Pembina Pipeline Corp. U.S. chief executive officer unexpectedly stepped down after a year of growth that helped prop up the Calgary-based company’s stock price.
Mick Dilger had led Pembina since 2014 and expanded the company through a series of acquisitions. A bid for rival Inter Pipeline fell through this year, but Pembina made up for its trouble with a $350 million break fee.
Pembina, known for its oil and gas pipelines, processing plants and terminals in Canada and the United States, said Mr. Dilgar is going to pursue other opportunities. Sarah Schwann, Pembina’s vice president of foreign affairs, declined to provide further details.
The company named Scott Burroughs interim CEO as it searches for a full-time replacement. Mr. Burroughs has been Chief Financial Officer at Pembina for seven years.
Mr. Dilgar’s departure appeared cordial. He and the company had complimentary things to say about each other in a news release Monday.
“I am extremely proud of the Pembina team, the culture we have created, and what we have accomplished together,” Mr. Dilgar said in the statement. “When I joined Pembina, it was a $2.5 billion entity in a single business and has become a nearly $35 billion entity, operating safely and successfully in multiple jurisdictions and multiple businesses, and more avenues.” is in.”
Chairman Randall Findlay commended Mr. Dilgar for his “leadership in a low-carbon economy” along with the company’s growth and environmental, social and governance measures during his tenure.
The company said the change on top would not affect its financial goals, which include its outlook for earnings before interest, taxes, depreciation and amortization of $3.3 billion to $3.4 billion this year.
Shares of Pembina fell nearly 2.7 percent to $40.50 on the Toronto Stock Exchange following the announcement. They were up 38 per cent this year.
“We are surprised by the timing of the announcement as well as the lack of a defined transition period, which is typically measured in months in other instances in the sector,” wrote Robert Kwan, analyst at RBC Dominion Securities. A note to customers. However, Mr. Dilgar’s statement in the release and the company’s reiteration of its goals rested that there were no material financial or operational problems, Mr. Kwan said.
Pembina expanded its size and scope under Mr. Dilgar. He joined Veresen Inc. in 2017. Led the company through the $5.8 billion acquisition of K and the $4.4 billion acquisition of Kinder Morgan Canada two years later.
This year Pembina has been active on many fronts. It signed agreements with indigenous groups to advance bidding for the Trans Mountain oil pipeline, which is currently owned by the federal government, and a proposal for a liquefied natural gas plant called Cedar near Kitimat, BC.
The alliance with the Western Indigenous Pipeline Group and the Hasla First Nation placed Pembina at the center of efforts by indigenous communities to take more control of their economic prospects through major energy projects – an initiative that remains controversial among some First Nations.
Hasla’s chief councilor Crystal Smith said she did not expect any changes to the Cedar LNG partnership as a result of Mr Dilgar’s departure.
“Every member of the team is important in relation to the success of the project. But it is the commitment of the team that is going to make this project a success and both Hasla and Pembina have the same commitment,” said Ms. Smith.
Pembina has worked closely with TC Energy Corp. in planning a major carbon transportation and sequestration network in Alberta.
Pembina struck a deal in May to be Inter’s white knight in an $8.3 billion deal, after Inter Pipeline was targeted by an unsolicited takeover bid from Brookfield Infrastructure Partners. In the end, Inter agreed to accept a sweet offer from Brookfield, allowing Pembina to pocket the hefty break fee.
Last week, Pembina announced that it has set a target to reduce its carbon emissions by 30 percent by 2030 from 2019 levels. The company said it would incorporate Target into all of its business decisions.
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