PEMBINA PIPELINE CORPORATION · nature or description of the Corporation, and (iii) any combination...

PEMBINAPIPELINECORPORATION

ANNUALINFORMATIONFORM

FortheYearEndedDecember31,2020

February25,2021

Page

GLOSSARYOFTERMS.......................................................................................................................................................................... -1-

ABBREVIATIONSANDCONVERSIONS.................................................................................................................................................. -15-

NON-GAAPMEASURES........................................................................................................................................................................ -16-

FORWARD-LOOKINGSTATEMENTSANDINFORMATION...................................................................................................................... -17-

CORPORATESTRUCTURE..................................................................................................................................................................... -20-

GENERALDEVELOPMENTSOFPEMBINA.............................................................................................................................................. -21-

DESCRIPTIONOFPEMBINA'SBUSINESSANDOPERATIONS.................................................................................................................. -27-

PurposeofPembina...................................................................................................................................................................... -27-

OverviewofPembina'sBusiness................................................................................................................................................... -27-

PipelinesDivision........................................................................................................................................................................... -29-

FacilitiesDivision........................................................................................................................................................................... -37-

Marketing&NewVenturesDivision............................................................................................................................................. -41-

Seasonality..................................................................................................................................................................................... -43-

OTHERINFORMATIONRELATINGTOPEMBINA'SBUSINESS................................................................................................................. -44-

OperatingManagementSystem.................................................................................................................................................... -44-

IntegrityManagement................................................................................................................................................................... -44-

EmergencyManagementProgram................................................................................................................................................ -45-

SecurityManagementProgram.................................................................................................................................................... -45-

PipelineControlManagementProgramandInformationandCommunicationSystems............................................................ -46-

SafetyProgram.............................................................................................................................................................................. -46-

EnvironmentalMattersandEnvironmentalStewardship............................................................................................................. -46-

DamagePreventionandPublicAwarenessPrograms................................................................................................................... -47-OperationsandMaintenance-OperatorQualificationandPreventativeMaintenanceManagementPrograms...................... -47-

RegulatoryFinancialProgramandIndustryRegulation................................................................................................................ -47-

CorporateGovernance.................................................................................................................................................................. -50-

Social,CommunityandIndigenousEngagement.......................................................................................................................... -53-

IndemnificationandInsurance...................................................................................................................................................... -55-

Employees..................................................................................................................................................................................... -55-

CANADIANOILANDGASINDUSTRY.................................................................................................................................................... -56-

DESCRIPTIONOFTHECAPITALSTRUCTUREOFPEMBINA..................................................................................................................... -58-

DIVIDENDSANDDISTRIBUTIONS......................................................................................................................................................... -66-

MARKETFORSECURITIES.................................................................................................................................................................... -68-

DIRECTORSANDOFFICERS.................................................................................................................................................................. -70-

AUDITCOMMITTEEINFORMATION..................................................................................................................................................... -73-

RISKFACTORS..................................................................................................................................................................................... -75-

INTERESTOFMANAGEMENTANDOTHERSINMATERIALTRANSACTIONS........................................................................................... -93-

MATERIALCONTRACTS........................................................................................................................................................................ -93-

LEGALPROCEEDINGSANDREGULATORYACTIONS.............................................................................................................................. -93-

REGISTRARANDTRANSFERAGENT..................................................................................................................................................... -93-

INTERESTSOFEXPERTS........................................................................................................................................................................ -93-

ADDITIONALINFORMATION................................................................................................................................................................ -93-

APPENDIX"A"-AUDITCOMMITTEECHARTER..................................................................................................................................... -A-1-

TABLEOFCONTENTS

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GLOSSARYOFTERMS

TermsusedinthisAnnualInformationFormandnototherwisedefinedhavethemeaningssetforthbelow:

"2017MTNProspectus"means the final short formbase shelf prospectus filedwith the securities commissions or similarregulatoryauthoritiesineachoftheprovincesofCanadaonJuly27,2017allowingPembinatoofferandissue,fromtimetotime, PembinaMediumTermNotesof up to$3,000,000,000aggregateprincipal amountor, if offered at anoriginal issuediscount,aggregateofferingprice,ofMediumTermNotes (or theequivalent thereof inoneormore foreigncurrenciesorcomposite currencies, including U.S. dollars) during the 25 month period that the 2017 MTN Prospectus is valid, whichMediumTermNotesmaybeofferedatratesofinterest,pricesandontermstobedeterminedbasedonmarketconditionsatthetimeofthesaleandsetforthinoneormoreshelfprospectussupplementorpricingsupplements;

"2019 Base Shelf Prospectus" means the final short form base shelf prospectus filed with the securities commissions orsimilarregulatoryauthoritiesineachoftheprovincesofCanadaonAugust30,2019allowingPembinatoofferandissue,fromtime to time: (i)CommonShares; (ii)ClassAPreferredShares; (iii)warrants topurchaseCommonShares; (iv) subscriptionreceiptsofPembina;and(v)unitscomprisinganycombinationoftheforegoing(togetherwiththeforegoing,collectively,the"2019Securities")ofupto$3,000,000,000aggregateinitialofferingpriceof2019Securities(ortheequivalentthereofinoneormore foreigncurrenciesorcompositecurrencies, includingU.S.dollars)during the25monthperiod that the2019BaseShelfProspectusisvalid,which2019Securitiesmaybeofferedseparatelyortogether,inamounts,atpricesandontermstobedeterminedbasedonmarketconditionsatthetimeofthesaleandsetforthinoneormoreshelfprospectussupplements;

"2019MTNProspectus"means the final short formbase shelf prospectus filedwith the securities commissions or similarregulatoryauthoritiesineachoftheprovincesofCanadaonAugust30,2019allowingPembinatoofferandissue,fromtimetotime,PembinaMediumTermNotesofupto$5,000,000,000aggregateprincipalamountor,ifofferedatanoriginalissuediscount,aggregateofferingprice,ofMediumTermNotes (or theequivalent thereof inoneormore foreigncurrenciesorcomposite currencies, including U.S. dollars) during the 25 month period that the 2019 MTN Prospectus is valid, whichMediumTermNotesmaybeofferedatratesofinterest,pricesandontermstobedeterminedbasedonmarketconditionsatthetimeofthesaleandsetforthinoneormoreshelfprospectussupplementorpricingsupplements;

"2020 Base Shelf Prospectus" means the final short form base shelf prospectus filed with the securities commissions orsimilarregulatoryauthoritiesineachoftheprovincesofCanadaonDecember30,2020allowingPembinatoofferandissue,fromtimetotime:(i)ClassAPreferredShares,(ii)bonds,debentures,notesorotherevidenceofindebtednessofanykind,natureordescriptionoftheCorporation,and(iii)anycombinationoftheforegoing(togetherwiththeforegoing,collectively,the"2020Securities")ofuptoanaggregateinitialofferingpriceof$2,000,000,000(ortheequivalentthereofinoneormoreforeign currencies or composite currencies, including U.S. dollars) during the 25 month period that the 2020 Base ShelfProspectus isvalid,which2020Securitiesmaybeofferedseparatelyortogether, inamounts,atpricesandontermstobedeterminedbasedonmarketconditionsatthetimeofthesaleandsetforthinoneormoreshelfprospectussupplements;

"ABCA"means theBusiness Corporations Act (Alberta), R.S.A. 2000, c. B-9, as amended from time to time, including theregulationspromulgatedthereunder;

"ABSA"meanstheAlbertaBoilersSafetyAssociation;

"AEGS" has themeaning ascribed thereto under "Description of Pembina's Business and Operations – Pipeline Division –TransmissionAssets;

"AEGSNotes"hasthemeaningascribedtheretounder"GeneralDevelopmentsoftheBusiness–Developmentsin2018";

"AEP"meansAlbertaEnvironmentandParks,aministryoftheGovernmentofAlberta;

"AER"meansAlbertaEnergyRegulator;

"Alberta Crude Terminal" has the meaning ascribed thereto under "Description of Pembina's Business and Operations –PipelinesDivision–OilSandsandHeavyOilAssets";

"AllianceCanada"meansAlliancePipelineLimitedPartnership;

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"AlliancePipeline"has themeaningascribed theretounder "DescriptionofPembina'sBusinessandOperations–PipelinesDivision–TransmissionAssets";

"AllianceU.S."meansAlliancePipelineL.P.;

"AUC"meanstheAlbertaUtilitiesCommission;

"AuxSable"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–MarketingActivities";

"AuxSableCanada"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–MarketingActivities";

"AuxSableU.S."hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–MarketingActivities";

"BaseLineTerminal"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"BCEAO"meanstheBritishColumbiaEnvironmentalAssessmentOffice;

"BCOGC"meanstheBritishColumbiaOilandGasCommission;

"BCUC"meanstheBritishColumbiaUtilitiesCommission;

"Board"or"BoardofDirectors"meanstheboardofdirectorsofPembinafromtimetotime;

"BrazeauPipeline"has themeaningascribed theretounder "DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"CanadianDiluentHub"or"CDH"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"CER"meanstheCanadaEnergyRegulator;

"ChannahonFacility"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVentures–MarketingActivities";

"CheechamLateral"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets;

"Chevron"meansChevronCanadaLimited;

"CICA"meanstheCanadianInstituteofCharteredProfessionalAccountants;

"CKPC" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – Marketing & NewVentures–NewVentures";

"ClassAPreferredShares"meansclassApreferredsharesofPembina, issuable inseries,and,wherethecontextrequires,includestheSeries1ClassAPreferredShares,theSeries2ClassAPreferredShares,theSeries3ClassAPreferredShares,theSeries4ClassAPreferredShares,theSeries5ClassAPreferredShares,theSeries6ClassAPreferredShares,theSeries7ClassAPreferredShares,theSeries8ClassAPreferredShares,theSeries9ClassAPreferredShares,theSeries10ClassAPreferredShares,theSeries11ClassAPreferredShares,theSeries12ClassAPreferredShares,theSeries13ClassAPreferredShares,the Series14ClassAPreferredShares, the Series15ClassAPreferredShares, the Series16ClassAPreferredShares, theSeries17ClassAPreferredShares,theSeries18ClassAPreferredShares,theSeries19ClassAPreferredShares,theSeries20ClassAPreferredShares,theSeries21ClassAPreferredShares,theSeries22ClassAPreferredShares,theSeries23ClassAPreferredShares,theSeries24ClassAPreferredShares,theSeries25ClassAPreferredShares,theSeries26ClassAPreferredSharesandtheSeries2021-AClassAPreferredShares;

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"ClassBPreferredShares"meansclassBpreferredsharesofPembina;

"Cochin Pipeline" has themeaning ascribed thereto under "Description of Pembina's Business and Operations – PipelinesDivision–TransmissionAssets";

"CochinU.S. Acquisition" has themeaning ascribed thereto under "General Developments of Pembina –Developments in2019";

"CommonShares"meansthecommonsharesofPembina;

"Company" or "Pembina"means Pembina Pipeline Corporation, an ABCA corporation, and, unless the context otherwiserequires,includesitssubsidiaries;

"condensate"meansahydrocarbonmixtureconsistingprimarilyofpentanesandheavierhydrocarbonliquids;

"COVID-19" means the novel coronavirus, the global outbreak of which was declared a pandemic by the World HealthOrganizationinMarch2020;

"CRP"meansCutbankRidgePartnership,apartnershipbetweenOvintivandCutbankDawsonGasResourcesLtd.,asubsidiaryofMitsubishiCorporation;

"CutbankComplex"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"CutbankGasPlant"meansPembina'sshallowcutsweetgasprocessingfacilitylocatednearGrandePrairie,Alberta;

"Dawson Assets" has themeaning ascribed thereto under "Description of Pembina's Business and Operations – FacilitiesDivision–GasServices";

"DBRS"meansDBRSLimited;

"deepcut"meansethane-plusextractiongasprocessingcapabilities;

"Drayton Valley Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations –PipelinesDivision–ConventionalAssets";

"DuvernayComplex"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–OverviewofPembina'sBusiness–FacilitiesDivision–GasServices";

"DuvernayFieldHub"meansPembina's30MMcf/dgas,10mbpdcondensateand5mbpdwaterhandlingandcondensatestabilizationfacilitylocatednearFoxCreek,Alberta;

"DuvernayI"meansPembina's92percentinterestintheDuvernayI100MMcf/dshallowcutgasprocessingfacilitylocatednearFoxCreek,Alberta;

"DuvernayII"meansPembina's92percentinterestintheDuvernayII100MMcf/dshallowcutgasprocessingfacilitylocatednearFoxCreek,Alberta;

"DuvernayIII"meansPembina's92percentinterestintheDuvernayIII100MMcf/dshallowcutgasprocessingfacilitylocatednearFoxCreek,Alberta;

"Duvernay Sour Gas Treating Facilities" means Pembina's sour gas sweetening system, amine regeneration and acidincinerationfacilitylocatednearFoxCreek,Alberta;

"EastNGLSystem"has themeaningascribed theretounder "DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"ECCC"meansEnvironmentandClimateChangeCanada,adepartmentoftheGovernmentofCanada;

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"EDGAR"meanstheElectronicDataGathering,AnalysisandRetrievalsystem;

"EdmontonSouthRailTerminal"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"EdmontonSouthTerminal"has themeaningascribed theretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"EdmontonTerminals"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"Empress"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"EmpressCo-generationFacility"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"Empress Pipeline" is an approximately 25 km pipeline of buried HVP ethane pipeline and associated riser facilities thatconnect the Alberta ethane market serviced by the AEGS to the Burstall ethane cavern storage facilities in SouthernSaskatchewan;

"ENT" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – Pipelines Division –ConventionalAssets";

"equityaccountedinvestees"meansPembina'sworkinginterestinAlliancePipeline,AuxSable,RubyPipeline,CKPC,VeresenMidstream,GrandValleyILimitedPartnershipandFortCorp;

"ESG"means environmental, social and governance, the three central factors inmeasuring the sustainability and societalimpactofacompany;

"FERC"meanstheUnitedStatesFederalEnergyRegulatoryCommission;

"FinancialStatements"meansPembina'sauditedconsolidatedfinancialstatementsfortheperiodendedDecember31,2020;

"Form40-F"meansPembina'sannualreportonForm40-FforthefiscalyearendedDecember31,2020filedwiththeSEC;

"FortCorp"means, collectively, Fort SaskatchewanEthyleneStorageCorporationandFort SaskatchewanEthyleneStorageLimitedPartnership;

"FoxCreek"referstothePeacePipelinepumpstationandterminallocatednearFoxCreek,Alberta;

"Fund"hasthemeaningascribedtheretounder"CorporateStructure–Name,AddressandFormation";

"GAAP"means thegenerallyacceptedaccountingprinciplesestablishedby theCICAoranysuccessor theretowhichare ineffectfromtimetotimeinCanada;

"GHG"meansgreenhousegas;

"Gordondale"referstothePeacePipelinepumpstationandterminallocatednearGordondale,Alberta;

"GrandValley"has themeaningascribed theretounder "DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–TransmissionAssets";

"HOP" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – Marketing & NewVenturesDivision–MarketingActivities";

"HorizonPipeline"has themeaning ascribed theretounder "Descriptionof Pembina'sBusinessandOperations –PipelinesDivision–OilSandsandHeavyOilAssets";

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"HorizonProject"meanstheHorizonOilSandsProjectlocatedapproximately70kmnorthofFortMcMurray,Alberta;

"HSE"hasthemeaningascribedtheretounder"OtherInformationRelatingtoPembina'sBusiness–CorporateGovernance";

"HVP"meanshighvapourpressure;

"HytheGasPlant"meansVeresenMidstream'ssweetandsourgasprocessingfacilitylocatednearGrandePrairie,Alberta;

"ICA"meanstheInterstateCommerceActof1887(UnitedStates);

"IFRS" means the International Financial Reporting Standards, including International Accounting Standards andInterpretations, together with their accompanying documents, which are set by the International Accounting StandardsBoard,the independentstandard-settingbodyofthe InternationalAccountingStandardsCommitteeFoundation(the"IASCFoundation"), and the International Financial Reporting Interpretations Committee, the interpretative body of the IASCFoundation, but only to the extent the same are adopted by the CICA as GAAP in Canada and then subject to suchmodificationstheretoasareagreedbyCICA;

"Imperial"meansImperialOilLimited;

"Jet FuelPipeline"has themeaningascribed theretounder "Descriptionof Pembina'sBusinessandOperations–PipelinesDivision–TransmissionAssets";

"JordanCove"meanstheproposeddevelopment,constructionandoperationofaliquefiednaturalgasproductionandexportfacilityandrelatedinfrastructureonthewestcoastoftheU.S.;

"Kakwa"referstothePeacePipelinepumpstationandterminallocatedwestoftheKakwaRiverDeepCutPlant;

"KakwaGasPlant"meansPembina's50percentinterestintheshallowcutsweetgasprocessingfacilitylocatednearGrandePrairie,Alberta;

"KakwaRiverDeepCutPlant"meansPembina's raw todeep cut sour gas processing facility locatednearGrandePrairie,Alberta;

"Kakwa River Shallow Cut Plant"means Pembina's shallow cut sweet gas processing facility located near Grande Prairie,Alberta;

"Keyera"meansKeyeraCorporation;

"KinderAcquisition"hasthemeaningascribedtheretounder"GeneralDevelopmentsofPembina–Developmentsin2019";

"Kinder Morgan Canada Acquisition" has the meaning ascribed thereto under "General Developments of Pembina –Developmentsin2019";

"KML"meansPKMCanadaLimited,formerlyKinderMorganCanadaLimited;

"KMLPreferredShares"means,collectively,theKMLSeries1PreferredShares,theKMLSeries2PreferredShares,theKMLSeries3PreferredSharesandtheKMLSeries4PreferredShares;

"KMLRestrictedVotingShares"meanstherestrictedvotingsharesinthecapitalofKML;

"KML Series 1 Preferred Shares"means the cumulative redeemableminimum rate reset preferred shares, series 1 in thecapitalofKML;

"KMLSeries2PreferredShares"meansthecumulativeredeemablefloatingratepreferredshares,series2inthecapitalofKML,whichwereissuableonconversionoftheKMLSeries1PreferredShares;

"KML Series 3 Preferred Shares"means the cumulative redeemableminimum rate reset preferred shares, series 3 in thecapitalofKML;

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"KMLSeries4PreferredShares"meansthecumulativeredeemablefloatingratepreferredshares,series4inthecapitalofKML,whichwereissuableonconversionoftheKMLSeries3PreferredShares;

"KMLSpecialVotingShares"meansthespecialvotingsharesinthecapitalofKML;

"KMLVotingShares"means,collectively,KMLRestrictedVotingSharesandtheKMLSpecialVotingShares;

"KUFPEC"meansKuwaitForeignPetroleumExplorationCompany;

"LaGlace"referstothePeacePipelinepumpstationandterminallocatednearLaGlace,Alberta;

"Lator"referstothePeacePipelinepumpstationandterminallocatedeastoftheKakwaRiverDeepCutPlant;

"LGS" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – Pipelines Division –ConventionalAssets";

"LPG"meansliquifiedpetroleumgas;

"MD&A"means themanagement's discussion and analysis of the financial and operating results of Pembina for the yearended December 31, 2020, an electronic copy of which is available on Pembina's profile on the SEDAR website atwww.sedar.com, in Pembina's annual report on Form 40-F filed on the EDGAR website at www.sec.gov, or atwww.pembina.com;

"MediumTermNotes"means,collectively,thePembinaMediumTermNotesandtheVeresenMediumTermNotes;

"MediumTermNotes,Series1"meansthe$250millionaggregateprincipalamountofmediumtermnotesofPembinaissuedMarch29,2011.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Medium TermNotes, Series 1A"means the $150million aggregate principal amount ofmedium term notes of VeresenissuedNovember22,2011andassumedbyPembinaonOctober2,2017.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series2"meansthe$450millionaggregateprincipalamountofmediumtermnotesofPembinaissuedOctober22,2012.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Medium Term Notes, Series 3" means, collectively, the $200million, $150million and $100million aggregate principalamount ofmedium term notes of Pembina issued April 30, 2013, February 2, 2015 and June 16, 2015, respectively. See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series3A"meansthe$50millionaggregateprincipalamountofmediumtermnotesofVeresenissuedMarch14,2012andassumedbyPembinaonOctober2,2017.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series4"meansthe$600millionaggregateprincipalamountofmediumtermnotesofPembinaissuedApril4,2014.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Medium TermNotes, Series 4A"means the $200million aggregate principal amount ofmedium term notes of VeresenissuedJune13,2014andassumedbyPembinaonOctober2,2017.See"Descriptionof theCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series5"meansthe$450millionaggregateprincipalamountofmediumtermnotesofPembinaissuedFebruary2,2015.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Medium TermNotes, Series 5A"means the $350million aggregate principal amount ofmedium term notes of VeresenissuedNovember7,2016andassumedbyPembinaonOctober2,2017.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

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"MediumTermNotes,Series6"meansthe$500millionaggregateprincipalamountofmediumtermnotesofPembinaissuedJune16,2015.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series7"means,collectively,the$500millionand$100millionaggregateprincipalamountofmediumtermnotesofPembina issuedAugust11,2016andMay28,2020,respectively.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series8"means,collectively,the$300millionand$350millionaggregateprincipalamountofmediumtermnotesofPembinaissuedJanuary20,2017andAugust16,2017,respectively.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes,Series9"means,collectively,the$300millionand$250millionaggregateprincipalamountofmediumtermnotesofPembinaissuedJanuary20,2017andAugust16,2017,respectively.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Medium Term Notes, Series 10"means, collectively, the $400 million and $250 million aggregate principal amount ofmediumtermnotesofPembina issuedMarch26,2018and January10,2020, respectively. See"Descriptionof theCapitalStructureofPembina–MediumTermNotes";

"Medium Term Notes, Series 11"means, collectively, the $300 million and $500 million aggregate principal amount ofmediumtermnotesofPembina issuedMarch26,2018and January10,2020, respectively. See"Descriptionof theCapitalStructureofPembina–MediumTermNotes";

"Medium Term Notes, Series 12"means, collectively, the $400 million and $250 million aggregate principal amount ofmedium term notes of Pembina issued April 3, 2019 and January 10, 2020, respectively. See "Description of the CapitalStructureofPembina–MediumTermNotes";

"Medium Term Notes, Series 13"means, collectively, the $400 million and $300 million aggregate principal amount ofmediumtermnotesofPembina issuedApril3,2019andSeptember12,2019, respectively.See"Descriptionof theCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes, Series 14"means the $600million aggregate principal amount ofmedium termnotes of PembinaissuedSeptember12,2019.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes, Series 15"means the $600million aggregate principal amount ofmedium termnotes of PembinaissuedSeptember12,2019.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"MediumTermNotes, Series 16"means the $400million aggregate principal amount ofmedium termnotes of PembinaissuedMay28,2020.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes";

"Mitsue Pipeline" has themeaning ascribed thereto under "Description of Pembina's Business andOperations – PipelinesDivision–OilSandsandHeavyOilAssets";

"MusreauI"meanstheMusreauA,MusreauCandMusreauDtrains,shallowcutsweetgasprocessingfacility,owned100percentbyPembina,andPembina's50percentinterestintheMusreauBtrain,locatednearGrandePrairie,Alberta;

"Musreau II"meansPembina's100MMcf/d shallowcut sweetgasprocessingplantandassociatedNGLandgasgatheringpipelinesnearMusreauI;

"MusreauIII"meansPembina's100MMcf/dshallowcutsweetgasprocessingfacilitynearMusreauIandII;

"MusreauDeep Cut"means the 205MMcf/dNGL extraction facility and related approximately 10 kmNGL sales pipelineconnectedtothePeacePipelineandlocatedattheMusreauIfacility;

"Namao"referstothePeacePipelineinterconnectjunctionlocatednearNamao,Alberta;

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"NEBCMontneyInfrastructure" includesanareaproductionconnectiontoPembina'sBirchterminalaswellasupgradestotheterminal includingadditionalstorageandpumpstationsandminorsitemodificationstosupportadditionalvolumesontheNEBCPipelineandPembina'sdownstreampipelines;

"NEBC Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – PipelinesDivision–ConventionalAssets";

"NGA"meanstheNaturalGasActof1938(UnitedStates);

"NGL"meansnaturalgasliquids,includingethane,propane,butaneandcondensate;

"Nipisi Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – PipelinesDivision–OilSandsandHeavyOilAssets";

"North40Terminal"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"NorthernPipeline"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"NorthwestPipeline"meansthepipelinesystemandrelatedfacilitiesdeliveringcrudeoilfromnortheasternBritishColumbiatoBoundaryLake,Alberta;

"NYSE"meanstheNewYorkStockExchange;

"OMS"hasthemeaningascribedtheretounder"OtherInformationRelatingtoPembina'sBusiness–OperatingManagementSystem";

"OptionPlan"meansthestockoptionplanofPembinaapprovedbytheShareholdersonMay26,2011,asamendedeffectiveNovember30,2016andasfurtheramendedeffectiveFebruary26,2020;

"Ovintiv"meansOvintivInc.,formerlyEncanaCorporation;

"PacificConnectorGasPipeline"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–NewVentures";

"PalermoConditioningPlant"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–NewVentures";

"PDH" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – Marketing & NewVenturesDivision–NewVentures";

"PDH/PPFacility"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–NewVentures";

"PDHEPC"hasthemeaningascribedtheretounder"GeneralDevelopmentsofPembina–Developmentsin2019";

"PP"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–NewVentures";

"Peace Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – PipelinesDivision–ConventionalAssets";

"PembinaMediumTermNotes"means,collectively,theMediumTermNotes,Series1,theMediumTermNotes,Series2,theMediumTermNotes,Series3,theMediumTermNotes,Series4,theMediumTermNotes,Series5,theMediumTermNotes,Series6,theMediumTermNotes,Series7,theMediumTermNotes,Series8,theMediumTermNotes,Series9,theMediumTermNotes, Series 10, theMediumTermNotes, Series 11, theMediumTermNotes, Series 12, theMediumTermNotes,Series13,theMediumTermNotes,Series14,theMediumTermNotes,Series15andtheMediumTermNotes,Series16;

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"PhaseIVExpansion"meansanexpansionofthePeacePipeline,whichaddedthetwopumpstationsonthe24inchpipelinefromFoxCreektoNamao;

"PhaseVExpansion"meansanexpansionofthePeacePipeline,whichaddedanapproximately95km,20inchpipelinefromLatortoFoxCreek;

"PhaseVIIExpansion"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"PhaseVIIIExpansion"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"PhaseIXExpansion"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets";

"PhaseXExpansion"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets":

"PHMSA"meanstheU.S.PipelineandHazardousMaterialsSafetyAdministration;

"PIC"meansPetrochemicalIndustriesCompanyK.S.C.,asubsidiaryoftheKuwaitPetroleumCorporation,acompanyownedbytheStateofKuwait;

"Plan"hasthemeaningascribedtheretounder"DescriptionoftheCapitalStructureofPembina–CommonShares";

"PMM" has the meaning ascribed thereto under "Other Information Relating to Pembina's Business – Operations andMaintenance–OperatorQualificationandPreventativeMaintenanceSystem";

"Pouce Coupé Pipeline"means the pipeline system and related facilities delivering sweet crude oil andHVP hydrocarbonproductsfromDawsonCreek,BritishColumbiatoPouceCoupé,Alberta;

"Prairie Rose Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations –Marketing&NewVenturesDivision–MarketingActivities";

"Prince Rupert Terminal" has the meaning ascribed thereto under "Description of Pembina's Business and Operations –FacilitiesDivision–NGLServices";

"Prince Rupert Terminal Expansion" has the meaning ascribed thereto under "Description of Pembina's Business andOperations–FacilitiesDivision–NGLServices";

