million (2022: $218 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2023 2022 ($ millions) Pipelines 2,716 2,722 Facilities 396 396 Marketing & New Ventures 1,439 1,439 Total goodwill 4,551 4,557 |
Disclosure of non-current assets | For the years ended December 31 ($ millions) 2023 2022 Canada 25,954 25,914 United States 3,721 3,900 Total non-current assets (1) 29,675 29,814 (1) Excludes deferred income tax assets, derivative financial instruments, and post-employment benefit assets. |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade receivables and other | As at December 31 ($ millions) 2023 2022 Trade and accrued receivables from customers 698 696 Other receivables 64 51 Income tax receivable — 73 Prepayments 28 32 Prepaid share issuance costs (Note 15) 26 — Advances to related parties — 18 Related party receivables 36 42 Total trade receivables and other 852 912 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Current Inventory | As at December 31 ($ millions) 2023 2022 Crude oil and NGL 249 184 Materials, supplies and other 84 85 Total inventory 333 269 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 (1) Assets Under Construction (2) Total Cost Balance at December 31, 2021 456 9,279 9,384 2,084 915 22,118 Additions and transfers 22 703 264 83 (499) 573 Disposition (1) (475) (2,440) (104) (20) (3,040) Change in decommissioning provision — (17) (84) (18) — (119) Foreign exchange 6 61 26 — — 93 Other (2) (56) (201) (31) (29) (319) Balance at December 31, 2022 481 9,495 6,949 2,014 367 19,306 Additions and transfers — 150 112 81 230 573 Change in decommissioning provision — 4 29 8 — 41 Dispositions and other — (15) (33) (76) (9) (133) Foreign exchange (1) (21) (9) — — (31) Balance at December 31, 2023 480 9,613 7,048 2,027 588 19,756 Depreciation Balance at December 31, 2021 26 2,015 1,421 463 — 3,925 Depreciation 6 194 211 78 — 489 Disposition — (85) (384) (38) — (507) Other — (37) (63) (19) — (119) Balance at December 31, 2022 32 2,087 1,185 484 — 3,788 Depreciation 6 195 177 75 — 453 Impairment reversal — (190) (35) (4) — (229) Dispositions and other — (9) (11) (34) — (54) Balance at December 31, 2023 38 2,083 1,316 521 — 3,958 Carrying amounts Balance at December 31, 2022 449 7,408 5,764 1,530 367 15,518 Balance at December 31, 2023 442 7,530 5,732 1,506 588 15,798 Assets subject to operating leases Balance at December 31, 2022 41 629 509 156 — 1,335 Balance at December 31, 2023 39 607 521 119 — 1,286 (1) At December 31, 2023, the movement in Cavern Storage and Other includes $25 million in net assets transferred to finance lease receivables (2022: nil). (2) At December 31, 2023, the movement in Assets Under Construction includes nil in net assets transferred to finance lease receivables (2022: $14 million). |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2021 4,693 288 1,861 2,149 6,842 Additions — 138 — 138 138 Disposition (153) (23) (66) (89) (242) Foreign exchange adjustments 17 1 48 49 66 Balance at December 31, 2022 4,557 404 1,843 2,247 6,804 Additions — 47 — 47 47 Dispositions and other — (155) — (155) (155) Foreign exchange adjustments (6) — (17) (17) (23) Balance at December 31, 2023 4,551 296 1,826 2,122 6,673 Amortization Balance at December 31, 2021 — 189 415 604 604 Amortization — 9 84 93 93 Disposition — (8) (22) (30) (30) Foreign exchange adjustments — — 6 6 6 Balance at December 31, 2022 — 190 483 673 673 Amortization — 13 81 94 94 Dispositions and other — (155) (4) (159) (159) Balance at December 31, 2023 — 48 560 608 608 Carrying amounts Balance at December 31, 2022 4,557 214 1,360 1,574 6,131 Balance at December 31, 2023 4,551 248 1,266 1,514 6,065 |
Disclosure of goodwill and intangible assets by segment | For the year ended December 31, 2023 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,542 449 6,087 47 9,125 Inter-segment revenue 165 460 — (625) — Total revenue (4) 2,707 909 6,087 (578) 9,125 Operating expenses (5) 695 360 7 (237) 825 Cost of goods sold, including product purchases 17 — 5,509 (395) 5,131 Depreciation and amortization included in operations 414 159 46 5 624 Cost of sales 1,126 519 5,562 (627) 6,580 Realized gain on commodity-related derivative financial instruments — — (11) — (11) Unrealized loss on commodity-related derivative financial instruments — — 32 — 32 Share of profit (loss) from equity accounted investees 109 233 (26) — 316 Gross profit 1,690 623 478 49 2,840 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 42 23 43 275 383 Other expense (income) 11 (19) (4) 6 (6) Impairment reversal (231) — — — (231) Reportable segment results from operating activities 1,868 619 439 (271) 2,655 Net finance costs 28 9 4 425 466 Reportable segment earnings (loss) before tax 1,840 610 435 (696) 2,189 Capital expenditures 448 102 10 46 606 Contributions to equity accounted investees 20 33 218 — 271 For the year ended December 31, 2022 Pipelines (1) Facilities Marketing & New Ventures (2) Corporate & Inter-segment Eliminations Total ($ millions) Revenue from external customers (3) 2,342 798 8,471 — 11,611 Inter-segment revenue 166 470 — (636) — Total revenue (4) 2,508 1,268 8,471 (636) 11,611 Operating expenses (5) 677 511 — (319) 869 Cost of goods sold, including product purchases — 6 7,682 (324) 7,364 Depreciation and amortization included in operations 396 196 44 8 644 Cost of sales 1,073 713 7,726 (635) 8,877 Realized (gain) loss on commodity-related derivative financial instruments — (20) 125 — 105 Unrealized gain on commodity-related derivative financial instruments — (50) (83) — (133) Share of profit from equity accounted investees 171 108 82 — 361 Gross profit (loss) 1,606 733 785 (1) 3,123 Depreciation included in general and administrative — — — 39 39 Other general and administrative (5) 57 15 42 246 360 Other expense 106 11 8 4 129 Gain on Pembina Gas Infrastructure Transaction — (1,110) — — (1,110) Reportable segment results from operating activities 1,443 1,817 735 (290) 3,705 Net finance costs 28 13 27 418 486 Reportable segment earnings (loss) before tax 1,415 1,804 708 (708) 3,219 Capital expenditures 342 153 59 51 605 Contributions to equity accounted investees 4 62 29 — 95 (1) Pipelines transportation revenue includes $302 million (2022: $247 million) associated with U.S. pipeline revenue. (2) Marketing & New Ventures includes revenue of $277 million (2022: $407 million) associated with U.S. midstream sales. (3) Includes $63 million of fixed fee income (2022: nil) related to shared service agreements with joint ventures following the PGI Transaction. $24 million was netted against general and administrative in 2022. (4) During 2023 and 2022, no one customer accounted for 10 percent or more of total revenues reported throughout all segments. (5) Pembina incurred $486 million (2022: $479 million) of employee costs, of which $243 million (2022: $261 million) was recorded in operating expenses and $243 million (2022: $218 million) in general and administrative expenses. Employee costs include salaries, benefits and share-based compensation. The aggregate carrying amount of goodwill allocated to each operating segment is as follows: As at December 31 2023 2022 ($ millions) Pipelines 2,716 2,722 Facilities 396 396 Marketing & New Ventures 1,439 1,439 Total goodwill 4,551 4,557 |
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, 2023 Pipelines Facilities Marketing & New Ventures Key assumptions used Average annual pre-tax cash flow ($ millions) 1,845 1,500 418 After-tax discount rate (percent) 7.7 7.6 9.7 Long-term growth rate (percent) 1.6 1.8 2.3 Incremental change in rates that would result in carrying value equal to recoverable amount Increase in after-tax discount rate (percent) 2.4 1.0 4.0 |
INVESTMENTS IN EQUITY ACCOUNT_2
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in joint ventures | Ownership Interest at December 31 (percent) Share of Profit from Equity Investments Investment in Equity Accounted For the years ended December 31 ($ millions) 2023 2022 2023 2022 2023 2022 PGI 60 60 226 49 3,894 4,158 Alliance 50 50 109 167 2,427 2,609 Aux Sable 42.7 - 50 42.7 - 50 (16) 91 362 360 Veresen Midstream (1) — — — 51 — — Cedar LNG (2) 49.9 49.9 (9) — 202 167 Other (3) 50 - 75 50 - 75 6 3 102 88 Total 316 361 6,987 7,382 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction (as defined below) on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) The Investment in equity accounted investees balance as at December 31, 2022 has been restated to include an additional $12 million related to the initial adoption of IFRS 17 Insurance Contracts . Refer to Note 3 for further information. (3) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section below for further details on Ruby. On December 31, 2023, CKPC was dissolved. The cost of Pembina's 60 percent interest in PGI was allocated to PGI's identifiable net assets based on fair values on the acquisition date. The allocation included adjustments identified before finalization as of June 30, 2023, and resulted from PGI's assessment of acquired revenue contracts and associated deferred tax impacts as follows: As at August 15, 2022 Previously reported Adjustments Final ($ millions) in Q4 2022 Current assets 641 (6) 635 Non-current assets 6,641 19 6,660 Current liabilities 1,164 (2) 1,162 Non-current liabilities 2,834 16 2,850 Allocated to PGI assets and liabilities 3,284 (1) 3,283 Goodwill 899 1 900 Pembina's cost of investment in PGI 4,183 — 4,183 For the year ended December 31, 2023 ($ millions) PGI Alliance Aux Sable Cedar LNG Other (1) Earnings and Comprehensive Income Revenue 1,584 885 798 — 49 Expenses (547) (330) (919) (17) (24) Depreciation and amortization (356) (151) (49) — (15) Interest expense (259) (42) (1) — (1) Finance costs and other (8) 7 — — (3) Income tax expense (67) (1) — — — Earnings (loss) 347 368 (171) (17) 6 Earnings (loss) attributable to Pembina 226 109 (16) (9) 6 As at December 31, 2023 ($ millions) PGI Alliance Aux Sable Cedar LNG Other (1) Statements of Financial Position Cash and cash equivalents 8 74 19 — 17 Other current assets 521 112 85 — 5 Non-current assets 12,342 1,532 696 161 92 Current trade, other payables and provisions 199 51 74 64 10 Other current liabilities 39 79 31 1 3 Non-current trade, other payables and provisions 102 8 — — — Other non-current liabilities 6,032 810 123 — 25 (1) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section above for further details on Ruby. On December 31, 2023, CKPC was dissolved. For the year ended December 31, 2022 ($ millions) PGI Alliance Aux Sable Veresen Midstream (1) Cedar LNG Other (2) Earnings and Comprehensive Income Revenue 625 1,115 2,283 449 — 56 Expenses (307) (480) (2,026) (151) (1) (41) Depreciation and amortization (133) (140) (47) (122) — (16) Interest expense (94) (21) (1) (58) — (2) Finance costs and other 5 7 4 (2) — 2 Income tax expense (24) — — — — — Earnings (loss) 72 481 213 116 (1) (1) Earnings (loss) attributable to Pembina 49 167 91 51 — 3 As at December 31, 2022 ($ millions) PGI Alliance Aux Sable Veresen Midstream (1) Cedar LNG Other (2) Statements of Financial Position Cash and cash equivalents — 95 16 — — 29 Other current assets 1,125 118 68 — 2 13 Non-current assets 12,578 1,612 725 — 67 90 Current trade, other payables and provisions 257 57 65 — 7 56 Other current liabilities 578 23 4 — 2 14 Non-current trade, other payables and provisions 106 7 6 — — — Other non-current liabilities 5,799 832 184 — — 28 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) Other includes Ruby, CKPC, Grand Valley, and Fort Corp. |
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 (3) Contributions ($ millions) 2023 2022 2023 2022 PGI 463 125 33 49 Alliance 279 342 20 4 Aux Sable 70 134 163 3 Veresen Midstream (1) — 66 — 13 Cedar LNG — — 41 26 Other (2) 7 6 14 — Total 819 673 271 95 (1) Pembina owned a 45 percent interest in Veresen Midstream up to the closing of the PGI Transaction (as defined below) on August 15, 2022. As part of the transaction, Pembina contributed its 45 percent interest in Veresen Midstream to PGI. (2) Other includes Pembina's interest in Ruby, CKPC, Grand Valley, Fort Corp, and Alberta Carbon Grid. Pembina owned a 50 percent convertible, cumulative preferred interest in Ruby which it sold on January 13, 2023. Refer to "Financing Activities for Equity Accounted Investees" section below for further details on Ruby. On December 31, 2023, CKPC was dissolved. (3) Distributions exclude returns of capital. In 2023, Pembina received an incremental $61 million from PGI as a return of capital (2022: nil). |
Schedule of sensitivity analysis in key assumptions for goodwill impairment | The following table provides sensitivities to reasonably possible changes in each assumption that could result in an impairment of PGI's goodwill. Actual Change required for impairment (percent) Key assumptions used Average annual pre-tax cash flow ($ millions) (1) 1,188 (6.1) After-tax discount rate (percent) 7.6 0.6 Long-term growth rate (percent) 1.4 (0.8) (1) Average annual forecasted pre-tax cash flows represent 100 percent of PGI's forecasted cash flows. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Disclosure of movement in components of deferred tax assets and liabilities | The movements in the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2022 Recognized in Earnings Recognized in Other Comprehensive Income (Loss) Disposition Other Balance at December 31, 2023 Deferred income tax assets Employee benefits (2) 1 3 — — 2 Share-based payments 41 (2) — — — 39 Provisions 64 20 — — — 84 Benefit of loss carryforwards 450 260 — — — 710 Other deductible temporary differences 118 (39) — — (9) 70 Taxable limited partnership income deferral (68) 95 — — — 27 Deferred income tax liabilities Property, plant and equipment 2,029 174 — — — 2,203 Intangible assets 262 — — — — 262 Investments in equity accounted investees 535 251 — — — 786 Derivative financial instruments 23 (2) (2) — — 19 Total net deferred tax liabilities (1) 2,246 88 (5) — 9 2,338 ($ millions) Balance at December 31, 2021 Recognized in Earnings Recognized in Other Disposition Other Balance at December 31, 2022 Deferred income tax assets Employee benefits 2 1 (5) — — (2) Share-based payments 24 17 — — — 41 Provisions 100 (31) — (5) — 64 Benefit of loss carryforwards 385 65 — — — 450 Other deductible temporary differences 7 93 — 1 17 118 Deferred income tax liabilities Property, plant and equipment 2,250 229 — (450) — 2,029 Intangible assets 251 24 — (13) — 262 Investments in equity accounted investees 709 (174) — — — 535 Derivative financial instruments 16 37 (3) (27) — 23 Taxable limited partnership income deferral 46 50 — (28) — 68 Total net deferred tax liabilities (1) 2,754 21 2 (514) (17) 2,246 (1) Comprised of deferred tax liabilities of $2.6 billion (2022: $2.5 billion) net of deferred tax assets of $285 million (2022: $261 million). |
Disclosure of reconciliation of effective tax rate | Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2023 2022 Earnings before income tax 2,189 3,219 Canadian statutory tax rate (percent) 23.6 23.6 Income tax at statutory rate 517 760 Tax rate changes and foreign rate differential (20) (27) Changes in estimate and other (4) (40) Permanent items 3 19 Unrecognized tax benefit (30) 6 Income in equity accounted investee (53) (10) Non-taxable gain on PGI Transaction — (260) Deferred tax transferred due to PGI Transaction — (200) Income tax expense 413 248 |
Disclosure of income tax expense | Income Tax Expense For the years ended December 31 ($ millions) 2023 2022 Current tax expense 325 227 Deferred tax expense Origination and reversal of temporary differences 337 57 Tax rate changes on deferred tax balances 8 1 Increase in tax loss carry forward (257) (37) Total deferred tax expense 88 21 Total income tax expense 413 248 |
Disclosure of deferred tax items recovered directly in equity | Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2023 2022 Other comprehensive loss (Note 22) : Change in fair value of net investment hedges 2 3 Remeasurements of defined benefit asset or liability 3 (5) Deferred tax items recovered directly in equity 5 (2) |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables and accrued liabilities | As at December 31 ($ millions) 2023 2022 Trade payables 555 571 Other payables & accrued liabilities 580 545 Related party payables 1 150 Total trade payables and other 1,136 1,266 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of leases [Abstract] | |
Disclosure of quantitative information about right-of-use assets | ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2022 168 177 143 93 581 Additions and adjustments 26 — 1 (10) 17 Disposals and other — 2 — — 2 Depreciation (18) (37) (17) (10) (82) Balance at December 31, 2022 176 142 127 73 518 Additions and adjustments — 39 1 40 80 Depreciation (18) (35) (15) (7) (75) Balance at December 31, 2023 158 146 113 106 523 |
