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News Releases

Pembina Reports Record 2007 Results

    CALGARY, March 6 /CNW/ - Pembina Pipeline Income Fund ("Pembina")
announced today that its Board of Directors has approved its audited
consolidated financial statements for the year ended December 31, 2007.
Copies of the audited consolidated financial statements and accompanying
management's discussion and analysis, which provide a detailed explanation of
Pembina's results for the year ended December 31, 2007, have been filed on
Pembina's SEDAR profile at www.sedar.com and are posted on the Pembina's
website at www.pembina.com.

    2007 highlights:

    -   The ongoing expansion and development of all three of Pembina's
        business segments generated record results in 2007 and position the
        Fund for continuing success in future years.

    -   Cash flow from operations totaled $189.5 million during 2007
        ($1.52 per Trust Unit), a year-over-year increase of 31 percent.

    -   Distributed cash rose by $36.6 million or 25.7 percent, to
        $178.9 million in 2007, or $1.37 per Trust Unit in 2007 compared to
        $1.165 per Trust Unit in 2006.

    -   Revenue of $389.7 million was recorded in 2007, a 16 percent increase
        over 2006.

    -   Operating expenses totaled $129.6 million for 2007 up from
        $120.6 million in 2006, reflecting expanded operations and integrity
        programs together with regional cost inflation.

    -   Pembina achieved record net operating income of $260.1 million during
        2007, a 21 percent increase over the prior year.

    -   General and administrative costs were $30.6 million, an increase of
        $5.6 million over the previous year. 2007 general and administrative
        expenses represented 11.8 percent of net operating income and
        7.9 percent of revenue, consistent with the prior year.

    -   Net earnings totaled $142.3 million during the year, a 60 percent
        increase over the prior year.

    -   Development capital expenditures totaled $300.3 million in 2007:
        $212.7 million related to oil sands infrastructure, $77.1 million was
        expended on the conventional pipelines and $10.5 million was
        incurred in the Midstream Business.

    -   Construction of the Horizon Pipeline is on schedule for completion in
        mid-2008, with $265 million in capital spending on this project
        incurred to the end of 2007 and a further estimated $135 million to
        be spent in later years.

    -   Pembina maintains a strong balance sheet with a total aggregate
        debt to enterprise value of 26.2 percent at the end of 2007.

    Fourth quarter highlights:

    -   Cash distributions to Unitholders totaled $47.7 million or $0.36 per
        Trust Unit during the quarter, a 26.5 percent increase over the same
        quarter of the prior year.

    -   Pembina's conventional pipelines transported an average of
        450,100 bpd during the quarter and 2007 exit volumes rose to
        454,300 bpd.

    -   Pembina generated a record $101.2 million in revenue during the
        quarter.

    -   Net operating income for the quarter was $65.3 million, a 17.5
        percent increase over the prior year.

    -   Net earnings for the fourth quarter of 2007 were $35.0 million
        compared to $27.2 million in the prior year.

    -   Pembina announced a $223.0 million capital expenditure program for
        2008.

    Conventional Pipelines

    -------------------------------------------------------------------------
                                              2007                2006
    -------------------------------------------------------------------------
    (in millions of dollars,
     except where noted)               Alberta     BC(1)   Alberta     BC(1)
    -------------------------------------------------------------------------
    Average throughput (mbbls/day)       422.7      24.4     425.8      22.7
    Revenue                             $216.4     $32.7    $195.2     $27.8
    Operating expenses                    79.7      17.6      72.1      17.8
    Net operating income(2)              136.7      15.1     123.1      10.0
    Capital expenditures(3)               72.1       5.0      41.1      13.7
    Operating expenses ($/bbl)            0.52      0.89      0.46      0.88
    Average revenue ($/bbl)              $1.40     $1.66     $1.26     $1.38
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents volume transported on the Western system only. BC Volume
        transported east on BC pipelines is included in Alberta pipelines
        total. Revenue, operating expenses and net operating income include
        both Western and BC gathering system results.
    (2) Refer to "Non-GAAP Measures" below.
    (3) Maintenance capital in 2006 has been reclassified to development
        capital for comparative purposes. Capital expenditures includes
        capitalized interest less recoveries.