"ratebase"meanstheamountofinvestmentonwhichareturnisauthorizedtobeearned,whichtypicallyincludesnetplantinserviceplusanallowanceforworkingcapital;

"RedemptionAmount"has themeaningascribed theretounder"Descriptionof theCapitalStructureofPembina–ClassBPreferredShares";

"RedwaterComplex"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"ResthavenFacility"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"RevolvingCreditFacility"hasthemeaningascribedtheretounder"DescriptionoftheCapitalStructure–CreditFacilities";

"RFSI"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

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"RFSII"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"RFSIII"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"richgas"isnaturalgaswithrelativelyhighNGLcontentincludingethane,propane,butaneandcondensate;

"Ruby" has themeaning ascribed thereto under "Description of Pembina's Business and Operations – Pipelines Division –TransmissionAssets";

"Ruby Pipeline" has the meaning ascribed thereto under "Description of Pembina's Business and Operations – PipelinesDivision–TransmissionAssets";

"S&P"meansStandard&Poor'sRatingServices,adivisionofTheMcGraw-HillCompanies;

"Saturn I"means Pembina's deep cut NGL extraction facility located in the Berland area of Alberta with 220MMcf/d ofextractioncapacity;

"SaturnII"meansPembina'sseconddeepcutNGLextractionfacilityintheBerlandarea,atwinofSaturnI;

"Saturn Complex" has themeaning ascribed thereto under "Description of Pembina's Business andOperations – FacilitiesDivision–GasServices";

"SaturnGasPlant"meansVeresenMidstream'ssweetgasprocessingfacilitylocatednearDawsonCreek,BritishColumbia;

"SCADA" means supervisory control and data acquisition. See "Other Information Relating to Pembina's Business –InformationandCommunicationSystems";

"SEC"meanstheUnitedStatesSecuritiesandExchangeCommission;

"SEDAR"meanstheSystemforElectronicDocumentAnalysisandRetrieval;

"SEEP"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"SeniorNoteIndenture"meanstheindenturedatedMarch29,2011betweenPembina,PouceCoupéPipeLineLtd.,PlateauPipeLineLtd.,AlbertaOilSandsPipelineLtd.,PembinaPipeline(anAlbertapartnership),PembinaNorthLimitedPartnership,PembinaWest Limited Partnership, PembinaOil Sands Pipeline L.P., PembinaMarketing Ltd., PembinaMidstream LimitedPartnership, Pembina Gas Services Ltd., Pembina Gas Services Limited Partnership and Computershare Trust Company ofCanada, as supplemented by the first supplemental note indenture dated April 2, 2012 between Pembina, Pembina NGLCorporation,1598313AlbertaLtd.,ProvidentInfrastructureandLogisticsLP,ProvidentMidstreamHoldingsGPULC,ProvidentMidstream Inc., Provident GP Inc., Provident Facilities (NGL) Ltd., Provident Facilities (NGL) L.P., 1195714 Alberta Ltd.,1444767 Alberta Ltd., Provident Energy Pipeline Inc., Empress NGL Partnership, Kinetic Resources (LPG), Pro HoldingCompany,ProvidentMidstream(USA)Inc.,ProUSLLC,ProMidstreamCompany,KineticResources(U.S.A.),ProGPCorp.,ProLP Corp., Terraquest, Inc. and Computershare Trust Company of Canada, as further supplemented by the secondsupplemental note indenture dated October 24, 2014 among Pembina, Pembina Prairie Facilities Ltd., Pembina PrairieFacilitiesHoldcoLtd.andComputershareTrustCompanyofCanada,andasfurthersupplementedbythethirdsupplementalindenturedatedApril4,2018betweenPembinaandComputershareTrustCompanyofCanadaprovidingfortheissuanceofthePembinaMediumTermNotesandtheAEGSNotes;

"SeptimusPipeline"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–Marketing&NewVenturesDivision–MarketingActivities";

"Series 1 Class A Preferred Shares" means the cumulative redeemable rate reset Class A Preferred Shares, series 1 ofPembina,issuedJuly26,2013.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

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"Series 2 Class A Preferred Shares"means the cumulative redeemable floating rate Class A Preferred Shares, series 2 ofPembina,issuableonconversionoftheSeries1ClassAPreferredShares.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

"Series 3 Class A Preferred Shares" means the cumulative redeemable rate reset Class A Preferred Shares, series 3 ofPembina,issuedOctober2,2013.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 5 Class A Preferred Shares" means the cumulative redeemable rate reset Class A Preferred Shares, series 5 ofPembina,issuedJanuary16,2014.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 7 Class A Preferred Shares" means the cumulative redeemable rate reset Class A Preferred Shares, series 7 ofPembina,issuedSeptember11,2014.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 9 Class A Preferred Shares" means the cumulative redeemable rate reset Class A Preferred Shares, series 9 ofPembina,issuedApril10,2015.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

"Series10ClassAPreferredShares"meansthecumulativeredeemable floatingrateClassAPreferredShares,series10ofPembina,issuableonconversionoftheSeries9ClassAPreferredShares.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

"Series11ClassAPreferredShares"meansthecumulativeredeemableminimumrateresetClassAPreferredShares,series11ofPembina,issuedJanuary15,2016.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

"Series12ClassAPreferredShares"meansthecumulativeredeemable floatingrateClassAPreferredShares,series12ofPembina, issuable on conversion of the Series 11 Class A Preferred Shares. See "Description of the Capital Structure ofPembina–ClassAPreferredShares";

"Series13ClassAPreferredShares"meansthecumulativeredeemableminimumrateresetClassAPreferredShares,series13ofPembina,issuedApril27,2016.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 15 Class A Preferred Shares"means the cumulative redeemable rate reset Class A Preferred Shares, series 15 ofPembina, issued inexchangefortheVeresenSeriesAPreferredSharesonOctober2,2017.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 17 Class A Preferred Shares"means the cumulative redeemable rate reset Class A Preferred Shares, series 17 ofPembina, issued inexchangefortheVeresenSeriesCPreferredSharesonOctober2,2017.See"Descriptionof theCapitalStructureofPembina–ClassAPreferredShares";

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"Series 19 Class A Preferred Shares"means the cumulative redeemable rate reset Class A Preferred Shares, series 19 ofPembina, issued inexchangefor theVeresenSeriesEPreferredSharesonOctober2,2017.See"Descriptionof theCapitalStructureofPembina–ClassAPreferredShares";


"Series21ClassAPreferredShares"meansthecumulativeredeemableminimumrateresetClassAPreferredShares,series21ofPembina,issuedDecember7,2017.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";


"Series 23 Class A Preferred Shares"means the cumulative redeemable rate reset Class A Preferred Shares, series 23 ofPembina, issued inexchange for theKMLSeries1PreferredSharesonDecember16,2019.See"Descriptionof theCapitalStructureofPembina–ClassAPreferredShares";


"Series 25 Class A Preferred Shares"means the cumulative redeemable rate reset Class A Preferred Shares, series 25 ofPembina, issued inexchange for theKMLSeries3PreferredSharesonDecember16,2019.See"Descriptionof theCapitalStructureofPembina–ClassAPreferredShares";


"Series 2021-A Class A Preferred Shares"means the cumulative redeemable fixed-to-fixed rate Class A Preferred Shares,Series2021-A.See"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares";

"Series F Convertible Debentures" means the 5.75 percent convertible unsecured subordinated debentures issued byProvidentEnergyLtd.onApril29,2011andassumedbyPembinainApril2012,whichmaturedonDecember31,2018;

"shallowcut"meanssweetgasprocessingwithpropaneand/orcondensate-plusextractioncapabilities;

"Shareholders"meanstheholdersofCommonShares;

"SMP"has themeaningascribedtheretounder"Other InformationRelatingtoPembina'sBusiness–SecurityManagementProgram";

"SteeprockGasPlant"meansVeresenMidstream'ssourgasprocessingfacilitylocatednearGrandePrairie,Alberta;

"SubordinatedNote Indenture"means the indenturedated January25,2021betweenPembinaandComputershareTrustCompanyofCanada;

"SubordinatedNotes,Series1"hasthemeaningascribedtheretounder"GeneralDevelopmentsofPembina–Developmentstodatein2021";

"SunriseGasPlant"meansVeresenMidstream'ssweetgasprocessingfacilitylocatednearDawsonCreek,BritishColumbia;

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"SwanHillsPipeline"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision-OilSandsandHeavyOilAssets";

"SyncrudePipeline"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–OilSandsandHeavyOilAssets";

"SyncrudeProject"meansthejointventurethatwasformedfortherecoveryofoilsands,crudebitumenorproductsderivedfromtheAthabascaoilsands,locatednearFortMcMurray,Alberta;

"take-or-pay"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalAssets–FirmContracts";

"Taylor toBelloyPipeline"meansthepipelineandrelated facilitiesdeliveringNGL fromTaylor,BritishColumbiatoBelloy,Alberta;

"Taylor to Boundary Lake Pipeline" means the pipeline and related facilities delivering HVP hydrocarbon products fromTaylor,BritishColumbiatoBoundaryLake,Alberta;

"throughput"meansvolumeofproductdeliveredthroughapipeline;

"TowerGasPlant"meansVeresenMidstream'ssweetgasprocessingfacilitylocatednearDawsonCreek,BritishColumbia;

"TSX"meanstheTorontoStockExchange;

"Valleyview"referstothePeacePipelinepumpstationandterminallocatednearValleyview,Alberta;

"VancouverWharves"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"VancouverWharvesExpansion"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–NGLServices";

"VantagePipeline"has themeaningascribed theretounder "DescriptionofPembina'sBusinessandOperations–PipelinesDivision–TransmissionAssets";

"Veresen"meansVeresenInc.;

"Veresen Acquisition" means the acquisition of Veresen, pursuant to which Pembina acquired all of the issued andoutstandingcommonsharesofVeresenandVeresenPreferredShares,bywayofaplanofarrangementundertheABCA,inaccordancewiththetermsandconditionsofanarrangementagreementdatedMay1,2017betweenPembinaandVeresen;

"VeresenMediumTermNotes"means,collectively,theMediumTermNotes,Series1A,theMediumTermNotes,Series3A,theMediumTermNotes,Series4AandtheMediumTermNotes,Series5A;

"VeresenMidstream"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices";

"VeresenPreferredShares"meanstheVeresenSeriesAPreferredShares,theVeresenSeriesBPreferredShares,theVeresenSeries C Preferred Shares, the Veresen Series D Preferred Shares, the Veresen Series E Preferred Shares and the VeresenSeriesFPreferredShares;

"VeresenSeniorNoteIndenture"meansthetrustindenturedatedNovember22,2011betweenVeresenandComputershareTrustCompanyofCanada,assupplementedbythefirstsupplementalnoteindenturedatedMarch14,2012betweenVeresenandComputershareTrustCompanyofCanada,as furthersupplementedbythesecondsupplementalnote indenturedatedJune13, 2014betweenVeresenandComputershareTrustCompanyofCanada, andas further supplementedby the thirdsupplemental note indenture datedNovember 10, 2016 betweenVeresen and Computershare Trust Company of Canada,providingfortheissuanceoftheVeresenMediumTermNotes;

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"Veresen Series A Preferred Shares" means the cumulative redeemable preferred shares, series A of Veresen, issuedFebruary14,2012;

"VeresenSeriesBPreferredShares"means thecumulative redeemablepreferredshares, seriesBofVeresen,whichwereissuableonconversionoftheVeresenSeriesAPreferredShares;

"VeresenSeriesCPreferredShares"meansthecumulativeredeemablepreferredshares,seriesCofVeresen,issuedOctober21,2013;

"VeresenSeriesDPreferredShares"means thecumulativeredeemablepreferredshares, seriesDofVeresen,whichwereissuableonconversionoftheVeresenSeriesCPreferredShares;

"VeresenSeriesEPreferredShares"meansthecumulativeredeemablepreferredshares,seriesEofVeresen,issuedApril1,2015;

"VeresenSeries FPreferredShares"means the cumulative redeemablepreferred shares, series FofVeresen,whichwereissuableonconversionoftheVeresenSeriesEPreferredShares;

"Wapiti"referstothePeacePipelinepumpstationandterminallocatedsouthofWembley,Alberta;

"Wapiti Condensate Lateral"means a 12-inch, approximately 30 kmpipelinewhich connects condensate volumes from athird-partyownedfacilityinthePipestoneMontneyregionintothePeacePipeline;

"WCSB"meanstheWesternCanadianSedimentaryBasin;

"WesternPipeline"has themeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–ConventionalPipelines";

"WilliamsPipeline"has themeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–PipelinesDivision–TransmissionPipelines";and

"Younger"hasthemeaningascribedtheretounder"DescriptionofPembina'sBusinessandOperations–FacilitiesDivision–GasServices".

AlldollaramountssetforthinthisAnnualInformationFormareinCanadiandollarsunlessotherwiseindicated.Referencesto"$"or"C$"aretoCanadiandollarsandreferencesto"US$"aretoU.S.dollars.OnFebruary24,2021,thedailyexchangeratereportedbytheBankofCanada,wasC$1.00equalsUS$1.2548.

Exceptwhereotherwise indicated,all information inthisAnnual InformationFormispresentedasattheendofPembina'smostrecentlycompletedfinancialyear,beingDecember31,2020.

AreferencemadeinthisAnnualInformationFormtootherdocumentsortoinformationordocumentsavailableonawebsitedoesnotconstitutetheincorporationbyreferenceintothisAnnualInformationFormofsuchotherdocumentsorsuchotherinformationordocumentsavailableonsuchwebsite,unlessotherwisestated.

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ABBREVIATIONSANDCONVERSIONS

InthisAnnualInformationForm,thefollowingabbreviationshavetheindicatedmeanings:

mbbls thousands of barrels, each barrel representing 34.972Imperialgallonsor42U.S.gallons

mmbbls millionsofbarrels

mbpd thousandsofbarrelsperday

mmbpd millionsofbarrelsperday

MMcf/d millioncubicfeetperday

mboe/d thousandsofbarrelsofoilequivalentperday

mmboe/d millionsofbarrelsofoilequivalentperday

bcf/d billioncubicfeetperday

km kilometres

CO2e carbondioxideequivalent

MW megawatt

Barrelsofoilequivalent("boe")maybemisleading,particularlyifusedinisolation.Aboeconversionratioof6mcfofnaturalgas:1bblofcrudeoilisbasedonanenergyequivalencyconversionmethodprimarilyapplicableattheburnertipanddoesnotrepresentavalueequivalencyatthewellhead.

ThefollowingtablesetsforthcertainstandardconversionsbetweenStandardImperialUnitsandtheInternationalSystemofUnits(ormetricunits).

Toconvertfrom To Multiplyby

bbls cubicmetres 0.159

cubicmetres bbls 6.293

miles kilometres 1.609

kilometres miles 0.621

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NON–GAAPMEASURES

Pembina'sFinancialStatements,whichmaybefoundonPembina'sprofileontheSEDARwebsiteatwww.sedar.com,andinPembina'sannual reportonForm40-F filedonPembina'sprofileon theEDGARwebsiteatwww.sec.gov,arepresented incompliancewith IFRS. Certain financial information included in such Financial Statements is contained or incorporated byreferencewithinthisAnnualInformationForm.

Readersshouldtakenote,however,thatwithinthisAnnualInformationForm,termsareusedbymanagementtoevaluatetheperformance of Pembina and its businesses that are not defined by GAAP. Since non-GAAP measures do not have astandardizedmeaningprescribedbyIFRSandarethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies, securities regulations require that non-GAAP measures be clearly defined, qualified and reconciled to theirnearestGAAPmeasure.Thesenon-GAAPmeasuresarecalculatedanddisclosedonaconsistentbasisfromperiodtoperiod.

The intent of non-GAAPmeasures is to provide additional useful information with respect to Pembina's operational andfinancialperformancetoinvestorsandanalysts,thoughthemeasuresdonothaveanystandardizedmeaningunderIFRS.Themeasures shouldnot, therefore,be considered in isolationorused in substitute formeasuresofperformanceprepared inaccordancewithIFRS.Otherissuersmaycalculatethesenon-GAAPmeasuresdifferentlyorusedifferentnon-GAAPmeasures.

Inparticular, inthisAnnual InformationForm,theterms"netrevenue"and"adjustedEBITDA"areusedtodescribecertainfinancial information of Pembina. Readers should be cautioned that net revenue and adjusted EBITDA are not defined byGAAPandareincludedinthisAnnualInformationFormtodescribecertainfinancialinformationofPembinaandshouldnotbe construed as alternatives to revenue, earnings, gross profit, or other measures of financial results determined inaccordancewithGAAPasindicatorsofPembina'sperformance.

"Netrevenue" isanon-GAAPfinancialmeasurewhich isdefinedastotalrevenue lesscostofgoodssold includingproductpurchases.Managementbelievesthatnetrevenueprovidesinvestorswithasinglemeasuretoindicatethemarginonsalesbeforenon-productoperatingexpensesthat iscomparablebetweenperiods.ManagementutilizesnetrevenuetocompareconsecutiveresultsintheMarketing&NewVenturesDivisionandtheFacilitiesDivisionandtoaggregaterevenuegeneratedbyeachofPembina'sdivisionsandtosetcomparableobjectives.

"AdjustedEarningsBeforeInterest,Taxes,DepreciationandAmortization"("adjustedEBITDA")isanon-GAAPmeasureandis calculated as earnings for the year before net finance costs, income taxes, depreciation and amortization (included inoperationsandgeneralandadministrativeexpense)andunrealizedgainsorlossesoncommodity-relatedderivativefinancialinstruments.Theexclusionofunrealizedgainsorlossesoncommodity-relatedderivativefinancialinstrumentseliminatesthenon-cashimpactofsuchgainsorlosses.

AdjustedEBITDAalso includesadjustmentstoearningsfor losses(gains)ondisposalofassets,transactioncosts incurred inrespect of acquisitions, impairment charges or reversals in respect of goodwill, intangible assets, investments in equityaccounted investees and property, plant and equipment, certain non-cash provisions and other amounts not reflective ofongoingoperations.Theadjustmentsmadetoearningsarealsomadetoshareofprofitfrominvestmentsinequityaccountedinvestees. In addition, Pembina's proportionate share of results from investments in equity accounted investees with apreferredinterestispresentedinadjustedEBITDAasa50percentcommoninterest.Theseadditionaladjustmentsaremadetoexcludevariousnon-cashandotheritemsthatarenotreflectiveofongoingoperations.

Management believes that adjusted EBITDA provides useful information to investors as it is an important indicator of anissuer'sabilitytogenerateliquiditythroughcashflowfromoperatingactivitiesandequityaccountedinvestees.ManagementalsobelievesthatadjustedEBITDAprovidesanindicatorofoperatingincomegeneratedfromcapitalinvested,whichincludesoperational finance income from lessor lease arrangements. Adjusted EBITDA is also used by investors and analysts forassessingfinancialperformanceandforthepurposeofvaluingan issuer, includingcalculatingfinancialand leverageratios.Management utilizes adjusted EBITDA to set objectives and as a key performance indicator of the Company's success.PembinapresentsadjustedEBITDAasmanagementbelievesitisameasurefrequentlyusedbyanalysts,investorsandotherstakeholdersinevaluatingtheCompany’sfinancialperformance.

FormoreinformationwithrespecttofinancialmeasureswhichhavenotbeendefinedbyGAAP,includingreconciliationstothemostdirectlycomparableGAAPmeasure,seethe"Non–GAAPMeasures"sectionoftheMD&AdatedFebruary25,2021andpostedonPembina’swebsiteatwww.pembina.com,whichsectionsareincorporatedbyreferenceherein.

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FORWARD-LOOKINGSTATEMENTSANDINFORMATION

CertainstatementscontainedinthisAnnualInformationFormconstitute"forward-lookingstatements"withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReformActof1995and"forward-looking information"withinthemeaningofapplicable Canadian securities legislation (collectively, "forward-looking statements"). All forward-looking statements arebasedonPembina'scurrentexpectations,estimates,projections,beliefs, judgmentsandassumptionsbasedoninformationavailable at the time the applicable forward-looking statement was made and in light of Pembina’s experience and itsperceptionofhistoricaltrends.Forward-lookingstatementsaretypicallyidentifiedbywordssuchas"anticipate","continue","estimate", "expect", "may", "will", "project", "should", "could", "would", "believe", "plan", "intend", "design", "target","undertake", "view", "indicate", "maintain", "explore", "entail", "schedule", "objective", "strategy", "likely", "potential","outlook","aim","propose","goal",andsimilarexpressionssuggestingfutureeventsorfutureperformance.

Bytheirnature,forward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycauseactualresultsoreventstodiffermateriallyfromthoseanticipatedinsuchforward-lookingstatements.Pembinabelievestheexpectations reflected in those forward-looking statements are reasonable, but no assurance can be given that theseexpectationswillprovetobecorrectandsuchforward-lookingstatementsincludedinthisAnnualInformationFormshouldnot be unduly relied upon. The forward-looking statements included herein speak only as of the date of the AnnualInformationForm.

In particular, this Annual Information Form contains forward-looking statements pertaining to, among other things, thefollowing:

• theongoingimpactsoftheCOVID-19pandemiconPembinaandPembina'sresponsethereto;

• thefuturelevelsandsustainabilityofcashdividendsthatPembinaintendstopaytoitsShareholders,thedividendpaymentdates;

• planning, construction, capital expenditure estimates, schedules, regulatory and environmental applications andanticipated approvals, expected capacity, incremental volumes, in-service dates, rights, activities, benefits andoperations with respect to new construction of, or expansions on existing pipelines, gas services facilities,fractionationfacilities,terminalling,storageandhubfacilitiesandotherfacilitiesorenergyinfrastructure,aswellastheimpactofPembina'snewprojectsonitsfuturefinancialperformance;

• pipeline,processing,fractionationandstoragefacilityandsystemoperationsandthroughputlevels;

• treatment under existing and proposed governmental regulatory regimes, including taxes, environmental, projectassessmentandGHGregulationsandrelatedabandonmentandreclamationobligations,andIndigenous,landownerandotherstakeholderconsultationrequirements;

• Pembina'sestimatesofandstrategyforpaymentoffutureabandonmentcostsanddecommissioningobligations;

• Pembina'sstrategyandthedevelopmentandexpectedtimingofnewbusinessinitiatives,growthopportunitiesandtheimpactthereof;

• increasedthroughputpotential,processingcapacityandfractionationcapacityduetoincreasedoilandgasindustryactivityandnewconnectionsandotherinitiativesonPembina'spipelinesandatPembina'sfacilities;

• expected future cash flows and the sufficiency thereof, financial strength, sources of and access to funds atacceptable rates, future contractual obligations, future financing options, future renewal of its credit facilities,availabilityofcapitaltofundgrowthplans,investmentsoperatingobligationsanddividendsandtheuseofproceedsfromfinancings;

• futuredemandforPembina'sinfrastructureandservices;

• statementregardingPembina'sinvestmentrelatingtomanagingitsenvironmentalliabilityandthebenefitsthereof;

• tollsandtariffs,andprocessing,transportation,fractionation,storageandservicescommitmentsandcontracts;

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• operatingrisks(includingtheamountoffutureliabilitiesrelatedtopipelinespillsandotherenvironmentalincidents)andrelatedinsurancecoverageandinspectionandintegrityprograms;

• inventoryandpricingofcommodities;

• thefuturesuccess,growth,expansions,contributions,capacityexpectations,resultsofoperations,financialstrengthofcertainofPembina'sequityaccountedinvestees;

• compliance by the Company with integrity regulatory compliance requirements, including the effectiveness ofrelatedprogramsandsystems;

• Pembina's commitment to, and the effectiveness and impact of its OMS and other operations and governancepoliciesandESG-relatedpractices;

• theimpactofthecurrentcommoditypriceenvironmentonPembina;and

• competitiveconditionsandPembina'sabilitytopositionitselfcompetitivelyintheindustry.

VariousfactorsorassumptionsaretypicallyappliedbyPembinaindrawingconclusionsormakingtheforecasts,projections,predictionsorestimationssetoutinforward-lookingstatementsbasedoninformationcurrentlyavailabletoPembina.Thesefactorsandassumptionsinclude,butarenotlimitedto:

• oilandgasindustryexplorationanddevelopmentactivitylevelsandthegeographicregionofsuchactivity;

• thesuccessofPembina'soperations;

• prevailingcommodityprices,interestrates,carbonprices,taxratesandexchangerates;

• theabilityofPembinatomaintaincurrentcreditratings;

• theavailabilityofcapitaltofundfuturecapitalrequirementsrelatingtoexistingassetsandprojects;

• expectationsregardingparticipationinPembina'spensionplan;

• futureoperatingcosts,includinggeotechnicalandintegritycosts,beingconsistentwithhistoricalcosts;

• oilandgasindustrycompensationlevelsremainingconsistentwithhistoricallevels;

• in respect of current developments, expansions, planned capital expenditures, completion dates and capacityexpectations:thatthirdpartieswillprovideanynecessarysupport;thatanythird-partyprojectsrelatingtoPembina'sgrowthprojectswill be sanctionedand completedasexpected; that any required commercial agreements canbereached; that all required regulatory and environmental approvals can be obtained on the necessary terms in atimelymanner; that counterpartieswill complywith contracts in a timelymanner; that there are no unforeseeneventspreventing theperformanceofcontractsor thecompletionof therelevant facilities;andthat therearenounforeseenmaterialcostsrelatingtothefacilitieswhicharenotrecoverablefromcustomers;

• in respect of the stability of Pembina's dividends: prevailing commodity prices,margins and exchange rates; thatPembina's future resultsofoperationswillbe consistentwithpastperformanceandmanagementexpectations inrelationthereto;thecontinuedavailabilityofcapitalatattractivepricestofundfuturecapitalrequirementsrelatingto existing assets and projects, including, but not limited to, future capital expenditures relating to expansion,upgradesandmaintenanceshutdowns;thesuccessofgrowthprojects;futureoperatingcosts;thatcounterpartiestoagreements will continue to perform their obligations in a timely manner; that there are no unforeseen eventspreventing the performance of contracts; and that there are no unforeseenmaterial construction or other costsrelatedtocurrentgrowthprojectsorcurrentoperations;

• prevailingregulatory,taxandenvironmentallawsandregulationsandtaxpoolutilization;and

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• the amount of future liabilities relating to lawsuits and environmental incidents and the availability of coverageunderPembina'sinsurancepolicies(includinginrespectofPembina'sbusinessinterruptioninsurancepolicy).

TheactualresultsofPembinacoulddiffermateriallyfromthoseanticipatedintheforward-lookingstatementsincludedinthisAnnualInformationFormasaresultofthematerialriskfactorssetforthbelow:

• theregulatoryenvironmentanddecisions,andIndigenousandlandownerconsultationrequirements;

• theimpactofcompetitiveentitiesandpricing;

• relianceonthirdpartiestosuccessfullyoperateandmaintaincertainassets;

• labourandmaterialshortages;

• relianceonkeyrelationshipsandagreementsandtheoutcomeofstakeholderengagement;

• thestrengthandoperationsoftheoilandnaturalgasproductionindustryandrelatedcommodityprices;

• non-performanceordefaultbycounterpartiestoagreementswhichPembinaoroneormoreofitssubsidiarieshasenteredintoinrespectofitsbusiness;

• actionsbyjointventurepartnersorotherpartnerswhichholdinterestsincertainofPembina'sassets;

• actionsbygovernmentalorregulatoryauthorities, includingchanges intax lawsandtreatment,changes inroyaltyrates,changesinregulatoryprocessesorincreasedenvironmentalregulation;

• fluctuationsinoperatingresults;

• adverse general economic andmarket conditions inCanada,NorthAmerica andworldwide, including changes, orprolongedweaknesses,asapplicable, in interestrates, foreigncurrencyexchangerates,commodityprices,supply/demandtrendsandoverallindustryactivitylevels;

• risksrelatedtothecurrentandpotentialimpactsoftheCOVID-19pandemic;

• constraintson,ortheunavailabilityof,adequateinfrastructure;

• thepoliticalenvironmentinNorthAmericaandelsewhere,andpublicopinion;

• abilitytoaccessvarioussourcesofdebtandequitycapital;

• changesincreditratings;

• counterpartycreditrisk;

• technologyandsecurityrisksincludingcyber-securityrisks;

• naturalcatastrophes;and

• otherriskfactorsassetoutinthisAnnualInformationFormunder"RiskFactors".