Disclosure of maturity analysis of finance lease payments receivable | As at December 31 2023 2022 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 208 39 213 40 One to two years 180 32 193 42 Two to three years 167 31 170 32 Three to four years 158 31 168 32 Four to five years 147 31 162 31 More than five years 687 326 834 294 Total undiscounted lease receipts 1,547 490 1,740 471 Unearned finance income on lease receipts (266) (256) Discounted unguaranteed residual value 19 16 Finance lease receivable 243 231 Less current portion (1) (13) (12) Total non-current 230 219 (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 2023 2022 ($ millions) Operating Leases Finance Leases Operating Leases Finance Leases Less than one year 208 39 213 40 One to two years 180 32 193 42 Two to three years 167 31 170 32 Three to four years 158 31 168 32 Four to five years 147 31 162 31 More than five years 687 326 834 294 Total undiscounted lease receipts 1,547 490 1,740 471 Unearned finance income on lease receipts (266) (256) Discounted unguaranteed residual value 19 16 Finance lease receivable 243 231 Less current portion (1) (13) (12) Total non-current 230 219 (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, 2023 | |
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, 2023 Nominal Interest Rate Year of Maturity December 31, 2023 December 31, 2022 Variable rate debt Senior unsecured credit facilities (1)(2)(3) 2,881 6.65 (4) Various (1) 778 771 Fixed rate debt Senior unsecured medium-term notes series 3 450 4.75 2043 450 450 Senior unsecured medium-term notes series 4 600 4.81 2044 600 600 Senior unsecured medium-term notes series 5 550 3.54 2025 550 450 Senior unsecured medium-term notes series 6 600 4.24 2027 600 500 Senior unsecured medium-term notes series 7 600 3.71 2026 600 600 Senior unsecured medium-term notes series 8 650 2.99 2024 650 650 Senior unsecured medium-term notes series 9 550 4.74 2047 550 550 Senior unsecured medium-term notes series 10 650 4.02 2028 650 650 Senior unsecured medium-term notes series 11 800 4.75 2048 800 800 Senior unsecured medium-term notes series 12 650 3.62 2029 650 650 Senior unsecured medium-term notes series 13 700 4.54 2049 700 700 Senior unsecured medium-term notes series 14 — 2.56 2023 — 600 Senior unsecured medium-term notes series 15 600 3.31 2030 600 600 Senior unsecured medium-term notes series 16 400 4.67 2050 400 400 Senior unsecured medium-term notes series 17 500 3.53 2031 500 500 Senior unsecured medium-term notes series 18 500 4.49 2051 500 500 Senior unsecured medium-term notes series 19 300 5.72 2026 300 — Total fixed rate loans and borrowings outstanding 9,100 9,200 Deferred financing costs 25 34 Total loans and borrowings 9,903 10,005 Less current portion loans and borrowings (650) (600) Total non-current loans and borrowings 9,253 9,405 Subordinated hybrid notes Subordinated notes, series 1 600 4.80 2081 596 595 (1) Pembina's unsecured credit facilities include a $1.5 billion revolving facility that matures in June 2028, a $1.0 billion sustainability linked revolving facility that matures in June 2027, a U.S. $250 million non-revolving term loan that matures in May 2025 and a $50 million operating facility that matures in June 2024, which is typically renewed on an annual basis. (2) Includes U.S. $250 million variable rate debt outstanding at December 31, 2023 (2022: U.S. $250 million), with the full notional amount hedged using an interest rate swap at 1.47 percent. (3) The U.S. dollar denominated non-revolving term loan is designated as a hedge of the Company's net investment in selected foreign operations with a U.S. dollar functional currency. (4) |
DECOMISSIONING PROVISION (Table
DECOMISSIONING PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of decommissioning provisions | ($ millions) 2023 2022 Balance at January 1 261 412 Unwinding of discount rate 16 15 Change in rates 65 (158) Disposition — (20) Additions 4 1 Change in cost estimates and other (4) 11 Total 342 261 Current portion of provision (1) 6 2 Balance at December 31 336 259 (1) Included in trade payables and other on the Consolidated Statement of Financial Position. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 550 15,678 Share-based payment transactions (1) 7 319 Repurchased (7) (204) Balance at December 31, 2022 550 15,793 Share-based payment transactions (1) — 6 Repurchased (1) (34) Balance at December 31, 2023 549 15,765 (1) Exercised options are settled by issuing the net number of common shares equivalent to the gain upon exercise. Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2021 105 2,517 Class A, Series 23 Preferred shares redeemed, net of issue costs (12) (300) Part VI.1 tax — (9) Balance at December 31, 2022 93 2,208 Part VI.1 tax — (9) Balance at December 31, 2023 93 2,199 |
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) 2023 2022 Number of common shares repurchased for cancellation (thousands) 1,197 7,154 Average price per share $41.76 $46.55 Total cost (1) 50 333 (1) Total cost includes $34 million (2022: $204 million) charged to share capital and $16 million (2022: $129 million) charged to deficit. |
Disclosure of dividends | The following dividends were declared and paid by Pembina: For the years ended December 31 ($ millions) 2023 2022 Common shares $2.66 per common share (2022: $2.55) 1,459 1,409 Class A preferred shares $1.23 per Series 1 Class A Preferred Share (2022: $1.23) 12 12 $1.12 per Series 3 Class A Preferred Share (2022: $1.12) 7 7 $1.14 per Series 5 Class A Preferred Share (2022: $1.14) 11 11 $1.10 per Series 7 Class A Preferred Share (2022: $1.10) 11 11 $1.08 per Series 9 Class A Preferred Share (2022: $1.08) 10 10 $1.54 per Series 15 Class A Preferred Share (2022: $1.22) 12 10 $1.21 per Series 17 Class A Preferred Share (2022: $1.21) 7 7 $1.17 per Series 19 Class A Preferred Share (2022: $1.17) 9 9 $1.49 per Series 21 Class A Preferred Share (2022: $1.23) 23 20 $1.49 per Series 22 Class A Preferred Share (2022: nil) 2 — nil per Series 23 Class A Preferred Share (2022: $1.15) — 16 $1.54 per Series 25 Class A Preferred Share (2022: $1.30) 16 13 120 126 Pembina's Board of Directors also declared quarterly dividends for Pembina's Class A preferred shares on January 8, 2024 as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 1, 2024 March 1, 2024 $0.407813 4 Series 3 February 1, 2024 March 1, 2024 $0.279875 2 Series 5 February 1, 2024 March 1, 2024 $0.285813 3 Series 7 February 1, 2024 March 1, 2024 $0.273750 3 Series 9 February 1, 2024 March 1, 2024 $0.268875 2 Series 15 March 15, 2024 April 1, 2024 $0.385250 3 Series 17 March 15, 2024 April 1, 2024 $0.301313 2 Series 19 March 15, 2024 April 1, 2024 $0.292750 2 Series 21 February 1, 2024 March 1, 2024 $0.393875 6 Series 22 February 1, 2024 March 1, 2024 $0.523436 1 Series 25 January 31, 2024 February 15, 2024 $0.405063 4 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Disclosure of earnings per common share | Earnings Attributable to Common Shareholders For the years ended December 31 ($ millions) 2023 2022 Earnings 1,776 2,971 Dividends on preferred shares (128) (129) Basic and diluted earnings attributable to common shareholders 1,648 2,842 Weighted Average Number of Common Shares (In millions of shares, except as noted) 2023 2022 Issued common shares at January 1 550 550 Effect of shares repurchased (1) (2) Effect of shares issued on exercise of options 1 5 Basic weighted average number of common shares at December 31 550 553 Dilutive effect of share options on issue (1) 1 1 Diluted weighted average number of common shares at December 31 551 554 Basic earnings per common share (dollars) 3.00 5.14 Diluted earnings per common share (dollars) 2.99 5.12 (1) The average market value of Pembina's shares for purposes of calculating the dilutive effect of share options for the years ended December 31, 2023 and 2022 was based on quoted market prices for the period during which the options were outstanding. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue From Contracts With Customers [Abstract] | |
Disclosure of disaggregation of revenue from contracts with customers | 2023 2022 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Corporate Corporate Take-or-pay (1) 1,816 273 — — 2,089 1,741 622 — — 2,363 Fee-for-service (1) 490 120 62 — 672 458 137 — — 595 Product sales (2) — — 6,025 — 6,025 — — 8,471 — 8,471 Revenue from contracts with customers 2,306 393 6,087 — 8,786 2,199 759 8,471 — 11,429 Operational finance lease income 24 4 — — 28 26 3 — — 29 Fixed operating lease income 185 35 — — 220 117 36 — — 153 Variable lease income 16 — — — 16 — — — — — Shared service revenue (3) and other 11 17 — 47 75 — — — — — Total external revenue 2,542 449 6,087 47 9,125 2,342 798 8,471 — 11,611 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Includes $63 million of fixed fee income (2022: nil) related to shared service agreements with joint ventures following the PGI Transaction. |
Disclosure of significant changes in contract assets and contract liabilities | Significant changes in the contract liabilities balances during the period are as follows: 2023 2022 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Take-or-Pay Other Contract Liabilities Total Opening balance 3 191 194 3 288 291 Additions (net in the period) (2) 21 19 2 57 59 Disposition — — — (2) (90) (92) Revenue recognized from contract liabilities (1) — (54) (54) — (64) (64) Closing balance 1 158 159 3 191 194 Less current portion (2) (1) (32) (33) (3) (53) (56) Ending balance — 126 126 — 138 138 (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, 2023, the balance includes $1 million of cash collected under take-or-pay contracts which will be recognized within one year as the customer chooses to ship, process, or otherwise forego the associated service. |
NET FINANCE COSTS (Tables)
NET FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about net finance costs | For the years ended December 31 ($ millions) 2023 2022 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 395 385 Subordinated hybrid notes 29 29 Leases 30 32 Unwinding of discount rate 16 16 (Gain) loss in fair value of non-commodity-related derivative financial instruments (19) 12 Foreign exchange losses and other 15 12 Net finance costs 466 486 |
PENSION PLAN (Tables)
PENSION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits [Abstract] | |
Disclosure of obligations and plan assumptions | As at December 31 ($ millions) 2023 2022 Registered defined benefit net asset (5) (17) Supplemental defined benefit net obligation 14 11 Net employee benefit obligations (assets) 9 (6) Principal actuarial assumptions used: As at December 31 (weighted average percent) 2023 2022 Discount rate 4.6 5.3 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) 2023 2022 Longevity at age 65 for current pensioners Males 22.1 22.0 Females 24.4 24.4 Longevity at age 65 for current member aged 45 Males 23.0 23.0 Females 25.4 25.3 |
Disclosure of analysis of present value of defined benefit obligations | Defined Benefit Obligations As at December 31 ($ millions) 2023 2022 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 14 — 11 Present value of funded obligations 250 — 207 — Total present value of obligations 250 14 207 11 Fair value of plan assets 255 — 224 — Recognized defined benefit assets (obligations) 5 (14) 17 (11) |
Disclosure of fair value of plan assets | Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2023 2022 Equity securities 59 59 Debt 35 34 Other 6 7 100 100 |
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 2023 2022 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 207 11 257 17 Benefits paid by the plan (11) (1) (19) (1) Current service costs 18 1 23 1 Interest expense 11 1 8 — Actuarial losses (gains) in other comprehensive income 25 2 (62) (6) Defined benefit obligations at December 31 250 14 207 11 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2023 2022 Fair value of plan assets at January 1 224 268 Contributions paid into the plan 17 15 Benefits paid by the plan (11) (19) Return on plan assets 13 (49) Interest income 12 9 Fair value of registered plan assets at December 31 255 224 Expense Recognition in Earnings For the years ended December 31 ($ millions) 2023 2022 Registered Plan Current service costs 19 24 Interest on obligation 11 8 Interest on plan assets (12) (9) 18 23 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2023 2022 Registered Plan Operating expenses 8 11 General and administrative expense 10 12 18 23 Actuarial Gains and Losses Recognized in Other Comprehensive Income 2023 2022 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 1 3 4 (9) (2) (11) Remeasurements: Financial assumptions (16) (1) (17) 54 3 57 Experience adjustments (3) (1) (4) (7) 2 (5) Return on plan assets excluding interest income 10 — 10 (37) — (37) Recognized gain during the period after tax (9) (2) (11) 10 5 15 Balance at December 31 (8) 1 (7) 1 3 4 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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-year period and expire seven years after issuance. 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 2022 623 1,202 39 1,864 2023 626 1,217 34 1,877 (1) Distribution units are granted in addition to RSU and PSU grants based on notional accrued dividends. (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 is as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Balance at December 31, 2021 19,971 $41.33 Granted 599 $45.61 Exercised (1) (7,722) $41.42 Forfeited (332) $38.60 Expired (431) $41.31 Balance at December 31, 2022 12,085 $41.56 Granted 577 $45.37 Exercised (1) (1,412) $36.24 Forfeited (181) $39.85 Expired (387) $44.80 Balance at December 31, 2023 10,682 $42.38 (1) |
Disclosure of range of exercise prices of outstanding share options | As of December 31, 2023, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2023 Options Exercisable Weighted Average Remaining Life $26.83 – $37.03 2,058 1,714 4 $37.04 – $43.56 2,010 740 3 $43.57 – $45.50 2,482 2,154 3 $45.51 – $48.08 2,031 1,483 3 $48.09 – $49.78 2,101 2,102 2 Total 10,682 8,193 3 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | As of December 31, 2023, the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2023 Options Exercisable Weighted Average Remaining Life $26.83 – $37.03 2,058 1,714 4 $37.04 – $43.56 2,010 740 3 $43.57 – $45.50 2,482 2,154 3 $45.51 – $48.08 2,031 1,483 3 $48.09 – $49.78 2,101 2,102 2 Total 10,682 8,193 3 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | Share Options Granted For the years ended December 31 (dollars, except as noted) 2023 2022 Weighted average Fair value at grant date 8.96 11.43 Expected volatility (percent) 35.7 46.6 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.66 2.55 Expected forfeitures (percent) 7.4 7.3 Risk-free interest rate (based on government bonds) (percent) 3.9 1.7 |
Disclosure of employee share-based compensation expense | Employee Expenses For the years ended December 31 ($ millions) 2023 2022 Share option plan, equity settled 5 10 Long-term share unit award incentive plan 67 116 Share-based compensation expense 72 126 Total carrying amount of liabilities for cash settled arrangements 163 161 Total intrinsic value of liability for vested benefits 108 97 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Schedule of Accumulated Other Comprehensive Income | ($ millions) Currency Translation Reserve Cash Flow Hedge Reserve Pension and other Post-Retirement Benefit Plan Adjustments (2) Total Balance at December 31, 2021 32 8 (12) 28 Other comprehensive gain before hedging activities 295 — 15 310 Other comprehensive (loss) gain resulting from hedging activities (1) (20) 23 — 3 Balance at December 31, 2022 307 31 3 341 Other comprehensive loss before hedging activities (106) — (11) (117) Other comprehensive gain (loss) resulting from hedging activities (1) 10 (13) — (3) Balance at December 31, 2023 211 18 (8) 221 (1) Amounts relate to hedges of the Company's net investment in foreign operations (reported in Currency Translation Reserve) and interest rate forward swaps (reported in Cash Flow Hedge Reserve) (Note 23). At December 31, 2023, the other comprehensive loss resulting from hedging activities for interest rate forward swaps includes a realized gain of $16 million that was reclassified to net finance costs (2022: $5 million realized gain). (2) Pension and other Post-Retirement Benefit Plan Adjustments will not be reclassified into earnings. |
FINANCIAL INSTRUMENTS & RISK _2
FINANCIAL INSTRUMENTS & RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of aging of trade and other receivables | At December 31, the aging of past due trade and other receivables was as follows: ($ millions) 2023 2022 31-60 days past due 2 3 Greater than 61 days past due 3 — 5 3 |
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, 2023 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and other 1,136 1,136 1,136 — — — Loans and borrowings 9,903 15,027 1,010 2,443 2,238 9,336 Subordinated hybrid notes 596 804 29 57 58 660 Income tax payable 18 18 18 — — — Derivative financial liabilities 40 40 26 1 — 13 Lease liabilities 644 857 102 181 152 422 |