    Throughput on the Alberta pipelines averaged 422,700 bpd in 2007, a
slight decrease from the 2006 average however throughput rose to 454,300 bpd
for the last month of 2007. The Alberta pipelines generated revenue of $216.4
million in 2007. The completion of the Drayton Valley product segregation
facilities in late 2007 contributed to higher revenues on the Alberta systems
together with rising volumes from recent connections and higher average tolls.
Volumes transported on the Western system and BC gathering systems averaged
24,400 bpd and 29,700 bpd respectively. Revenue generated on the BC pipelines
of $32.7 million in 2007 was a 17.6 percent increase over 2006 as a result of
a higher revenue requirement on the provincially regulated BC systems. Pembina
maintains a positive outlook for its conventional pipeline systems in 2008.
Pembina believes that a number of new connections and facility upgrades
currently in development, including the planned completion in early 2008 of
the $25 million Peace system product segregation facilities, may generate
year-over-year increases in cash flow contribution.

    Oil Sands Infrastructure
    -------------------------------------------------------------------------
    (in millions of dollars, except where noted)            2007(1)   2006(1)
    -------------------------------------------------------------------------
    Contracted capacity (mbbls/day)                          525.0     389.0
    Revenue                                                  $61.7     $62.1
    Operating expenses                                        23.7      24.8
    Net operating income(2)                                   38.0      37.3
    Capital expenditures                                     212.7     101.8
    Operating expenses ($/bbl)(3)                             0.21      0.26
    Average revenue ($/bbl)(3)                               $0.54     $0.65
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Oil sands revenue is contract-based and independent of utilization
        rates, therefore oil sands volumes reported are contracted capacity.
    (2) Refer to "Non-GAAP Measures" below.
    (3) Calculation uses actual average throughput.

    During 2007,the fully contracted Syncrude Pipeline transported an average
of 310,800 bpd and generated revenue of $57.1 million. The Cheecham Lateral,
completed in late 2006, contributed $4.7 million in revenue during 2007.
Pembina also continued the development its oil sands infrastructure during the
year. Two of three phases of construction on the Horizon Pipeline were
completed during 2007 and project is scheduled for completion by July 1, 2008.
For 2008, Pembina expects revenue from the oil sands operations to increase on
the completion of the Horizon Pipeline.

    Midstream Business
    -------------------------------------------------------------------------
    (in millions of dollars, except where noted)              2007      2006
    -------------------------------------------------------------------------
    Revenue(1)                                              $ 78.9    $ 50.7
    Operating expenses                                         8.6       5.9
    Net operating income(2)                                   70.3      44.8
    Capital expenditures(3)                                 $ 10.5    $ 12.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Net of $115.1 million in product purchase expense for 2007 (2006:
        $5.1 million)
    (2) Refer to "Non-GAAP Measures " below.
    (3) Maintenance capital in 2006 has been reclassified to development
        capital for comparative purposes.

    Total net operating income generated by the midstream business in 2007
was $70.3 million, a 57 percent increase over the prior year. The bulk of the
increase resulted from the ongoing development of terminalling, storage and
hub services which are currently offered on the Swan Hills, Cremona and
Drayton Valley pipeline systems. Revenue contributed by the Fort Saskatchewan
Ethylene Storage Facility in 2007 was consistent with the prior year. Returns
generated by Pembina's midstream business have risen dramatically over the
past three years and, should current market conditions persist, Pembina
expects this trend to continue in 2008 as new services are introduced.