Thesefactorsshouldnotbeconstruedasexhaustive.Unlessrequiredbylaw,Pembinadoesnotundertakeanyobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.Anyforward-lookingstatementscontainedhereinareexpresslyqualifiedbythiscautionarystatement.

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CORPORATESTRUCTURE

Name,AddressandFormation

PembinaPipelineCorporationisacorporationamalgamatedundertheABCA.ItisthesuccessortoPembinaPipelineIncomeFund(the"Fund")followingthecompletionofthereorganizationoftheFundfromanincometruststructuretoacorporatestructurebywayofplanofarrangementinvolvingtheFund,PembinaandtheholdersoftheFund'strustunits,pursuanttowhichthetrustwasreorganizedintoPembinaonOctober1,2010. PembinaisalsothesuccessortoVeresenfollowingthecompletion of the Veresen Acquisition on October 2, 2017, whereby, among other things, Pembina amalgamated withVeresenand the resultingentity continuedas "PembinaPipelineCorporation".Pembina'sprincipal and registeredoffice islocatedatSuite4000,585-8thAvenueS.W.,Calgary,Alberta,T2P1G1.

Pembina'sSubsidiaries

The following chart indicates Pembina's material subsidiaries, including their jurisdictions of incorporation, formation ororganizationandthepercentageofvotingsecuritiesowned,orcontrolledordirected,directlyorindirectly,byPembinaoritssubsidiaries.

PrincipalSubsidiaries(1) JurisdictionofIncorporation/Formation/Organization

Ownership

PembinaEmpressNGLPartnership Alberta 100%

PembinaGasServicesLimitedPartnership Alberta 100%

PembinaHoldingCanadaL.P. Alberta 100%

PembinaInfrastructureandLogisticsL.P. Alberta 100%

PembinaMidstreamLimitedPartnership Alberta 100%

PembinaOilSandsPipelineL.P. Alberta 100%

PembinaPipeline Alberta 100%

PKMCanadaNorth40LimitedPartnership Manitoba 100%

PembinaCochinLLC DelawareU.S. 100%

(1) Subsidiariesareomittedwhere,atPembina'smostrecentfinancialyear-end:(i)thetotalassetsofthesubsidiarydonotexceed10percentofPembina'sconsolidatedassets;(ii)therevenueofthesubsidiarydoesnotexceed10percentofPembina'sconsolidatedrevenue;and(iii)theconditionsin(i)and(ii)wouldbesatisfiediftheomittedsubsidiarieswereaggregated,andthereferencein(i)and(ii)changedfrom10percentto20percent.

AmendedArticles

OnMay13,2013,PembinafiledarticlesofamendmentundertheABCAtocreateanewclassofshares,theClassAPreferredShares, to change the designation and terms of the Class B Preferred Shares, and to increase the maximum number ofdirectorsofPembinafromeleventothirteen,afterreceivingShareholderapprovalforsuchamendments.

OnOctober2,2017,PembinafiledarticlesofamendmentundertheABCAtocreatetheSeries15,Series16,Series17,Series18,Series19andSeries20ClassAPreferredShares.

OnOctober 2, 2017, Pembina filed articles of amalgamation under theABCA to effect the amalgamation of Pembina andVeresenpursuanttotheVeresenAcquisition.PursuanttotheVeresenAcquisition,alloftheoutstandingVeresenSeriesA,CandEPreferredShareswereexchangedforSeries15,17and19ClassAPreferredShares,respectively.TheSeries15,17and19ClassAPreferredShareshavesubstantiallythesametermsandconditionsasthepreviouslyoutstandingVeresenSeriesA,CandEPreferredShares.TheSeries16,18and20ClassAPreferredShareshavesubstantiallythesametermsandconditionsastheVeresenSeriesB,DandFPreferredShares.

OnDecember1,2017,Pembina filedarticlesofamendmentunder theABCAtocreate theSeries21andSeries22ClassAPreferredShares.

On June 25, 2019, Pembina filed articles of amendment under the ABCA to increase the limit on the number of Class APreferredSharesPembinaisauthorizedtoissuefrom20percentofthenumberofCommonSharesissuedandoutstandingat

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thetimeofissuancetoamaximumof254,850,850ClassAPreferredShares,afterreceivingapprovalfromtheShareholdersandtheholdersoftheClassAPreferredSharesforsuchamendment.

OnDecember16,2019,PembinafiledarticlesofamendmentundertheABCAtocreatetheSeries23,Series24,Series25andSeries26ClassAPreferredShares.PursuanttotheKinderMorganCanadaAcquisition,alloftheoutstandingKMLSeries1and3PreferredShareswereexchangedforSeries23and25ClassAPreferredShares,respectively.TheSeries23and25ClassAPreferredShareshavesubstantiallythesametermsandconditionsasthepreviouslyoutstandingKMLSeries1and3PreferredShares.TheSeries24and26ClassAPreferredShareshavesubstantiallythesametermsandconditionsastheKMLSeries2and4PreferredShares.

On January 22, 2021, Pembina filed articles of amendmentunder theABCA to create the Series 2021-AClassA PreferredSharesinconnectionwiththeissuanceoftheSubordinatedNotes,Series1.OnJanuary25,2021,priortotheissuanceofsuchSeries2021-APreferredShares,PembinafiledarticlesofamendmentamendingandrestatingthetermsoftheSeries2021-AClassAPreferredShares.

See"DescriptionoftheCapitalStructureofPembina".

AmendedBy-laws

OnMay8,2020,attheannualandspecialmeetingofShareholders(the"2020Meeting"),ShareholdersconfirmedPembina'samendedandrestatedBy-lawNo.1to,amongotherthings:(i)permitonlyoneofficerordirector,ratherthantwoofficersordirectors,toexecutecertaindocumentsonbehalfoftheCompany,and(ii)providethattheChairoftheBoardofDirectorsdoesnotreceiveasecondorcastingvotewhenthere isavotingdeadlockatameetingoftheBoardofDirectors,bringingPembina'sby-laws in linewith its peers andbest corporate governancepractices.At the2020Meeting, Shareholders alsoconfirmedBy-lawNo.2,aby-lawrelatingtotheadvancenoticeforthenominationofdirectors,whichprovidesaframeworkfornominatingdirectorsforelectiontotheBoardofDirectors.

GENERALDEVELOPMENTSOFPEMBINA

Duringthethree-yearperiodendingonDecember31,2020and2021year-to-date,Pembinacontinuedtoexecuteitsbusinessplanandadvanceitsgrowthstrategyasdiscussedbelow.

Developmentsin2018

Jan2 PembinaannouncedtheappointmentofnewlycreatedpositionswithinPembina'sexecutive teameffectiveJanuary1,2018,reportingtoMickDilger,Pembina'sPresidentandChiefExecutiveOfficer:JasonWiun,SeniorVicePresidentandChiefOperatingOfficer,Pipelines;JaretSprott,SeniorVicePresidentandChiefOperatingOfficer,Facilities;StuTaylor,SeniorVicePresidentMarketingandNewVenturesandCorporateDevelopmentOfficer;andPaulMurphy,SeniorVicePresidentandCorporateServicesOfficer.

Jan23 VeresenMidstreamplacedthesecondtrainofitsSaturnGasPlantintoservice.Mar9 PembinaextendeditsrevolvingcreditfacilitytoMay31,2023.Concurrently,Pembinaenteredintoa$1billion

non-revolvingtermloanfacilityforaninitialthree-yeartermthatispre-payableattheCompany’soption.Theother terms and conditions of the non-revolving term loan facility, including financial covenants, aresubstantiallysimilartoPembina’sRevolvingCreditFacility.

Mar26 Pembinaissuedandsold$400millionaggregateprincipalamountofMediumTermNotes,Series10and$300millionaggregateprincipalamountofMediumTermNotes,Series11,pursuanttoits2017MTNProspectus,assupplemented by twopricing supplements thereto datedMarch 22, 2018. Pembina used the net proceedsfromthesaleoftheMediumTermNotes,Series10andSeries11torepayshort-termindebtedness,aswellastofundPembina'scapitalprogramandforothergeneralcorporatepurposes.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes".

Mar28 PembinacommencedabindingopenseasonforexpansioncapacitycommitmentsontheAlliancePipeline.Mar29 RubyPipeline,L.L.C.,inwhichPembinaownsa50percentpreferredinterest,amendedthematuritydateofits

US$203million364-daytermloan,originallymaturingMarch30,2018toMarch28,2019.Thetermloanwillcontinue toamortizeatUS$15.6millionperquarter (US$7.8millionnet to Pembina),beginningMarch30,2018,untilafinalbulletpaymentofUS$141million(US$70millionnettoPembina)ispayableontheamendedmaturitydate.

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Apr4 Pembina entered into a note exchange agreementwith holders of senior notes previously issued by AEGS("AEGSNotes") toexchange theAEGSNotes for SeriesA SeniorNotesof PembinaunderPembina's SeniorNoteIndenture.ThecouponfortheSeriesASeniorNotesremainedthesameat5.565percentperannumandtheyarenon-amortizingwithabulletpaymentof$73millionatmaturityonMay4,2020.

Apr9 Pembinachangeditsoperationsmanagementstructuretobeorganizedbythreedivisions:Pipelines,FacilitiesandMarketing&NewVenturesandwaseffectiveJanuary1,2018.

Apr20 VeresenMidstreamamended itsseniorsecuredcredit facilities thatwereoriginallyscheduledtomatureonMarch 31, 2020. Under the term of the amendment and extension reached with a syndicate of lenders,VeresenMidstream increased itsborrowingcapacity to$200millionundera revolvingcredit facilityand to$2.55billionofavailabilityunderthetermloanAandusedtheproceedstorepayanexistingUS$705millionterm loan B on April 30, 2018. Other terms and conditions in the facilities were modified to reflect theoperating nature of the business, including modifying the covenant package and increasing the permitteddistributionsoutofVeresenMidstream.ThematuritydateofthetwodebtfacilitieswasextendedtoApril20,2022.

May3 PembinaannouncedafurtherexpansionofitsPeacePipelinesystemforatotalestimatedcapitalcostof$280million ("PhaseVI Expansion"),which is comprisedofupgradesat theGordondalePumpStation, a16-inchpipelinefromLaGlacetoWapiti,Albertaandassociatedpumpstationupgrades,anda20-inchpipelinefromKakwa to Lator,with anexpected in-servicedate in the secondhalf of 2019, subject toenvironmental andregulatoryapprovals.

Sept24 PembinaannouncedthatitwillbedevelopingadditionalpipelineandterminallinginfrastructureintheWapitiregionnearGrandePrairie,AlbertaandinnortheasternBritishColumbiaforthecapitalcostof$120million.

Nov1 PembinaannouncedafurtherexpansionofthePeacePipelinesystem(the"PhaseVIIExpansion"),whichwasexpected tobe comprisedof a new20-inch, approximately 220 kmpipeline in the LaGlace-Valleyview-FoxCreekcorridor,aswellassixnewpumpstations,betweenLaGlace,AlbertaandEdmonton,Alberta.ThePhaseVIIExpansionwasexpectedtoaddapproximately240,000bpdofincrementalcapacityupstreamofFoxCreekaccessingcapacityavailableonthemainlinesdownstreamofFoxCreek,andhadanexpectedin-servicedateinthefirsthalfof2021.

Nov1 PembinaannouncedthatitandVeresenMidstreamexecutedbindingagreementspursuanttowhichVeresenMidstreamwillconstructnaturalgasgatheringandprocessinginfrastructureinthePipestoneMontneyregionand Pembina will construct various laterals connecting to the Company's Peace Pipeline system. Theinfrastructureconsistsofseveralseparateprojects:(i)anexpansionofupto125MMcf/d(57MMcf/dnettoPembina) of sour gas processing at VeresenMidstream's existing Hythe Gas Plant; (ii) the construction byVeresenMidstreamofanew,approximately60km,12-inchsourgaspipelinetotransportnaturalgastotheHytheGasPlant;and(iii)theconstructionbyPembinaofvariouslateralstoconnecttothePeacePipeline.TheHythedevelopmentshadanexpected in-servicedate in late2020, subject to regulatoryandenvironmentalapprovals.

Nov1 Pembina announced that it executed further agreements to construct and operate the second tranche ofinfrastructuredevelopmentundera20-yearinfrastructuredevelopmentandserviceagreementwithChevronandKUFPEC,including(i)DuvernayIII;(ii)acondensatestabilizationfacilitywithapproximately20,000bpdofrawinletcondensatehandlingcapacity;and(iii)waterhandlinginfrastructure,foranexpectedcapitalcostof$165millionwithananticipatedin-servicedateofmid-to-late2020,subjecttoregulatoryandenvironmentalapprovals.

Dec10 Pembinaannounceditscapitalspendingplanofapproximately$1.6billionfor2019,directedmainlyatmulti-yearexecutionprojectsandlong-termvaluecreation.

Dec17 PembinaannouncedthereleaseofitsinauguralsustainabilityreporthighlightingitsESGperformance.Dec31 Pembina'sSeriesFConvertibleDebenturesmaturedonDecember31,2018.Dec ThePhaseIVExpansionandPhaseVExpansionwereplacedintoservice.

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Developmentsin2019

Jan14 Pembina placed its ethane storage facility, with capacity of 1 mmbbls, near Burstall, Saskatchewan intoservice.

Jan31 PembinaannouncedthePhaseVIIIExpansion.CompletesanctioningofthePhaseVIIIExpansionwassubjecttosecuringsufficient long-term, take-or-paycommitments,withanexpected in-servicedate in the firsthalfof2022.ThePhaseVIIIExpansionhadanestimatedcapitalcostofapproximately$500millionandissupportedby10-yearcontractswithtake-or-payprovisions.ThePhaseVIIIExpansionwasanticipatedtobeplacedintoservice in stages starting in 2020 through the first half of 2022, subject to regulatory and environmentalapprovals.

Feb4 PembinaandPICannouncedthepositivefinalinvestmentdecisiononthepreviouslyannounced$4.5billion,550,000tonneperannumintegratedPDH/PPFacility,throughtheirequally-ownedjointventureentity,CKPC.Pembina's net investment was expected to be $2.5 billion. This project was expected to be in-servicemid-2023,subjecttoenvironmentalandregulatoryapprovals.

Feb6 PembinaannouncedMr.DougArnell'sresignationfromtheBoard.Mar28 RubyPipeline,L.L.C.amendedthematuritydateofits364-daytermloan,originallymaturingMarch28,2019

toMarch26,2020.The term loancontinued toamortizeatUS$16millionperquarter (US$8millionnet toPembina), beginning March 30, 2019, until a final bullet payment of US$78 million (US$39 million net toPembina)waspayableontheamendedmaturitydate.

Mar29 Pembinaplacedits45MWco-generationfacilityattheRedwaterComplexintoservice.Apr3 Pembinaissuedandsold$400millionaggregateprincipalamountofMediumTermNotes,Series12and$400

millionaggregateprincipalamountofMediumTermNotes,Series13,pursuanttoits2017MTNProspectus,assupplementedbytwopricingsupplementstheretodatedApril1,2019.Pembinausedthenetproceedsfromthe sale of theMedium TermNotes, Series 12 and Series 13 to repay short-term indebtedness under theCredit Facilities, as well as to fund Pembina's capital program and for general corporate purposes. See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes".

May2 PembinaannouncedthatitsBoardofDirectorsapproveda5.3percentincreaseinitsmonthlyCommonSharedividendratefrom$0.19perCommonShareto$0.20perCommonShare.

May2 Pembina announced that it had executed further agreements with Chevron and KUFPEC to construct theDuvernay Sour Treatment Facilitieswhichwill include a 150MMcf/d sour gas sweetening systemwith 300MMcf/dofamineregenerationcapabilityanduptoonetonneofsulphurperdayofacidgasincineration.TheDuvernaySourTreatmentFacilitiesareexpectedtohavea20-yearcontractuallifeandwillbeback-stoppedbyfixed-returnarrangements.TheDuvernaySourTreatmentFacilitieshadanexpectedcapitalcostof$65millionand an anticipated in-service date in the first quarter of 2020, subject to environmental and regulatoryapprovals.

Aug21 Pembina announced that it had entered into agreements to acquire KML (the "Kinder Morgan CanadaAcquisition")andtheU.S.portionoftheCochinPipelinesystemfromKinderMorgan, Inc. (the"CochinU.S.Acquisition"and togetherwith theKinderMorganCanadaAcquisition, the"KinderAcquisition") fora totalpurchasepriceofapproximately$4.35billion(adjustedpost-closingto$4.255billion).

Aug30 Pembinafiledits2019BaseShelfProspectusand2019MTNProspectus.Sept10 PembinaannouncedthatithadagreedwithKMLtoamendandrestatethearrangementagreementinrespect

oftheKinderMorganCanadaAcquisitiontoincludetheacquisitionoftheoutstandingKMLPreferredSharesinexchangeforClassAPreferredSharesofPembina,subjecttotheapprovaloftheholdersoftheKMLPreferredShares.

Sept12 Pembina issued and sold $600million aggregate principal amount ofMediumTermNotes, Series 14, $600million aggregate principal amount ofMedium TermNotes, Series 15 and $300million aggregate principalamountofMediumTermNotes, Series 13, througha re-opening, pursuant to its 2019MTNProspectus, assupplemented by three pricing supplements thereto dated September 9, 2019. Pembina used the netproceeds from the saleof theMediumTermNotes, Series 14, Series 15 and Series 13 to repay short-termindebtednessunderthe$1billionnon-revolvingtermloanfacilitythatwasenteredintoonMarch9,2018,aswellastofundPembina'scapitalprogramandforgeneralcorporatepurposes.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes".

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Sept26 VeresenMidstreamamended itsseniorsecuredcredit facilities thatwereoriginallyscheduledtomatureonApril20,2022.Underthetermoftheamendmentandextensionreachedwithasyndicateoflenders,VeresenMidstream increased its borrowing capacity to $225million under the revolving credit facility and to $2.6billionofavailabilityunderthetermfacility.Amortizationpaymentsunderthetermfacilityweredeferredfor24months,recommencingonSeptember30,2021.ThematuritydateofthetwodebtfacilitieswasextendedtoApril20,2024.

Nov1 PembinaannouncedthefirststageofafurtherexpansionofitsPeacePipelinesystem("PhaseIXExpansion"),which is comprised of new6-inch and 16-inch pipelines debottlenecking the corridor north ofGordondale,upgrades at one pump station and the conversion of existing pipelines, which are currently batching, intosingleproductlines.ThePhaseIXExpansionhadanestimatedcostof$100millionandissupportedby10-yearcontracts with predominantly investment grade counterparties under significant take-or-pay obligations.Phase IXwas anticipated tobeplaced into service in the fourthquarterof 2021, subject to regulatory andenvironmentalapprovals.Pembina also announced that its Board of Directors approved the development of a $120 million co-generation facility at Empress, with an expected in-service date in mid-2022, subject to regulatory andenvironmentalapproval.Additionally, Pembina announced its ESG performance highlights for 2018, highlighting that Pembina: (i)continuedtooperatesafelyandreliablywithzeroreportedsignificantfailures;(ii)achievedanotabledecreasein the frequency of motor vehicle incidents, after having implemented a variety of driving improvementinitiatives;(iii)investedover$11millionwithincommunitiesinwhichitoperates;and(iv)recordedmorethan5,500hoursvolunteeredamongitsemployees.Finally,Pembinaannounced:(i)theCompany'sCarbonStand,asevidenceofitscommitmenttoreducingGHGemission intensity in each of Pembina's businesses, and (ii) the Company's Inclusion & Diversity Stand,demonstratingtheCompany'scommitmenttodiversity,equalopportunityandensuringthatemployeeshavetheabilitytothriveinaninclusiveenvironment.

Dec10 Pembinaannounced that theholdersof theKMLVoting Shares and theKMLPreferred Shares, at separatespecial meetings of shareholders, voted to approve the Kinder Morgan Canada Acquisition. Pembina alsoannouncedthattheCourtofQueen'sBenchofAlbertaapprovedtheKinderMorganCanadaAcquisition.

Dec16 PembinaannouncedtheclosingoftheKinderAcquisition.PembinaalsoannouncedthatitsBoardofDirectorsapprovedafivepercentincreaseinitsmonthlyCommonSharedividendratefrom$0.20perCommonShareto$0.21perCommonShare.

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Developmentsin2020

Jan7 Pembinaannounced theexecutionofa lumpsumengineering,procurementandconstructioncontract (the"PDHEPC")relatedtotheconstructionoftheCKPCPDHfacilitywithin its integratedPDHandPPupgradingfacility.InconnectionwiththeexecutionofthePDHEPC,CKPCfixedapproximately60percentofthecostofthe PDH/PP Facility andPembina revised its proportionate shareof the capital cost of the PDH/PP Facility,includingthe100percentdirectly-ownedsupportingfacilities,from$2.5billionto$2.7billion.

Jan10 Pembina issued and sold $250million aggregate principal amount ofMediumTermNotes, Series 10, $500million aggregate principal amount ofMedium TermNotes, Series 11 and $250million aggregate principalamount ofMediumTermNotes, Series 12, through a re-opening of each series, pursuant to its 2019MTNProspectusdatedAugust30,2019,as supplementedby relatedpricingsupplementsdated January8,2020.PembinausedthenetproceedsfromthesaleoftheMediumTermNotes,Series10,Series11andSeries12torepayshort-termindebtednessunderitsRevolvingCreditFacility,aswellastofundPembina'scapitalprogramand for other general corporate purposes. See "Description of the Capital Structure of Pembina –MediumTermNotes".

Feb3 CKPCenteredintoareimbursableengineeringandprocurementservicescontractwithTRCanadaE&CInc.forthePPupgradingfacility.

Feb27 CKPC closed a syndicated senior secured credit agreement consisting of a US$1.7 billion amortizing termfacility,andaUS$150millionrevolving facility,whichhasbeenguaranteedequallyby theowners,PembinaandPIC,throughthecompletionofconstructiononaseveralbasis.ThefinalmaturitydateofthetermfacilityandrevolvingfacilityisFebruary27,2027.

Feb TheNEBCMontneyInfrastructurewasplacedintoservice.TheNEBCMontneyInfrastructureissupportedbylong-term fee-for-service and cost-of-service arrangements. In conjunction with the NEBC MontneyInfrastructure, a customer also entered into long-term, firm service agreements containing take-or-paycommitmentsondownstreampipelines.

Mar18 InresponsetotheCOVID-19pandemicandthesignificantdeclineinglobalenergyprices,Pembinaannounceda$900millionto$1.1billionreductioninits2020capitalspendingplans,anapproximately40to50percentreductionfromtheCompany’spreviouslyannouncedcapitalbudgetof$2.3billion. Inconnectiontherewith,Pembinaalsoannouncedthatthefollowingpreviouslydisclosedexpansionprojectswouldbedeferred:(i)thePhaseVIIExpansion,thePhaseVIIIExpansionandthePhaseIXExpansion,representing$1.55billionoftotalcapital; (ii) Empress Co-generation Facility, representing $120 million of total capital; (iii) Prince RupertTerminalExpansion,representing$175millionofcapital;and(iv)Pembina’sinvestmentinthePDH/PPFacility,representing $2.7 billion of capital, net to Pembina. Additional discretionary capital spending was alsoremovedfromPembina's2020capitalbudget.

Mar19 PembinaannouncedthatitreceivedacertificateofapprovalfromFERCforJordanCove.Mar TheWapitiCondensateLateralandDuvernaySourGasTreatingFacilitieswereplacedintoservice.Apr6 Pembina announced that it entered into an $800 million unsecured revolving credit facility with certain

existingkeylenders.Thecreditfacility isavailabletoPembinaforgeneralcorporatepurposes,providingtheCompanywithadditional liquidityand flexibilityas requiredandhasan initial termof twoyears.Thetermsand conditions of such revolving credit facility, including financial covenants, are substantially similar toPembina’sRevolvingCreditFacility.

May7 PembinaannouncedthatitenteredintoanunsecuredUS$250millionnon-revolvingtermloanwithaglobalbank,providingfurtheradditionalliquidityandflexibilityinPembina'scapitalstructure.TheUSDnon-revolvingtermloanhasaninitialtermoffiveyears.Thetermsandconditionsofsuchnon-revolvingtermloan,includingfinancialcovenants,aresubstantiallysimilartoPembina'sexistingRevolvingCreditFacility.

May8 Mr.BobMichaleskiandMr.JeffSmithretiredfromtheBoardafternotstandingforre-election.Mr.RobertG.GwinjoinedtheBoardofDirectorsafterShareholdersapprovedhisappointmenttotheBoardofDirectorsatthe2020Meetingandsubsequent to the2020Meeting,Ms.CynthiaCarrollwasappointedto theBoardofDirectorsbytheBoard.

May28 Pembinaissuedandsold$100millionaggregateprincipalamountthroughare-openingof itsMediumTermNotes,Series7and$400millionaggregateprincipalamountofMediumTermNotes,Series16pursuanttoits2019MTNProspectusdatedAugust30,2019,assupplementedbyrelatedpricingsupplementsdatedMay28,2020.Pembinaused thenetproceeds fromthe saleof theMediumTermNotes, Series7andSeries16, torepay indebtednessunder itsRevolvingCreditFacility,aswellas to fundPembina'scapitalprogramandforgeneralcorporatepurposes.See"DescriptionoftheCapitalStructureofPembina–MediumTermNotes".

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June ThePhaseVIExpansionwasplacedintoservice.Oct ThefractionationandterminallingfacilitiesatEmpresswereplacedintoservice.Dec3 Pembinareleasedits2020SustainabilityReport,whichoutlinestheCompany'sapproach,recentperformance

and future initiatives for ESG factors that arematerial to Pembina's stakeholders and business. See "OtherInformationRelatingtoPembina'sBusiness".

Dec14 Pembinaprovided its financialguidancefor2021, includingcapitalexpenditures intheaggregateamountof$785million.Pembina announced plans to re-activate the Phase VII Expansion under a revised scope. The capital costestimateforthePhaseVIIExpansionwasrevisedlower,byapproximately$175millionto$775million.Thein-servicedateof thePhaseVII Expansionwas revised to the firsthalfof2023.Asa resultof revisions to thescopeofthePhaseVIIExpansion,itsestimatedcapacitywasreducedfrom240mbpdto160mbpd.Pembinaalsoannouncedthat itwasproceedingwiththerestartoftheEmpressCo-generationFacilityat itsnaturalgasliquidsandprocessingandterminallingfacilitiesinEmpress,Alberta.Thecapitalcostestimateforthe Empress Co-generation Facility is expected to be $120 million. The expected in-service date for theEmpressCo-generationFacilityisthefirstquarterof2023,subjecttoregulatoryandenvironmentalapprovals.Additionally,PembinaannouncedthatitwassuspendingtheexecutionofthePDH/PPFacilityindefinitelyduetothesignificantrisksarisingfromtheCOVID-19pandemic,mostnotablywithrespecttocostsunderthePDHEDC which is under force majeure condition. As a result of such uncertainty, Pembina announced that itexpected to recognize a material impairment on the project in the fourth quarter of 2020. There are noamountsdrawnontheCKPCcreditfacility.Further, Pembina announced that it expected to recognize a material impairment on its 50 percentconvertible, cumulativepreferred interest in theRubyPipelineas a resultof: (i) firmcontractexpiries andrelatedprevailinginterruptibletariffrates,(ii)Rockiesbasinfundamentals,and(iii)ongoinguncertaintyonthetimingoftheapprovalssurroundingJordanCove.