Disclosure of type of risk sensitivity analysis | The following table shows the impact on earnings if the underlying forward commodity prices of the derivative financial instruments increased or decreased by 15 percent, with other variables held constant. As at December 31, 2023 15 Percent 15 Percent ($ millions) Price Increase Price Decrease Crude oil (1) (38) 38 Natural gas 5 (5) NGL (2) (21) 21 (1) Includes condensate. (2) Includes propane and butane. 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, 2023 $0.10 $0.10 ($ millions) Rate Increase Rate Decrease U.S. to Canadian dollars (17) 17 (1) |
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) 2023 2022 Carrying amounts of financial liability Fixed rate instruments (1) 10,365 10,507 Variable rate instruments (2) 778 771 11,143 11,278 (1) Includes lease liabilities and subordinated hybrid notes. (2) |
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 or decreased by 100 basis points, with other variables held constant. As at December 31, 2023 100 Basis Point 100 Basis Point ($ millions) Increase Decrease Variable rate instruments (4) 4 |
Disclosure of fair value of financial instruments | 2023 2022 As at December 31 Carrying Fair Value Carrying Value Fair Value ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments (1) 80 — 51 29 129 — 92 37 Financial liabilities carried at fair value Derivative financial instruments (1) 40 — 26 14 64 — 57 7 Contingent consideration (2) 39 — — 39 49 — 12 37 Financial liabilities carried at amortized cost Long-term debt (3) 10,499 — 9,989 — 10,600 — 9,590 — (1) At December 31, 2023 all derivative financial instruments are carried at fair value through earnings, except for $18 million in interest rate derivative financial assets that have been designated as cash flow hedges. (2) Included in trade payables and other. Under the terms of the agreements on Pembina's investment in the Cedar LNG Project, Pembina has commitments to make additional payments on a positive final investment decision. As at December 31, 2023, Pembina has met its commitments to fund development costs and annual operating budgets. (3) Carrying value of current and non-current balances. Includes loans and borrowings and subordinated hybrid notes. |
Assets and liabilities measured on recurring basis, unobservable input reconciliation | Changes in fair value of the derivative net assets classified as Level 3 in the fair value hierarchy were as follows: For the year ended December 31 ($ millions) 2023 2022 Level 3 derivative net asset at January 1 30 11 (Loss) gain on commodity-related derivative financial instruments included in earnings (15) 19 Level 3 derivative net asset at December 31 15 30 |
Disclosure of detailed information about hedging instruments | The details of the U.S. dollar denominated debt are as follows: For the years ended December 31 ($ millions) 2023 2022 Notional amount of U.S. debt designated (in U.S. dollars) 250 250 Carrying value of U.S. debt designated 330 337 Maturity date 2025 2025 The details of the interest rate forward swap derivative instruments are as follows: For the years ended December 31 ($ millions) 2023 2022 Notional amount of interest rate forward swaps 331 338 Carrying value of interest rate forward swaps 18 31 Maturity date 2025 2025 |
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) 2023 2022 Derivative instruments held at FVTPL (1) Realized (gain) loss Commodity-related (11) 105 Foreign exchange 15 14 Unrealized loss (gain) Commodity-related 32 (133) Foreign exchange (18) 12 Derivative instruments in hedging relationships Interest rate loss (gain) recorded in other comprehensive income (2) 13 (23) (1) Realized and unrealized losses or gains on commodity derivative instruments held at FVTPL are included in loss (gain) on commodity-related derivative financial instruments in the Consolidated Statements of Earnings and Comprehensive Income. Realized and unrealized losses or gains on foreign exchange derivative instruments that are not designated as hedging instruments, but rather held at FVTPL, are included in net finance costs in the Consolidated Statements of Earnings and Comprehensive Income. (2) Unrealized losses or gains for designated cash flow hedges are recognized in impact of hedging activities in the Consolidated Statements of Earnings and Comprehensive Income, with realized losses or gains being reclassified to net finance costs. At December 31, 2023, the movement in other comprehensive income includes a realized gain of $16 million that was reclassified to net finance costs (2022: $5 million realized gain) (Note 22). No losses or gains have been recognized in net income relating to discontinued cash flow hedges. |
GROUP ENTITIES (Tables)
GROUP ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | As at December 31 Ownership Interest (percentages) Jurisdiction 2023 2022 Pembina Cochin LLC Delaware U.S. 100 100 Pembina Empress NGL Partnership Alberta 100 100 Pembina Holding Canada L.P. Alberta 100 100 Pembina Infrastructure and Logistics L.P. Alberta 100 100 Pembina Midstream Limited Partnership Alberta 100 100 Pembina Oil Sands Pipeline L.P. Alberta 100 100 Pembina Pipeline Alberta 100 100 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | For the years ended December 31 ($ millions) 2023 2022 Services provided (1) PGI 272 106 Aux Sable 132 104 Alliance 15 16 Cedar LNG 12 7 Veresen Midstream — 35 Other (2) 2 1 Total services provided 433 269 Services received PGI 12 11 Alliance 12 12 Other (2) — 3 Total services received 24 26 As at December 31 ($ millions) 2023 2022 Advances to related parties (3) — 22 Trade receivables and other (4) 36 42 Trade payables and other (5) 1 150 (1) Services provided by Pembina include payments made by Pembina on behalf of related parties. (2) Other includes transactions with CKPC, Grand Valley, and ACG (for 2023 only). Excluded are amounts recorded on the transfer of assets and liabilities as part of the dissolution of CKPC. (3) During the year ended December 31, 2023, Pembina settled an advance due from Ruby for U.S. $14 million and Fort Corp repaid advances of $4 million. (4) As at December 31, 2023, trade receivables and other includes $33 million due from PGI (2022: $41 million). (5) As at December 31, 2022, trade payables and other included U.S. $102 million related to the Ruby Settlement Agreement with Ruby, which was settled in January 2023. ($ millions) Transaction Value Years Ended December 31 Post-employment benefit plan Transaction 2023 2022 Defined benefit plan Funding 17 15 |
Disclosure of key management personnel compensation | Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2023 2022 Short-term employee benefits 16 12 Share-based compensation and other (1) 13 34 Total compensation of key management 29 46 (1) Includes termination benefits. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of contingent liabilities | Pembina was committed for the following amounts under its contracts and arrangements as at December 31, 2023: Contractual Obligations (1) Payments Due by Period ($ millions) Total Less than 1 year 1 – 3 years 3 – 5 years After 5 years Construction commitments (2) 707 525 182 — — Other commitments related to lease contracts (3) 502 79 100 75 248 Transportation and processing (4) 176 38 98 31 9 Funding commitments (5) 315 289 13 13 — Software, cloud computing and other 26 11 11 3 1 Total contractual obligations 1,726 942 404 122 258 (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) Excludes significant projects that are awaiting regulatory approval, projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. (3) Relates to expected variable lease payments excluded from the measurements of the lease liability, payments under lease contracts which have not yet commenced, and payments related to non-lease components in lessee lease contracts. (4) Take-or-pay payments for minimum volumes to be transported or processed, including $10 million of contract transportation on the Alliance Pipeline. (5) |
MATERIAL ACCOUNTING POLICIES -
MATERIAL ACCOUNTING POLICIES - Narrative (Details) - IFRS 17 - Increase (decrease) due to changes in accounting policy required by IFRSs - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Equity Method Investment | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Financial assets affected by redesignation at date of initial application of IFRS 17, carrying amount immediately before redesignation | $ 12 | |
Trade Payables and Other | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Financial assets affected by redesignation at date of initial application of IFRS 17, carrying amount immediately before redesignation | $ 12 | |
Financial assets affected by redesignation at date of initial application of IFRS 17, carrying amount after redesignation | $ 17 |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 CAD ($) segment | Dec. 31, 2022 CAD ($) | |
Operating Segments [Abstract] | ||
Number of operating segments | segment | 3 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 9,125 | $ 11,611 |
Wages and salaries | 486 | 479 |
Operating expense | 243 | 261 |
General and administrative expense | 243 | 218 |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,542 | 2,342 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 6,087 | $ 8,471 |
OPERATING SEGMENTS - Financial
OPERATING SEGMENTS - Financial Information by Segment (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 9,125,000,000 | $ 11,611,000,000 |
Operating expenses | 825,000,000 | 869,000,000 |
Cost of goods sold, including product purchases | 5,131,000,000 | 7,364,000,000 |
Depreciation and amortization included in operations | 624,000,000 | 644,000,000 |
Cost of sales | 6,580,000,000 | 8,877,000,000 |
Realized gain on commodity-related derivative financial instruments | (11,000,000) | 105,000,000 |
Unrealized loss on commodity-related derivative financial instruments | 32,000,000 | (133,000,000) |
Share of profit (loss) from equity accounted investees | 316,000,000 | 361,000,000 |
Gross profit | 2,840,000,000 | 3,123,000,000 |
Depreciation included in general and administrative | 39,000,000 | 39,000,000 |
Other general and administrative | 383,000,000 | 360,000,000 |
Other expense (income) | (6,000,000) | 129,000,000 |
Impairment reversal (Note 7) | (231,000,000) | 0 |
Gain on Pembina Gas Infrastructure Transaction | (1,110,000,000) | |
Results from operating activities | 2,655,000,000 | 3,705,000,000 |
Net finance costs | 466,000,000 | 486,000,000 |
Earnings before income tax | 2,189,000,000 | 3,219,000,000 |
Capital expenditures | 606,000,000 | 605,000,000 |
Contributions to equity accounted investees | 271,000,000 | 95,000,000 |
General and administrative expense | 243,000,000 | 218,000,000 |
Joint ventures | ||
Disclosure of operating segments [line items] | ||
Other fee and commission income | 63,000,000 | 0 |
General and administrative expense | 24,000,000 | |
Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,542,000,000 | 2,342,000,000 |
Pipelines | Pipeline Transportation | ||
Disclosure of operating segments [line items] | ||
Revenue | 302,000,000 | 247,000,000 |
Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 449,000,000 | 798,000,000 |
Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 6,087,000,000 | 8,471,000,000 |
Marketing & New Ventures | Midstream Sales | ||
Disclosure of operating segments [line items] | ||
Revenue | 277,000,000 | 407,000,000 |
Unallocated amounts | ||
Disclosure of operating segments [line items] | ||
Revenue | 47,000,000 | 0 |
Inter-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue | (625,000,000) | (636,000,000) |
Inter-segment revenue | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | (165,000,000) | (166,000,000) |
Inter-segment revenue | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | (460,000,000) | (470,000,000) |
Inter-segment revenue | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Revenue | 2,707,000,000 | 2,508,000,000 |
Operating expenses | 695,000,000 | 677,000,000 |
Cost of goods sold, including product purchases | 17,000,000 | 0 |
Depreciation and amortization included in operations | 414,000,000 | 396,000,000 |
Cost of sales | 1,126,000,000 | 1,073,000,000 |
Realized gain on commodity-related derivative financial instruments | 0 | 0 |
Unrealized loss on commodity-related derivative financial instruments | 0 | 0 |
Share of profit (loss) from equity accounted investees | 109,000,000 | 171,000,000 |
Gross profit | 1,690,000,000 | 1,606,000,000 |
Depreciation included in general and administrative | 0 | 0 |
Other general and administrative | 42,000,000 | 57,000,000 |
Other expense (income) | 11,000,000 | 106,000,000 |
Impairment reversal (Note 7) | (231,000,000) | |
Gain on Pembina Gas Infrastructure Transaction | 0 | |
Results from operating activities | 1,868,000,000 | 1,443,000,000 |
Net finance costs | 28,000,000 | 28,000,000 |
Earnings before income tax | 1,840,000,000 | 1,415,000,000 |
Capital expenditures | 448,000,000 | 342,000,000 |
Contributions to equity accounted investees | 20,000,000 | 4,000,000 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Revenue | 909,000,000 | 1,268,000,000 |
Operating expenses | 360,000,000 | 511,000,000 |
Cost of goods sold, including product purchases | 0 | 6,000,000 |
Depreciation and amortization included in operations | 159,000,000 | 196,000,000 |
Cost of sales | 519,000,000 | 713,000,000 |
Realized gain on commodity-related derivative financial instruments | 0 | (20,000,000) |
Unrealized loss on commodity-related derivative financial instruments | 0 | (50,000,000) |
Share of profit (loss) from equity accounted investees | 233,000,000 | 108,000,000 |
Gross profit | 623,000,000 | 733,000,000 |
Depreciation included in general and administrative | 0 | 0 |
Other general and administrative | 23,000,000 | 15,000,000 |
Other expense (income) | (19,000,000) | 11,000,000 |
Impairment reversal (Note 7) | 0 | |
Gain on Pembina Gas Infrastructure Transaction | (1,110,000,000) | |
Results from operating activities | 619,000,000 | 1,817,000,000 |
Net finance costs | 9,000,000 | 13,000,000 |
Earnings before income tax | 610,000,000 | 1,804,000,000 |
Capital expenditures | 102,000,000 | 153,000,000 |
Contributions to equity accounted investees | 33,000,000 | 62,000,000 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Revenue | 6,087,000,000 | 8,471,000,000 |
Operating expenses | 7,000,000 | 0 |
Cost of goods sold, including product purchases | 5,509,000,000 | 7,682,000,000 |
Depreciation and amortization included in operations | 46,000,000 | 44,000,000 |
Cost of sales | 5,562,000,000 | 7,726,000,000 |
Realized gain on commodity-related derivative financial instruments | (11,000,000) | 125,000,000 |
Unrealized loss on commodity-related derivative financial instruments | 32,000,000 | (83,000,000) |
Share of profit (loss) from equity accounted investees | (26,000,000) | 82,000,000 |
Gross profit | 478,000,000 | 785,000,000 |
Depreciation included in general and administrative | 0 | 0 |
Other general and administrative | 43,000,000 | 42,000,000 |
Other expense (income) | (4,000,000) | 8,000,000 |
Impairment reversal (Note 7) | 0 | |
Gain on Pembina Gas Infrastructure Transaction | 0 | |
Results from operating activities | 439,000,000 | 735,000,000 |
Net finance costs | 4,000,000 | 27,000,000 |
Earnings before income tax | 435,000,000 | 708,000,000 |
Capital expenditures | 10,000,000 | 59,000,000 |
Contributions to equity accounted investees | 218,000,000 | 29,000,000 |
Corporate & Inter-segment Eliminations | ||
Disclosure of operating segments [line items] | ||
Revenue | (578,000,000) | (636,000,000) |
Operating expenses | (237,000,000) | (319,000,000) |
Cost of goods sold, including product purchases | (395,000,000) | (324,000,000) |
Depreciation and amortization included in operations | 5,000,000 | 8,000,000 |
Cost of sales | (627,000,000) | (635,000,000) |
Realized gain on commodity-related derivative financial instruments | 0 | 0 |
Unrealized loss on commodity-related derivative financial instruments | 0 | 0 |
Share of profit (loss) from equity accounted investees | 0 | 0 |
Gross profit | 49,000,000 | (1,000,000) |
Depreciation included in general and administrative | 39,000,000 | 39,000,000 |
Other general and administrative | 275,000,000 | 246,000,000 |
Other expense (income) | 6,000,000 | 4,000,000 |
Impairment reversal (Note 7) | 0 | |
Gain on Pembina Gas Infrastructure Transaction | 0 | |
Results from operating activities | (271,000,000) | (290,000,000) |
Net finance costs | 425,000,000 | 418,000,000 |
Earnings before income tax | (696,000,000) | (708,000,000) |
Capital expenditures | 46,000,000 | 51,000,000 |
Contributions to equity accounted investees | $ 0 | $ 0 |
OPERATING SEGMENTS - Non-Curren
OPERATING SEGMENTS - Non-Current Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of operating segments [line items] | ||
Non-current assets | $ 29,675 | $ 29,814 |
Canada | ||
Disclosure of operating segments [line items] | ||
Non-current assets | 25,954 | 25,914 |
United States | ||
Disclosure of operating segments [line items] | ||
Non-current assets | $ 3,721 | $ 3,900 |
TRADE RECEIVABLES AND OTHER (De
