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News Releases

Pembina Announces 2009 Capital Spending Plans

    CALGARY, Dec. 17 /CNW/ - Pembina Pipeline Income Fund (TSX: PIF.UN,
PIF.DB.B) announces that the Board of Directors of Pembina Pipeline
Corporation ("Pembina"), its wholly owned subsidiary, has approved a $262
million capital spending plan for 2009.
    The 2009 budgeted capital expenditures are nearly 15% higher than 2008
estimates, primarily the result of increased spending to support growth
projects. Financing will be sourced from undrawn and additional credit
facilities, cash flow from operations and its recently reinstated Premium
Distribution and Distribution Reinvestment Plan.

    Highlights:

    -   Approximately $150 million, or about 57% of total spending, is
        targeted to be spent on the construction of the Nipisi and Mitsue
        Pipelines and related assets and approximately $9 million is
        projected to be directed to Pembina's oil sands operations, which
        will include new pipeline connections and various projects intended
        to improve the reliability and productivity of oil sands assets.
    -   Approximately $95 million is budgeted for new connections and
        upgrades, as well as further development of Pembina's southern
        Alberta pipeline assets including Cremona, Brazeau and Bonnie Glen
        and to support the safe, reliable operation of Pembina's conventional
        pipeline business.
    -   Approximately $9 million is expected to be spent funding midstream
        and marketing initiatives.

    "Pembina's 2009 capital spending plan will allow us to meet our
commitments to Unitholders and pursue strategic opportunities without
compromising our financial position. While we remain focused on our integrated
expansion strategy across our business units, we have the flexibility to
adjust our capital investment plans during these challenging economic times,"
said Bob Michaleski, Pembina's President and Chief Executive Officer.
    "Pembina's premium assets and diversified business model have generated
solid, stable and predictable results over several business cycles," said
Michaleski. "We believe that our 2009 capital spending plan, together with our
reliable cash flow, limited commodity price exposure and strong credit
profile, will enable us to preserve our financial strength, and maintain the
stable distribution to Unitholders - currently $1.56 per unit annualized."
Based on our projections, the $1.56 per unit distribution represents a payout
ratio of approximately 88 percent of distributable cash, as defined in
Pembina's public disclosure documents.
    For further details, please see the "Segmented Capital Expenditures"
spreadsheet on Pembina's website at www.pembina.com.

    Pembina Pipeline Income Fund (the "Fund") is among the leading issuers in
the Canadian energy infrastructure trust sector. Pembina's extensive network
of conventional liquids feeder pipelines, and growing presence in the oil
sands and midstream sectors, provide an integral service to the western
Canadian energy industry. This balanced portfolio of premium, long-life energy
infrastructure assets supports the stability and sustainability of the Fund.