Dec30 Pembinafiledits2020BaseShelfProspectus.

Developmentstodatein2021

Jan19 The FERC denied a petition on Jordan Cove for a declaratory order that the Oregon Department ofEnvironmentalQualitywaiveditsauthoritytoissueawaterqualitycertificationpursuanttoSection401oftheCleanWaterActforfailuretoactwithinthestatutorily-mandatedperiod.

Jan25 Pembina issued and sold $600 million aggregate principal amount of 4.80 percent Fixed-to-Fixed RateSubordinatedNotes,Series1dueJanuary25,2081(the"SubordinatedNotes,Series1")pursuanttoits2020BaseShelfProspectus,assupplementedbyaprospectussupplementdatedJanuary12,2021. Inconnectionwith the issuance of the SubordinatedNotes, Series 1, Pembina also issued 600,000 Series 2021-A Class APreferredShares(the"Series2021-AClassAPreferredShares") tobeheld intrustbyComputershareTrustCompany of Canada to satisfy Pembina's obligations under the Subordinated Note Indenture for theSubordinatedNotes, Series 1. Pembina expects to use thenet proceeds from the sale of the SubordinatedNotes,Series1toredeemorrepurchasePembina'sSeries11ClassAPreferredSharesanditsSeries13ClassAPreferred Shares, to repay outstanding indebtedness, as well as for general corporate purposes. See"Description of the Capital Structure of Pembina – Subordinated Notes" and "Description of the CapitalStructureofPembina–ClassAPreferredShares".Pembina announced its intention to redeemall of its 6.8million issued andoutstanding Series 11 ClassAPreferred SharesonMarch1, 2021 for a redemptionpriceequal to$25.00per Series 11ClassAPreferredShare,lessanytaxrequiredtobedeductedorwithheldbyPembina.ThetotalredemptionpricetoPembinawillbe$170million.

Feb8 TheUnitedStatesSecretaryofCommerceforOceansandAtmosphereupheldtheOregonDepartmentofLandConservationandDevelopment'sobjectiontotheJordanCovecertificationofconsistencyundertheCoastalZoneManagementAct,denyingPembina'sappealonthematter.

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DESCRIPTIONOFPEMBINA'SBUSINESSANDOPERATIONS

PurposeofPembina

Tobetheleaderindeliveringintegratedinfrastructuresolutionsconnectingglobalmarkets;

• customerschooseusfirstforreliableandvalue-addedservices;

• investorsreceivesustainableindustry-leadingreturns;

• employees saywearethe 'employerofchoice'andvalueoursafe, respectful,collaborativeandfairworkculture;and

• communitieswelcomeusandrecognizethenetpositiveimpactofoursocialandenvironmentalcommitment.

OverviewofPembina'sBusiness

There are three general sectors in the oil and gas industry: upstream,midstream and downstream. The upstream sectorencompassesexploration for, andproductionof,hydrocarbongasand liquids in their raw forms. In themidstreamsector,hydrocarbonproductsaregathered,processed,transportedandmarketedtothedownstreamsector.Thedownstreamsectorconsistsofrefineries,petrochemicalfacilities,end-usecustomers,localdistributorsandwholesalers.

PembinaisaleadingtransportationandmidstreamserviceproviderthathasbeenservingNorthAmerica'senergyindustryformorethan65years.PembinaownsanintegratedsystemofpipelinesthattransportvarioushydrocarbonliquidsandnaturalgasproductsproducedprimarilyinwesternCanada.TheCompanyalsoownsgasgatheringandprocessingfacilities;anoilandnatural gas liquids infrastructureand logisticsbusiness; and is growinganexport terminalsbusiness. Pembina's integratedassets and commercial operations along themajority of the hydrocarbon value chain allow it to offer a full spectrum ofmidstream andmarketing services to the energy sector. Pembina is committed to identifying additional opportunities toconnect hydrocarbon production to new demand locations through the development of infrastructure thatwould extendPembina's service offering even further along the hydrocarbon value chain. These new developments will contribute toensuring that hydrocarbons produced in theWestern Canadian Sedimentary Basin and the other basins where Pembinaoperatescanreachthehighestvaluemarketsthroughouttheworld.

Pembinaisstructuredintothreedivisions:PipelinesDivision,FacilitiesDivisionandMarketing&NewVenturesDivision;whicharedescribedintheirrespectivesectionsofthisAnnualInformationForm.

TheadjustedEBITDA(2)in2020fromeachofPembina'sthreedivisions(1)wasasfollows:

65%

30%

6%

Pipelines Facilities Marketing&NewVentures

(1)Excludingcorporatesegmentandinter-segmenteliminations.

(2)See"Non-GAAPMeasures".

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ThefollowingmapillustratesPembina'sprimaryassets:

Thefollowingtablesetsforthcertainfinancialhighlightsfor2020and2019.FinancialHighlights

(in$millionsunlessotherwisenoted)

Pipelines FacilitiesMarketing&NewVentures

Corporate&Inter-segmentEliminations Total

($millions) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Revenue 2,251 1,787 1,231 1,121 3,205 4,804 (485) (482) 6,202 7,230

Costofgoodssold,includingproductpurchases — — 11 4 3,064 4,417 (317) (311) 2,758 4,110

Netrevenue(1) 2,251 1,787 1,220 1,117 141 387 (168) (171) 3,444 3,120

AdjustedEBITDA(1) 2,208 1,854 1,012 955 193 423 (132) (171) 3,281 3,061(1) Seethe"Non–GAAPMeasures"section.

FurtherdiscussionoffinancialandoperationalresultsandnewdevelopmentsforPembina'sbusinesssegmentsfortheyearsendedDecember31,2020and2019iscontainedinthesection"SegmentResults"intheMD&A,whichsectionisincorporatedbyreferenceherein.

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PipelinesDivision

Overview

ThePipelinesDivisionprovidescustomerswithpipelinetransportation,terminalling,storageandrailservices inkeymarkethubs inCanadaand theUnitedStates for crudeoil, condensate,natural gas liquidsandnatural gas. Thedivisionmanagespipeline transportation capacity of 3.1mmboe/d(1), above ground storage of 11mmbls(1) and rail terminalling capacity ofapproximately145mboe/d(1)withinitsconventional,oilsandsandheavyoil,andtransmissionassets.Theconventionalassetsinclude strategically located pipelines and terminalling hubs that gather and transport light and medium crude oils,condensateandnaturalgas liquidsfromwesternAlbertaandnortheastBritishColumbiatotheEdmonton,Albertaareaforfurther processing or transportation on downstream pipelines. The oil sands and heavy oil assets transport heavy andsyntheticcrudeoilproducedwithinAlbertatotheEdmonton,Albertaareaandofferassociatedstorage,terminallingandrailservices.Thetransmissionassetstransportnaturalgas,ethaneandcondensatethroughoutCanadaandtheUnitedStatesonlong haul pipelines linking various key market hubs. In addition, the Pipelines Division assets provide linkages betweenPembina'supstreamanddownstreamassetsacrossNorthAmerica,enablingintegratedcustomerserviceofferings.Together,these assets supply products fromhydrocarbon producing regions to refineries, fractionators andmarket hubs in Alberta,BritishColumbia,IllinoisandCalifornia,aswellasotherregionsthroughoutNorthAmerica.

(1) Netcapacity;excludesprojectsunderdevelopment.

ConventionalAssets

Pembina'sprimaryconventionalassetsincludethefollowing:

• ThePeacePipelinesystem("PeacePipeline"),which includesapproximately3,750kmofpipelines, includinggatheringlaterals, that transport ethanemix (C2+), propanemix (C3+), crude oil and condensate from northwestern Alberta toEdmonton,AlbertaandtoFortSaskatchewan,Alberta.

• The Northern Pipeline system ("Northern Pipeline"), which includes approximately 700 km of pipelines, includinggatheringlaterals,thattransportNGLfromBelloy,AlbertatoFortSaskatchewan,Alberta.

Pembina continues to experience growing customer demand for transportation services to support development oftheMontney, Duvernay and other resource plays and is currently undertaking additional intra-Alberta expansions of thePeacePipelineandNorthernPipelinesystems,someofwhicharecurrentlydeferred.Theseexpansionsarediscussedbelow.

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• The Phase VII Expansion ("Phase VII Expansion"), which includes a 20-inch, approximately 220 km pipeline in the LaGlace-Valleyview-FoxCreekcorridor,andtwonewpumpstationsorterminalupgrades,betweenLaGlaceandEdmonton,Alberta. The Phase VII Expansion will add approximately 160 mbpd of incremental capacity upstream of Fox Creek,accessingcapacityavailableonthemainlinesdownstreamofFoxCreek.ThePhaseVIIExpansionisanticipatedtobeinserviceinthefirsthalfof2023.

• As previously announced, in response to the COVID-19 pandemic, the resulting economic slowdown, and decreaseddemandforcrudeoil,condensateandNGL,Pembinamadethedecision inMarch2020todefersomeof itspreviouslyannouncedexpansionprojects,including:

◦ The Phase VIII Expansion ("Phase VIII Expansion"), which includes 10-inch and 16-inch pipelines in theGordondale toLaGlacecorridor,aswellasseveralnewpumpstationsor terminalupgrades locatedbetweenGordondaleandFoxCreek,thatwouldenablesegregatedpipelineserviceforethane-plusandpropane-plusNGLmixfromthecentralMontneyareanearGordondaleintotheEdmonton,Albertaareaformarketdelivery.

◦ ThefirststageofthePhaseIXExpansion("PhaseIXExpansion"),whichincludes6-inchand16-inchpipelines,theconversionofexistingpipelineswhicharecurrentlybatching,intosingleproductlines,aswellasupgradesatonepumpstation.ThePhaseIXExpansionwoulddebottleneckthecorridornorthofGordondale.

ThePhaseVIIIExpansionandPhase IXExpansionwouldcompletethesegregationofLVPandHVPproductsacrossthesystem supporting further optimization opportunities. As well, Pembina continues to have the ability to addapproximately 200,000 bpd of capacity to its market delivery pipelines from Fox Creek, Alberta to Namao, Albertathrough the relatively low-cost additionofpump stationson thesemainlines, bringing the total capacityof thePeacePipelineandNorthernPipelineto1.3mmbpd.FullsegregationofcommoditiesonPeacePipelineandNorthernPipelinewould allow systemoptimizationopportunitiesdue to the reductionofbatching andqualitymanagement issues. Thisoptimization(the"PhaseXExpansion")couldcreateuptoanincremental100,000bpdofcapacitywithminimalcapitalspending.

• The Drayton Valley Pipeline system ("Drayton Valley Pipeline"), which includes approximately 1,100 km of pipelines,includinggathering laterals, thattransportcrudeoilandcondensatefromtheareasouthwestofEdmonton,AlbertatoEdmonton,Alberta.

• The NEBC Pipeline system ("NEBC Pipeline"), which includes approximately 350 km of pipelines, including gatheringlaterals,thattransportNGL,crudeoilandcondensatefromnortheasternBritishColumbiatoTaylor,BritishColumbia.

• TheWestern Pipeline system ("Western Pipeline"), which includes approximately 400 km of pipelines that transportcrudeoilfromTaylor,BritishColumbiatoPrinceGeorge,BritishColumbia.

• The LiquidsGathering Pipeline system ("LGS"),which includes approximately 400 kmof pipelines, including gatheringlaterals,thattransportNGLfromnortheasternBritishColumbiatoGordondale.

• The Brazeau NGL Pipeline system ("Brazeau Pipeline"), which includes approximately 500 km of pipelines, includinggathering laterals, that transport NGL from natural gas processing plants southwest of Edmonton, Alberta to FortSaskatchewan,Alberta.

• TheCanadianDiluentHub("CanadianDiluentHub"or"CDH"),whichincludesapproximately500mbblsofabovegroundstorageandprovidesdirectconnectivityfordomesticandU.S.condensatevolumestotheoilsandsviadownstreamthird-partypipelines;

• TheEdmontonNorthTerminal("ENT"),whichincludesapproximately900mbblsofabovegroundstoragewithaccesstocrude oil and condensate supply transported on Pembina's operated pipelines and products from various third-partyoperatedpipelines.

• 14truckterminals,whichprovidepipelineandmarketaccessforcrudeoilandcondensateproductionthatisnotpipelineconnected.

Thereareapproximately65shippers,includingindependentproducersaswellasmultinationaloilandgascompaniesontheconventionalpipelinesystemsownedandoperatedbyPembina.Theprimarydeliverypointsforhydrocarbonproductsfrom

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Pembina include: the Enbridge pipeline systems for multiple products; the Pembina North 40 Terminal and the TransMountainpipelinesystemnearEdmonton,Alberta;theStrathconarefineryintheEdmontonarea;Pembina'sCDHnearFortSaskatchewan,Alberta;connectedoilsandsdiluentpipelines;arefinerylocatedinPrinceGeorge,BritishColumbia;AEGSandallmajorNGLfractionatorsnearFortSaskatchewan,Alberta.

Pembina'sconventionalterminalsareconfiguredtoaccessandprovideservicesforthecommongradesofCanadiancrudeoil,as well as access domestic and imported condensate streams. The terminals provide essential services for Pembina'scustomerswithoutbounddeliveryflexibilityandabovegroundstorage.

At Pembina's truck terminals, the customer base generally comprises the same producers who seek to transport variousproducts, including condensate, on Pembina's conventional and oil sands and heavy oil systems. Truck terminals areparticularlyattractivetothoseproducerswhoareunabletojustifypipeline/oilbatteryconnectionsduetorelativelylowdailyproductionorareproducinginadvanceofbeingpipelineconnected.

Thecontractsrelatedtoconventionalassetsarefee-for-serviceinnature,butvaryintheirstructureasfollows:

Firmcontracts:PembinafocusesonsecuringbasevolumesonitsPeacePipelineandNorthernPipelinesystemsunderafirmcontract structure, where a fee-for-service toll, which includes flow-through operating costs for power and extraordinaryevents, is set under the contract and customers receive a firmamountof pipeline capacity for the transportationof theirproduct.Underfirmcontracts,customersalsoagreetoaminimumrevenueorvolumecommitment("take-or-pay").

Cost-of-servicecontracts:Pembina'sconventionalpipelinesinBritishColumbiaareprimarilyoperatedunderacost-of-servicemethodology whereby Pembina flows through the actual operating costs of the systems to shippers while recovering anegotiatedreturnoninvestedcapital.Undercost-of-servicecontracts,Pembinaisobligatedtoholdafixedcapacityfortheshippersandtheshippershaveanobligationtopaytheirshareoftheratebaseandoperatingcostswhethertheyuseallofthefixedcapacityornot.

Non-firmor interruptiblecontracts:Capacityonconventionalassetsthathasnotbeensecuredunderthefirmcontractsorcost-of-service contracts structures described above is contracted under fee-for-service,month-to-month contracts on aninterruptiblebasis thatallowPembinatoadjust tolls foractualvolumes,operatingexpensesandcapitalexpendituresonaperiodicbasis.ThesecontractsdonotrequirePembinatoguaranteeaspecifiedamountofdedicatedcapacityforacustomer.Rather,customersnominatevolumesonamonthlybasisandtariffsaresetperiodicallybyreceiptpoint.

Themajorityofcrudeoil,condensateandNGLproducttransportedonthePeacePipelineandNorthernPipelinesystemsarecontractedunderlong-term,firm,take-or-paycontracts.AsofDecember31,2020,theweightedaverageremainingtermonPeacePipelineandNorthernPipelinefirmcontractswasapproximatelyeightyears.

ServicesprovidedonotherconventionalassetsandsystemssuchastheDraytonValleyPipeline,LGS,BrazeauPipeline,CDH,andENTaregenerallyunderinterruptiblecontracts.

Competitionamongexistingcrudeoil,condensateandNGLpipelinesisbasedprimarilyonthecostoftransportation,accesstosupply,thequalityandreliabilityofservice,contractcarrieralternatives,proximityandaccesstomarketsandadditionalserviceofferings.

Pembina'sconventionalpipelinesarefeederpipelinesthatmoveproductsinthefieldfrombatteries,processingfacilitiesandstoragetankstofacilities,marketsandexportpipelinesprimarily intheEdmonton,AlbertaandFortSaskatchewan,Albertaareaasoutlinedabove.ThemajorityofPembina's conventionalpipelinesareconnected toexistingoilbatteriesandotherfacilities.Existingvolumesgenerally remainconnected to theapplicablepipelinesystemuntil it isuneconomic tocontinueprovidingpipelinetransportationservices.Thiscanoccurfornumerousreasons,includinglowvolumesorincreasedintegritymaintenancecosts,inwhichcasetheconnectionmaybediscontinuedandtheproducermaytruckvolumestoanalternatedeliverypoint.WithPembina's trackrecordofsafe, reliableandcost-effectiveoperations,service tenure, thecomplexandintegrated nature of its systems and high levels of customer service, it is difficult for a competitor to replicate Pembina'sserviceoffering.

Unlikeconnectedfacilities,unconnectedvolumesofproductaretypicallytruckedtothemostcost-effectivetruckunloadingfacility and there is direct competition from numerous service providers serving the same area. Typically, a producer'sselectionofatruckterminalisonlypartiallybasedontolls.Itmayalsobebasedonwhetherthevolumesneedsomeformoftreatment tomeet pipeline specifications, or locationbased-arbitrageopportunities associatedwith theproduct. Pembina

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ownstruckterminals toassist inaggregatingunconnectedvolumesonto itssystems.ThereareseveralotherpipelinesandterminaloperatorswhichcompetefortruckedvolumesinPembina'soperatingareas.CompetitionforthesevolumesincludelocalmarketfractionatorsforNGL,aswellasrailandnumerouspipelinesconnectedtoterminaloperationsforcrudeoilandcondensate.

Producer activity focused onNGL development continues in theDeepBasin Cretaceous,Montney andDuvernay resourceareasservedbyPembina'sPeacePipelineandNorthernPipelinesystems.Pembinahassuccessfullybeenabletoleverageitsexisting assets to provide incremental capacity in these areas, as evidenced by Pembina's numerous pipeline expansionprojects.

OilSandsandHeavyOilAssets

Pembina'sprimaryoilsandsandheavyoilassetsincludethefollowing:

• The SyncrudePipeline system ("SyncrudePipeline"),which includes approximately 450 kmof pipelines,whichhave acapacityof389mbpd.PembinaisthesoletransporterofsyntheticcrudeoilfortheSyncrudeProjecttodeliverypointsnearEdmonton,Alberta.

• The Horizon Pipeline system ("Horizon Pipeline"), which includes approximately 525 km of pipelines, which have acapacityof335mbpd.PembinatransportssyntheticcrudeoilfortheHorizonProjecttodeliverypointsnearEdmonton,Alberta.

• The Cheecham Lateral system ("Cheecham Lateral"), which includes approximately 50 km of pipelines, which have acapacity of 230mbpd and transports synthetic crude oil from a commonpump station on the Syncrude Pipeline andHorizonPipelinetoaterminallingfacilitylocatednearCheecham,Alberta,whereit isthenusedasdiluentforoilsandsproducersoperatingsoutheastofFortMcMurray,Alberta.

• TheNipisiPipelinesystem("NipisiPipeline"),whichincludesapproximately375kmofpipelines,whichhaveacapacityof111mbpdand transportsblendedheavyoil fromUtikuma,Alberta toEdmonton,Alberta.TheMitsuePipeline system("MitsuePipeline"),whichincludesapproximately250kmofpipelines,whichhaveacapacityof22mbpdandtransportscondensate from Whitecourt, Alberta to Utikuma, Alberta. The Mitsue Pipeline provides condensate for heavy oilproducers inthePelicanLakeandPeaceRiverregionsofAlbertatouseasdiluenttotransporttheirproductdowntheNipisiPipeline.

• TheSwanHillsPipeline("SwanHillsPipeline"),whichincludesanapproximately425kmpipeline,whichhasacapacityof48mbpdandprovidestransportationoflightsweetcrudeoilfromtheSwanHillsregionofAlbertatodeliverypointsnearEdmonton,Alberta.

• TheterminalsatEdmonton,Alberta(the"EdmontonTerminals"),whichconsistof36merchanttankswithacapacityofapproximately12.1mmbbls(9.6mmbblsnettoPembina)ofstorageandacrude-by-railcapacityof290mbpd(145mbpdnettoPembina).Theterminalsareconnectedtoahighlydiversesuiteof inboundpipelinesandoutboundconnectionsincludingbothpipelineandrail,resultinginthemostrobustconnectivityintheEdmonton,Albertaarea.TheEdmontonTerminalsincludevariousjointventureassetswithtwodifferentcounterpartiesandarediscussedbelow:

◦ TheEdmontonSouthTerminal("EdmontonSouthTerminal")isamerchanttankterminallocatedinSherwoodPark,Alberta. The assets in this facility consist of 15 tankswith a total storage capacity of approximately 5.1mmbbls.The15 tanksarecurrently leased fromTransMountainCorporationundera long-termarrangementandaresubleasedtothirdparties.

◦ TheNorth40Terminal ("North40Terminal") is amerchant tank terminal located inSherwoodPark,Alberta,immediatelyadjacent to theEdmontonSouthTerminal. Theassets in this facility consistofnine tankswithatotalstoragecapacityofapproximately2.15mmbbls.

◦ The Base Line Terminal ("Base Line Terminal") is a joint venture asset owned by Pembina (50 percent) andKeyera (50percent). It isamerchantcrudeoil storage terminal locatedon leased landat theKeyera,AlbertaEnviroFuelsfacilityinSherwoodPark,Alberta.Theassetsinthisfacilityconsistof12storagetankswithatotalcapacityof4.8mmbbls(2.4mmbblnettoPembina).

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◦ TheEdmontonSouthRailTerminal("EdmontonSouthRailTerminal")isajointventureassetownedbyPembina(50 percent) and Imperial (50 percent). The terminal is located on land leased from Imperial with a totalthroughputcapacityofapproximately250mbpd(125mbpdnet)andisunittraincapable.ThefacilityisservedbyboththeCanadianNationalRailwayandCanadianPacificRailwaynetworks.

◦ TheAlbertaCrudeTerminal("AlbertaCrudeTerminal")isajointventureassetownedbyPembina(50percent)andKeyera (50percent). It isacrudeoil rail loading facility locatedon land leasedfromKeyera inEdmonton,Alberta.TheterminalisservedbytheCanadianNationalRailwayandCanadianPacificRailwaynetworksandisconnectedviapipelinetotheNorth40TerminalandtheBaseLineTerminal.Theterminalhasapproximately40mbpd(20mbpdnettoPembina)ofmanifestcrudeoilrailloadingcapacity.

TheEdmontonTerminalsassetsprovideexcellentinboundandoutboundconnectivity,bothintermsofthefacilitiestowhichtheyareconnectedandthediversityofproductsthatmaybestoredandtransportedbythem.Inadditiontotheconsiderablemarket access offered to customers via pipeline, through its Alberta Crude Terminal and Edmonton South Rail Terminaloriginationcrude-by-railloadingfacilities,theEdmontonTerminalsareabletooffercustomerstheflexibilitytomovecrudeoiltomarketswithoutpipelineaccess,supplementdeliveriestomarketswithconstrainedpipelinecapacityandsupplydifferentoruniquecrudetypestorefinerieslookingtomaintainsetcrudespecifications.

ThemajorshippersonPembina'soilsandsandheavyoilpipelinesareprimarily largeupstreamexplorationandproductioncompanies.

Pembina'soilsandsandheavyoilpipelineassetsprovideservicespredominantlyunderlong-term,extendiblecontracts,whichallow for the flow-through of eligible operating expenses to customers. As a result, adjusted EBITDA from these assets isprimarily driven by the amount of capital invested and is predominantly not sensitive to fluctuations in certain operatingexpenses,physicalthroughputorcommodityprices.

Pembina's Syncrude Pipeline is fully contracted under a cost-of-service, extendible, long-term agreement that expires noearlierthantheendof2035.

The Horizon Pipeline is fully contracted to a single customer and is operated under the terms of a 25-year fixed return,extendiblecontract,whichexpiresin2034.

Pembina'sCheechamLateral is fullycontractedtoshippersunder the termsof25-year fixed-returnextendibleagreementsthatexpirein2032.

TheNipisiPipelineandtheMitsuePipelinearecontractedunder10-yearfee-for-serviceagreements,withsubstantialtake-or-paycomponents.Thesecontractsexpireattheendof2021.

TheSwanHillsPipelineisutilizedbyvariousshipperswhotransportmainlyonaninterruptiblebasis.

The Edmonton Terminals service customers consisting of a diversemix of production, refining, marketing and integratedcompanies. The Edmonton Terminals are primarily contracted under long-term, take-or-pay agreements. A significantmajorityoftotalrevenueistake-or-payinnature,whiletheremainingrevenueisderivedfromvariablefeesforincrementalservicesprovided.

WhileregionalinfrastructurecapacityfordeliverytotheEdmontonareaissufficientforcurrentproductionlevels,theprimaryfocusof infrastructuredevelopment isexpectedtobeonaccessingmarketsoutsideofAlberta for themajorityofbitumenand heavy oil produced in Alberta, including through potential incremental merchant storage capacity opportunities atPembina'sterminals.Inthelongterm,expansionsofexistingcondensateandsyntheticcrudediluentsupplyinfrastructure,aswellasblendedbitumenandheavyoilpipelinedeliverysystems,mayberequireddependingontherateatwhichoilsandsandheavyoilmaybeproducedinthefuture.See"RiskFactors–RisksInherentinPembina'sBusiness–ReserveReplacement,ThroughputandProductDemand".

Given the long-term nature of oil sands and heavy oil investments, most pipelines serving existing production areunderpinnedby long-termtransportationagreements.Competitionprimarilyariseswithrespectto incrementalsupplythatrequiresadditionalpipelinecapacity.Insomecases,existingpipelinecompanieshaveunder-utilizedassetswhichcanbere-purposedtosuitacustomer'sneeds,givingthemacompetitiveadvantagewhencompetingfornewprojects.Inothercases,

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whereconstructionofsignificantnewinfrastructureisrequired,pipelinecompaniescompetefortheseopportunitiesbasedprimarilyontheiroperatingexpertise,costofcapitalandcommercialflexibility.

WhilethelimitedavailabilityoflandfordevelopmentintheareaaroundtheEdmontonTerminalsandthesignificantcapitalinvestmentrequiredtoentertheterminallingbusinessaresignificantbarrierstoentry,theEdmontonTerminalsaresubjecttocompetitionfromotherrailterminalsandstoragefacilitieswhichareeitherinthegeneralvicinityoftheterminalsorhavegatheringsystemsthatare,orcouldpotentiallyextendinto,areasservedbytheEdmontonTerminals.

TransmissionAssets

Pembina'sprimarytransmissionassetsincludethefollowing:

VantagePipeline

TheVantagePipelinesystem("VantagePipeline"),whichincludesa786km,69mbpdpipelineandgatheringlateralsthatlinkethanesupplyfromtheBakkenresourceplayinNorthDakotatothepetrochemicalmarketinAlberta.Volumesoriginatefromtwogasplants inTioga,NorthDakotaextendingnorthwest throughSaskatchewanand terminatingnearEmpress,Alberta,whereitisconnectedtotheAEGS.