TRADE RECEIVABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade and accrued receivables from customers | $ 698 | $ 696 |
Other receivables | 64 | 51 |
Income tax receivable | 0 | 73 |
Prepayments | 28 | 32 |
Prepaid share issuance costs (Note 15) | 26 | 0 |
Advances to related parties | 0 | 18 |
Related party receivables | 36 | 42 |
Total trade receivables and other | $ 852 | $ 912 |
INVENTORY (Details)
INVENTORY (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Crude oil and NGL | $ 249 | $ 184 |
Materials, supplies and other | 84 | 85 |
Total inventory | $ 333 | $ 269 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property Types (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | $ 15,518,000,000 | |
Property, plant and equipment, ending balance | 15,798,000,000 | $ 15,518,000,000 |
Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 1,335,000,000 | |
Property, plant and equipment, ending balance | 1,286,000,000 | 1,335,000,000 |
Land and Land Rights | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 449,000,000 | |
Property, plant and equipment, ending balance | 442,000,000 | 449,000,000 |
Land and Land Rights | Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 41,000,000 | |
Property, plant and equipment, ending balance | 39,000,000 | 41,000,000 |
Pipelines | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 7,408,000,000 | |
Property, plant and equipment, ending balance | 7,530,000,000 | 7,408,000,000 |
Pipelines | Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 629,000,000 | |
Property, plant and equipment, ending balance | 607,000,000 | 629,000,000 |
Facilities and Equipment | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 5,764,000,000 | |
Property, plant and equipment, ending balance | 5,732,000,000 | 5,764,000,000 |
Facilities and Equipment | Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 509,000,000 | |
Property, plant and equipment, ending balance | 521,000,000 | 509,000,000 |
Cavern Storage and Other | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 1,530,000,000 | |
Disposition | 25,000,000 | 0 |
Property, plant and equipment, ending balance | 1,506,000,000 | 1,530,000,000 |
Cavern Storage and Other | Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 156,000,000 | |
Property, plant and equipment, ending balance | 119,000,000 | 156,000,000 |
Assets Under Construction | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 367,000,000 | |
Disposition | 0 | 14,000,000 |
Property, plant and equipment, ending balance | 588,000,000 | 367,000,000 |
Assets Under Construction | Property, plant and equipment subject to operating leases | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 0 | |
Property, plant and equipment, ending balance | 0 | 0 |
Cost | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 19,306,000,000 | 22,118,000,000 |
Additions and transfers | 573,000,000 | 573,000,000 |
Disposition | (3,040,000,000) | |
Change in decommissioning provision | 41,000,000 | (119,000,000) |
Foreign exchange | (31,000,000) | 93,000,000 |
Dispositions and other | 133,000,000 | 319,000,000 |
Property, plant and equipment, ending balance | 19,756,000,000 | 19,306,000,000 |
Cost | Land and Land Rights | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 481,000,000 | 456,000,000 |
Additions and transfers | 0 | 22,000,000 |
Disposition | (1,000,000) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange | (1,000,000) | 6,000,000 |
Dispositions and other | 0 | 2,000,000 |
Property, plant and equipment, ending balance | 480,000,000 | 481,000,000 |
Cost | Pipelines | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 9,495,000,000 | 9,279,000,000 |
Additions and transfers | 150,000,000 | 703,000,000 |
Disposition | (475,000,000) | |
Change in decommissioning provision | 4,000,000 | (17,000,000) |
Foreign exchange | (21,000,000) | 61,000,000 |
Dispositions and other | 15,000,000 | 56,000,000 |
Property, plant and equipment, ending balance | 9,613,000,000 | 9,495,000,000 |
Cost | Facilities and Equipment | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 6,949,000,000 | 9,384,000,000 |
Additions and transfers | 112,000,000 | 264,000,000 |
Disposition | (2,440,000,000) | |
Change in decommissioning provision | 29,000,000 | (84,000,000) |
Foreign exchange | (9,000,000) | 26,000,000 |
Dispositions and other | 33,000,000 | 201,000,000 |
Property, plant and equipment, ending balance | 7,048,000,000 | 6,949,000,000 |
Cost | Cavern Storage and Other | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 2,014,000,000 | 2,084,000,000 |
Additions and transfers | 81,000,000 | 83,000,000 |
Disposition | (104,000,000) | |
Change in decommissioning provision | 8,000,000 | (18,000,000) |
Foreign exchange | 0 | 0 |
Dispositions and other | 76,000,000 | 31,000,000 |
Property, plant and equipment, ending balance | 2,027,000,000 | 2,014,000,000 |
Cost | Assets Under Construction | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 367,000,000 | 915,000,000 |
Additions and transfers | 230,000,000 | (499,000,000) |
Disposition | (20,000,000) | |
Change in decommissioning provision | 0 | 0 |
Foreign exchange | 0 | 0 |
Dispositions and other | 9,000,000 | 29,000,000 |
Property, plant and equipment, ending balance | 588,000,000 | 367,000,000 |
Depreciation | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | (3,788,000,000) | (3,925,000,000) |
Disposition | (507,000,000) | |
Depreciation | 453,000,000 | 489,000,000 |
Impairment reversal | (229,000,000) | |
Dispositions and other | (54,000,000) | (119,000,000) |
Property, plant and equipment, ending balance | (3,958,000,000) | (3,788,000,000) |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | 453,000,000 | 489,000,000 |
Depreciation | Land and Land Rights | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | (32,000,000) | (26,000,000) |
Disposition | 0 | |
Depreciation | 6,000,000 | 6,000,000 |
Impairment reversal | 0 | |
Dispositions and other | 0 | 0 |
Property, plant and equipment, ending balance | (38,000,000) | (32,000,000) |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | 6,000,000 | 6,000,000 |
Depreciation | Pipelines | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | (2,087,000,000) | (2,015,000,000) |
Disposition | (85,000,000) | |
Depreciation | 195,000,000 | 194,000,000 |
Impairment reversal | (190,000,000) | |
Dispositions and other | (9,000,000) | (37,000,000) |
Property, plant and equipment, ending balance | (2,083,000,000) | (2,087,000,000) |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | 195,000,000 | 194,000,000 |
Depreciation | Facilities and Equipment | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | (1,185,000,000) | (1,421,000,000) |
Disposition | (384,000,000) | |
Depreciation | 177,000,000 | 211,000,000 |
Impairment reversal | (35,000,000) | |
Dispositions and other | (11,000,000) | (63,000,000) |
Property, plant and equipment, ending balance | (1,316,000,000) | (1,185,000,000) |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | 177,000,000 | 211,000,000 |
Depreciation | Cavern Storage and Other | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | (484,000,000) | (463,000,000) |
Disposition | (38,000,000) | |
Depreciation | 75,000,000 | 78,000,000 |
Impairment reversal | (4,000,000) | |
Dispositions and other | (34,000,000) | (19,000,000) |
Property, plant and equipment, ending balance | (521,000,000) | (484,000,000) |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | 75,000,000 | 78,000,000 |
Depreciation | Assets Under Construction | ||
Property, plant and equipment [Roll Forward] | ||
Property, plant and equipment, beginning balance | 0 | 0 |
Disposition | 0 | |
Depreciation | 0 | 0 |
Impairment reversal | 0 | |
Dispositions and other | 0 | 0 |
Property, plant and equipment, ending balance | 0 | 0 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized borrowing costs | $ 15 | $ 21 | |
Minimum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized borrowing costs, capitalization rate | 4.15% | 3.81% | |
Maximum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized borrowing costs, capitalization rate | 4.38% | 4.17% | |
Nipisi Pipeline Assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment reversal | $ 231 | ||
Impairment | $ 266 | ||
After-tax discount rate (percent) | 7.80% | ||
Pipeline Assets | Minimum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life | 1 year | ||
Pipeline Assets | Maximum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life | 60 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 | 10 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, 2023 | Dec. 31, 2022 | |
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | $ 6,131 | |
Intangible assets and goodwill, ending balance | $ 6,065 | $ 6,131 |
Minimum | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Finite-lived intangible asset, useful life | 8 years | |
Maximum | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Finite-lived intangible asset, useful life | 50 years | |
Cost | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | $ 6,804 | 6,842 |
Additions | 47 | |
Dispositions and other | (155) | (242) |
Foreign exchange adjustments | (23) | 66 |
Intangible assets and goodwill, ending balance | 6,673 | 6,804 |
Amortization | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | (673) | (604) |
Additions | 138 | |
Dispositions and other | (159) | (30) |
Amortization | 94 | 93 |
Foreign exchange adjustments | 6 | |
Intangible assets and goodwill, ending balance | (608) | (673) |
Goodwill | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 4,557 | |
Intangible assets and goodwill, ending balance | 4,551 | 4,557 |
Goodwill | Cost | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 4,557 | 4,693 |
Additions | 0 | 0 |
Dispositions and other | 0 | (153) |
Foreign exchange adjustments | (6) | 17 |
Intangible assets and goodwill, ending balance | 4,551 | 4,557 |
Goodwill | Amortization | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 0 | 0 |
Intangible assets and goodwill, ending balance | 0 | 0 |
Intangible Assets | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 1,574 | |
Intangible assets and goodwill, ending balance | 1,514 | 1,574 |
Intangible Assets | Cost | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 2,247 | 2,149 |
Additions | 47 | |
Dispositions and other | (155) | (89) |
Foreign exchange adjustments | (17) | 49 |
Intangible assets and goodwill, ending balance | 2,122 | 2,247 |
Intangible Assets | Amortization | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | (673) | (604) |
Additions | 138 | |
Dispositions and other | (159) | (30) |
Amortization | 94 | 93 |
Foreign exchange adjustments | 6 | |
Intangible assets and goodwill, ending balance | (608) | (673) |
Purchase and Sale Contracts and Other | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 214 | |
Intangible assets and goodwill, ending balance | 248 | 214 |
Purchase and Sale Contracts and Other | Cost | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 404 | 288 |
Additions | 47 | |
Dispositions and other | (155) | (23) |
Foreign exchange adjustments | 0 | 1 |
Intangible assets and goodwill, ending balance | 296 | 404 |
Purchase and Sale Contracts and Other | Amortization | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | (190) | (189) |
Additions | 138 | |
Dispositions and other | (155) | (8) |
Amortization | 13 | 9 |
Foreign exchange adjustments | 0 | |
Intangible assets and goodwill, ending balance | (48) | (190) |
Customer Relationships | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 1,360 | |
Intangible assets and goodwill, ending balance | 1,266 | 1,360 |
Customer Relationships | Cost | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | 1,843 | 1,861 |
Additions | 0 | |
Dispositions and other | 0 | (66) |
Foreign exchange adjustments | (17) | 48 |
Intangible assets and goodwill, ending balance | 1,826 | 1,843 |
Customer Relationships | Amortization | ||
Intangible Assets and Goodwill [Roll Forward] | ||
Intangible assets and goodwill, beginning balance | (483) | (415) |
Additions | 0 | |
Dispositions and other | (4) | (22) |
Amortization | 81 | 84 |
Foreign exchange adjustments | 6 | |
Intangible assets and goodwill, ending balance | $ (560) | $ (483) |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of operating segments [line items] | ||
Goodwill | $ 4,551 | $ 4,557 |
Operating segments | Pipelines | ||
Disclosure of operating segments [line items] | ||
Goodwill | 2,716 | 2,722 |
Operating segments | Facilities | ||
Disclosure of operating segments [line items] | ||
Goodwill | 396 | 396 |
Operating segments | Marketing & New Ventures | ||
Disclosure of operating segments [line items] | ||
Goodwill | $ 1,439 | $ 1,439 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Key Assumptions of Goodwill Impairment (Details) - Goodwill - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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 | 60 years | 75 years |
Pipelines | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Average annual pre-tax cash flow ($ millions) | $ 1,845 | |
After-tax discount rate (percent) | 7.70% | |
Long-term growth rate (percent) | 1.60% | |
Increase in after-tax discount rate (percent) | 0.024 | |
Facilities | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Average annual pre-tax cash flow ($ millions) | $ 1,500 | |
After-tax discount rate (percent) | 7.60% | |
Long-term growth rate (percent) | 1.80% | |
Increase in after-tax discount rate (percent) | 0.010 | |
Marketing & New Ventures | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Average annual pre-tax cash flow ($ millions) | $ 418 | |
After-tax discount rate (percent) | 9.70% | |
Long-term growth rate (percent) | 2.30% | |
Increase in after-tax discount rate (percent) | 0.040 |
INVESTMENTS IN EQUITY ACCOUNT_3
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Investment Interest (Details) $ in Millions, $ in Billions | 12 Months Ended | |||
Aug. 15, 2022 | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2023 USD ($) | |
Disclosure of joint ventures [line items] | ||||
Share of Profit from Equity Investments | $ 316 | $ 361 | ||
Investments in equity accounted investees | $ 6,987 | 7,382 | $ 1.2 | |
Equity Method Investment | IFRS 17 | Increase (decrease) due to changes in accounting policy required by IFRSs | ||||
Disclosure of joint ventures [line items] | ||||
Financial assets affected by redesignation at date of initial application of IFRS 17, carrying amount immediately before redesignation | 12 | |||
Trade Payables and Other | IFRS 17 | Increase (decrease) due to changes in accounting policy required by IFRSs | ||||
Disclosure of joint ventures [line items] | ||||
Financial assets affected by redesignation at date of initial application of IFRS 17, carrying amount immediately before redesignation | $ 12 | |||
PGI | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 6,000% | 6,000% | ||
Share of Profit from Equity Investments | $ 226 | $ 49 | ||
Investments in equity accounted investees | $ 3,894 | $ 4,158 | ||
Alliance | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 5,000% | 5,000% | ||
Share of Profit from Equity Investments | $ 109 | $ 167 | ||
Investments in equity accounted investees | 2,427 | 2,609 | ||
Aux Sable | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit from Equity Investments | (16) | 91 | ||
Investments in equity accounted investees | $ 362 | $ 360 | ||
Aux Sable | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 4,270% | 4,270% | ||
Aux Sable | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 5,000% | 5,000% | ||
Veresen Midstream | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 45% | 0% | 0% | |
Share of Profit from Equity Investments | $ 0 | $ 51 | ||
Investments in equity accounted investees | $ 0 | $ 0 | ||
Cedar LNG | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 4,990% | 4,990% | ||
Share of Profit from Equity Investments | $ (9) | $ 0 | ||
Investments in equity accounted investees | $ 202 | 167 | ||
Other | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 50% | |||
Share of Profit from Equity Investments | $ 6 | 3 | ||
Investments in equity accounted investees | $ 102 | $ 88 | ||
Other | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 5,000% | 5,000% | ||
Other | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest in joint venture | 7,500% | 7,500% |
INVESTMENTS IN EQUITY ACCOUNT_4
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 03, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Jun. 30, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2023 USD ($) | Aug. 15, 2022 CAD ($) | |
Disclosure of joint ventures [line items] | |||||||
Goodwill | $ 4,551,000,000 | $ 4,551,000,000 | $ 4,557,000,000 | ||||
Property, plant and equipment | 15,798,000,000 | 15,798,000,000 | 15,518,000,000 | ||||
Investments in equity accounted investees | 6,987,000,000 | 6,987,000,000 | 7,382,000,000 | $ 1,200 | |||
Exchange (loss) gain on translation of foreign operations | (106,000,000) | 295,000,000 | |||||
Losses on litigation settlements | 145,000,000 | ||||||