    2007 Highlights and Selected Information(1)(2)

    Years ended December 31 (in millions of dollars, except per Trust Unit
    amounts and where noted)

                                                    2007      2006      2005
    -------------------------------------------------------------------------
    Revenue(3)                                  $  389.7  $  335.8  $  290.5
    Operating expenses                             129.6     120.6     102.7
    -------------------------------------------------------------------------
    Net operating income(2)                        260.1     215.2     187.8
    Interest on long-term debt                      29.5      24.9      23.9
    Interest on convertible debentures               4.8       7.7      16.6
    Net earnings before taxes                      119.8      64.6      42.8
    Net earnings                                   142.3      88.9      70.4
    Net earnings per Trust Unit - basic             1.09      0.73      0.65
    Net earnings per Trust Unit - diluted           1.06      0.73      0.65
    EBITDA(2)                                      220.5     184.2     169.5
    Cash flow from operations                      189.5     143.9     112.4
    Distributable cash(2)                          188.9     148.2     123.4
    Distributed cash(2)                            178.9     142.3     113.5
    Distributed cash per Trust Unit(2)              1.37     1.165      1.05
    Trust Units outstanding (weighted average,
     thousands of Units)                         130,513   122,094   108,108
    Trust Units outstanding (end of year,
     thousands of Units)                         132,542   126,218   113,897
    Total enterprise value(2)                    3,179.2   2,655.1   2,500.2
    Capital expenditures                           300.3     168.9      79.5
    Total assets                                 1,966.8   1,676.2   1,559.1
    Total long-term financial liabilities          976.3     752.6     763.8
    -------------------------------------------------------------------------
    (1) Pembina Pipeline Income Fund distributes cash generated by the
        pipeline operations of Pembina Pipeline Corporation and other
        operating subsidiaries.
    (2) Refer to "Non-GAAP Measures" below.
    (3) Net of product purchases of $115.1 million in 2007; $5.1 million in
        2006; $nil in 2005.

    Non-GAAP Measures

    Throughout this press release the Fund and Pembina use the term
"distributable cash" to refer to the amount of cash that is to be available
for distribution to the Fund's Unitholders. Distributable cash is used as a
financial measure as it adjusts for timing differences in non-cash working
capital and for non-cash items charged to earnings that the Fund considers to
be unavailable for distribution. "Distributable cash" is not a measure
recognized by Canadian generally accepted accounting principles (GAAP).
Therefore, distributable cash of the Fund may not be comparable to similar
measures presented by other issuers, and investors are cautioned that
distributable cash should not be construed as an alternative to net earnings,
cash from operating activities or other measures of financial performance
calculated in accordance with GAAP as an indicator of the Fund's performance.
Further, the use of terms "EBITDA" (earnings before interest, taxes,
depreciation and amortization), "net operating income" (revenues less
operating expenses), "payout ratio" (the Fund's cash distributions to
Unitholders divided by its distributable cash), "notional reserve" (the
difference between the Fund's distributable cash and the cash distributions to
Unitholders in a given period) and "enterprise value" (the Fund's market
capitalization plus long-term debt) are not recognized under Canadian GAAP.
Management believes that in addition to earnings, EBITDA, net operating
income, payout ratio and enterprise value are useful measures. They provide an
indication of the results generated by the Fund's business activities prior to
consideration of how activities were financed, how the results are taxed and
measured and, in the case of enterprise value, the aggregate value of the und.
Investors should be cautioned, however, that EBITDA, net operating income,
payout ratio and enterprise value should not be construed as an alternative to
net earnings, cash flows from operating activities or other measures of
financial performance determined in accordance with GAAP as an indicator of
the Fund's performance. Furthermore, these measures may not be comparable to
similar measures presented by other issuers.

    Abbreviations

    bpd:      barrels per day
    mbbls/d:  thousands of barrels per day
    $/bbl:     dollars per barrel of pipeline throughput

    Webcast

    A live internet broadcast of Pembina's conference call is scheduled for
March 7, 2008 at 10:00 a.m. Calgary (12:00 p.m. Eastern, 9:00 a.m. Pacific).
Those wishing to access the webcast are invited to visit Pembina's website
located at www.pembina.com, or the host site at www.newswire.ca/webcast. An
archive of the call will be available on-line for 90 days following the
broadcast date.

    Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB.B) 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. Information on the Pembina Pipeline Income Fund is
available on the Company's website at www.pembina.com.

    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", "proposed", "anticipates", "targets", "believes",
"estimates", "continue", "designed", "objective", "potential" 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.

    %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