Transportation service on the Vantage Pipeline is underpinned by long-term, fee-for-service contracts with take-or-payprovisions.Currently,theVantagePipelinecontractsarewithonecustomerwithpetrochemicalinfrastructureinAlberta,withmultiplereceiptpointsalongtheVantagePipeline.Approximately50percentoftheVantagePipeline'scapacityiscontractedonatake-or-paybasiswithadditionalvolumesflowingonafee-for-servicebasis.Contracttermsrangefrom10to20yearswithcurrentcontractsexpiringbetween2024and2035.

AlbertaEthaneGatheringSystem

TheAlberta EthaneGathering System ("AEGS") transports ethanewithin Alberta from various ethane extraction plants tomajorpetrochemicalcomplexeslocatednearJoffre,AlbertaandFortSaskatchewan,Alberta.At1,336kmintotallength,andanaggregatedesigncapacityofapproximately330mbpd,AEGSiscomprisedofaneastleg,westlegandabi-directionalnorthleg, which together form an integrated system, that includes interconnections with underground storage sites in FortSaskatchewan,AlbertaandBurstall,Saskatchewan.

TheAEGS shipper community is currently comprised of eithermajor ethane producers or consumers that have significantenergy infrastructureand/orpetrochemical investments inAlberta.AEGS is fullycontractedwithnearly100percentofthiscapacityunder20-yeartake-or-payagreementsexpiringin2038.

AlliancePipeline

TheAlliancePipelinesystem("AlliancePipeline")isheldthroughAllianceCanadaandAllianceU.S.,bothofwhicharejointlyownedbyPembina(50percent)andindirectlybyEnbridge(50percent).

TheAlliancePipelineconsistsofa3,849kmintegratedCanadianandU.S.naturalgastransmissionpipeline,deliveringrichgasfrom theWCSB and theWilliston Basin in North Dakota to natural gasmarkets in the Chicago, Illinois area. The AlliancePipelinehasbeen incommercial servicesinceDecember2000andcurrentlydeliversanaverageof1.6bcf/dof richgas. ItconnectstoAuxSable'sChannahonFacilityinChannahon,Illinois,whichextractsNGLfromthenaturalgastransportedbeforedeliverytodownstreampipelines.TheAlliancePipelineconnects intheChicagoarea,throughitsdownstreamheader,withfive interstate natural gas pipelines and two local natural gas distribution systems,which provide shipperswith access tonatural gasmarkets in themid-west, thenortheast, and theGulfCoastof theU.S., andeasternCanada.All shippershavesignedextractionagreementsthatgiveAuxSabletherighttoextracttheNGLfromtherichgastransported.

The Canadian portion of theAlliance Pipeline consists of a 1,561 kmnatural gasmainline pipeline and 732 kmof relatedlateralpipelinesconnectedtonaturalgasreceiptlocations,primarilyatgasprocessingfacilitiesinnorthwesternAlbertaandnortheasternBritishColumbia,andrelatedinfrastructure.AllianceCanadaownstheCanadianportionoftheAlliancePipeline.

TheU.S.portionof theAlliancePipelineconsistsof1,556kmof infrastructure including the129kmTioga lateral inNorthDakota.AllianceU.S.,anaffiliateofAllianceCanada,ownstheU.S.portionoftheAlliancePipelinesystem.

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TheAlliancePipeline'snaturalgas transmissionservices,coupledwith richgasdeliverycapabilities,aredesignedtoenableproducerstomaximizethevalueoftheirproduct.Thisprovidessignificantcompetitiveadvantages,including:

• savingproducersprocessingandinfrastructurecosts,andprovidinganopportunitytoreducethetimetomarketfortheirrichgasproduction;

• providingaccesstoAuxSable'sChannahonFacilityNGLextractionfacilityallowingforconsiderableeconomiesofscale;and

• deliveringvalue-addedproductstoalternativeNGLmarketswhileonlypayingatransportationchargebasedonnaturalgasvolume,servicesthatpotentiallyprovideshipperswithahighernetbackforrichgas.

AsatDecember31,2020,AllianceCanadahad26long-termfirmshippersandAllianceU.S.had22long-termfirmshippers.AsatDecember31,2020,thetotalquantityoffirmtransportation,includingseasonalfirmservicewithcontracttermsofonedaytoelevenmonths,contractedwas1.6bcf/dontheCanadianportionoftheAlliancePipelineand1.8bcf/dontheU.S.portionof Alliance Pipeline. Firm transportation contracts are take-or-pay and shippers are obligated to pay demand charges oncontractedcapacity inCanadaandreservationchargesoncontractedcapacity in theU.S. Inaddition,AllianceCanadasellsseasonalfirmandinterruptibletransportationserviceonaprice-biddablebasis.Long-termfirmreceiptandfullpathshippersin Canada are also able to nominate priority interruptible transportation service for up to 25 percent of their contractedcapacity,ifavailable,atpremiumstotheirlong-termfirmtolls.

AllianceU.S.filedaratecaseinrespectoftheU.S.portionoftheAlliancePipelineinthesecondquarterof2020andreachedanagreementinprinciplewithitsshippersinJanuary2021.AllianceU.S.willfileastipulationandagreementinMarch2021andawaitsFERCapproval.

TheAlliance Pipeline faces competition for pipeline transportation services to its Chicago, Illinois area delivery points andinterconnected pipeline delivery points downstream of its Chicago terminus from both existing pipelines and proposedprojects. The Alliance Pipeline system is also exposed to competition from new sources of natural gas, such as theAppalachianBasinwhichrunsfromupstateNewYorktoVirginia.ThecontinueddevelopmentoftheAppalachianBasinmayprovideanalternativesourceofgastothislocationanddecreasenaturalgasimportsfromCanadaintotheregion.

CochinPipeline

TheCochinPipelinesystem("CochinPipeline")consistsofa12-inchdiameterpipelinetotaling2,452km,whichspansfromKankakeeCounty,IllinoistoFortSaskatchewan,Alberta. The CochinPipeline,transportslightcondensateprimarilytobeusedasdiluenttofacilitatebitumentransportation.TheCochinPipelinetraversestwoprovincesinCanadaandfourstatesintheU.S.andhashistoricallybeencapableoftransportingapproximately95mbpdoflightcondensate.PembinahasevaluatedthecapacityoftheCochinPipelineandidentifiedopportunitiestoincreasethecapacityofthesystem.Arecentcapacitytesthasconfirmedincrementalcapacity,allowingPembinatoofferanadditional14mbpdofcapacity.Pembinahasidentifiedandisevaluatingfurtherpotentialincrementalcapacityundervariouscapitalscenarios.

TheCochinPipelinehasthreeprimarycustomerswho,amongthem,havetotalcontractualtake-or-paycommitmentsof85mbpd.Thesecontractualcommitmentsarelong-termandexpirein2024withrenewalrightsuntil2034.

CondensateusedinCanadaisprimarilysuppliedbylocalproductionin(bothconventionalandunconventionalcondensates,aswellasrefinerylightnaphtha)andimportsfromtheU.S.WhiletheCochinPipelineisexposedtocompetitionfromotherpipelinesystemsthatarecapableof transportingsignificantvolumesofdiluent, theCochinPipeline'sdeliverypoint inFortSaskatchewanhasalowgravitydiluentpoolandahighlevelofconnectivity,therebymakingtheCochinPipelineanattractivemodeofshippingcondensate.

RubyPipeline

TheRubyPipelinesystem("RubyPipeline") isanaturalgastransmissionsystemdeliveringnaturalgasproductionfromtheRockiesBasin.TheRubyPipelineis1,094kminlengthwitha42-inchdiameterandhasacurrentcapacityof1.5bcf/d.

RubyPipeline isownedequallybyeachofPembinaandKinderMorgan Inc.,whooperates thepipeline.Pembinahasa50percent convertible, cumulative preferred interest in Ruby Pipeline Holding Company L.L.C. ("Ruby") which provides fordistributions of US$91 million annually in priority to distributions on common equity. Pembina's preferred interest may

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converttoacommonequityinteresteitheratPembina'soptionorautomaticallyuponthecontractingofatotalof1.25Bcf/doflong-termfirmcapacity,atratesconsistentwithcurrentcontractsontheRubyPipeline.

Approximately67percentofthecapacityoftheRubyPipeline(approximately1,010MMcf/d,gross)iscontractedunderlong-term,firmcontractsthatexpirein2021and2026.Approximately635MMcf/doffirmcontractsexpireinJuly2021.

TheRubyPipelinecompetestodelivergas intothewesternU.S.primarilywithwesternCanadiangasdeliveredthroughTCPipeLines,LP'sgas transmissionNorthwestpipelinesystemand, toa lesserextent,withU.S.RockiesgasdeliveredthroughWilliamsNorthwest Pipeline LLC's northwestpipeline ("WilliamsPipeline"). TheRubyPipelineprovides a sourceof supplydiversificationforcustomersinthePacificNorthwestU.S.andnorthernCaliforniawhowouldotherwisebelargelyreliantonCanadiansupply.

TheRubyPipelinecompetestoexportgasfromtheU.S.Rockieswithseveralpipelines,includingtheWilliamsPipelineintothePacificNorthwest,KernRiverGasTransmissionCompany'sKernRiverpipelineintoCalifornia,andnumerouspipelinesystemsthat can transport gas into the eastern and mid-western U.S. Growing gas production from prolific shale basins in thenortheasternU.S.hasnegativelyaffectedeasternexportsofU.S.Rockiesgas inrecentyearsrelativetowesternexportsonpipelines,includingtheRubyPipeline.

Duringthefourthquarterof2020,PembinaincurredanimpairmentonitsinvestmentinRuby.Theimpairmentwastheresultof upcoming contract expirations and prevailing interruptible tariff rates, alongwith Rockies basin fundamentals, and thepoliticalandregulatoryuncertaintywithrespecttoJordanCove,whichwouldultimatelybeexpectedtoutilizecapacityontheRuby Pipeline. See "Description of Pembina's Business and Operations — Marketing & New Ventures Division — NewVentures".

JetFuelPipeline

TheJetFuelPipeline("JetFuelPipeline")isanapproximately40kmpipelinethattransportsjetfuelfromaBurnaby,BritishColumbiarefineryandtheWestridgeMarineTerminaltotheVancouverInternationalAirportwithcapacityofapproximately26mbbls/dandincludesoperationalstoragetanksattheVancouverInternationalAirport.

GrandValley

GrandValley ("GrandValley") includes a 75percent jointly controlled interest inGrandValley 1 LimitedPartnershipwindfarm.

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FacilitiesDivision

Overview1

The Facilities Division includes infrastructure that provides Pembina's customers with natural gas, condensate and NGLservices.Pembina'snaturalgasgatheringandprocessingassetsarestrategicallypositionedinactive,liquids-richareasoftheWCSBandWillistonBasin andare integratedwith theCompany'sotherbusinesses. Pembinaprovides sweet and sour gasgathering, compression, condensate stabilization, and both shallow cut and deep cut gas processing services with a totalcapacityofapproximately6bcf/d for itscustomers.CondensateandNGLextractedatvirtuallyallCanadian-based facilitieshave access to transportation on Pembina's pipelines. In addition, all NGL transported along the Alliance Pipeline areextractedthroughthePembinaoperatedChannahonFacilityat theterminus.TheFacilitiesDivision includesapproximately354mbpdofNGLfractionationcapacity,21mmbblsofcavernstoragecapacityandassociatedpipelineandrailterminallingfacilitiesandtheCompanyiscurrentlyconstructingaliquefiedpropaneexportfacilityonCanada'sWestCoast.ThesefacilitiesarefullyintegratedwiththeCompany'sotherdivisions,providingcustomerswiththeabilitytoaccessacomprehensivesuiteof services to enhance the value of their hydrocarbons. In addition, Pembina owns a bulk marine export terminal inVancouver,BritishColumbia.

(1) References to capacity in this paragraph are to net capacity,which includes Aux Sable capacity. The financial and operational results for Aux Sable are included in theMarketing&NewVenturesDivision;excludesprojectsunderdevelopment.

GasServices

Pembina'sprimarygasservicesassetsincludethefollowing:

• Pembina'sCutbankComplex(the"CutbankComplex")locatednearGrandePrairie,Albertaincludessixshallowcutsweetgasprocessingplants (theCutbankGasPlant,Musreau I,Musreau II,Musreau III, theKakwaGasPlantandtheKakwaRiverShallowCutPlant),onedeepcutsweetgasprocessingplant(theMusreauDeepCut)andaraw-to-deepcutsourgasprocessing facility (the Kakwa River Deep Cut). In total, the Cutbank Complex has 675MMcf/d (618MMcf/d net toPembina) of shallow cut sweet gas processing capacity, 205MMcf/d of sweet deep cut extraction capacity and 200MMcf/dofraw-to-deepcutsourgasprocessingcapacity.TheCutbankComplexalso includesapproximately450kmofgatheringpipelines,ninefieldcompressionstationsandcentralizedcondensatestabilization.

• Pembina's Saturn Complex (the "Saturn Complex") located near Hinton, Alberta, includes the Saturn I and Saturn IIfacilities for a total of 440MMcf/d of deep cut gas processing capacity, aswell as approximately 25 kmof gatheringpipelines.

• Pembina'sResthavenFacility(the"ResthavenFacility") locatednearGrandeCache,Alberta, includes300MMcf/d(234MMcf/dnettoPembina)ofraw-to-deepcutsweetgasprocessingcapacity,aswellasapproximately30kmofgatheringpipelines.

• Pembina'sSaskatchewanEthaneExtractionPlant("SEEP")locatedtoservicetheBakkeninsoutheastSaskatchewan,hasdeepcutsweetgasprocessingcapacityof60MMcf/d,ethane,propaneandbutanefractionationcapabilitiesofupto4.5mbpdanda104kmethanedeliverypipeline.

• Pembina's Duvernay Complex (the "Duvernay Complex") located near Fox Creek, Alberta, currently includes threeshallowcutsweetgasprocessingplants(DuvernayI,DuvernayIIandDuvernayIII),theDuvernaySourTreatingFacilitiesandtheDuvernayFieldHub.Intotal,theDuvernayComplexhas300MMcf/d(275MMcf/dnettoPembina)shallowcutsweetgasprocessingplants,330MMcf/dofinletgashandlingcapability,60mbpdofrawinletcondensatestabilizationfacilities, 15mbpdofwaterhandling facilities, a150MMcf/d sourgas sweetening systemwith300MMcf/dof amineregenerationcapabilityanduptoonetonneofsulphurperdayofacidincineration.Supportinginfrastructureincludesa12kmsalesgaspipelineand35kmofgasgatheringandfuelgaspipelines.

• TheYoungerNGLExtractionFacility ("Younger") isa640MMcf/d (460MMcf/dnet toPembina)extraction facilityandapproximately10mbpd,nettoPembina,fractionationfacilityinBritishColumbiathatsuppliesspecificationNGLproductsto localmarkets,aswellasNGLmixsupply transportedontheCompany'spipelinesystemsto theFortSaskatchewan,Albertaareaforfractionationandsale,andcondensatetoPembina'sCDH.

• TheEmpressNGLExtractionFacility("Empress"),iscomprisedof1.9bcf/d,nettoPembina,ofextractioncapacityand67mpbd,nettoPembina,ofethane-plusfractionationacrossvariousjoint-ventureassetsandislocatedatEmpress,Alberta.

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At Empress,NGLmix is extracted fromnatural gas at straddleplants andall of theextractedNGL is fractionatedandethaneandcondensatearesoldintowesternCanadianmarkets.Theremainingpropaneandbutane,atPembina'soptioniseitherdistributedforsaleintowesternCanadianandmid-westernU.S.marketsorPembinarecombinesthepropaneandbutaneandtransports themix toSarnia,Ontario for further re-fractionation,distributionandsale intomarkets ineasternCanadaandeasternU.S.

Pembina is currently undertaking construction of the Empress Co-generation Facility (the "Empress Co-generationFacility"), which will reduce overall operating costs by providing power and heat to the extraction and fractionationfacilities. The project is expected to be placed into service in the first quarter of 2023, subject to regulatory andenvironmentalapprovals.

• Pembina owns a 45 percent interest in Veresen Midstream ("Veresen Midstream"), a limited partnership. VeresenMidstreamownsassetsinwesternCanadaservingtheMontneygeologicalplayinnorthwesternAlbertaandnortheasternBritishColumbia.VeresenMidstreamownsnaturalgasprocessingplants,withcombinedgrossprocessingcapacityof1.6bcf/d(727MMcf/dnettoPembina),includingtheSaturnGasPlant,SunriseGasPlantandTowerGasPlant(collectively,the"DawsonAssets")andtheHytheGasPlantandSteeprockGasPlant.VeresenMidstream'sassetsalso includeover1,100kmofgasgatheringlinesandthreeliquidshubs.VeresenMidstreamiscurrentlyconstructingadditionalnaturalgasgatheringandprocessinginfrastructureinthePipestoneMontneyregion.TheexpansionofVeresenMidstream'sexistingHytheGasPlantwilladdupto125MMcf/d(56MMcf/dnettoPembina)ofsourgasprocessingandapproximately60kmof12-inchsourgaspipeline.Atyearend,constructionoftheprojectwascompleteandawaitingathirdpartytie-in,theprojectisexpectedtobeplacedintoserviceinthefirstquarterof2021.

Pembina'sgasservicesbusinesshasapproximately35customers,includingindependentproducersaswellasmultinationaloilandgascompanies.Pembinaprocessescustomers'naturalgasatPembina'sCutbankComplex,SaturnComplex,ResthavenFacility,DuvernayComplexandVeresenMidstreamfacilities.TheprocessednaturalgasisdeliveredtotheEnbridgeInc.'sT-NorthsysteminBritishColumbia,NOVAGasTransmissionLtd.'spipelinesystemandtheAlliancePipelinesystem.TheNGLaredeliveredtoPembina'sPeacePipelineandNorthernPipelinesystems.Customers'naturalgasprocessedatSEEPisdeliveredtotheTransGassysteminSaskatchewanandtheethaneisdeliveredtoPembina'sVantagePipelinesystem.

Under the contractual arrangements with producers associated with the Cutbank Complex, Saturn Complex, ResthavenFacility, SEEP,DuvernayComplex, andVeresenMidstreamassets, Pembina is largelyprotected from the impactofmarketfluctuationsinthepriceofnaturalgasandNGL.Theliquidshandling,gatheringandprocessingbusinessisbasedonchargingfeestocustomersonthevolumeofraworprocessedgasthatisgatheredand/orprocessedthroughitsfacilitiesandthefeesare largelybasedonafixed-fee-for-servicemethodologyand, insomeinstances,basedonfixedreturnon investedcapital.The fee-for-service contracts associated with the gas services business comprise a mixture of firm, take-or-pay andinterruptible service contracts of varying durations. The contractual fee structure incorporates a capital fee based onfunctionalunitusage,aswellasprovisionsfortherecoveryofoperatingandoverheadcosts.

Pembina'snetshareofcapacityatYoungerandEmpressarenotunderanythird-partycontractsandareusedexclusivelybyPembina'smarketingbusinessforproprietaryvolumes.

DuvernayIandassociatedDuvernayFieldHubconnectingtheTonyCreekandFoxCreekareasinAlbertaareunder15yearagreementswithlargeanddiversifiedinvestmentgradeoilandgasproducerssupportedbyacombinationoffee-for-service,fixedreturnandtake-or-payarrangements.Thecontractsexpirein2032.

Duvernay II, Duvernay III and Duvernay Sour Gas Treating Facilities are under a 20-year infrastructure development andservice agreement with Chevron and KUFPEC, which includes an area of dedication in the liquids-rich Kaybob region oftheDuvernayresourceplaynearFoxCreek,Alberta.Underthisagreement,andsubjecttoChevronandKUFPECsanctioningdevelopment in the region, Chevron and KUFPEC have the right to require Pembina to construct, own and operate gasgatheringpipelinesandprocessingfacilities,liquidsstabilizationfacilitiesandothersupportinginfrastructurefortheareaofdedication, togetherwith Pembina providing long-term service for Chevron and KUFPEC on its pipelines and fractionationfacilities. Subject toChevronandKUFPEC sanctioningdevelopmentand regulatoryapprovals, the infrastructuredevelopedoverthetermoftheagreementhasthepotentialtorepresentamulti-billion-dollarinvestmentbyPembina.TheDuvernayII,Duvernay III andDuvernay Sour Gas Treating Facilities are supported by 20-year contractswith a combination of fee-for-service,fixed-returnandtake-or-payarrangements.Thecontractsexpirebetween2039and2040.

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IntheregionoftheDawsonAssets,VeresenMidstreamhasenteredintofee-for-serviceagreementswiththeCRPandOvintiv,wherebytheCRPhascommittedtouseVeresenMidstream’sDawsonAssetsonanexclusivebasisfora30-yeartermwithinanareaofmutualinterest.Thecontractexpiresin2045.

In the Hythe/Steeprock area, Veresen Midstream has entered into a cost of service-agreement, including take-or-paycommitments, with Ovintiv for the majority of the current available capacity of these facilities over the duration of theservicesagreement.Thecontractexpiresin2031.TheHytheGasPlantexpansion,expectedtobeplacedintoserviceinthefirstquarterof2021isfullysupportedby10and15-yearcontractswithpredominatelytake-or-payarrangements.

Gasproducerscontinuedtofocustheirexplorationanddevelopmentonrichgasareasduring2020.Pembina'sgasservicesexpansionsandnewdevelopmentplanscontinuetobefocusedincondensateandrichgasgeographicalareas,includingtheregionalMontneyandDuvernayareas.

Gasprocessing infrastructurerequirementsare largelydrivenbyareaprofitability,which is impactedbycommodityprices,andthegasproducer'sabilitytoaccesscapital.IntimeswheregaspricesarerelativelylowandNGLpricesarerelativelyhigh,producersareincentivizedtoextractasmuchNGLoutoftherawgasstreamaspossible.DuringtimeswhenNGLpricesarelower,producersmayopttoleavemoreliquidsentrenchedwithintheirrawgas.Pembinahastheflexibilitytoofferfacilitieswithvaryingdegreesofliquidsextractioncapabilitytosupportcustomersinavarietyofmarketconditions.

Withitsexistingassets,Pembinaisabletoseparatecrudeoilandcondensate,processsweetandsourgas,extractNGLfromthegas,transportthegastoChicagoandtransporttheliquidsthroughitsconventionalpipelinestoitsCDH,ENT,EdmontonTerminals and fractionation complexes, where Pembina is able to market the products to end users. With its extensiveoperating experience and an integrated service offering along the crude, condensate, NGL and natural gas value chain,Pembinabelievesitisstronglypositionedcomparedtootherserviceproviderstocapturenewbusiness.

Pembina'sgasservicesbusinessissubjecttocompetitionfromothergasprocessors,producerownedinfrastructureandtoalesserdegree,theAlliancePipelinewhichisahighheatcontentgasegressoption.ThesealternativeoptionsareeitherinthegeneralvicinityofPembina'sfacilities,orhavegatheringsystemsthatextend,orcouldpotentiallyextend,intoareasservedbythesefacilities.Goingforward,thedemandforadditionalprocessinginfrastructurewillbedeterminedprimarilybytherateatwhichtheWCSBgasproductiongrows.Pembina'scompetitiveadvantagestemsfromitsintegratedvaluechain,whichallowsgatheringandprocessingfacilitiestobecomepartofawell-headtomarketinfrastructuresolution,benefitingfromseamlessoperationalandcommercialalignment.

NGLServices

Pembina'sprimaryNGLservicesassetsincludethefollowing:

• The fractionation and storage facilities ("Redwater Complex"),which includes two 73mbpd ethane-plus fractionators(being "RFS I"and "RFS II", respectively); a55mbpdpropane-plus fractionator ("RFS III"); and12.1mmbblsof cavernstorage located in Redwater, Alberta. The Redwater Complex purchases NGL mix from various natural gas and NGLproducers and fractionates it into finished products for further distribution and sale. The Redwater Complex alsoprocessesNGLsupplyvolumesfromPembina'sYoungerNGLextractionfacility. Also locatedattheRedwaterComplexarePembina'struckandrailterminalswithunittraincapability,whichservicePembina'sproprietaryandcustomerneedsforimportingandexportingNGLproducts.

• TheEastNGLSystem("EastNGLSystem"),whichincludes:

◦ 20mbpdof fractionationcapacityand1.2mmbblsofcavernstorage inSarnia,Ontarioaswellasstorageandterminalling assets/capacity at Kerrobert, Saskatchewan, Cromer, Manitoba, Superior, Wisconsin, andLynchburg,Virginia;

◦ 6mmbblsofhydrocarbonstorage,truckandrailloadingfacilitiesatCorunna;and

◦ Anethanestoragefacility,withcapacityof1.1mmbbls,nearBurstall,Saskatchewan.

• ThePrinceRupertTerminal(the"PrinceRupertTerminal"),apropaneexportterminallocatedonWatsonIsland,BritishColumbiaonlandsleasedfromawholly-ownedsubsidiaryoftheCityofPrinceRupert.ThePrinceRupertTerminal isasmall-scale rail terminal,moving propane from rail cars, to pressurized storage spheres, and ultimately to 'handysize'

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vesselsdestinedforinternationalmarkets.Currentlyunderconstruction,thePrinceRupertTerminalisexpectedtohaveacapacityofapproximately25mbpdandisexpectedtobeinserviceinthefirstquarterof2021.

As previously announced, in response to the COVID-19 pandemic, the resulting economic slowdown and decreaseddemandforcrudeoil,condensateandNGL,Pembinamadethedecision inMarch2020todefersomeof itspreviouslyannounced expansion projects, including the Prince Rupert Terminal Expansion ("Prince Rupert Terminal Expansion")whichwillincreasetheexportcapacityoftheterminal.Theexpansionanditsscoperemainunderevaluation.

• TheVancouverWharves ("VancouverWharves"), located inNorthVancouver, B.C, is a 125-acrebulkmarine terminalfacility that in 2020 transferredover 4million tonsof bulk cargoand4.7mmbblof liquidspredominantly tooffshoreexportmarkets.TheVancouverWharvesareoperatedunderanoperatingleaseandassetownershipagreementwiththeB.C.RailwayCompanyandacorrespondingwaterlotleasewithPortMetroVancouver.Theterminalincludesonemilliontonsofbulkstoragecapacity,250,000barrelsofdistillatestoragecapacity,fourberths,facilitiesthatcanhouseupto325railcarsandconnectivitytothreeClass1railcompanies.

The VancouverWharves Expansion ("VancouverWharves Expansion")will add 200,000 barrels of additional distillatestorage and enhancements to the railcar unloading capabilities. The expansion is supportedby a 20-year, take-or-paycontractandisexpectedtobeplacedintoserviceinthesecondquarterof2021.

• A50percentinterestinFortCorp,whichhas27,500metrictonnesofethylenestoragenearFortSaskatchewan,Alberta.

Pembina'sNGLservicebusinessprovidesamultitudeofservicesforitscustomers.ItiscommonpracticeforcustomerstosignupformorethanoneservicewithPembina,includingfractionation,storage,loadingandoff-loading.

At theRedwaterComplex,PembinaprovidesNGLfractionation,storageandterminalling (loadingandoff-loading)services.NGL fractionation services at the Redwater Complex are provided under single or multi-year, predominately take-or-paycontracts.

ThroughitsEastNGLSystem,PembinaprovidesNGLfractionation,storageandterminalling(loadingandoff-loading)servicesprimarilyonaninterruptible,fee-for-servicebasis,primarilytoPembina'sMarketing&NewVenturesDivision.

Storageservicesare typicallyprovidedtocustomersundereithera fee-for-serviceor fixed-returnagreementwithcontractlengths rangingbetweenone to25 years. Terminalling (loading andoff-loading) services areprovidedona fee-for-servicebasisundercontractsthatrangefromoneyeartomulti-yearterms.

Pembina provides terminalling services for the Sturgeon Refinery which is operated by the Northwest Redwater LimitedPartnership.Theterminallingservicesareprovidedundera30-yearfixed-returnagreement.Thecontractexpiresin2047.