Distributions | 819,000,000 | 673,000,000 | |||||
Goodwill recognised as of acquisition date | $ 900,000,000 | ||||||
Contributions | 271,000,000 | 95,000,000 | |||||
Contributions to equity accounted investees | 265,000,000 | 95,000,000 | |||||
Contractual obligations | 1,726,000,000 | $ 1,726,000,000 | |||||
Cedar LNG | |||||||
Disclosure of joint ventures [line items] | |||||||
Ownership interest in joint venture | 5,010% | ||||||
Funding commitments | |||||||
Disclosure of joint ventures [line items] | |||||||
Contractual obligations | 315,000,000 | $ 315,000,000 | |||||
PGI | |||||||
Disclosure of joint ventures [line items] | |||||||
Investments in equity accounted investees | 3,894,000,000 | 3,894,000,000 | 4,158,000,000 | ||||
Percentage of equity interest | 50% | 60% | |||||
Distributions | $ 35,000,000 | $ 26,000,000 | 463,000,000 | 125,000,000 | |||
Proceeds from sale of assets | $ 58,000,000 | ||||||
Impairment loss recognised in profit or loss, goodwill | 0 | ||||||
Contributions | $ 33,000,000 | $ 49,000,000 | |||||
Ownership interest in joint venture | 6,000% | 6,000% | |||||
Joint ventures | |||||||
Disclosure of joint ventures [line items] | |||||||
Goodwill | 1,100,000,000 | $ 1,100,000,000 | $ 1,100,000,000 | ||||
Property, plant and equipment | 1,700,000,000 | 1,700,000,000 | 1,700,000,000 | ||||
Exchange (loss) gain on translation of foreign operations | (41,000,000) | 118,000,000 | |||||
Cedar LNG | |||||||
Disclosure of joint ventures [line items] | |||||||
Investments in equity accounted investees | 202,000,000 | 202,000,000 | 167,000,000 | ||||
Distributions | 0 | 0 | |||||
Contributions | $ 41,000,000 | $ 26,000,000 | |||||
Remaining commitment amount under agreement | 13 | ||||||
Ownership interest in joint venture | 4,990% | 4,990% | |||||
Contributions to equity accounted investees | $ 41,000,000 | ||||||
Maximum exposure to credit risk that arises from contracts within scope of IFRS 17 | 160,000,000 | 160,000,000 | |||||
Cedar LNG | Issued Letter of Credit | |||||||
Disclosure of joint ventures [line items] | |||||||
Notional amount | 60,000,000 | 60,000,000 | $ 45 | ||||
Cedar LNG | Funding commitments | |||||||
Disclosure of joint ventures [line items] | |||||||
Contractual obligations | $ 229,000,000 | $ 229,000,000 |
INVESTMENTS IN EQUITY ACCOUNT_5
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Financial Information of Investments (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 15, 2022 | Dec. 31, 2021 | |
Earnings and Comprehensive Income | ||||
Revenue | $ 9,125 | $ 11,611 | ||
Finance costs and other | (466) | (486) | ||
Income tax expense | 413 | 248 | ||
Earnings | 1,776 | 2,971 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 151 | 107 | $ 43 | |
Non-current assets | 29,985 | 30,125 | ||
Other non-current liabilities | 83 | 140 | ||
PGI | ||||
Earnings and Comprehensive Income | ||||
Revenue | 1,584 | 625 | ||
Expenses | (547) | (307) | ||
Depreciation and amortization | (356) | (133) | ||
Interest expense | (259) | (94) | ||
Finance costs and other | (8) | 5 | ||
Income tax expense | (67) | (24) | ||
Earnings | 347 | 72 | ||
Net Income Attributable To Pembina | 226 | 49 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 8 | 0 | ||
Other current assets | 521 | 1,125 | ||
Non-current assets | 12,342 | 12,578 | $ 6,660 | |
Other current liabilities | 39 | 578 | ||
Other non-current liabilities | 6,032 | 5,799 | ||
PGI | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 199 | 257 | ||
PGI | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 102 | 106 | ||
Alliance | ||||
Earnings and Comprehensive Income | ||||
Revenue | 885 | 1,115 | ||
Expenses | (330) | (480) | ||
Depreciation and amortization | (151) | (140) | ||
Interest expense | (42) | (21) | ||
Finance costs and other | 7 | 7 | ||
Income tax expense | (1) | 0 | ||
Earnings | 368 | 481 | ||
Net Income Attributable To Pembina | 109 | 167 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 74 | 95 | ||
Other current assets | 112 | 118 | ||
Non-current assets | 1,532 | 1,612 | ||
Other current liabilities | 79 | 23 | ||
Other non-current liabilities | 810 | 832 | ||
Alliance | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 51 | 57 | ||
Alliance | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 8 | 7 | ||
Aux Sable | ||||
Earnings and Comprehensive Income | ||||
Revenue | 798 | 2,283 | ||
Expenses | (919) | (2,026) | ||
Depreciation and amortization | (49) | (47) | ||
Interest expense | (1) | (1) | ||
Finance costs and other | 0 | 4 | ||
Income tax expense | 0 | 0 | ||
Earnings | (171) | 213 | ||
Net Income Attributable To Pembina | (16) | 91 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 19 | 16 | ||
Other current assets | 85 | 68 | ||
Non-current assets | 696 | 725 | ||
Other current liabilities | 31 | 4 | ||
Other non-current liabilities | 123 | 184 | ||
Aux Sable | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 74 | 65 | ||
Aux Sable | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 0 | 6 | ||
Veresen Midstream | ||||
Earnings and Comprehensive Income | ||||
Revenue | 449 | |||
Expenses | (151) | |||
Depreciation and amortization | (122) | |||
Interest expense | (58) | |||
Finance costs and other | (2) | |||
Income tax expense | 0 | |||
Earnings | 116 | |||
Net Income Attributable To Pembina | 51 | |||
Percentage of equity interest | 45% | |||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 0 | |||
Other current assets | 0 | |||
Non-current assets | 0 | |||
Other current liabilities | 0 | |||
Other non-current liabilities | 0 | |||
Veresen Midstream | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 0 | |||
Veresen Midstream | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 0 | |||
Cedar LNG | ||||
Earnings and Comprehensive Income | ||||
Revenue | 0 | 0 | ||
Expenses | (17) | (1) | ||
Depreciation and amortization | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Finance costs and other | 0 | 0 | ||
Income tax expense | 0 | 0 | ||
Earnings | (17) | (1) | ||
Net Income Attributable To Pembina | (9) | 0 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Other current assets | 0 | 2 | ||
Non-current assets | 161 | 67 | ||
Other current liabilities | 1 | 2 | ||
Other non-current liabilities | 0 | 0 | ||
Cedar LNG | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 64 | 7 | ||
Cedar LNG | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 0 | 0 | ||
Other | ||||
Earnings and Comprehensive Income | ||||
Revenue | 49 | 56 | ||
Expenses | (24) | (41) | ||
Depreciation and amortization | (15) | (16) | ||
Interest expense | (1) | (2) | ||
Finance costs and other | (3) | 2 | ||
Income tax expense | 0 | 0 | ||
Earnings | 6 | (1) | ||
Net Income Attributable To Pembina | 6 | 3 | ||
Statement of financial position [abstract] | ||||
Cash and cash equivalents | 17 | 29 | ||
Other current assets | 5 | 13 | ||
Non-current assets | 92 | 90 | ||
Other current liabilities | 3 | 14 | ||
Other non-current liabilities | 25 | 28 | ||
Other | Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | 10 | 56 | ||
Other | Non-Current Liabilities | ||||
Statement of financial position [abstract] | ||||
Trade payables and other | $ 0 | $ 0 |
INVESTMENTS IN EQUITY ACCOUNT_6
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Summary of Distributions From and Contributions to Equity Accounted Investees (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | |||
Oct. 03, 2023 | Aug. 15, 2022 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of joint ventures [line items] | |||||
Distributions | $ 819,000,000 | $ 673,000,000 | |||
Contributions | 271,000,000 | 95,000,000 | |||
Tax return of capital distribution | 61,000,000 | 0 | |||
PGI | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | $ 35,000,000 | $ 26,000,000 | 463,000,000 | 125,000,000 | |
Contributions | $ 33,000,000 | $ 49,000,000 | |||
Ownership interest in joint venture | 6,000% | 6,000% | |||
Alliance | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | $ 279,000,000 | $ 342,000,000 | |||
Contributions | $ 20,000,000 | $ 4,000,000 | |||
Ownership interest in joint venture | 5,000% | 5,000% | |||
Aux Sable | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | $ 70,000,000 | $ 134,000,000 | |||
Contributions | 163,000,000 | 3,000,000 | |||
Veresen Midstream | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | 0 | 66,000,000 | |||
Contributions | $ 0 | $ 13,000,000 | |||
Ownership interest in joint venture | 45% | 0% | 0% | ||
Cedar LNG | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | $ 0 | $ 0 | |||
Contributions | $ 41,000,000 | $ 26,000,000 | |||
Ownership interest in joint venture | 4,990% | 4,990% | |||
Other | |||||
Disclosure of joint ventures [line items] | |||||
Distributions | $ 7,000,000 | $ 6,000,000 | |||
Contributions | $ 14,000,000 | $ 0 | |||
Ownership interest in joint venture | 50% |
INVESTMENTS IN EQUITY ACCOUNT_7
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Acquired Revenue Contracts and Associated with Deferred Tax Impacts (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 15, 2022 |
Statement of financial position [abstract] | |||
Current assets | $ 2,633 | $ 1,362 | |
Non-current assets | 29,985 | 30,125 | |
Current liabilities | 3,221 | 2,058 | |
Non-current liabilities | 13,584 | 13,640 | |
Goodwill | 4,551 | 4,557 | |
PGI | |||
Statement of financial position [abstract] | |||
Current assets | $ 635 | ||
Non-current assets | $ 12,342 | $ 12,578 | 6,660 |
Current liabilities | 1,162 | ||
Non-current liabilities | 2,850 | ||
Allocated to PGI assets and liabilities | 3,283 | ||
Goodwill | 900 | ||
Pembina's cost of investment in PGI | 4,183 | ||
PGI | Previously reported | |||
Statement of financial position [abstract] | |||
Current assets | 641 | ||
Non-current assets | 6,641 | ||
Current liabilities | 1,164 | ||
Non-current liabilities | 2,834 | ||
Allocated to PGI assets and liabilities | 3,284 | ||
Goodwill | 899 | ||
Pembina's cost of investment in PGI | 4,183 | ||
PGI | Adjustments | |||
Statement of financial position [abstract] | |||
Current assets | (6) | ||
Non-current assets | 19 | ||
Current liabilities | (2) | ||
Non-current liabilities | 16 | ||
Allocated to PGI assets and liabilities | (1) | ||
Goodwill | 1 | ||
Pembina's cost of investment in PGI | $ 0 |
INVESTMENTS IN EQUITY ACCOUNT_8
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Schedule of Sensitivities Reasonable Possible (Details) - Goodwill - PGI $ in Millions | Dec. 31, 2023 CAD ($) |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Average annual pre-tax cash flow ($ millions) | $ 1,188 |
After-tax discount rate (percent) | 7.60% |
Long-term growth rate (percent) | 1.40% |
Pretax Cash Flow | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change required for impairment (percent) | (0.061) |
Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change required for impairment (percent) | 0.006 |
Longterm Growth Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change required for impairment (percent) | (0.008) |
INCOME TAXES - Movement in Comp
INCOME TAXES - Movement in Components of Deferred Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | $ 2,246 | $ 2,754 |
Recognized in Earnings | 88 | 21 |
Recognized in Other Comprehensive Income (Loss) | (5) | 2 |
Disposition | 0 | (514) |
Other | 9 | (17) |
Deferred tax liability (asset) at end of period | 2,338 | 2,246 |
Deferred tax liabilities (Note 10) | 2,623 | 2,507 |
Deferred tax assets (Note 10) | 285 | 261 |
Employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 2 | (2) |
Recognized in Earnings | 1 | 1 |
Recognized in Other Comprehensive Income (Loss) | 3 | (5) |
Disposition | 0 | 0 |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | (2) | 2 |
Share-based payments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (41) | (24) |
Recognized in Earnings | (2) | 17 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | 0 |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | (39) | (41) |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (64) | (100) |
Recognized in Earnings | 20 | (31) |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | (5) |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | (84) | (64) |
Benefit of loss carryforwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (450) | (385) |
Recognized in Earnings | 260 | 65 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | 0 |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | (710) | (450) |
Other deductible temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (118) | (7) |
Recognized in Earnings | (39) | 93 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | 1 |
Other | (9) | 17 |
Deferred tax liability (asset) at end of period | (70) | (118) |
Taxable limited partnership income deferral | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 68 | 46 |
Recognized in Earnings | 95 | 50 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | (28) |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | (27) | 68 |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 2,029 | 2,250 |
Recognized in Earnings | 174 | 229 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | (450) |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | 2,203 | 2,029 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 262 | 251 |
Recognized in Earnings | 0 | 24 |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | (13) |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | 262 | 262 |
Investments in equity accounted investees | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 535 | 709 |
Recognized in Earnings | 251 | (174) |
Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Disposition | 0 | 0 |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | 786 | 535 |
Derivative financial instruments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 23 | 16 |
Recognized in Earnings | (2) | 37 |
Recognized in Other Comprehensive Income (Loss) | (2) | (3) |
Disposition | 0 | (27) |
Other | 0 | 0 |
Deferred tax liability (asset) at end of period | $ 19 | $ 23 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Earnings before income tax | $ 2,189 | $ 3,219 |
Canadian statutory tax rate (percent) | 23.60% | 23.60% |
Income tax at statutory rate | $ 517 | $ 760 |
Tax rate changes and foreign rate differential | (20) | (27) |
Changes in estimate and other | (4) | (40) |
Permanent items | 3 | 19 |
Unrecognized tax benefit | (30) | 6 |
Income in equity accounted investee | (53) | (10) |
Non-taxable gain on PGI Transaction | 0 | (260) |
Deferred tax transferred due to PGI Transaction | 0 | (200) |
Income tax expense (Note 10) | $ 413 | $ 248 |
Disclosure of temporary difference, unused tax losses and unused tax credits [table] | ||
Average effective tax rate | 18.90% | 7.70% |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Current tax expense | $ 325 | $ 227 |
Deferred tax expense | ||
Origination and reversal of temporary differences | 337 | 57 |
Tax rate changes on deferred tax balances | 8 | 1 |
Increase in tax loss carry forward | (257) | (37) |
For the years ended December 31 | 88 | 21 |
Income tax expense (Note 10) | $ 413 | $ 248 |
INCOME TAXES - Deferred Tax Ite
INCOME TAXES - Deferred Tax Items Recovered Directly in Equity (Details) $ in Millions, $ in Billions | 12 Months Ended | ||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Income Taxes [Abstract] | |||||
Change in fair value of net investment hedges | $ 2 | $ 3 | |||
Remeasurements of defined benefit asset or liability | 3 | (5) | |||
Deferred tax items recovered directly in equity | 5 | (2) | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | 2,338 | 2,246 | $ 2,754 | ||
Unrecognized deferred tax asset | 0 | 27 | |||
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 | (710) | (450) | $ (385) | ||
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 | $ 1.8 | $ 1.2 | |||
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 | $ 40 | $ 42 |
TRADE PAYABLES AND OTHER (Detai
TRADE PAYABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 555 | $ 571 |
Other payables & accrued liabilities | 580 | 545 |
Related party payables | 1 | 150 |
Total trade payables and other | $ 1,136 | $ 1,266 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of leases [Abstract] | ||
Cash outflow for leases | $ 106 | $ 117 |
LEASES - Right-of-use assets (D
LEASES - Right-of-use assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | $ 518 | $ 581 |
Additions and adjustments | 80 | 17 |
Disposals and other | 2 | |
Depreciation | (75) | (82) |
Ending balance, right-of-use assets | 523 | 518 |
Terminals | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 176 | 168 |
Additions and adjustments | 0 | 26 |
Disposals and other | 0 | |
Depreciation | (18) | (18) |
Ending balance, right-of-use assets | 158 | 176 |
Rail | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 142 | 177 |
Additions and adjustments | 39 | 0 |
Disposals and other | 2 | |
Depreciation | (35) | (37) |
Ending balance, right-of-use assets | 146 | 142 |
Buildings | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 127 | 143 |