    Forward-Looking Information and Statements

    This document contains certain forward-looking statements and information
that are based on the Fund's current expectations, estimates, projections and
assumptions in light of its experience and its perception of historical
trends. In some cases, forward-looking statements and information can be
identified by terminology such as "may", "will", "should", "expects",
"projects", "plans", "proposes", "anticipates", "targets", "believes",
"strives", "intends", "views", "indicates", "estimates", "assumes",
"continues", "maintains", "endeavors", "designs", "objective", "potential",
"analysis", "conditions" "schedule", and similar expressions.
    In particular, this document contains forward-looking statements and
information with respect to: future expansion, development, growth and
performance of the Fund's business and asset base; future demand for oil sands
transportation services; future levels of oil and natural gas development;
future levels, stability and sustainability of cash distributions to
Unitholders; and tax laws and tax treatment of distributions. These statements
and information are not guarantees of future performance and are subject to a
number of known and unknown risks and uncertainties, including, but not
limited to: the impact of competitive entities and pricing; reliance on key
industry partners, alliances and agreements; the strength and operations of
the oil and natural gas production industry and related commodity prices; the
continuation or completion of third party projects; regulatory environment;
tax laws and treatment; fluctuations in operating results; lower than
anticipated results of operations and accretion from the Fund's business
initiatives; reduced amounts of cash available for distributions to
Unitholders; the ability of Pembina to raise sufficient capital to complete
future projects and satisfy future commitments; construction delays; labour
and material shortages; and certain other risks detailed from time to time in
the Fund's public disclosure documents. The Fund believes the expectations and
material factors and assumptions reflected in these forward-looking statements
and information are reasonable as of the date hereof, but no assurance can be
given that these expectations, factors and assumptions will prove to be
correct. Undue reliance should not be placed on these forward-looking
statements and information as both known and unknown risks and uncertainties,
including those business risks stated above, may cause actual performance and
financial results in future periods to differ materially from any projections
of future performance or results expressed or implied by such forward-looking
statements and information. Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those predicted,
forecasted or projected. Such forward-looking statements and information are
expressly qualified by the above statements. The Fund does not undertake any
obligation to publicly update or revise any forward-looking statements or
information contained herein, except as required by applicable laws.
    Further, this document contains forward-looking statements and
information with respect to: ongoing utilization and future expansion,
development, growth and performance of the Fund's business and asset base;
future demand for oil sands transportation services; future levels of oil and
natural gas development in proximity to Pembina's pipelines and other assets
(which could be affected by, among other things, possible changes to
applicable royalty and tax regimes); the amount of future liabilities related
to environmental incidents; the availability of coverage under Pembina's
insurance policies (including in respect of Pembina's business interruption
insurance policy); future acquisitions, growth and growth potential in
Pembina's conventional pipelines, oil sands & heavy oil infrastructure and
midstream & marketing operations, potential revenue and cash flow enhancement;
future cash flows; maintenance of operating margins; additional throughput
potential on additional connections and other initiatives on the conventional
system; expected project start-up and construction dates; future
distributions, payout ratios and taxation of distributions; future financing
capability and sources; negative credit rating adjustments; and the expansion
of midstream services.    These forward-looking statements and information are
not guarantees of future performance and are subject to a number of known and
unknown risks and uncertainties, including, but not limited to: the impact of
competitive entities and pricing; reliance on key industry partners, alliances
and agreements; the strength and operations of the oil and natural gas
production industry and related commodity prices; the continuation or
completion of third party projects; regulatory environment and inability to
obtain required regulatory approvals (including in respect of the Mitsue and
Nipisi pipelines and related facilities); tax laws and treatment; fluctuations
in operating results; lower than anticipated results of operations and
accretion from the Fund's business initiatives; reduced amounts of cash
available for distributions to Unitholders; the ability of Pembina to raise
sufficient capital (or to raise capital on favourable terms) to complete
future projects and satisfy future commitments, including the construction of
the Nipisi and Mitsue Pipelines and related facilities; construction costs of
the Mitsue and Nipisi Pipelines and related facilities, construction delays;
labour and material shortages; and certain other risks detailed from time to
time in the Fund's public disclosure documents. The Fund believes the
expectations and material factors and assumptions reflected in these
forward-looking statements and information are reasonable as of the date
hereof, but no assurance can be given that these expectations, factors and
assumptions will prove to be correct. Undue reliance should not be placed on
these forward-looking statements and information as both known and unknown
risks and uncertainties, including those business risks stated above, may
cause actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forward-looking statements and information.
    Accordingly, readers are cautioned that events or circumstances could
cause results to differ materially from those predicted, forecasted or
projected. Such forward-looking statements and information are expressly
qualified by the above statements. The Fund does not undertake any obligation
to publicly update or revise any forward-looking statements or information
contained herein, except as required by applicable laws. Management of the
Fund approved the financial outlook contained herein as of the date of this
press release. The purpose of the financial outlook contained herein is to
give the reader an indication of the potential effects to Unitholders of a
possible conversion of Pembina to corporate form. Readers should be aware that
the information contained in the financial outlook contained herein may not be
appropriate for other purposes.

    %SEDAR: 00008906E

For further information: Glenys Hermanutz, Vice President, Corporate
Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail:
investor-relations@pembina.com