TheVancouverWharvescapacityiscontractedunderlong-term,take-or-payterminalserviceagreements.SomeofPembina'smajorlong-termcontractsattheVancouverWharvesareextendible.

Pembina's NGL services business is subject to competition from other fractionators, truck terminals, and storage facilitieswhichareeitherinthegeneralvicinityofthefacilitiesorhavegatheringsystemsthatextend,orcouldpotentiallyextend,intoareasservedbythefacilities.Goingforward,thedemandforadditionalinfrastructurewillbedeterminedprimarilybytherateat which the WCSB hydrocarbon production grows. The Vancouver Wharves is subject to competition from significantlysmallerdistillatesfacilitiesinthearea.Therearevariouscompetitivegrainterminalprojectscontemplatedorunderwaythatcould increase competitive pressures on the VancouverWharves grain business. Formineral concentrates, the VancouverWharvesenjoysadistinctadvantageasit isoneofonlythreefacilitiesonthewestcoastofNorthAmericathatiscurrentlypermittedtohandlethesecommodities.

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Marketing&NewVenturesDivision

Overview

TheMarketing&NewVenturesDivisionstrivestomaximizethevalueofhydrocarbonliquidsandnaturalgasoriginatinginthebasinswheretheCompanyoperates.Pembinaseekstocreatenewmarkets,andfurtherenhanceexistingmarkets,tosupportboth theCompany's and its customers'overall business interests. Inparticular, Pembina seeks to identifyopportunities toconnect hydrocarbonproduction tonewdemand locations through thedevelopmentof infrastructure. Pembina strives toincreaseproducernetbacksandproductdemandto improvetheoverallcompetitivenessofthebasinswheretheCompanyoperates.

MarketingActivities

WithintheMarketing&NewVenturesDivision,Pembinaundertakesvalue-addedcommoditymarketingactivities includingbuying and selling products (natural gas, ethane, propane, butane, condensate and crude oil), commodity arbitrage, andoptimizingstorageopportunities.ThemarketingbusinessentersintocontractsforcapacityonbothPembina'sandthird-partyinfrastructure,handlesproprietaryandcustomervolumesandaggregatesproductionforonwardsale.

Throughthisinfrastructurecapacity,aswellasutilizingtheCompany'sexpansiverailfleetandlogisticscapabilities,Pembina'smarketingbusinessadds incrementalvalue to thecommoditiesbyaccessinghighvaluemarketsacrossNorthAmericaandglobally.

ThevaluepotentialassociatedwithPembina'smarketingbusinessisdependentupon,amongotherthings,Pembina'sabilityto: access connections to both downstream pipelines and end-use markets; understand the value of the commoditiestransported, storedand terminalled;provide flexibilityandavarietyof storageoptions;andadjust toa liquid, responsive,forward commoditymarket. Pembina activelymonitorsmarket conditions and commodity stream values and qualities totarget revenue opportunities and service offerings. Pembina is also proactively working with upstream and downstreamcustomerstodevelopvalue-addedterminallingsolutionsandincreaseavailableoptionality.

Financial and operational results in the marketing business are subject to commodity price fluctuations, product pricedifferentials, locationbasisdifferentials, foreignexchange ratesandvolumes.Thepricesofproducts thataremarketedbyPembinaare subject tovolatilityasa resultof these factorsandother considerations including seasonaldemandchanges,weatherconditions,generaleconomicconditions,changesincrudeoil,NGLandnaturalgasmarketsandotherfactors.See"RiskFactors–RisksInherentinPembina'sBusiness–CommodityPriceRisk".

CustomerswithinPembina'smarketingbusinessaregenerallythosewhoproduce,consumeand/ormarketcrudeoil,NGLandnatural gas, are downstreammarkets for those products, or are interested in ancillary services related to those products.Pembina'smarketingbusiness leverages theCompany's integratedvaluechain, focusingonactivities that complement theexistingnetworkoffacilitiesandenergyinfrastructureacrossPembina'sassetbase.

ThecontractualarrangementsassociatedwithPembina'smarketingbusinessvarybyserviceoffering.

AuxSable

Pembina'sownershipinterestinAuxSable("AuxSable"),whichincludesAuxSableCanadaandAuxSableU.S,isincludedintheMarketing&NewVenturesDivision,sincethemajorityofcashflowfromthisassetisderivedfromcommoditysales.

AuxSableU.S.("AuxSableU.S.")iscomprisedofAuxSableLiquidsProductsInc.,AuxSableLiquidProductsLP("AuxSableUSLP")andAuxSableMidstreamLLC.CollectivelyAuxSableU.S.isownedbyPembina(42.7percent),indirectlybyEnbridgeInc.(42.7percent)andindirectlybyWilliamsPartners(14.6percent).TheprimaryassetsofAuxSableU.S.include:

• TheChannahonFacility ("ChannahonFacility"), located inChannahon, Illinois,about80kmsouthwestofChicagoneartheeasternterminusoftheAlliancePipeline.TheChannahonFacilityiscapableofprocessing2.1bcf/dofnaturalgasandcan produce approximately 131mbpd of specification NGL products. All of the natural gas delivered via the AlliancePipelineisprocessedattheChannahonFacility.

TheChannahon Facility includes storage and rail facilities aswell asNGLpipelines that connect the facility to variousthird-partyterminals,refineriesandpetrochemicalplants. ThescaleandgeographiclocationoftheChannahonFacility

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providesproducerslocatedinWesternCanadaandNorthDakotawitheconomicoptionsforliquidsrichgastakeawayandaccesstoU.S.NGLmarkets,avoidingcostlyinvestmentsinfieldprocessingandtransportationinfrastructure.

• ThePalermoConditioningPlant("PalermoConditioningPlant"),locatednearPalermo,NorthDakota,a80MMcf/dplant,whichreceivesgasfromgatheringsystemsservicingnearbyBakkenshaleoilandgasproductionareasandremovestheheavierhydrocarboncompoundswhileleavingthemajorityofthenaturalgasliquidsintherichgaspriortoshippingontheAlliancePipelineviadeliveryonthePrairieRosePipeline.

• ThePrairieRosePipeline("PrairieRosePipeline"),a120MMcf/dpipelineconnectingthePalermoConditioningPlanttotheAlliancePipeline.

• UndertransportationagreementswithnaturalgasshippersontheAlliancePipeline,AuxSableLPhastherighttoextractNGL fromallof thenaturalgas transported for thedurationsof theapplicableagreements.AuxSablehassignedNGLvalue-sharingagreementswithcertaingasproducersinAlberta,BritishColumbiaandNorthDakota.

AuxSableUSLPenteredintoanexclusiveNGLsaleagreementwithanNGLmarketeronDecember31,2005,pursuanttowhichAuxSableLPsellsaportionofitsNGLproductionfromtheChannahonFacilitytosuchcounterparty.Inreturn,AuxSableUSLPreceivesafixedannualfeeandpercentageshareofanynetmargingeneratedfromthebusinessinexcessofspecified thresholds. TheNGL sales agreement has an initial term expiringMarch 31, 2026 andmay be extended forsubsequent10-yearterms.

AuxSableCanada("AuxSableCanada")iscomprisedofAuxSableCanadaLPandAuxSableCanadaLtd.CollectivelyAuxSableCanada is owned by Pembina (50 percent) and indirectly by Enbridge Inc. (50 percent). The primary assets of Aux SableCanadainclude:

• TheHeartlandOffgasPlant("HOP"),a20MMcf/dextractionplantlocatedinFortSaskatchewan,Alberta.HOPproducesvaluableproductsincludinghydrogen,ethane,andothernaturalgasliquidsfromarefineryoffgasstreamsuppliedfromShell’sScotfordComplex.TheproductsarereturnedtoShellviapipeline.

• The Septimus Pipeline ("Septimus Pipeline"),which is located in northeastern British Columbia and transports sweet,liquidsrichgasfromtheSeptimusandWildergasplantstotheAlliancePipeline,fordownstreamprocessingatAuxSableU.S.'sChannahonFacility.TheSeptimusPipelineis100percentownedbyAuxSableCanadaandoperatedbyathird-partyandhasacapacityofapproximately350MMcf/d.

NewVentures

Pembina'sMarketing&NewVenturesDivision includesdevelopmentofnewlarge-scale,orvaluechainextendingprojects,andcurrentlyincludetheprojectslistedbelow.

PDH/PPFacility

Pembina and its partner, Petrochemical Industries Company K.S.C. ("PIC"), continue to evaluate the integrated propanedehydration ("PDH")plantandpolypropylene ("PP")upgrading facility, together (the"PDH/PPFacility") throughtheir jointventure,CanadaKuwaitPetrochemicalLimitedPartnership("CKPC").

AsaresultofthesignificantrisksarisingfromtheongoingCOVID-19pandemic,mostnotablywithrespecttocostsunderthelump sum contract for construction of the PDH plant, which remains under force majeure condition, CKPC suspendedexecutionoftheprojectindefinitely.Asaresultoftheprojectsuspension,PembinaincurredanimpairmentonitsinvestmentinCKPCduringthefourthquarterof2020.

JordanCove

TheproposedJordanCoveprojectisaworld-scaleLNGexportfacility,whichwouldtransportNorthAmericannaturalgastoworldmarkets.Theprojectismadeupoftwoparts:anLNGterminal,withaplanneddesigncapacityof7.8milliontonnesperannumandthePacificConnectorGasPipeline ("PacificConnectorGasPipeline")anapproximately400kmpipeline,whichwouldtransportnaturalgasfromMalin,OregontoanLNGterminalinCoosCounty,Oregon.

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Inlightofregulatoryandpoliticaluncertaintythatintensifiedinthesecondhalfof2020,PembinaincurredanimpairmentonJordanCoveinthefourthquarterof2020.

On January 19, 2021, the FERC denied a petition on Jordan Cove for a declaratory order that theOregonDepartment ofEnvironmentalQualitywaiveditsauthoritytoissueawaterqualitycertificationpursuanttoSection401oftheCleanWaterActforfailuretoactwithinthestatutorily-mandatedperiod.

OnFebruary8,2021,theUnitedStatesSecretaryofCommerceforOceansandAtmosphereupheldtheOregonDepartmentof LandConservationandDevelopment'sobjection to the JordanCove certificationof consistencyunder theCoastal ZoneManagementAct,denyingPembina'sappealonthematter.

Seasonality

Pembina'sbusinessesareaffectedbyseasonalityinthefollowingways:

• Construction and operational maintenance activities may vary seasonally. Site access and ground conditions can beimpacted by springmelting and, as a result, Pembina typically experiences higher pipelinemaintenance and integrityspending in the first and fourth quarters of the year. Labour productivity may be negatively impacted by seasonalweatherconditionsincludingextremetemperaturesinthewinter.

• Conventionalfeederpipelinesandgatheringsystemsgenerallyexperiencelowervolumesduringthespringmonthsasaresult of reduced drilling primarily due to weight restrictions on roads, producers conducting maintenance on theirbatteriesandgasplantturnarounds.Themagnitudeanddurationofroadweightrestrictionsaredependentuponspringweatherconditions.Manybatteryoperatorsalsoperformmaintenanceworkonproduction facilitiesduring thespringmonths.Roadrestrictionsandbatterymaintenancecanalso impactgatheringpipelinereceiptsduring the fallmonths,although the impact on throughput is generally less pronounced than during the spring months. Similar seasonalityimpactsareexperiencedupstreamofthepipelinesatPembina'sgasprocessingfacilities.

• VolumestransportedontheAlliancePipelineorvolumesprocessedatgasprocessingfacilitiesaregenerallyhigherduringwintermonthsasgascompressionismoreefficientincoldweatherandthereis,therefore,increasedavailabilitytoflowinterruptiblevolumesinthewintermonths,subjecttocustomerdemandfortheservice.

• ThefinancialperformanceofPembina'smarketingbusinesscanbeaffectedbyseasonaldemandsforproductsandothermarketfactors.Propaneinventorygenerallybuildsoverthesecondandthirdquartersoftheyearandissoldinthefourthquarterandthefirstquarterofthefollowingyearduringthewinterheatingseason.Condensate,butaneandethanearegenerallysoldrateablythroughouttheyear.See"RiskFactors–RisksInherentinPembina'sBusiness–CommodityPriceRisk".

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OTHERINFORMATIONRELATINGTOPEMBINA'SBUSINESS

OperatingManagementSystem

Pembina is committed to operational excellence and one of the ways in which the Company delivers this is through itsOperatingManagementSystem("OMS").Pembina'sOMSprovidesaconsistentframeworkforthedesign,development,andimplementationofacomprehensivesuiteofpolicies,programs,procedures,standardsandtoolsthatguide,governanddriveoperatingactivities.ThePembinaOMSalsosupportscyclicalplanning,implementation,review,andadjustmentofoperationalactivities.Pembina'sOMSanticipates,prevents,managesandmitigatesconditionsthatmayadverselyaffectthesafetyandsecurityofPembina’semployees,thepublic,theenvironment,andtheCompany'sinfrastructureassetswhilecomplyingwithgovernmentregulations.TheCompany'sOMSalignsPembinawithindustrybestpracticesandstandards.

Pembina's OMS is comprised of a number of individual programs intended to drive safety, reliability, efficiency, cost-effectivenessandthecontinuousimprovementoftheCompany'soperationalperformance.Theprogramsareoutlinedbelow.

Operational improvements, findings and industry changes are assessed, risked and prioritized, with corrective andpreventative actions identified and implemented. These actions are underpinned by goals and objectives with deliverymonitored against targets through assurance and management reviews. OMS is maturing over time through regularlyscheduledOMSworkinggroupactivitiesandoversightbytheOMSSteeringCommittee.AnynecessarymodificationstotheOMSareimplementedthroughPembina'smanagementofchangeframework.ByimplementingOMSinsupportofastrongsafetyculture,Pembina'sprojectsaredesigned,constructed,operatedanddecommissionedorabandonedinamannerthatconsidersthesafetyandsecurityofthepublic,Pembinapersonnelandphysicalassets,andtheprotectionofpropertyandtheenvironment.EachoftheOMSprogramsisdescribedmorefullyinthesectionsbelow.

IntegrityManagement

Pembina employs comprehensive asset integrity management programs and dedicates a significant portion of its annualoperatingbudgetdirectlytointegritymanagementactivities.Pembina'sintegritymanagementprogramsincludethesystems,processes,analysisanddocumentationdesignedtoensureproactiveandtransparentmanagementofitspipelinesystemsandfacilities,incompliancewithapplicablestandardsandregulations.

Pembina'sasset integritymanagementprogramsaredesignedtoachieveenhancedsafety,reliabilityandlongevitythroughthe entire asset lifecycle. They incorporate industry best practices and are designed to meet or exceed regulatoryrequirementswiththegoalofachievingenhancedsafety,reliabilityandlongevityoftheCompany'sassets.

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Integrity management begins at the engineering and design phase. Pembina has a robust set of engineering and designspecifications toensure learningsandbestpracticesarecapturedandconsistentlyapplied to futureprojects. At theearlystages of building a newpipeline, Pembina ensures that pipeline routes are chosen to avoid geologically unstable or highconsequenceareasandtominimizeenvironmental impact.Tofurthermitigatetheriskand impactofan incident,Pembinadesigns its pipelines so they can be safely shut down and segments can be isolated by installing block valves at strategicintervalsalongthesystem.Whereappropriate,Pembinatakesextrasafetyprecautions,suchasincreasingpipewallthicknessordepth-of-cover,tohelpmitigaterisks.Inaddition,whenitcomestochoosingmaterialsfornewconstruction,Pembinausessteelpipeandotherproductsthathavebeenmanufacturedtomeetthehighestqualitystandardsandspecifications.Aspartofthedesignoffacilities,impactstoexistinginfrastructureareidentifiedandmitigationmeasuresestablishedaspartoftheProcess Hazard Assessment process. The outcome is that lifecycle costs are minimized, while assuring safe, reliable andcompliantoperation.

Proactivepipeline integritymanagementactivitiesextend intooperations throughprograms, including right-of-waypatrolsand public awareness to reduce the likelihood of third-party damage, system-specific hazard evaluations and riskassessments,geotechnicalprogramstomanageslope instabilityandrivercrossings,theuseofspecificchemicalstoreducethelikelihoodofinternalcorrosionfromimpuritiesandbacteriaintheoil,cathodicprotectiontomitigatethepossiblegrowthofexternalcorrosion, trainingandcompetencymanagementprograms forstaffandcontractors,andenhancedemergencyresponseproceduresandtrainingexercises.

Pembinaplansandexecutesscheduledturnaroundsandoutagesatitsgasprocessing,fractionationandpipelinefacilitiestocompleterequiredmaintenanceandinspectionofpressureequipment,tanks,pipingandpressurerelievingdevices.Byusingdata collected through Pembina's facility integrity program, the Company can provide cost-effective, safe and reliableoperationofitsfacilities–tothebenefitofPembina'scustomersandShareholders.

EmergencyManagementProgram

Pembinaiscommittedtobeingreadytosafelyandeffectivelyrespondtoemergencysituationsrelatedtoor impactingtheCompany's operations. As part of Pembina's emergency preparedness, the Company conducts regular staff emergencyexercises and ensures local emergency responders (police, fire/EMS, disaster services, and others) are provided with keyinformationtofacilitatetheirresponsetopotentialemergencysituations.

Pembinamaintains inventories of specially-designed emergency response equipment for deployment, strategically locatednear Pembina's operations. Additionally, as amember of theWestern Canadian Spill Services Co-op, the Canadian EnergyPipeline Association Mutual Aid Plan and Emergency Response Assistance Canada, Pembina has access to emergencyresponseequipmentandparticipatesinemergencyresponseexerciseswithotherindustrymembers.

SecurityManagementProgram

Pembina'sSecurityManagementProgram("SMP")isthefoundationforcorporatesecurityandcybersecuritymanagement.This enables Pembina to conduct its activities and operations in a manner consistent with Pembina's commitment toprotecting people, the environment and property. The SMP establishes requirements for development, implementation,maintenance, and evaluation process of security management activities. The SMP is based on established managementsystemmodelswiththeobjectiveofutilizingastructuredsystemthatenablesongoingreviewandcontinualimprovementofsecurity management performance and related processes. Continual improvement is part of Pembina's SMP with goals,objectivesandtargetsestablishedonanannualbasis.TheSMPincludesdocumentationthatdescribesPembina’sprocessesto:

• Identify relevant security management, legal and regulatory requirements, as well as manage and communicatechangesintheserequirements;

• Identify and assess security vulnerabilities, threats, hazards and risks associatedwith Pembina's activities for thepurposeofestablishingappropriatesecuritymitigationmeasures,preparednessandresponse;and

• Establishandtrackprogressonachievingsecuritymanagementgoals,objectivesandtargets.

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PipelineControlManagementProgramandInformationandCommunicationSystems

PembinahasaPipelineControlManagementPrograminplacetoensurethattheCompany'spipelinesystemsareoperatedsafelyandreliably.AspartofthePipelineControlManagementProgram,Pembinaemploysmodernsupervisorycontrolanddata acquisition ("SCADA") SCADA technology on the majority of its pipeline systems. The SCADA systems allow forcontinuouselectronicmonitoringandcontrolofthepipelinesystemsfromdedicatedcomputerconsoleslocatedinPembina'scontrolcentreinSherwoodPark,Alberta.Operatorsmonitorthecomputerconsoles24hoursperday,365daysperyear.TheSCADA systems and associated leak detection software continually monitor pipeline flow and operating conditions. Linebalance calculations are performed automatically by the system and alarms are triggeredwhen imbalances are detected.When imbalancealarmsare triggered, trainedcontrol centreoperators investigate thealarmor shutdown thepipeline inaccordancewithPembina'sSegmentImbalanceResponseProtocol.

SafetyProgram

PembinahasaSafetyPrograminplacewhichisalignedwiththeHSEPolicyandotherprogramsthatformPembina'sOMS.Itemploysasystematicapproachcomprisedofprinciples,standards,procedures,guidelines,andothersupportingdocuments.

Toenhanceimprovementcompany-wide,Pembinahasestablishedacorporateincidentreviewpanel("IRP")andanExecutiveSafety Committee. The IRP meets six times a year and consists of operations, engineering and safety leaders as well asbusiness and service unit vice presidents. The IRP is focused on analyzing and understanding the causes of incidents anddetermining and completing resulting action plans to eliminate re-occurrence and ensuring that learnings are fullycommunicatedandimplementedonacorporate-widebasis.

PembinaholdsaCertificationofRecognitiondesignationwhichisawardedannuallybytheAlbertagovernmenttoemployerswhohavehealthandsafetyprogramsthatmeetestablishedgovernmentstandards.

Pembinauses ISNetworld,aprogramthataggregatesanddiscloses thesafety trackrecordofserviceproviders, tomanagecontractorpre-qualifications,orientationsandcomplianceaspartoftheprocurementprocess.TheConstructionSupervisorOnboardingProgramandContractSafetyRepresentativeOnboardingProcessareinplacetoensurecontractorsintheserolesare provided with a consistent and standardized approach to Pembina’s policies and safety culture, and gain a clearunderstandingoftheirspecificrole.

EnvironmentalMattersandEnvironmentalStewardship

Pembina'sassetsaresubjecttoenvironmentalregulation.TheCompanymustcomplywithapplicablefederal,provincial,stateand local lawsandregulations inCanadaandtheU.S.Such lawsandregulationsgovern,amongotherthings,construction,operatingandmaintenancestandards,managementandcontrolofemissionsandwastedischargeandprotectionofaquaticand terrestrial wildlife and habitat. Management expects that Pembina's facilities and operations meet or exceed thoserequirements.Pembinaparticipatesinthefollowingapplicableregulatedemissionreportingprograms:CanadianGreenhouseGasEmissionsReportingProgram,CanadianNationalPollutantReleaseInventoryReporting,AlbertaSpecifiedGasReportingRegulation, BritishColumbiaGreenhouseGas EmissionReportingRegulation,Alberta Technology, Innovation andEmissionReduction Regulation, Saskatchewan Management and Reduction of Greenhouse Gases (Reporting) Regulation, and USEnvironmental Protection Agency Greenhouse Gas Report, as well as other provincial and state air quality reportingrequirementsunderassetspecificconditionsofapproval.

To confirm regulatory compliance and conformance with Pembina's internal environmental standards, Pembina hasimplementedanEnvironmentalManagementProgram,which includesaplannedenvironmental auditprogram.Aspartofthis program, regularly scheduled third-party environmental compliance audits are conducted at various facilitieswithin aselectedbusinessuniteachyear.TheEnvironmentalManagementProgramisdesignedsothatassetswithineachbusinessunitareauditedatleastonceeveryfiveyears.

Pembina's focus on integritymanagement and safe operations continues to result in low incident frequency andminimalenvironmentalimpact.Eachyear,tomanageenvironmentalliability,Pembinainvestsintheremediationandreclamationofpre-existing spill sites, thereby reducing Pembina's environmental liabilities. In addition to the environmental expensesassociatedwithitsoperations,Pembinaalsoinvestsinenvironmentalassessment,planning,permittingandpost-constructionmonitoringassociatedwiththeCompany'scapitalprojects.

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With increasing focus on lower carbon intensive energy sources, Pembina is committed to reducing the GHG emissionintensityofeachof itsbusinesses.Pembina's2020SustainabilityReportdetailsPembina'senvironmentalperformanceandcommitment to continuous improvement, transparency and engagement as it continues to further integrate sustainablebusinesspracticesthroughouttheCompany.The2020SustainabilityReportisavailableatwww.pembina.com.

In 2021, Pembina will develop specific GHG emissions intensity reduction targets, incorporate ESG metrics into at-riskincentive compensation metrics, including into Pembina's short, medium and long term incentive plans, and developstrategiestoaddresstheenergytransition.

DamagePreventionandPublicAwarenessPrograms

WorkingsafelyaroundpipelinesandpreventingdamagetoPembinaownedandoperatedpipelines,facilitiesandassociatedinfrastructureisinthebestinterestofallofPembina'sstakeholders.Pipelineinfrastructureisoftenburiedundergroundand,asaresult,preventingpipelinedamagedependsonoperators,thepublicandstakeholdersworkingtogethertobeawareofthe dangers and taking appropriate actions to prevent the risk of damage. Pembina's Damage Prevention and PublicAwarenessProgramsarededicatedtoworkersafety,publicsafety,protectionoftheenvironmentandthepreservationoftheintegrity of the Company's infrastructure. These programs have been developed tomeet the regulatory requirements forDamagePreventionandAwarenessProgramsintheareasPembinaoperates.

Pembina is committed to establishing meaningful and open communications with those who live and work around theCompany'sunderground infrastructureto increasetheawarenessofthepresenceofPembina'sunderground infrastructureandtheirrequirementsforhowtoworksafelyinthevicinityoftheCompany'spipelines.

PipelineRights-of-WayandLandTenure

Pembina's real property interests fall into two basic categories of ownership: (i) a number of locations, including manypumpingstationsandterminalandstoragefacilities,whichareownedinfeesimple;and(ii)themajorityoflocationswhicharecoveredbyleases,easements,rights-of-way,permitsorlicencesfromlandownersorgovernmentalauthoritiespermittingtheuseofsuchlandfortheconstructionandoperationofapipeline.

OperationsandMaintenance–OperatorQualificationandPreventativeMaintenanceManagementPrograms

Pembina'sSAP-basedpreventativemaintenancemanagementtool("PMM")wascompletedin2018.TheobjectiveofPMMistoensuresafe,consistentandefficientassetmanagement.PMMisakeycomponentofPembina'sOMSandadriverofsafeandefficientassetmanagementandoperation.

Pembina'sOperatorQualificationProgramfortheUnitedStatesoperationsoftheVantagePipeline,WestSpurLateral,Cochinpipeline andAux Sable assets is in place to ensure that Pembina'sOperators and Technicians are trained andqualified toperformtheirdutiessafely.

RegulatoryFinancialProgramandIndustryRegulation

TheRegulatoryFinancialProgram("RFProgram")isusedtoprovidestrategicdirection,leadershipandoversightoffinancialoperational regulatory compliance at Pembina. The purpose of the RF Program is to develop, implement and maintainfinancialoperationalregulatoryprocesses,proceduresandpractices inaccordancewithregulatoryrequirements.Currently,theRFProgramisapplicabletotheCERandFERCregulatedpipelinesPembinaownsandoperates.

Pembina'spipelinesandrelatedemissionsareregulatedbyvariousregulatorybodies,including,butnotlimitedto,theAER,AUC, AEP, BCUC, BCOGC, B.C. Ministry of the Environment and Climate Change Strategy, B.C. Ministry of Finance,SaskatchewanMinistryofEnergyandResources,CER,ECCC,PHMSAandtheFERC.

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AERandAUC

The AER regulates the construction, operation, discontinuation and abandonment of non-utility pipelines and associatedinstallations inAlbertapursuanttothePipelineActandtheResponsibleEnergyDevelopmentAct.A licencefromtheAERisnecessary to construct andoperate apipeline andassociated installations. TheAERmay imposeany conditionson suchalicence.Whenmakingdecisionsonthesekindsofregulatorymatters,theAERmustconsiderthesocialandeconomiceffectsof the proposed activities, effects on the environment, and potential impacts on landowners. Indigenous consultation,environmental,andwaterprotectionregulationsarealsoadministeredorconsideredbytheAER.