Additions and adjustments | 1 | 1 |
Disposals and other | 0 | |
Depreciation | (15) | (17) |
Ending balance, right-of-use assets | 113 | 127 |
Land & Other | ||
RIght-of-use Assets [Roll Forward] | ||
Beginning balance, right-of-use assets | 73 | 93 |
Additions and adjustments | 40 | (10) |
Disposals and other | 0 | |
Depreciation | (7) | (10) |
Ending balance, right-of-use assets | $ 106 | $ 73 |
LEASES - Maturity of operating
LEASES - Maturity of operating leases (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 1,547 | $ 1,740 |
Less than 1 year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 208 | 213 |
One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 180 | 193 |
Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 167 | 170 |
Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 158 | 168 |
Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 147 | 162 |
More than 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 687 | $ 834 |
LEASES - Maturity of finance le
LEASES - Maturity of finance leases (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | $ 490 | $ 471 |
Unearned finance income on lease receipts | (266) | (256) |
Discounted unguaranteed residual value | 19 | 16 |
Finance lease receivable | 243 | 231 |
Less current portion | (13) | (12) |
Total non-current | 230 | 219 |
Less than 1 year | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 39 | 40 |
One to two years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 32 | 42 |
Two to three years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 32 |
Three to four years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 32 |
Four to five years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | 31 | 31 |
More than 5 years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease receipts | $ 326 | $ 294 |
LONG-TERM DEBT - Carrying Value
LONG-TERM DEBT - Carrying Value, Terms and Conditions, and Debt Maturity Schedule (Details) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Jun. 22, 2023 CAD ($) | May 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||
Carrying value | $ 9,903,000,000 | $ 10,005,000,000 | ||||
Less current portion loans and borrowings | (650,000,000) | (600,000,000) | ||||
Total non-current loans and borrowings | $ 9,253,000,000 | 9,405,000,000 | ||||
Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Nominal interest rate | 147% | 147% | ||||
Senior unsecured credit facilities | Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 2,881,000,000 | |||||
Nominal interest rate | 665% | 665% | ||||
Carrying value | $ 778,000,000 | 771,000,000 | ||||
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% | 475% | ||||
Carrying value | $ 450,000,000 | 450,000,000 | ||||
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% | 481% | ||||
Carrying value | $ 600,000,000 | 600,000,000 | ||||
Senior unsecured medium-term notes series 5 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 550,000,000 | $ 100,000,000 | ||||
Nominal interest rate | 354% | 354% | 354% | |||
Carrying value | $ 550,000,000 | 450,000,000 | ||||
Senior unsecured medium-term notes series 6 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 600,000,000 | $ 100,000,000 | ||||
Nominal interest rate | 424% | 424% | 424% | |||
Carrying value | $ 600,000,000 | 500,000,000 | ||||
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% | 371% | ||||
Carrying value | $ 600,000,000 | 600,000,000 | ||||
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% | 299% | ||||
Carrying value | $ 650,000,000 | 650,000,000 | ||||
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% | 474% | ||||
Carrying value | $ 550,000,000 | 550,000,000 | ||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 650,000,000 | |||||
Nominal interest rate | 402% | 402% | ||||
Carrying value | $ 650,000,000 | 650,000,000 | ||||
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% | 475% | ||||
Carrying value | $ 800,000,000 | 800,000,000 | ||||
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% | 362% | ||||
Carrying value | $ 650,000,000 | 650,000,000 | ||||
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% | 454% | ||||
Carrying value | $ 700,000,000 | 700,000,000 | ||||
Senior unsecured medium-term notes series 14 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 0 | |||||
Nominal interest rate | 256% | 256% | ||||
Carrying value | $ 0 | 600,000,000 | ||||
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% | 331% | ||||
Carrying value | $ 600,000,000 | 600,000,000 | ||||
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% | 467% | ||||
Carrying value | $ 400,000,000 | 400,000,000 | ||||
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% | 353% | ||||
Carrying value | $ 500,000,000 | 500,000,000 | ||||
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% | 449% | ||||
Carrying value | $ 500,000,000 | 500,000,000 | ||||
Senior unsecured medium-term notes series 19 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 300,000,000 | $ 300,000,000 | ||||
Nominal interest rate | 572% | 572% | 572% | |||
Carrying value | $ 300,000,000 | 0 | ||||
Total fixed rate loans and borrowings outstanding | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Carrying value | 9,100,000,000 | 9,200,000,000 | ||||
Deferred financing costs | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Carrying value | 25,000,000 | 34,000,000 | ||||
Subordinated notes, series 1 | Fixed rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 600,000,000 | |||||
Nominal interest rate | 480% | 480% | ||||
Carrying value | $ 596,000,000 | $ 595,000,000 | ||||
Revolving unsecured credit facility maturing in june 2027 | Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | 1,000,000,000 | $ 1,000,000,000 | ||||
Operating facility | Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | 50,000,000 | |||||
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 | ||||
Revolving Unsecured Credit Facility Maturing in June 2028 | Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 1,500,000,000 | $ 1,500,000,000 | ||||
Non-Revolving Term Loan Facility Maturing in May 2025 | Variable rate instruments | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Authorized | $ 250,000,000 |
LONG-TERM DEBT- Narrative (Deta
LONG-TERM DEBT- Narrative (Details) - CAD ($) | Jan. 22, 2024 | Jan. 12, 2024 | Dec. 19, 2023 | Jun. 01, 2023 | Dec. 31, 2023 | Jun. 22, 2023 | May 31, 2023 |
Disclosure of detailed information about borrowings [line items] | |||||||
Proceeds from issuing shares | $ 1,300,000,000 | ||||||
Variable rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Nominal interest rate | 147% | ||||||
Revolving Unsecured Credit Facility Maturing in June 2028 | Variable rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,500,000,000 | $ 1,500,000,000 | |||||
Revolving unsecured credit facility maturing in june 2027 | Variable rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | 1,000,000,000 | $ 1,000,000,000 | |||||
Senior unsecured medium-term notes series 14 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 0 | ||||||
Repayments of non-current borrowings | $ 600,000,000 | ||||||
Nominal interest rate | 256% | ||||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 500,000,000 | ||||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,800,000,000 | ||||||
Senior unsecured medium-term notes series 19 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 300,000,000 | $ 300,000,000 | |||||
Nominal interest rate | 572% | 572% | |||||
Senior unsecured medium-term notes series 5 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 550,000,000 | $ 100,000,000 | |||||
Nominal interest rate | 354% | 354% | |||||
Senior unsecured medium-term notes series 6 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 600,000,000 | $ 100,000,000 | |||||
Nominal interest rate | 424% | 424% | |||||
Senior unsecured medium-term notes series 20 | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Redemption price | 101% | ||||||
Senior unsecured medium-term notes series 20 | Fixed rate instruments | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 600,000,000 | ||||||
Nominal interest rate | 502% | ||||||
Senior unsecured medium-term notes series 21 | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Redemption price | 101% | ||||||
Senior unsecured medium-term notes series 21 | Fixed rate instruments | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 600,000,000 | ||||||
Nominal interest rate | 521% | ||||||
Senior unsecured medium-term notes series 22 | Fixed rate instruments | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 600,000,000 | ||||||
Nominal interest rate | 567% | ||||||
Senior unsecured medium-term notes series 8 | Fixed rate instruments | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 650,000,000 | ||||||
Nominal interest rate | 299% | ||||||
Senior unsecured medium-term notes series 8 | Fixed rate instruments | Borrowings Transactions | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Repayments of non-current borrowings | $ 650,000,000 |
DECOMISSIONING PROVISION - Deta
DECOMISSIONING PROVISION - Detailed Disclosure (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of other provisions [line items] | ||
Inflation rate for preset value (percent) | 2.30% | |
Long-term restricted cash | $ 14 | $ 13 |
Reconciliation of changes in other provisions [abstract] | ||
Disposition | 0 | 92 |
Balance at December 31 | $ 336 | $ 259 |
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) | 2.10% | |
Long-term restricted cash | $ 14 | $ 13 |
Reconciliation of changes in other provisions [abstract] | ||
Balance at January 1 | 261 | 412 |
Unwinding of discount rate | 16 | 15 |
Change in rates | 65 | (158) |
Disposition | 0 | (20) |
Additions | 4 | 1 |
Change in cost estimates and other | (4) | 11 |
Total | 342 | 261 |
Current portion of provision | 6 | 2 |
Balance at December 31 | $ 336 | $ 259 |
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) | 5% | 5.70% |
Decommissioning provision | Maximum | ||
Disclosure of other provisions [line items] | ||
Estimated economic lives of assets covered by the decommissioning provision (years) | 68 years | |
Risk-free rate for preset value (percent) | 5.80% | 6.40% |
SUBSCRIPTION RECEIPTS - Narrati
SUBSCRIPTION RECEIPTS - Narrative (Details) shares in Millions, $ in Billions | Dec. 19, 2023 CAD ($) $ / shares shares |
Subscription Receipts [Abstract] | |
Subscription receipts (in shares) | 29.9 |
Subscription receipts, over-allotment option (in shares) | 3.9 |
Subscription receipts price (in dollars per share) | $ / shares | 42.85 |
Proceeds from issuing shares | $ | $ 1.3 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 15, 2024 | Dec. 01, 2023 | Feb. 14, 2023 | Nov. 15, 2022 | Oct. 03, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 27, 2023 | Feb. 15, 2023 | Dec. 31, 2022 | |
Disclosure of classes of share capital [line items] | ||||||||||
Maximum number of preference shares issuable as a percentage of ordinary shares issued and outstanding | 254,850,850 | |||||||||
Number of shares authorized to be repurchased | 27,500,000 | |||||||||
Number of shares issued (in shares) | 550,000,000 | 550,000,000 | ||||||||
Forecast | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Dividends paid (in CAD per share) | $ 0.6675 | |||||||||
Series 15 preferred share | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Stock redeemed during period, shares | 8,000,000 | |||||||||
Class A Series 23 Preference Shares | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Stock redeemed during period, shares | 300,000,000 | |||||||||
Class A Series 23 Preference Shares | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Stock redeemed during period, shares | 12,000,000 | |||||||||
Preferred stock, redemption price per share (in CAD per share) | $ 25 | |||||||||
Series 21 preferred share | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of shares issued (in shares) | 1,028,130 | |||||||||
Stock redeemed during period, shares | 16,000,000 | |||||||||
Series 22 preference share | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Percentage of annual dividend rate | 8.291% | |||||||||
Series 22 preference share | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of shares authorized to be repurchased | 14,971,870 | |||||||||
Number of shares issued (in shares) | 1,028,130 | |||||||||
Class A Series 25 Preference Shares | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Percentage of annual dividend rate | 6.481% | |||||||||
Series 1 preferred share | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Percentage of annual dividend rate | 652.50% | |||||||||
Series 1 preferred share | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Stock redeemed during period, shares | 10,000,000 | |||||||||
Series 3 preferred share | Major ordinary share transactions | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Stock redeemed during period, shares | 6,000,000 | |||||||||
Percentage of annual dividend rate | 601.90% |
SHARE CAPITAL - Common and Pref
SHARE CAPITAL - Common and Preferred Share Capital (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of number of shares outstanding [abstract] | ||
Share-based payment transactions | $ 6 | $ 319 |
Repurchased | (50) | (333) |
Part VI.1 tax | (9) | (9) |
Issued capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Share-based payment transactions | 6 | 319 |
Repurchased | (34) | (204) |
Part VI.1 tax | $ (9) | $ (9) |
Common share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 550 | 550 |
Share-based payment transactions (in shares) | 0 | 7 |
Repurchased (in shares) | (1) | (7) |
Number of shares, Ending balance (in shares) | 549 | 550 |
Share capital, beginning balance | $ 15,793 | $ 15,678 |
Share-based payment transactions | 319 | |
Repurchased | (34) | (204) |
Share capital, ending balance | $ 15,765 | $ 15,793 |
Preferred share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 93 | 105 |
Issued, net of issue costs (in shares) | 0 | 0 |
Number of shares, Ending balance (in shares) | 93 | 93 |
Share capital, beginning balance | $ 2,208 | $ 2,517 |
Part VI.1 tax | (9) | (9) |
Share capital, ending balance | $ 2,199 | $ 2,208 |
Class A Series 23 Preference Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued on Acquisition, net of issue costs (Note 6) (in shares) | (12) | |
Issue of equity | $ (300) |
SHARE CAPITAL - Share Repurchas
SHARE CAPITAL - Share Repurchase Program (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of classes of share capital [line items] | ||
Number of common shares repurchased for cancellation (thousands) | 1,197 | 7,154 |
Average price per share (in dollars per share) | $ 41.76 | $ 46.55 |
Total cost | $ 50 | $ 333 |
Issued capital | ||
Disclosure of classes of share capital [line items] | ||
Total cost | 34 | 204 |
Deficit | ||
Disclosure of classes of share capital [line items] | ||
Total cost | $ 16 | $ 129 |
SHARE CAPITAL - Dividends (Deta
SHARE CAPITAL - Dividends (Details) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 15, 2024 | Feb. 01, 2024 | Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Common share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 2.66 | $ 2.55 | |||
Dividends paid | $ 1,459 | $ 1,409 | |||
Preferred share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 120 | $ 126 | |||
Series 1 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.23 | $ 1.23 | |||
Dividends paid | $ 12 | $ 12 | |||
Series 3 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.12 | $ 1.12 | |||
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 | $ 1.08 | |||
Dividends paid | $ 10 | $ 10 | |||
Series 15 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.54 | $ 1.22 | |||
Dividends paid | $ 12 | $ 10 | |||
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 | $ 1.17 | |||
Dividends paid | $ 9 | $ 9 | |||
Series 21 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.49 | $ 1.23 | |||
Dividends paid | $ 23 | $ 20 | |||
Series 22 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.49 | $ 0 | |||
Dividends paid | $ 2 | $ 0 | |||
Series 23 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 0 | $ 1.15 | |||
Dividends paid | $ 0 | $ 16 | |||
Series 25 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid per share (in CAD per share) | $ 1.54 | $ 1.30 | |||
Dividends paid | $ 16 | $ 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) | $ 0.407813 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 | ||||
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) | $ 0.385250 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
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) | $ 0.393875 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 6 | ||||
Major preference share transactions | Series 22 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) | $ 0.523436 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 1 | ||||
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) | $ 0.405063 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Earnings (loss) attributable to common shareholders | $ 1,648 | $ 2,842 |
Weighted average number of common shares (in shares) | 550 | 553 |
Earnings attributable to common shareholders, net of preferred share dividends (Note 17) | $ 1,648 | $ 2,842 |
Adjusted weighted average number of ordinary shares outstanding (in shares) | 551 | 554 |
EARNINGS PER COMMON SHARE - Ear
EARNINGS PER COMMON SHARE - Earnings Attributable to Common Shareholders (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Earnings | $ 1,776 | $ 2,971 |
Dividends on preferred shares | (128) | (129) |
Basic and diluted earnings attributable to common shareholders | 1,648 | 2,842 |
Basic and diluted earnings attributable to common shareholders | $ 1,648 | $ 2,842 |
EARNINGS PER COMMON SHARE - Wei
EARNINGS PER COMMON SHARE - Weighted Average Number of Common Shares (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Issued common shares (in shares) | 550 | 550 |
Effect of shares repurchased (in shares) | (1) | (2) |
Effect of shares issued on exercise of options (in shares) | 1 | 5 |
Basic weighted average number of common shares at December 31 (in shares) | 550 | 553 |
Dilutive effect of share options on issue (in shares) | 1 | 1 |
Diluted weighted average number of common shares at December 31 (in shares) | 551 | 554 |
Basic earnings per common share (in CAD per share) | $ 3 | $ 5.14 |
Diluted earnings per common share (in CAD per share) | $ 2.99 | $ 5.12 |
REVENUE - Revenue Disaggregatio
REVENUE - Revenue Disaggregation (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 8,786,000,000 | $ 11,429,000,000 |
Operational finance lease income | 28,000,000 | 29,000,000 |
Fixed operating lease income | 220,000,000 | 153,000,000 |
Variable lease income | 16,000,000 | 0 |
Shared service revenue and other | 75,000,000 | 0 |
Revenue (Note 18) | 9,125,000,000 | 11,611,000,000 |
Joint ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other fee and commission income | 63,000,000 | 0 |
Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,306,000,000 | 2,199,000,000 |
Operational finance lease income | 24,000,000 | 26,000,000 |
Fixed operating lease income | 185,000,000 | 117,000,000 |
Variable lease income | 16,000,000 | 0 |
Shared service revenue and other | 11,000,000 | 0 |
Revenue (Note 18) | 2,542,000,000 | 2,342,000,000 |
Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 393,000,000 | 759,000,000 |
Operational finance lease income | 4,000,000 | 3,000,000 |
Fixed operating lease income | 35,000,000 | 36,000,000 |
Variable lease income | 0 | 0 |
Shared service revenue and other | 17,000,000 | 0 |
Revenue (Note 18) | 449,000,000 | 798,000,000 |
Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 6,087,000,000 | 8,471,000,000 |
Operational finance lease income | 0 | 0 |
Fixed operating lease income | 0 | 0 |
Variable lease income | 0 | 0 |
Shared service revenue and other | 0 | 0 |
Revenue (Note 18) | 6,087,000,000 | 8,471,000,000 |
Corporate | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 0 |
Operational finance lease income | 0 | 0 |
Fixed operating lease income | 0 | 0 |
Variable lease income | 0 | 0 |
Shared service revenue and other | 47,000,000 | 0 |
Revenue (Note 18) | 47,000,000 | 0 |
Take-or-pay | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,089,000,000 | 2,363,000,000 |
Take-or-pay | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,816,000,000 | 1,741,000,000 |
Take-or-pay | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 273,000,000 | 622,000,000 |
Take-or-pay | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | 0 |
Take-or-pay | Corporate | ||
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 | 672,000,000 | 595,000,000 |
Fee-for-service | Pipelines | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 490,000,000 | 458,000,000 |
Fee-for-service | Facilities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 120,000,000 | 137,000,000 |
Fee-for-service | Marketing & New Ventures | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 62,000,000 | 0 |
Fee-for-service | Corporate | ||
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 | 6,025,000,000 | 8,471,000,000 |
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 | 6,025,000,000 | 8,471,000,000 |
Product sales | Corporate | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 0 | $ 0 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract balances [Line Items] | ||
Opening balance | $ 194 | $ 291 |
Additions (net in the period) | 19 | 59 |
Disposition | 0 | (92) |
Revenue recognized from contract liabilities | (54) | (64) |
Closing balance | 159 | 194 |
Less current portion | (33) | (56) |
Ending balance | 126 | 138 |
Take-or-Pay | ||
Contract balances [Line Items] | ||
Opening balance | 3 | 3 |
Additions (net in the period) | (2) | 2 |
Disposition | 0 | (2) |
Revenue recognized from contract liabilities | 0 | 0 |
Closing balance | 1 | 3 |
Less current portion | (1) | (3) |
Ending balance | 0 | 0 |
Other Contract Liabilities | ||
Contract balances [Line Items] | ||
Opening balance | 191 | 288 |
Additions (net in the period) | 21 | 57 |
Disposition | 0 | (90) |
Revenue recognized from contract liabilities | (54) | (64) |
Closing balance | 158 | 191 |
Less current portion | (32) | (53) |
Ending balance | $ 126 | $ 138 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 11,700 | $ 11,100 |
Maximum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,700 | 1,800 |
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 | 955 | 765 |
Minimum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,000 | 1,000 |
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 | $ 3 | $ 7 |
NET FINANCE COSTS (Details)
NET FINANCE COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest expense on financial liabilities measured at amortized cost: | ||
Loans and borrowings | $ 395 | $ 385 |
Subordinated hybrid notes | 29 | 29 |
Leases | 30 | 32 |
Unwinding of discount rate | 16 | 16 |
Foreign exchange losses and other | 15 | 12 |
Net finance costs | 466 | 486 |
Non-Commodity-Related Derivatives | ||
Interest expense on financial liabilities measured at amortized cost: | ||
(Gain) loss in fair value of non-commodity-related derivative financial instruments | $ (19) | $ 12 |
NET FINANCE COSTS - Narrative (
NET FINANCE COSTS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Analysis of income and expense [abstract] | ||
Net interest paid | $ 462 | $ 468 |
Interest paid during construction | $ 15 | $ 21 |
PENSION PLAN - Employee Benefit
PENSION PLAN - Employee Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations (assets) | $ (6) | |
Net employee benefit obligations (assets) | $ 9 | |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations (assets) | (5) | (17) |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations (assets) | $ 14 | $ 11 |
PENSION PLAN - Narrative (Detai
PENSION PLAN - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Post-employment benefit expense, defined contribution plans | $ 14,000,000 | $ 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 |
Discount rate | 4.60% | 5.30% |
Increase (decrease) of estimated discount rate (percent) | 100 | |
Effect of one percentage point increase on defined benefit obligation | $ (29,000,000) | |
Effect of one percentage point decrease on defined benefit obligation | 37,000,000 | |
Expected future contributions to plan | 20,000,000 | |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Post-employment benefit expense in profit or loss, defined benefit plans | 18,000,000 | $ 23,000,000 |
Plan assets | Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Contributions paid into the plan | $ (17,000,000) | (15,000,000) |
Minimum | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Employer contributions percent | 5% | |
Maximum | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Employer contributions percent | 10% | |
Employee's age plus years of service | 50 years | |
Maximum | Supplemental Plan | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Post-employment benefit expense in profit or loss, defined benefit plans | $ 2,000,000 | $ 2,000,000 |
PENSION PLAN - Defined Benefit
PENSION PLAN - Defined Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | $ 250 | $ 207 |
Fair value of plan assets | 255 | 224 |
Recognized defined benefit assets (obligations) | 5 | 17 |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | 14 | 11 |
Fair value of plan assets | 0 | 0 |
Recognized defined benefit assets (obligations) | $ (14) | $ (11) |
PENSION PLAN - Plan Assets (Det
PENSION PLAN - Plan Assets (Details) - Registered Plans | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 59% | 59% |
Debt | 35% | 34% |
Other | 6% | 7% |
Total | 100% | 100% |
PENSION PLAN - Movement in Plan
PENSION PLAN - Movement in Plan (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 19 | $ 24 |
Return on plan assets | 12 | 9 |
Interest expense (income) | 11 | 8 |
Registered Plans | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 207 | 257 |
Benefits paid by the plan | (11) | (19) |
Current service costs | 18 | 23 |
Interest expense (income) | 11 | 8 |
Actuarial losses (gains) in other comprehensive income | 25 | (62) |
Net defined benefit liability (asset), ending balance | 250 | 207 |
Registered Plans | Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (224) | (268) |
Contributions paid into the plan | 17 | 15 |
Benefits paid by the plan | (11) | (19) |
Return on plan assets | 13 | (49) |
Interest expense (income) | (12) | (9) |
Net defined benefit liability (asset), ending balance | (255) | (224) |
Supplemental Plan | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 11 | 17 |
Benefits paid by the plan | (1) | (1) |
Current service costs | 1 | 1 |
Interest expense (income) | 1 | 0 |
Actuarial losses (gains) in other comprehensive income | 2 | (6) |
Net defined benefit liability (asset), ending balance | $ 14 | $ 11 |
PENSION PLAN - Expense Recogniz
PENSION PLAN - Expense Recognized in Earnings (Details) - Registered Plans - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 19 | $ 24 |
Interest on obligation | 11 | 8 |
Interest on plan assets | (12) | (9) |
Pension plan expense | 18 | 23 |
Operating expenses | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | 8 | 11 |
General and administrative expense | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | $ 10 | $ 12 |
PENSION PLAN - Actuarial Gains
PENSION PLAN - Actuarial Gains and Losses Recognized in OCI (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | $ 4 | $ (11) |
Actuarial gain (loss) arising from | ||
Financial assumptions | (17) | 57 |
Experience adjustments | (4) | (5) |
Return on plan assets excluding interest income | 10 | (37) |
Recognized gain during the period after tax | (11) | 15 |
Net defined benefit liability (asset), ending balance | (7) | 4 |
Registered Plans | ||
Actuarial gain (loss) arising from | ||
Return on plan assets excluding interest income | (12) | (9) |
Registered Plans | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 1 | (9) |
Actuarial gain (loss) arising from | ||
Financial assumptions | (16) | 54 |
Experience adjustments | (3) | (7) |
Return on plan assets excluding interest income | 10 | (37) |
Recognized gain during the period after tax | (9) | 10 |
Net defined benefit liability (asset), ending balance | (8) | 1 |
Supplemental Plan | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 3 | (2) |
Actuarial gain (loss) arising from | ||
Financial assumptions | (1) | 3 |
Experience adjustments | (1) | 2 |
Return on plan assets excluding interest income | 0 | 0 |
Recognized gain during the period after tax | (2) | 5 |
Net defined benefit liability (asset), ending balance | $ 1 | $ 3 |
PENSION PLAN - Actuarial Assump
PENSION PLAN - Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits [Abstract] | ||
Discount rate | 4.60% | 5.30% |
Future pension earning increases | 4% | 4% |
Current male pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 22 years 1 month 6 days | 22 years |
Current female pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 24 years 4 months 24 days | 24 years 4 months 24 days |
Current male members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 23 years | 23 years |
Current female members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 25 years 4 months 24 days | 25 years 3 months 18 days |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / 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 | 3 years | |
Number of share options granted in share-based payment arrangement | 577,000 | 599,000 |
Number of other equity instruments granted in share-based payment arrangement | 1,877,000 | 1,864,000 |
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 | $ 45.13 | $ 46.26 |
Minimum | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
DSUs as a percent of total director compensation | 50% | |
Exercise price of outstanding share options | $ / shares | $ 44.68 | |
Maximum | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price of outstanding share options | $ / shares | $ 48.62 | |
Share-based Compensation Award, Tranche One | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of share options granted in share-based payment arrangement | 0.3333 | |
Share-based Compensation Award, Tranche Two | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of share options granted in share-based payment arrangement | 0.3333 | |
Share-based Compensation Award, Tranche Three | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of share options granted in share-based payment arrangement | 0.3333 | |
PSUs | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of other equity instruments granted in share-based payment arrangement | 626,000 | 623,000 |
Weighted average remaining contractual life of outstanding other equity instruments (years) | 3 years | |
RSUs | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of other equity instruments granted in share-based payment arrangement | 1,217,000 | 1,202,000 |
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, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 1,877 | 1,864 |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 626 | 623 |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 1,217 | 1,202 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 34 | 39 |
SHARE-BASED PAYMENTS - Share Op
SHARE-BASED PAYMENTS - Share Option Plan (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
Share-based Payment Arrangements [Abstract] | ||
Options outstanding, beginning balance (in shares) | shares | 12,085 | 19,971 |
Granted (in shares) | shares | 577 | 599 |
Exercised (in shares) | shares | (1,412) | (7,722) |
Forfeited (in shares) | shares | (181) | (332) |
Expired (in shares) | shares | (387) | (431) |
Options outstanding, ending balance (in shares) | shares | 10,682 | 12,085 |
Weighted average exercise price, outstanding, beginning balance (in CAD per share) | $ / shares | $ 41.56 | $ 41.33 |
Weighted average exercise price of share options granted in share-based payment arrangement (in CAD per share) | $ / shares | 45.37 | 45.61 |
Weighted average exercise price of share options exercised in share-based payment arrangement (in CAD per share) | $ / shares | 36.24 | 41.42 |
Weighted average exercise price of share options forfeited in share-based payment arrangement (in CAD per share) | $ / shares | 39.85 | 38.60 |
Weighted average exercise price of share options expired in share-based payment arrangement (in CAD per share) | $ / shares | 44.80 | 41.31 |
Weighted average exercise price, outstanding, ending balance (in CAD per share) | $ / shares | $ 42.38 | $ 41.56 |
SHARE-BASED PAYMENTS - Exercise
SHARE-BASED PAYMENTS - Exercise Price Range of Outstanding Share Options (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 10,682 | 12,085 | 19,971 |
Options Exercisable (in shares) | 8,193 | ||
Weighted average remaining life (in years) | 3 years | ||
$26.83 – $37.03 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 2,058 | ||
Options Exercisable (in shares) | 1,714 | ||
Weighted average remaining life (in years) | 4 years | ||
$37.04 – $43.56 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 2,010 | ||
Options Exercisable (in shares) | 740 | ||
Weighted average remaining life (in years) | 3 years | ||
$43.57 – $45.50 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 2,482 | ||
Options Exercisable (in shares) | 2,154 | ||
Weighted average remaining life (in years) | 3 years | ||
$45.51 – $48.08 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 2,031 | ||
Options Exercisable (in shares) | 1,483 | ||
Weighted average remaining life (in years) | 3 years | ||
$48.09 – $49.78 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 2,101 | ||
Options Exercisable (in shares) | 2,102 | ||
Weighted average remaining life (in years) | 2 years | ||
Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 44.68 | ||
Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 48.62 |
SHARE-BASED PAYMENTS - Share _2
SHARE-BASED PAYMENTS - Share Options Granted (Details) - Graded Vesting | 12 Months Ended | |