With respect to toll-regulation inAlberta,oncea licence toconstructapipeline is issuedby theAER,subject to regulatoryintervention,thepipelineisfreetoestablishtollsinacompetitivemarketenvironment.Tollsareestablishedundercontractsofvarying termsandconditionsandarealsopostedby location fornon-firm (interruptible) service.Posted tollswhichareapplied to non-firm volumes can generally be adjusted to respond to changing volumes, costs andmarket circumstances.Contracted tolls on firm contracts can also be adjusted,wherepermittedby the termsof the contract, for such things aschangesintheconsumerpriceindex,changesinpowercosts,extraordinarynaturaleventsthatimpactpipelineintegrityandchanges to regulationsassociatedwithpipelines. For commoncarriers,pipeline customershave recourse to theAER,withrespecttopipelineaccessanddiscriminationamongcustomers,andtotheAUCwithrespecttotariffmatters,onacomplaintbasis.

Pembina is subject to regulation by the AER under the Licensee Liability Rating Program and the Large Facility LiabilityManagementProgram.Theprogramsrequire thatPembinasubmitsitespecific liabilityassessments (decommissioningandreclamationestimates)forselectfacilitiestotheAERandprovideameasuretoensurethatPembinahasthefinancialabilitytocompleterequiredassetretirementactivities.

The AER also regulates, in conjunctionwith AEP, airborne emissions from energy resource activities including oil and gaspipelines.TheAER’sauthorityincludesregulationofmethaneemissionsintheupstreamoilandgassector,pursuanttotheMethaneEmissionReductionRegulationandDirectives060and017.

AEP

ComprehensiveGHGemissionsregulationsforindustrialfacilitiesinAlberta,includingoilandgasfacilities,areadministeredbyAEP,undertheTechnologyInnovationandEmissionsReductionRegulation.

BCOGC

Theconstruction,operationandabandonmentofnon-utilityoilandgaspipelinesandassociatedinstallationsandfacilitiesinB.C.isregulatedbytheBCOGCpursuanttotheOilandGasActivitiesAct.ApermitfromtheBCOGCisrequiredtoconstructoroperateapipelineorassociated installationsor facilities.TheBCOGCmay imposeanyconditions itconsidersnecessaryonsuchapermit.DecisionsbytheBCOGCmust,amongotherthings,provideforthesounddevelopmentoftheoilandgassectorby fostering a healthy environment, a sound economy and social well-being; and ensure safe and efficient practices. TheBCOGCalsohasamandatetoencouragetheparticipationofIndigenouspeoplesinregulatoryprocessesaffectingthem.

TheBCOGCadministersmethaneemissionsregulationsinB.C.,undertheDrillingandProductionRegulationandtheOilandGasActivitiesAct,whichaddressmethaneemissionsintheupstreamoilandgassector.

BCUC

ThetollsoncertainB.C.pipelinesarerate-regulatedbytheBCUC.TheBCUCapprovestollsthatmaybechargedbycommoncarriersandregulatesothertollsonacomplaintbasis.

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B.C.MinistryofEnvironment

The B.C. Ministry of the Environment administers regulations pertaining to ongoing monitoring and management of aircontaminantsundertheEnvironmentalManagementAct.

B.C.MinistryofFinance

TheConsumerTaxBranchoftheB.C.MinistryofFinanceadministerstheB.C.carbontax,undertheCarbonTaxAct,whichistheprovince'sprimaryformofregulationofgreenhousegasemissions.

SaskatchewanMinistryofEnergyandResources

TheSaskatchewanMinistryofEnergyandResourcesregulatesairborneemissionsfromoilandgasfacilitiesinSaskatchewan,including administering the province's methane emissions regulations under the Oil and Gas Emissions ManagementRegulations.

CER

OnAugust28,2019,theCanadianEnergyRegulatorAct(the"CERAct")cameintoforce,repealingtheNationalEnergyBoardAct ("NEBAct") and creating the CER.Overall, the CERAct parallels the previous regulatory regime under theNEBAct inseveralareas,including:pipelineconstructionandoperation;pipelinetraffic,tollsandtariffs;authorizationsfortheexportofoilandgas;liabilitiesforunintendedoruncontrolledreleases;andthepipelinecompany'sfinancialrequirements.Significantchanges to theregulatory regime includeestablishing theCERto replace theNEB,broader"public interest"considerationsprior to making a recommendation to theMinister on an application for a pipeline certificate and increased Indigenousparticipation.

Interprovincialor internationalpipelinesfallundertheCER's jurisdiction.AcertificateundertheCERAct isrequiredfortheconstruction and operation of such interprovincial or international pipelines. CER Act certificates may be subject to anyconditionswhicharenecessaryorinthe"publicinterest".InterprovincialandinternationalpipelinesmayalsobesubjecttoimpactassessmentundertheImpactAssessmentActaspartofthecertificateprocess.

UndertheCERActandregulations,companieswhoownand/oroperateCER-regulatedpipelinesaredividedintotwogroupsforregulationoftollsandtariffs.Group1consistsofthemajorpipelinecompanieswhicharesubjecttoenhancedregulatoryoversightby theCER.Theotherpipelinecompaniesunder the jurisdictionof theCER,not included inGroup1,havebeenclassified as Group 2. The Canadian segments of the Alliance Pipeline and the Cochin Pipeline are classified as Group 1.Pembina'sotherCERpipelinesareclassifiedasGroup2by theCER.For theseGroup2pipelinesystems, ifnocomplaint isfiled,theCERmaypresumethatthefiledtariffsarejustandreasonable.TheNorthwestPipeline,theTaylortoBelloyPipeline,thePouceCoupéPipelineandthePouceCoupéLateral,alllicensedbyPembina'swholly-ownedsubsidiaryPouceCoupéPipeLineLtd.,areregulatedbytheCER.Pembina'sTaylortoBoundaryLakePipeline,whichisownedbyPembinaEnergyServicesInc.,Pembina'sVantagePipeline,whichisownedbyPembinaPrairieFacilitiesLtd.,andPembina'sEmpressPipeline,whichisowned by Veresen NGL Pipeline Inc., all wholly-owned subsidiaries of Pembina, are also regulated by the CER. The fourpipelinescollectivelyreferredtoastheTupperPipelines,licensedbyVeresenEnergyPipelineInc.,and42percentownedbyPembina,arealsoregulatedbytheCER.TheKerrobertpipelineisregulatedbytheCERbutisnotoperatedbyPembina.

Pembina is required to maintain a minimum of $941 million in financial resources to meet the absolute liability limitrequirements in thePipeline Safety Act. The CER requires the Company tomaintain these financial resources and readilyaccessiblefundsinspecifictypesoffinancialinstruments.

ECCC

ECCCisresponsibleforadministeringthefederalGHGpricingregulationsundertheGreenhouseGasPollutionPricingActandother federal GHG emissions reduction regulations, including methane emissions regulations applicable outside BritishColumbia, Alberta and Saskatchewan under theRegulations Respecting Reduction in the Release ofMethane and CertainVolatileOrganicCompounds(UpstreamOilandGasSector).ECCCisalsoresponsibleforinternationalagreementsonairborneemissions.

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FERC

The FERC is an independent U.S. agency that regulates, as relevant to Pembina, interstate natural gas pipelines, and thetransportationininterstatecommerceofliquidhydrocarbons(crudeoil,refinedproducts,andNGL).

The Ruby Pipeline, and the U.S. segments of the Alliance Pipeline are interstate natural gas pipelines subject to FERCjurisdiction under the NGA. FERC jurisdiction under the NGA extends to virtually all commercial aspects of an interstatenatural gas pipeline’s business, including rates and charges, construction of new facilities, extension or abandonment ofserviceandfacilities,accountsandrecords,depreciationandamortizationpolicies,theacquisitionanddispositionoffacilities,the initiation and discontinuation of services, affiliate relationships and certain other matters. A certificate of publicconvenience and necessity from the FERC is necessary to construct and operate an interstate natural gas pipeline. A keyregulatory principle underlying the FERC's jurisdiction is non-discrimination, such that interstate natural gas pipelinecompaniesareprohibitedfromgrantinganyunduepreferencetoanyperson,undulydiscriminatingagainstorinfavorofanypersonormaintaininganyunreasonabledifferenceinratesortermsandconditionsofservice.

Ingeneral,rateschargedbyinterstatenaturalgaspipelinecompaniesmaynotexceedthestatutory"justandreasonable"or"recourse"ratesapprovedbytheFERC;however,undertheFERC'scurrentpolicies,apipelinemayobtainapprovaltochargenegotiatedrateswhichdiffer fromtheFERCregulated"recourse"rate.TheFERCapprovedAllianceU.S.'sproposal tooffershippersbothnegotiatedand"recourse"rateoptions.Accordingly,AllianceU.S.'sexistingtariffcontainsbothnegotiatedand"recourse"rates.RateoptionsinrespectofRubyPipelinearenegotiatedbyKinderMorgan,asoperator.

TheU.S. segmentsof theVantagePipelineandCochinPipelineare subject to theFERC's jurisdictionunder the ICA.UnlikeFERC'sNGAjurisdiction,FERC'sjurisdictionoverliquidspipelinespursuanttotheICAissignificantlymorelimited.FERCdoesnot have jurisdiction over the construction, extension or abandonment of pipelines transporting liquids in interstatecommerce.FERC'sjurisdictionoverpipelinestransportingcrudeoil,NGLorrefinedproductsininterstatecommerceislimitedto the rates, termsand conditionsof serviceprovided.Aswith interstatenatural gaspipeline regulatory, a key regulatoryprincipleunderlyingFERC's ICA jurisdiction isnon-discrimination,suchthatpipelinesprovidingtransportationofoil,naturalgas liquidsor refinedproducts in interstatecommerce areprohibited fromgrantinganyunduepreference toanyperson,unduly discriminating against or in favor of any person ormaintaining any unreasonable difference in rates or terms andconditionsofservice.

See"RiskFactors–Risks Inherent inPembina'sBusiness–AbandonmentCosts","RiskFactors–Risks InherenttoPembina'sBusiness – Environmental Costs and Liabilities" and "Risk Factors – Risks Inherent to Pembina's Business – Regulation andLegislation".

PHMSA

ThePHMSAoverseesthesafeoperationandmaintenanceofinterstateoilandgaspipelinesunder49CFRPart190–PipelineSafetyEnforcementandRegulatoryProcedures.ThePHMSA'sregulationandenforcementprogramsaredesignedtoensurethatsuchpipelinesareoperatedsafely,reliably,andinanenvironmentallysoundmanner.Theseprogramsareinspectionandinvestigationbasedandnotpermitbased.

CorporateGovernance

Pembinamaintains corporate governance and ethical practices, bothwithin the corporate boardroom and throughout itsoperations, in linewith itscommitmenttobeingaresponsiblecorporatecitizen.Pembina'scorporategovernancepracticesaimto:

• Enhanceandpreservevalue;

• Protectdividends;

• Operateinasafe,reliableandenvironmentallyresponsiblewayinthecommunitiesinwhichitoperates;

• Emphasize employee engagement, inclusion and well-being in a safe, respectful, collaborative and fair workenvironment;and

• EnsurePembinameetsitsobligationstoallregulatorybodies,businesspartners,customers,stakeholders,employeesandShareholders.

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(See"DescriptionofPembina'sBusinessandOperations–PurposeofPembina")

Asapubliccompany listedontheTSXandtheNYSE,Pembinatakes intoaccountrulesandregulationsapplicable to listedissuers in both Canada and the U.S. Pembina's corporate governance practices comply with the Canadian governanceguidelines,whichincludethegovernancerulesoftheTSXandtheCanadianSecuritiesAdministrators,including:

• NationalInstrument52-110–AuditCommittees;

• NationalPolicy58-201–CorporateGovernanceGuidelines;and

• NationalInstrument58-101–DisclosureofCorporateGovernancePractices.

Pembina's governance practices comply with the NYSE standards for U.S. companies in all significant respects, except assummarizedonPembina'swebsiteatwww.pembina.com.Asanon-U.S.company,Pembina isnot requiredtocomplywithmostof thegovernance listingstandardsof theNYSE.Asa foreignprivate issuer,however,Pembinamustdisclosehow itsgovernancepracticesdifferfromthosefollowedbyU.S.companiesthataresubjecttotheNYSEstandards.

PembinaalsocomplieswiththegovernancelistingstandardsoftheNYSEandthegovernancerulesoftheSECthatapplytoforeignprivateissuers.

SomeofPembina'sbestpracticesarederivedfromtheNYSErulesandcomplywithapplicablerulesadoptedbytheSECtomeettherequirementsoftheSarbanes-OxleyActof2002andtheDodd-FrankWallStreetReformandConsumerProtectionAct.

TheBoardofDirectorsoverseasPembina'scorporatestewardship.TheBoardrecognizes the importanceofESG issuesandfulfills its mandated duties directly and by delegating the following ESG related responsibilities to its four standingcommittees.

Committee ESGRelatedResponsibilities

AuditCommittee • MaintainsoversightoftheintegrityofPembina'sfinancialstatements,thereportingprocess,andtheinternalauditfunction.

HumanResources,HealthandCompensationCommittee

• ProvidesoversightoverPembina'sapproachtodirectorcompensation,employeehealthandwellness,employeecompensation,executiveperformanceandcompensation,executivesuccessionplanningandcorporateinclusionanddiversity.

• FocusesonsustainabilitybyincludingESGmetricsinincentiveplandesignandcompensationdecisionsforexecutives.

Governance,NominatingandCorporateSocialResponsibilityCommittee

• ResponsibleforPembina'scorporategovernancepractices.

• Overseessustainabilitymatters;includingsustainabledevelopment,publicawarenessandconsultation,issuesmanagement,environmentalstewardship,externalcommunicationsandgovernmentrelations,Indigenousrelations,communityinvestmentsandhumanrights.

• OverseesthedevelopmentofPembina'ssustainabilityreportandengagesexternaladvisorstoprovideeducationandinformationonESGmattersandtobringanindependentperspectivetotheirwork.

SafetyandEnvironmentCommittee

• Overseesdevelopment,implementationandmonitoringofrisksandpoliciesrelatedtosafety,assetintegrity,andcorporatesecurity,aswellasenvironmentalmanagement.

FurtherinformationaboutPembina'scorporategovernancepracticeswillbeincludedinPembina'smanagementinformationcircularforits2021meetingofShareholders.Inaddition,copiesofPembina'sCodeofEthics,WhistleblowerPolicyandothercorporategovernancepoliciescanbefoundonPembina'swebsiteatwww.pembina.com.

CorporateGovernancePolicies

Pembina's governance framework includes corporate policies that align with Pembina's strategy and purpose (see"DescriptionofPembina'sBusinessandOperations–Pembina'sBusinessObjective"), complywith the lawsand regulationsapplicabletoPembina'sbusinessandadheretobestpracticesintheindustry.Pembina'scorporatepoliciesreflectPembina’scorevaluesandbeliefs,whichinturninfluencetheOMSandassociatedprograms.

CertainofPembina'spoliciesareaimedatpreservingapositiverelationshipwiththephysicalandsocialenvironmentinwhichPembinaoperates.Thesepoliciesareoutlinedbelow.

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BoardDiversityPolicy

TheBoardrecognizesthatdiversityamongitsdirectorssupportsbalanceanddebatewhich,inturn,enhancesdecisionmakingby the Board and foster Pembina’s commitment to delivering benefits to its four key stakeholder groups – customers,investors,employeesandcommunities–byutilizingthedifference inperspectiveofthemembersoftheBoard.Underthepolicy,theBoardconsiderscandidatestotheBoardbasedonmeritwithregardtothebenefitsofdiversityontheBoard,andwithaviewtothefollowingspecificdiversitytargets:(i)aBoardcompositioninwhicheachofthefemaleandmalegenderscomprisesat least30percentofthe independentdirectorsontheBoard;and(ii)aBoardcomposition inwhichat least40percent of the independent directors be individuals that are women, persons with disabilities, Indigenous peoples, ormembersofotherracial,ethnicand/orvisibleminorities.

Health,SafetyandEnvironment("HSE")Policy

Health, safety and the environment are top priorities in all of Pembina's operations and business activities. Pembina iscommitted to being an industry leader thatmeets or exceeds all applicable laws and regulations designed to protect thehealth and safety of workers and the public, and safeguard the environment affected by its activities. Pembina is alsocommitted to improving itsHSE performance. These areas are of paramount importance tomanagement, employees andcontractorsattheCompany.PembinabelievesthatexcellenceinHSEpracticesisessentialtothewell-beingoftheCompany.

TheSafetyandEnvironmentCommitteeoftheBoardofDirectorsmonitorscompliancewiththeHSEPolicythroughregularreporting.

EnterpriseRiskManagementPolicy

This policy sets out the Company's enterprise risk management principles and specifies expectations associated withPembina’s risk management activities and governance. Enterprise risk management consists of practices and proceduresappliedacrosstheCompanytoidentify,measure,assess,respondto,monitorandreportonprincipalrisksthatmayaffecttheachievementofbusinessobjectives.

CodeofEthics

Pembina'sreputationisoneofitsmostimportantassets.ThepurposeoftheCodeofEthicsistoestablishahighstandardofintegrity and ethical behaviour to support Pembina's reputation and its relationships with its internal and externalstakeholders.AllpersonnelareexpectedtocomplywiththeCodeofEthicsatalltimes.TheCodeofEthicssetsoutprinciplesfor ethical conduct in the following areas: conflicts of interest; human rights; business relationships and fair dealing;compliancewiththelaw;governmentrelations;health,safetyandenvironmentalmatters;integrityoffinancialinformation;disclosureandinsidertrading;stakeholderandpublicrelations;privacyandconfidentiality;protectingtheCompany'sassetsand records; entertainment, gifts and other payments; workplace environment and relationships; and reportingresponsibilitiesandprocedures.

AlcoholandDrugPolicies

AspartofPembina'scommitmenttoitsemployees,contractorsandthepublic,Pembinahascomprehensivealcoholanddrugpoliciesinplacewhichrequirethatallpersonnelremainfitforworkwhileondutyoroncall. ThesepoliciesformapartofPembina'sapproachtoriskmitigationandsafetyandsupportstheHSEPolicy.PembinahasalsoimplementedanalcoholanddrugpolicyforDepartmentofTransportationworkersasrequiredunderapplicableUnitedStates'laws.

IndigenousRelationsPolicy

As part of Pembina's approach to Indigenous relations, Pembina seeks to enter into lasting and mutually-beneficialrelationships with all Indigenous peoples affected by its operations. By striving for positive and mutually-beneficialrelationshipswith Indigenous leadershipandcommunities,Pembinaemployees,consultantsandcontractorswillhelpbuildcontinuedsuccessforPembina'sexistingandexpandingsystemsandotherbusinesses.

WhistleblowerPolicy

Pembinaiscommittedtohighstandardsofprofessionalandethicalconductinallactivities.Pembina'sreputationforhonestyand integrity among its stakeholders is key to the success of its business. The transparency, honesty, integrity and

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accountability of Pembina's financial, administrative andmanagement practices are vital. These high standards guide thedecisionsoftheBoardofDirectorsandarerelieduponbyPembina'sstakeholdersandthefinancialmarkets.

For these reasons, it is critical tomaintain aworkplacewhere concerns regarding questionable business practices can beraisedwithoutfearofdiscrimination,retaliationorharassment.Pembinaalsobelievesthatencouragingacultureofopennessand ethical leadership from management supports this process. As such, Pembina's Whistleblower Policy encouragesdirectors,officers,employees,consultants, contractors,agentsandexternal stakeholders toact responsibly, raiseconcernsand report any potential instances of unethical practiceswithin Pembina, rather than overlooking a problemor seeking aresolutionof theproblemoutsidePembina. Inaddition to raisingconcernsdirectlywithPembinamanagement, individualsmayreportconcernsanonymouslyandonaconfidentialbasistothechairoftheAuditCommitteeoftheBoardofDirectorsorthroughPembina'swhistleblowerline,whichisavailable24hoursaday,sevendaysaweekbothonlineandthroughatoll-freenumber.ComplaintsreceivedbyPembinaunderitsWhistleblowerPolicyarethoroughlyinvestigated.

CorporateSecurityPolicyandSecurityManagementPolicy

Pembina is committed toprotecting the safetyof itsworkers, thepublic,and to safeguardingPembina's facilities,physicalinfrastructure,andphysicalproperty.Theseareasareofparamountimportancetomanagement,employeesandcontractorsattheCompany.Pembinabelievesthatexcellenceinsecuritymanagementisessentialtothewell-beingoftheCompany.Assuch, Pembina is committed to identifying security risks and establishing appropriate programs and procedures to reducetheserisks toanacceptable level,and to testing theseprogramsandprocedures toassess theireffectivenessona regularbasis.

CyberSecurityPolicy

Pembinaiscommittedtoprotectingtheconfidentiality,integrityandavailabilityofitsinformationassets.Theseareasareofparamount importance tomanagement, employees and contractors at the Company. Pembina believes that excellence insecuritymanagementofitsinformationassetsisessentialtothewell-beingoftheCompany.Assuch,Pembinaiscommittedto identifying security risks andestablishingappropriateprogramsandprocedures, including theEnterpriseCyber SecurityPlan,toreducetheseriskstoanacceptablelevel,andtotestingtheseprogramsandprocedurestoassesstheireffectivenessonaregularbasis.

PrivacyPolicy

Pembina iscommittedtomaintainingtheaccuracy,confidentialityandsecurityofpersonal information inaccordancewithapplicable privacy laws. Protection of personal information is of paramount importance to management, employees andcontractors at the Company. As such, Pembina is committed to setting out themanner in which Pembina collects, uses,discloses,protectsandotherwisemanagespersonalinformation.

RespectfulWorkplacePolicy(Canada)/PolicyProhibitingHarassmentandDiscrimination(UnitedStates)

Pembinaiscommittedtoprovidingarespectfulworkplaceinwhichallpeoplearetreatedwithrespectanddignity.Thesafetyandwell-beingofeveryoneworkingfororinconnectionwithPembinaisapriority.Harassment,discriminationandviolenceintheworkplacewillnotbetolerated inanyform.Thesepoliciesestablishclearstandardsandexpectations forall staff topreventandprotectindividualsfromworkplaceharassment,discriminationandviolence.

Social,CommunityandIndigenousEngagement

CommunityRelations

Pembina iscommittedtobuilding long-termrelationshipsbasedonmutual trustwithcommunitiesasatoppriorityandtofurther this goal, Pembina strives to understand regional issues in order to help anticipate and manage the social andeconomicimpactsoftheCompany'soperationsonlocalcommunities.

Pembinahasdevelopedcommunityengagementdistrict areaplans (the "CEDAPlans") forPembina'soperatingareas. Thepurpose of these plans is to support both operational engagement needs, as well as commitments made as part of theCanadian Energy Pipeline Association's Integrity First Program and other regulatory programs and objectives, such asPembina'sEmergencyManagementProgramandDamagePreventionandPublicAwarenessProgram.See"OtherInformation

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Relating toPembina'sBusiness –DamagePreventionandPublicAwarenessPrograms"and "Other InformationRelating toPembina'sBusiness–EmergencyManagementProgram".

ThepurposeandgoalsoftheCEDAPlansareto:

• Foster a strategic, consistent and coordinated approach to long-term stakeholder and Indigenous operationalengagement;

• Provideagovernancestructurethatoutlinesroles,responsibilitiesandaccountabilities;

• IdentifyandmapstakeholdersandIndigenouspeopleswherePembinaoperatesandthatmayinfluencePembina'sbusiness;

• Identifypotentialrisksandopportunitiesthathelpinformengagementstrategies;and

• IncreasetrustandperformancewithlocalandregionalstakeholdersandIndigenouscommunities.

The feedback and input Pembina receives from communities influenceswhere theCompany installs its assets,what stepsPembinatakestominimizedisruptionstotheenvironment,whatlocallabourandbusinessestheCompanymayuse,andhowPembinacanmakeapositiveimpactthroughPembina'scommunityinvestmentprogram.

IndigenousRelations

Pembinarecognizesthatinordertoachieveitsbusinessgoals,theCompanyneedstoworkcloselywithcommunitiesacrossitsoperations,includingIndigenouscommunities.

Pembina'sguidingprinciplesonitsengagementwithIndigenouscommunitiesaresetoutinPembina'sIndigenousRelationsPolicy.See"OtherInformationRelatingtoPembina'sBusiness–CorporateGovernance–CorporateGovernancePolicies".

Pembina's projectsmay take place on landswhere Indigenous communitiesmay have rights and title. Pembina strives toengage inmeaningful consultation to understand potential impacts, seekmitigations, discuss possible benefits associatedwith the Company's proposed developments, and ensure better planned, executed and remediated projects. Pembina'sengagement and consultation often exceed regulatory requirements and can take a variety of forms, such as personalmeetings,desktop reviews, and site visits. Indigenous communities alsohaveauniqueunderstandingof theenvironment;Pembina works with Indigenous communities to understand their perspectives and, where possible, incorporates theseperspectives intotheCompany'sday-to-daybusiness.Pembinaisactivelyworkingtocreateawarenessamongst Indigenouscommunitiesregardingenvironmentalrequirementsandprogramsassociatedwithitsprojects.

Pembinastrivestocontributetotheeconomicwell-beingoftheIndigenouscommunitiesinwhichitoperatesbyemployingandtrainingmembersofsuchcommunitiesandprocuringprojectinputsfromIndigenoussuppliers.

Through the IndigenousWorkforce Initiative,Pembinaworkswithcommunities,organizationsandgovernmentpartners toactivelyrecruitIndigenouscandidatesandassisttheminpreparingforlong-termemploymentandcareerpositions.PembinacoordinatestrainingprogramgoalsandprovidesupporttowardsovercomingbarriersIndigenouscandidatesmayfacewhenentering the competitive job market. Through Pembina's Indigenous Environmental Trainee Program, Pembina providestraineeswiththeopportunityto learnaboutthepipelineconstructionprocess.Traineesworkwithenvironmentalplannersandinspectorstolearnaboutaproject'senvironmentalscopeandtheprocessesandproceduresundertakentoprotecttheenvironmentduringtheconstructionprocess.PembinabenefitsfromthisprogrambylearninginvaluableinformationfromanIndigenous perspective, including in respect of a project area's traditional land use and activities. Pembina also providesIndigenousawarenesstrainingtoitsemployeesandcontractors.

PembinaseekstodevelopsustainablebusinessrelationshipswithIndigenouscommunitiesthatdeliversafety,performance,costcompetitivenessandquality.BydevelopingbusinessrelationshipsandincreasingeconomicopportunitiesforIndigenoussuppliers, Pembina's goal is to increase and sustain the capability and capacity of Indigenous suppliers and through theseopportunities,provideanetpositivebenefit to Indigenouscommunitymembers.Pembina'sStandard forLocal, IndigenousandTribalContracting(the"Standard")ensurestheinclusionofcapableIndigenoussuppliers inPembina'swork.AspartofthisStandard,andthroughPembina'scompetitiveprocesses,suppliersarerequiredtodemonstrate(andareevaluatedon)theircommitmenttoIndigenouseconomicdevelopment,inclusionpartnershipsandstrategicalliances.

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Finally,Pembinaisfocusedonengagementandrelationshipbuilding.ThroughtheIndigenousInvestmentProgram,PembinaprovidesfundingtoIndigenousandIndigenous-connectedorganizationswithabroadimpact.

IndemnificationandInsurance

Pembinamaintains insurance to provide coverage in relation to the ownership of its assets and alsomaintains standarddirectorandofficerinsuranceconsistentwithindustrypractice.

PembinabelievesthatithasprocuredsuchinsurancecoverageaswouldbemaintainedbyaprudentownerandoperatorofthetypeofassetsownedandoperatedbyPembina.ThisinsurancecoverageissubjecttolimitsandexclusionsorlimitationsoncoveragethatPembinaconsidersreasonablegiventhecostofprocuringsuchinsuranceandcurrentoperatingconditions.However,therecanbenoassurancethatinsurancecoveragewillbeadequateinanyparticularsituationorthatinsurerswillbeabletofulfilltheirobligationsshouldaclaimbemade.Further,therecanbenoassurancethatsuchinsurancecoveragewillbeavailableinthefutureoncommerciallyreasonabletermsoratcommerciallyreasonablerates.