Dec. 31, 2023 CAD ($) year | Dec. 31, 2022 CAD ($) year | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Weighted average fair value at grant date | $ 8.96 | $ 11.43 |
Weighted average expected volatility (percent) | 35.70% | 46.60% |
Weighted average expected option life (years) | year | 3.67 | 3.67 |
Expected annual dividends per option | $ 2.66 | $ 2.55 |
Expected forfeitures (percent) | 7.40% | 7.30% |
Risk-free interest rate (based on government bonds) (percent) | 3.90% | 1.70% |
SHARE-BASED PAYMENTS - Employee
SHARE-BASED PAYMENTS - Employee Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangements [Abstract] | ||
Share option plan, equity settled | $ 5 | $ 10 |
Long-term share unit award incentive plan | 67 | 116 |
Share-based compensation expense | 72 | 126 |
Total carrying amount of liabilities for cash settled arrangements | 163 | 161 |
Total intrinsic value of liability for vested benefits | $ 108 | $ 97 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | $ 341 | $ 28 |
Other comprehensive gain before hedging activities | (117) | 310 |
Other comprehensive (loss) gain resulting from hedging activities | (3) | 3 |
Accumulated other comprehensive income, ending balance | 221 | 341 |
Reclassification adjustments on change in value of forward elements of forward contracts, before tax | 16 | 5 |
Currency Translation Reserve | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 307 | 32 |
Other comprehensive gain before hedging activities | (106) | 295 |
Other comprehensive (loss) gain resulting from hedging activities | 10 | (20) |
Accumulated other comprehensive income, ending balance | 211 | 307 |
Cash Flow Hedge Reserve | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax1 [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 31 | 8 |
Other comprehensive gain before hedging activities | 0 | 0 |
Other comprehensive (loss) gain resulting from hedging activities | (13) | 23 |
Accumulated other comprehensive income, ending balance | 18 | 31 |
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 | 3 | (12) |
Other comprehensive gain before hedging activities | (11) | 15 |
Other comprehensive (loss) gain resulting from hedging activities | 0 | 0 |
Accumulated other comprehensive income, ending balance | $ (8) | $ 3 |
FINANCIAL INSTRUMENTS & RISK _3
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Instruments [Abstract] | ||
Letters of credit outstanding, amount | $ 124 | $ 168 |
Trade receivables, current percentage | 9,800% | 9,800% |
Disclosure of transactions between related parties [line items] | ||
Letters of credit outstanding, amount | $ 124 | $ 168 |
Trade receivables, current percentage | 9,800% | 9,800% |
Impairment reversal (Note 7) | $ (231) | $ 0 |
Increase in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, liabilities | $ 80 | $ 75 |
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, 2023 | Dec. 31, 2022 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 5 | $ 3 |
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 | $ 3 | $ 0 |
FINANCIAL INSTRUMENTS & RISK _5
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Liquidity Risk (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade payables and other | $ 1,136 | $ 1,266 |
Loans and borrowings | 9,903 | 10,005 |
Income tax payable | 18 | $ 0 |
Derivative financial liabilities | 40 | |
Lease liabilities | 644 | |
Trade payables and accrued liabilities, Expected Cash Flows | 1,136 | |
Loans and borrowings, Expected Cash Flows | 15,027 | |
Income tax payable, Expected Cash Flows | 18 | |
Derivative financial liabilities, Expected Cash Flows | 40 | |
Total contractual obligations | 1,726 | |
Leases | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total contractual obligations | 857 | |
Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade payables and accrued liabilities, Expected Cash Flows | 1,136 | |
Loans and borrowings, Expected Cash Flows | 1,010 | |
Income tax payable, Expected Cash Flows | 18 | |
Derivative financial liabilities, Expected Cash Flows | 26 | |
Total contractual obligations | 942 | |
Less than 1 year | Leases | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total contractual obligations | 102 | |
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 | 2,443 | |
Income tax payable, Expected Cash Flows | 0 | |
Derivative financial liabilities, Expected Cash Flows | 1 | |
Total contractual obligations | 404 | |
1 - 3 Years | Leases | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total contractual obligations | 181 | |
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 | 2,238 | |
Income tax payable, Expected Cash Flows | 0 | |
Derivative financial liabilities, Expected Cash Flows | 0 | |
Total contractual obligations | 122 | |
3 – 5 years | Leases | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total contractual obligations | 152 | |
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 | 9,336 | |
Income tax payable, Expected Cash Flows | 0 | |
Derivative financial liabilities, Expected Cash Flows | 13 | |
Total contractual obligations | 258 | |
More than 5 years | Leases | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total contractual obligations | 422 | |
Subordinated Hybrid Notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings | 596 | |
Loans and borrowings, Expected Cash Flows | 804 | |
Subordinated Hybrid Notes | Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | 29 | |
Subordinated Hybrid Notes | 1 - 3 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Loans and borrowings, Expected Cash Flows | 57 | |
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 | $ 660 |
FINANCIAL INSTRUMENTS & RISK _6
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Sensitivity Analysis of Market Risk (Details) $ in Millions | Dec. 31, 2023 CAD ($) |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (17) |
Increase (decrease) in earnings due to reasonably possible decrease in price | 17 |
Crude Oil | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | (38) |
Value of reasonably possible decrease in price | 38 |
Natural Gas | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | 5 |
Value of reasonably possible decrease in price | (5) |
Liquids (bpd) | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | (21) |
Value of reasonably possible decrease in price | $ 21 |
FINANCIAL INSTRUMENTS & RISK _7
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Interest Rate Risk (Details) $ in Millions, $ in Millions | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) |
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] | ||||
Subscription receipts (Note 15) | $ 10,365 | $ 10,507 | ||
Variable rate instruments | ||||
Disclosure of financial instruments by type of interest rate [line items] | ||||
Subscription receipts (Note 15) | 778 | 771 | ||
Fixed and variable rate instruments | ||||
Disclosure of financial instruments by type of interest rate [line items] | ||||
Subscription receipts (Note 15) | $ 11,143 | $ 11,278 |
FINANCIAL INSTRUMENTS & RISK _8
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Cash Flow Sensitivity Analysis for Variable Rate Instruments (Details) $ in Millions | Dec. 31, 2023 CAD ($) |
Financial Instruments [Abstract] | |
Increase (decrease) in earnings due to reasonably possible increase in interest rate assumption | $ (4) |
Increase (decrease) in earnings due to reasonably possible decrease in interest rate assumption | $ 4 |
FINANCIAL INSTRUMENTS & RISK _9
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Fair Value of Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial assets [line items] | ||
Hedging instrument, assets | $ 18 | |
Cash Flow Hedges | ||
Disclosure of financial assets [line items] | ||
Hedging instrument, assets | 18 | $ 31 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 40 | 64 |
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 | 26 | 57 |
Derivative financial instruments | Financial liabilities at fair value through profit or loss, category | Level 3 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 14 | 7 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 39 | 49 |
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 | 0 | 12 |
Contingent consideration | Financial liabilities at fair value through profit or loss, category | Level 3 | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 39 | 37 |
Loans and borrowings | Financial liabilities carried at amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 10,499 | 10,600 |
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 | 9,989 | 9,590 |
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] | ||
Subscription receipts (Note 15) | 80 | 129 |
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 | 51 | 92 |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 3 | ||
Disclosure of financial assets [line items] | ||
Fair Value | $ 29 | $ 37 |
FINANCIAL INSTRUMENTS & RISK_10
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Assets and Liabilities Unobservable Input Reconciliation (Details) - Derivative Financial Instruments, Assets - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of financial assets [line items] | ||
Level 3 derivative net asset at January 1 | $ 30 | $ 11 |
(Loss) gain on commodity-related derivative financial instruments included in earnings | (15) | 19 |
Level 3 derivative net asset at December 31 | $ 15 | $ 30 |
FINANCIAL INSTRUMENTS & RISK_11
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Non-Derivative Instruments Designated as Net Investment Hedges (Details) $ in Millions, $ in Millions | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||||
Hedging instrument, assets | $ 18 | |||
Net Investment Hedge | ||||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||||
Notional amount | $ 250 | $ 250 | ||
Hedging instrument, assets | 330 | $ 337 | ||
Cash Flow Hedges | ||||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||||
Notional amount | $ 331 | $ 338 | ||
Hedging instrument, assets | $ 18 | $ 31 |
FINANCIAL INSTRUMENTS & RISK_12
FINANCIAL INSTRUMENTS & RISK MANAGEMENT - Unrealized and Realized Gains (Losses) on Derivative Instruments (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Reclassification adjustments on change in value of forward elements of forward contracts, before tax | $ 16 | $ 5 |
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] | ||
(Gain) loss on financial assets and liabilities at fair value through profit or loss | (11) | 105 |
Unrealized loss (gain) on financial assets and liabilities at fair value through profit or loss | 32 | (133) |
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] | ||
(Gain) loss on financial assets and liabilities at fair value through profit or loss | 15 | 14 |
Unrealized loss (gain) on financial assets and liabilities at fair value through profit or loss | (18) | 12 |
Interest rate swap contract | Cash Flow Hedges | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Unrealized loss (gain) on financial assets and liabilities at fair value through profit or loss | $ 13 | $ (23) |
GROUP ENTITIES (Details)
GROUP ENTITIES (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pembina Cochin LLC | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Empress NGL Partnership | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Holding Canada L.P. | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Infrastructure and Logistics L.P. | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Midstream Limited Partnership | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Oil Sands Pipeline L.P. | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Pembina Pipeline | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
RELATED PARTIES - Equity Accoun
RELATED PARTIES - Equity Accounted Investees (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Jan. 13, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | |||
Services provided | $ 433 | $ 269 | |
Services received | 24 | 26 | |
Advances to related parties | 0 | 22 | |
Trade receivables and other | 36 | 42 | |
Trade payables and other | 1 | 150 | |
Contributions | 271 | 95 | |
Contributions to equity accounted investees | 265 | 95 | |
PGI | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 272 | 106 | |
Services received | 12 | 11 | |
Trade receivables and other | 33 | 41 | |
Aux Sable | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 132 | 104 | |
Alliance | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 15 | 16 | |
Services received | 12 | 12 | |
Cedar LNG | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 12 | 7 | |
Veresen Midstream | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 0 | 35 | |
Other | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services provided | 2 | 1 | |
Services received | 0 | 3 | |
Fort Saskatchewan Ethylene Storage Limited Partnership | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Contributions to equity accounted investees | $ 4 | ||
Ruby Pipeline | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Contributions | $ 14 | ||
2022 Notes | Ruby Pipeline | Joint ventures where entity is venturer [member] | |||
Disclosure of transactions between related parties [line items] | |||
Payment on distributions ruby subsidiary | $ 102 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | ||
Proportion of ownership interest in entity (less than) | 1% | |
Defined benefit plan, balance payable | $ 0 | $ 0 |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 16 | $ 12 |
Share-based compensation and other | 13 | 34 |
Total compensation of key management | $ 29 | $ 46 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 CAD ($) MW MBbls | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 1,726 |
Transportation expense | 10 |
Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 707 |
Other commitments related to lease contracts | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 502 |
Transportation and processing | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 176 |
Funding commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 315 |
Software, cloud computing and other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 26 |
Less than 1 year | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 942 |
Less than 1 year | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 525 |
Less than 1 year | Other commitments related to lease contracts | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 79 |
Less than 1 year | Transportation and processing | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 38 |
Less than 1 year | Funding commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 289 |
Less than 1 year | Software, cloud computing and other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 11 |
1 - 3 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 404 |
1 - 3 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 182 |
1 - 3 Years | Other commitments related to lease contracts | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 100 |
1 - 3 Years | Transportation and processing | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 98 |
1 - 3 Years | Funding commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 13 |
1 - 3 Years | Software, cloud computing and other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 11 |
3 – 5 years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 122 |
3 – 5 years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 0 |
3 – 5 years | Other commitments related to lease contracts | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 75 |
3 – 5 years | Transportation and processing | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 31 |
3 – 5 years | Funding commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 13 |
3 – 5 years | Software, cloud computing and other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 3 |
After 5 years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 258 |
After 5 years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 0 |
After 5 years | Other commitments related to lease contracts | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 248 |
After 5 years | Transportation and processing | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 9 |
After 5 years | Funding commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 0 |
After 5 years | Software, cloud computing and other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 1 |
Minimum | Liquids (bpd) | |
Disclosure of contingent liabilities [line items] | |
Commitments maturity, term (years) | 1 year |
Minimum | Natural Gas | Not More than Eight 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) | 8 years |
Maximum | Natural Gas | Not More than Eight 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 Eight Years | |
Disclosure of contingent liabilities [line items] | |
Daily power required (mw) | MW | 75 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Disclosure of contingent liabilities [line items] | |||
Losses on litigation settlements | $ 145 | ||
Letters of credit outstanding, amount | $ 201 | $ 198 | |
Legal proceedings provision | |||
Disclosure of contingent liabilities [line items] | |||
Other provisions | $ 58 |