Employees

AsatDecember31,2020,Pembinaemployed2,623personnel (includingcontractors),ofwhich1,573wereengaged intheperformance of field operations and superintendence activities, and 1,050were engaged in the performance of facilitiesengineering, systems, management, finance, accounting, administration, human resources, information services, drafting,businessdevelopment,safetyandenvironmentalserviceandotheractivities.Oftheabovefieldoperationsemployees,61areunionized. Pembina'sworkforce (excluding contractors) is relatively stablewith limited turnover. Employees are financiallyencouragedtoremaininPembina'semploymentthroughoptionstopurchaseCommonShares,whichareavailabletocertainemployees,andlong-termincentiveprogramsandpensionplans,allofwhichvestovertime.

InclusionandDiversity

Pembinaiscommittedtodiversity,equalopportunityandensuringthatitsemployeeshavetheabilitytothriveinaninclusiveenvironment.

ThroughtheInclusion&DiversityStand,announcedin2019,Pembinaaimsto:

• Attract,retainanddevelopadiverseworkforcethatiscreativeandinnovative;

• Fosteraworkenvironmentwhereemployeesfeelvalueandrespected;

• CultivateaworkforcethatisrepresentativeofthecommunitiesinwhichPembinaoperates;

• Developaculturallyawareworkforcethatsucceedsinaglobalmarket;

• AlignPembina's valueswith thoseof its customersby recognizing the importanceof adiverseand inclusiveworkenvironment;

• DemonstratethatPembinais investinginadiverseandinclusiveworkforcetostrengthenitsbusinessandimproveprofits;and

• AttractandretaininvestorswhoarecommittedtoESGinitiatives.

Inconnectionwith the Inclusion&DiversityStand,Pembinahasestablishedanadvisorygroupwithamandate toactasacollectivevoiceforinclusionanddiversityacrosstheorganization,advocateforandmodelinclusiveleadershipandbehaviouranddemonstrateallyshiptounderrepresentedgroups.

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CANADIANOILANDGASINDUSTRY

General

The discussion below provides a high-level overview of the crude oil industry, the NGL and natural gas industry and themidstreaminfrastructureindustrywithinthosecommodities,withafocusonwesternCanada,giventhatasignificantportionofPembina'soperationsaresituatedinAlberta.PembinaalsohasoperationsineasternCanadaandtheU.S.volumeswhichfeedintothoseassetspredominantlyoriginateinwesternCanadabeforebeingtransportedtoeasternmarketsviaPembinaandthird-partypipelines.

WesternCanadaisthemajorsourceofconventionalcrudeoil,syntheticcrudeoil,naturalgas,bitumenandrelatedproducts,including NGL and condensate, in Canada. Production comes primarily from Alberta with lesser amounts from BritishColumbia,Saskatchewan,ManitobaandtheNorthwestTerritories.SyntheticcrudeoilandbitumencomefromtheoilsandsdevelopmentsnearFortMcMurray,Alberta.

Efficient, low cost, and safe transportation by pipeline, rail and truck from producing fields and facilities to refineries,processingplantsanddomesticandexportmarketsisessentialtotheCanadianoilandgasindustry.

CanadianCrudeandHeavyOil

WesternCanadahasoneoftheworld'slargestcrudeoilreserves,andoverthepastdecade,thecrudeoilindustryinwesternCanada has implemented improved drilling technologies, which have enabled increased recoveries and have enhancedeconomics. Technologies such as multi-stage hydraulic fracturing have allowed producers to access tighter areas ofconventional reservesaswellasshalesandsiltstones,whichwerepreviouslyconsideredtobeuneconomical.Throughthisdevelopment,crudeoilproducedfromtheWCSBhassignificantlyincreased.

Albertaisalsoabundantinoilsands–anaturalmixtureofsand,water,clayandatypeofnaturalheavyoilcalledbitumen.Once the bitumen is recovered and processed to separate it from the sand and water, it is then upgraded to producesyntheticcrudeoil.Oilsandsmaybeextractedbysurfaceminingwhereitismovedbytruckstoaprocessingfacilityorbyinsituprocesseswhichusesteam,solventsand/orthermalenergytoallowthebitumentobepumpedtothesurface.Becausebitumen issoviscous, itoftenrequiresdilutionwith lighterhydrocarbons,suchascondensate,tomake it transportablebypipeline.

Crudeoilproductionisgenerallyconsumedinrefineries.Refineriesarewidelydistributedgeographicallyandcanbelocatedanywhere along the transportation chain, from theproductionbasin hub locations tomid-point junctions on transmissionnetworkstotidewaterwhereforeignproductionisabletoaccessNorthAmericanmarketsviamarinetransport.

Pipelines continue to be the safest,most economical and predominantmode of transporting large amounts of crude oil,however, given the extensive rail infrastructure network across North America and the lack of sufficient export pipelinecapacity,transportinghydrocarbonproductsbyrailhasgainedmomentum.

ProductTransportation

Feederpipelinesystemsgatherpetroleumproductsfromproducingfieldsandfacilitiesfortransporttoregionalcentresforstorage, refining and connection to larger pipelines. From these centres, petroleum products are further transported byexportpipelineorrailsystemseithertodomesticmarketsinwesternoreasternCanadaortomarketsinthenorthernU.S.,mid-westU.S. andU.S. gulf coast for end-use or used as feedstock in refineries or the petrochemical industry. ThemajoroperationalcentrefortheCanadianoilandnaturalgasindustryistheEdmonton/FortSaskatchewanareaofAlberta,whichisthe largest crude oil refining centre in western Canada and a major fractionation and market hub for NGL and relatedproducts. In addition, the Edmonton/Fort Saskatchewan area is the hub of the Alberta feeder pipeline network and thestartingpointofmanylargeCanadianexportpipelines.

Truck terminals are a means for oil, condensate and NGL production, which is not pipeline connected, to securetransportationaccesstomarket.

The export liquids pipelines originating in the Edmonton area are the TransMountain Pipeline and the Enbridge Pipeline.CrudeoilandrefinedproductsdeliveredtodomesticandexportmarketsonthewestcoastaretransportedthroughtheTransMountain Pipeline. Crude oil and refined products delivered to eastern Canada, the northernU.S. andU.S. gulf coast are

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transportedthroughtheEnbridgePipeline.NGLdeliveredtoeasternCanadianandexportmarketsaretransportedthroughtheEnbridgePipeline.TheexistingKeystonePipelineandExpressPipelinealsoexportcrudeoilfromHardisty,AlbertatotheU.S.

NaturalGasLiquids

The NGL industry involves the production, storage, fractionation and transportation of products that are extracted fromnatural gasprior to its sale to end-use customers.Natural gas is amixtureof varioushydrocarbon components, themostabundantofwhich ismethane. Thehigher valuehydrocarbons,which includeethane (C2), propane (C3), butane (C4) andcondensate(C5+),aregenerallyingaseousformatthepressuresandtemperaturesunderwhichnaturalgasisgatheredandtransported.NGLextractionfacilitiesrecoverNGLmixfromnaturalgasinaliquidform.ThemajorityofNGLsupplyinwesternCanadaisderivedfromnaturalgasprocessing,withtheremainderderivedfromtherefiningofcrudeoil.Theprofitabilityoftheindustryisbasedontheproductsextractedbeingofgreatereconomicvalueasseparatecommodities(netofthecostsofextractionandtransportation)thanascomponentsofnaturalgas.

TheNGLvaluechainbeginswiththegatheringofgasproducedfromthewellheadandmovingittoagasplant.Thegasisthenprocessedthroughfieldprocessingplantsandmainlineextractionfacilities,aswellastreatedforremovalofwater,sulphurand other impurities. The value chain culminates with the transportation of NGL mix from the gas plant via pipeline tofractionationfacilitieswheretheNGLmixwillbeseparatedintosaleableproductsandmarketedtothefinalNGLcustomers.

Condensate isproducednaturallyatthewellheadwhennaturalgas isbroughttothesurfaceatagaswell. It istheneithertrucked to a connection point on a pipeline or the natural gas plantmay be connected directly into a gathering pipelinesystemforonwarddeliverytomarket.Condensateisusedprimarilyasadiluenttoblendwithheavycrudeoilandbitumentodecreaseviscosityanddensity,allowingtransportinpipelines.Inaddition,condensateisusedasarefineryfeedstockintheproductionofgasoline,keroseneandjetfuel.Withthegrowthindemandfordiluentsforheavyoiltransportation,thereisarequirementtomanagediluentspriortoinjectionintothevariousdiluentdeliverypipelines.Thisdemandincludesaccessingthegreatestvarietyofdiluents,meetingdiluentqualityspecificationsandstorage.

TheNorthAmericanmarketsforNGLarelargelycontinentalinnature,thoughexportsarerapidlyincreasing,withendusesvaryingsubstantiallybyproduct, fromheatingandtransportationfuelstopetrochemicalandcrudeoil refiningfeedstocks.Ethaneisusedasfeedstockforthepetrochemicalindustry.PropaneisthemostversatileoftheNGLproductswithusessuchashomeandcommercialheating,cropdrying,cooking,motorfuelandpetrochemicalfeedstock.Butaneisusedprimarilyingasolineblending,eitherdirectlyorintheproductionofiso-octaneandasadiluentforheavyoil.

NGLExtraction

NGL is recovered at three distinct types of facilities: natural gas field plants, natural gasmainline straddle plants and oilrefineries.Fieldplantsprocessrawnaturalgas,whichisproducedfromwellsintheimmediatevicinity,toremoveimpuritiessuchaswater,sulphurandcarbondioxidepriortothedeliveryofnaturalgastothemajornaturalgaspipelinesystems.Fieldplantsalsoremovealmostallcondensateandasmuchas65percentofpropaneand80percentofbutanetomeetpipelinespecifications, leaving ethane andunrecoveredNGL in thenatural gas.MostwesternCanadian field plants donot extractethanebutleaveitinthenaturalgas.Onceprocessed,thenaturalgasisthencompressedanddeliveredtooneofthemajorgas transmissionsystems in the region. InAlberta,any residualNGLandethane in thenaturalgas isextractedatmainlinestraddleplantspriortoexport.

NGL extraction produces a mixed hydrocarbon product (either ethane-plus (C2+) or propane-plus (C3+)), which must befurtherprocessedinsubsequentstepstoseparateouttheindividualproducts.Atmostfieldfacilities,onlysufficientNGLtomake the natural gas marketable is extracted; however, with the addition of deep cut processing facilities and mainlinestraddleplants,furtherNGLextractionispossibletoensurethemaximumamountofNGLisrecovered.NGLproductshavehistoricallybeenpricedrelativetooil,sothisadditionallevelofrecoveryisdependentontherelativevaluebetweenoilandnaturalgas.Astherelativepriceofoilversusnaturalgasincreases,theeconomicimpetusforthisactivityisalsoincreased.

NGLFractionation

NGLmixextractedatfieldplantsandstraddleplantsistransportedviapipelines,truckorrailtofractionationfacilities,whichseparate themix into its components: ethane, propane, butane and condensate. Due to size, storage and transportation

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limitations,fractionationgenerallydoesnotoccuratfieldplants,butratherat larger,well-connected,centralizedlocations.Oncefractionated,theproductsarestoredandtransportedtoendmarketsbypipeline,truckorrail.

NGLTransportation

TheefficientmovementofNGLproductsrequiressignificantinfrastructure,includingtransportationassets(pipelines,trucksandrail cars), storage facilities,andterminals (railandtruck).Thesafest,mostefficientand lowest-costmeans formovingNGLproductstomarketsisbypipeline.TheCanadianenergysectorhasanextensivepipelinenetworkforthetransportationofNGLtofractionationfacilities,petrochemicalcomplexes,undergroundstoragefacilitiesandtheend-user.PipelinesserveasthemainmodeofNGLtransportation(pre-andpost-fractionation).Additionally,NGLaretransportedbytruckandrail.

NGLStorage

Storage assets offer a number of key strategic advantages, which include: (i) providing the necessary operational bufferbetweenproductionofNGL(whichvariesdailydependingongasflowsandcomposition)andtheirconsumption(whichcanvaryfromday-to-dayandseason-to-seasondependingonmarketneeds);(ii)allowingforstorageofNGLproductsforfutureutilization;and(iii)exploitingseasonalpricedifferentialsthatmaydevelopoverthecourseofayear(particularlyforpropaneandbutane).

NaturalGasTransportation

The natural gas transportation industry from western Canada to eastern markets has historically been dominated bycompaniesaffiliatedwithTransCanadaPipeLinesLimited.NaturalgassupplyandpipelineinfrastructurehasgrownoverthepastseveralyearscreatingincreasedcompetitionthroughoutNorthAmerica.

Theefficientmovementofnaturalgasrequiressignificantinfrastructure,includingpipelinesandstoragefacilities.Thesafest,mostefficientandthelowest-costmeansformovingnaturalgastomarketsisbypipeline.TheCanadianenergysectorhasanextensivepipelinenetworkforthetransportationofnaturalgastofieldplantsandextractionfacilities.Pipelinesserveasthemainmodeofnaturalgastransportation.

DESCRIPTIONOFTHECAPITALSTRUCTUREOFPEMBINA

TheauthorizedcapitalofPembinaconsistsofanunlimitednumberofCommonShares,anumberofClassAPreferredShares,issuableinseries,nottoexceed254,850,850ClassAPreferredShares,andanunlimitednumberofClassBPreferredShares.AsofDecember31,2020,therewereapproximately550millionCommonSharesoutstanding,andapproximately22millionCommon Shares issuable pursuant to outstanding options under the Option Plan. In addition, 10million Series 1 Class APreferredShares,6millionSeries3ClassAPreferredShares,10millionSeries5ClassAPreferredShares,10millionSeries7ClassAPreferredShares,9millionSeries9ClassAPreferredShares,6.8millionSeries11ClassAPreferredShares,10millionSeries13ClassAPreferredShares,8millionSeries15ClassAPreferredShares,6millionSeries17ClassAPreferredShares,8millionSeries19ClassAPreferredShares,16millionSeries21ClassAPreferredShares,12millionSeries23ClassAPreferredSharesand10millionSeries25ClassAPreferredShareswereoutstandingasofDecember31,2020.Subsequenttoyear-end:on January 25, 2021, 600,000 Series 2021-A Class A Preferred Shares were issued and outstanding. On January 25, 2021Pembinaalsoannounceditsintentiontoredeemallofits6.8millionissuedandoutstandingSeries11ClassAPreferredSharesonMarch1,2021foraredemptionpriceequalto$25.00perSeries11ClassAPreferredShare.

Thefollowingisasummaryoftherights,privileges,restrictionsandconditionsattachingtotheCommonShares,theClassAPreferredSharesandtheClassBPreferredShares.

CommonShares

HoldersofCommonSharesareentitledtoreceivenoticeofandtoattendallmeetingsofShareholdersandtoonevoteatsuch meetings for each Common Share held. The holders of the Common Shares are, at the discretion of the Board ofDirectorsandsubjecttoapplicablelegalrestrictions,entitledtoreceiveanydividendsdeclaredbytheBoardofDirectorsontheCommonShares,andareentitledtoshareintheremainingpropertyofPembinauponliquidation,dissolutionorwinding-up,subjecttotherightsoftheholdersoftheClassAPreferredSharesandClassBPreferredShares.

Pembinahasashareholderrightsplan(the"Plan")thatwasadoptedtoensure,totheextentpossible,thatallShareholdersaretreatedfairly inconnectionwithanytakeoverbidforPembinaandtoensurethattheBoard isprovidedwithsufficient

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timetoevaluateunsolicitedtake-overbidsandtoexploreanddevelopalternativestomaximizeShareholdervalue.ThePlancreatesarightthatattachestoeachpresentandsubsequentlyissuedCommonShare.UntiltheSeparationTime(asdefinedinthePlan),whichtypicallyoccursatthetimeofanunsolicitedtakeoverbid,wherebyapersonacquiresorattemptstoacquire20percentormoreoftheCommonShares,therightsarenotseparablefromtheCommonShares,arenotexercisableandnoseparaterightscertificatesareissued.Eachrightentitlestheholder,otherthanthe20percentacquirer,fromandaftertheSeparationTimeandbeforecertainexpirationtimes,toacquireoneCommonShareatasubstantialdiscounttothemarketpriceatthetimeofexercise.TheBoardofDirectorsmaywaivetheapplicationofthePlanincertaincircumstances.ThePlanwasreconfirmedbyShareholdersatPembina's2019annualmeetingandmustbereconfirmedateverythirdannualmeetingthereafter.Accordingly,thePlan,withsuchamendmentsastheBoardofDirectorsdeterminestobenecessaryoradvisable,and asmay otherwise be required by law, is expected to be placed before Shareholders for approval at Pembina's 2022meetingofShareholders.AcopyoftheagreementrelatingtothecurrentPlanhasbeenfiledonPembina'sSEDARandEDGARprofilesonMay13,2016andMay31,2016,respectively.

ClassAPreferredShares

TheClassAPreferredShareswerenotintendedtoandwillnotbeusedbytheCompanyforanti-takeoverpurposeswithoutShareholderapproval.Subjecttocertainlimitations,theBoardmay,fromtimetotime,issueClassAPreferredSharesinoneor more series and determine for any such series, its designation, number of shares and respective rights, privileges,restrictionsandconditions.TheClassAPreferredSharesasaclasshave,amongothers,theprovisionsdescribedbelow.

EachseriesofClassAPreferredSharesshallrankonparitywitheveryotherseriesofClassAPreferredShares,andshallhavepriorityover theCommonShares, theClassBPreferredSharesandanyother classof shares ranking junior to theClassAPreferredShareswithrespecttoredemption,thepaymentofdividends,thereturnofcapitalandthedistributionofassetsintheeventof the liquidation,dissolutionorwinding-upofPembina.TheClassAPreferredSharesofanyseriesmayalsobegivensuchpreferences,notinconsistentwiththeprovisionsthereof,overtheCommonShares,theClassBPreferredSharesandoveranyotherclassofsharesrankingjuniortotheClassAPreferredShares,asmaybedeterminedbytheBoard.

Intheeventofthe liquidation,dissolutionorwinding-upofPembina, ifanycumulativedividendsoramountspayableonareturnofcapitalinrespectofaseriesofClassAPreferredSharesarenotpaidinfull,theClassAPreferredSharesofallseriesshallparticipaterateablyin:(a)theamountsthatwouldbepayableonsuchsharesifallsuchdividendsweredeclaredatorpriortosuchtimeandpaidinfull;and(b)theamountsthatwouldbepayableinrespectofthereturnofcapitalasifallsuchamountswerepaidinfull;providedthatifthereareinsufficientassetstosatisfyallsuchclaims,theclaimsoftheholdersoftheClassAPreferredShareswithrespecttorepaymentofcapitalshall firstbepaidandsatisfiedandanyassetsremainingshallbeappliedtowardsthepaymentandsatisfactionofclaimsinrespectofdividends.AfterpaymenttotheholdersofanyseriesofClassAPreferredSharesoftheamountsopayable,theholdersofsuchseriesofClassAPreferredSharesshallnotbeentitledtoshareinanyfurtherdistributionofthepropertyorassetsofPembinaintheeventoftheliquidation,dissolutionorwinding-upofPembina.

Holdersofany seriesofClassAPreferredShareswillnotbeentitled (exceptasotherwiseprovidedby lawandexcept formeetingsoftheholdersofClassAPreferredSharesoraseriesthereof)toreceivenoticeof,attendat,orvoteatanymeetingofShareholdersofPembina,unlesstheBoardshalldetermineotherwiseinthetermsofaparticularseriesofClassAPreferredShares,inwhichcasevotingrightsshallonlybeprovidedincircumstanceswherePembinashallhavefailedtopayacertainnumberofdividendsonsuchseriesofClassAPreferredShares,whichdeterminationandnumberofdividendsandanyotherterms in respectof suchvoting rights, shallbedeterminedby theBoardandsetout in thedesignations, rights,privileges,restrictionsandconditionsofsuchseriesofClassAPreferredShares.Otherthanassetoutbelow,thematerialcharacteristicsofeachseriesofClassAPreferredSharesaresubstantiallythesame.

The table below outlines the number of outstanding, and thematerial provisions of, each of the issued series of Class APreferredShares.

Series IssueDateIssuedand

Outstanding Amount(C$)Annual

DividendRate

RedemptionandConversionOption

Date(2)(3)Reset

Spread

PerShareBase

Redemption/Liquidation

Value

RighttoConvertonaoneforone

basis(4)

1 July26,2013 10,000,000 $250,000,000 $1.22650(1) December1,2023 2.47%(3) $25.00 Series2

3 October2,2013 6,000,000 $150,000,000 $1.11950(1) March1,2024 2.60%(3) $25.00 Series4

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5 January16,2014 10,000,000 $250,000,000 $1.14325(1) June1,2024 3.00%(3) $25.00 Series6

7 September11,2014 10,000,000 $250,000,000 $1.09500(1) December1,2024 2.94%(3) $25.00 Series8

9 April10,2015 9,000,000 $225,000,000 $1.07550(1) December1,2025 3.91%(3) $25.00 Series10

11 January15,2016 6,800,000 $170,000,000 $1.43750(1) March1,2021(6) 5.00%(5) $25.00 Series12

13 April27,2016 10,000,000 $250,000,000 $1.43750(1) June1,2021 4.96%(5) $25.00 Series14

15 October2,2017(7) 8,000,000 $200,000,000 $1.11600(8) September30,2022 2.92%(3) $25.00 Series16

17 October2,2017(7) 6,000,000 $150,000,000 $1.20525(8) March31,2024 3.01%(3) $25.00 Series18

19 October2,2017(7) 8,000,000 $200,000,000 $1.17100(8) June30,2025 4.27%(3) $25.00 Series20

21 December7,2017 16,000,000 $400,000,000 $1.22500(1) March1,2023 3.26%(9) $25.00 Series22

23 December16,2019(10) 12,000,000 $300,000,000 $1.31250(11) November15,2022 3.65%(12) $25.00 Series24

25 December16,2019(10) 10,000,000 $250,000,000 $1.30000(11) February15,2023 3.51%(12) $25.00 Series26

2021-A(14) January25,2021 600,000 $600,000,000 N/A(14) N/A(14) N/A $1000.00 N/A

Notes:(1) Theholderisentitledtoreceiveafixed,cumulativepreferentialdividendperyearpayablequarterlyonthe1stdayofMarch,June,SeptemberandDecember,asdeclaredby

theBoardofDirectors.

(2) TheCompanymay,atitsoption,redeemalloraportionofanoutstandingseriesofClassAPreferredSharesontheRedemptionOptionDateandeveryfifthyearthereafterfortheBaseRedemptionValuepershareplusallaccruedandunpaiddividends.

(3) ThedividendratewillresetontheRedemptionandConversionOptionDateandeveryfiveyearsthereafteratarateequaltothesumofthethenfive-yearGovernmentofCanadabondyieldplustheapplicableResetSpreadnotedabove.

(4) Aholderhastheright,subjecttocertainconditions,toconverttheirClassAPreferredSharesintocumulativeredeemableClassAPreferredSharesofaspecifiedseriesontheConversionOptionDateandeveryfifthanniversarythereafter.TheevennumberedseriesofClassAPreferredSharescarrytherighttoreceivefloating,cumulativepreferentialdividendsatarate,resetquarterly,equaltothesumofthethen90dayGovernmentofCanadatreasurybillrateplustheapplicableresetspread.

(5) ThedividendratewillresetontheRedemptionandConversionOptionDateandeveryfiveyearsthereafteratarateequaltothesumofthethenfive-yearGovernmentofCanadabondyieldplustheapplicableResetSpreadnotedabove,providedthatinanyevent,theratefortheSeries11andSeries13ClassAPreferredSharesshallnotbelessthan5.75percent.

(6) On January 25, 2021, Pembina announced its intention to redeemall of its 6.8million issued andoutstanding Series 11ClassA Preferred Shares onMarch1, 2021 for aredemptionpriceequalto$25.00perSeries11ClassAPreferredShare.

(7) EffectiveOctober2,2017andpursuanttotheVeresenAcquisition,alloftheoutstandingVeresenSeriesA,CandEPreferredShareswereexchangedforSeries15,17and19ClassAPreferredShares,respectively.

(8) Theholderisentitledtoreceiveafixed,cumulativepreferentialdividendperyearpayablequarterlyonthelastdayofMarch,June,SeptemberandDecember,asdeclaredbytheBoardofDirectors.

(9) ThedividendratewillresetontheRedemptionandConversionOptionDateandeveryfiveyearsthereafteratarateequaltothesumofthethenfive-yearGovernmentofCanadabondyieldplustheapplicableResetSpreadnotedabove,providedthat inanyevent,theratefortheSeries21ClassAPreferredSharesshallnotbelessthan4.90percent.

(10) EffectiveDecember16,2019andpursuanttotheKinderMorganCanadaAcquisition,alloftheoutstandingKMLSeries1and3PreferredShareswereexchangedforSeries23and25ClassAPreferredShares,respectively.

(11) Theholderisentitledtoreceiveafixed,cumulativepreferentialdividendperyearpayablequarterlyonthe15thdayofFebruary,May,AugustandNovember,asdeclaredbytheBoardofDirectors.



(14) The Series 2021-A Class A Preferred Shareswere issued to the Computershare Trust Company of Canada, to be held in trust to satisfy Pembina's obligations under theSubordinatedNoteIndenture,inconnectionwiththeissuanceoftheSubordinatedNotes,Series1.HoldersoftheSeries2021-AClassAPreferredSharesshallnotbeentitledto receiveanydividends,norshallanydividendsaccumulateoraccrue,on theSeries2021-AClassAPreferredSharesprior todelivery to theholdersof theSubordinatedNotes,Series1followingtheoccurrenceofcertainbankruptcyorinsolvencyeventsinrespectofPembina.See"DescriptionofCapitalStructure-SubordinatedNotes,Series1".If at any time, Pembina redeems, purchases for cancellation or repays the SubordinatedNotes, Series 1 such number of Series 2021-A Class A Preferred Shareswith anaggregate issue price equal to the principal amount of Subordinated Notes, Series 1 redeemed, purchased for cancellation or repaid by Pembina will be redeemed inaccordancewiththetermsoftheSeries2021-AClassAPreferredShares.

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ClassBPreferredShares

TheClassBPreferredShareswerenotintendedtoandwillnotbeusedbytheCompanyforanti-takeoverpurposeswithoutShareholderapproval. IfatanytimeaholderofClassBPreferredSharesceasestobe,orisnot,adirectorindirectwholly-ownedsubsidiaryofPembina,Pembina,withorwithoutknowledgeofsuchevent,shallbedeemed,withoutfurtheractionornotice,tohaveautomaticallyredeemedalloftheClassBPreferredSharesheldbysuchholderinexchangefortheredemptionamountperClassBPreferredShareassetoutinPembina'sarticlestogetherwithalldeclaredbutunpaiddividendsthereon(the"RedemptionAmount").

Holders of Class B Preferred Shares are not entitled to receive notice of, to attend or to vote at any meeting of theShareholders,exceptasrequiredby law.TheClassBPreferredSharesareretractableandredeemableattheoptionoftheholderthereofandPembina,respectively.

The holders of Class B Preferred Shares shall be entitled to receive, if and when declared by the Board of Directors,preferentialnon-cumulativedividendsandupontheliquidation,dissolutionorwinding-upofPembina,theholdersofClassBPreferredSharesshallbeentitledtoreceiveforeachsuchshare,inprioritytotheholdersofCommonShares,theRedemptionAmount.

TherearecurrentlynoClassBPreferredSharesoutstanding.

CreditFacilities

Pembina'screditfacilitiesasatDecember31,2020consistedofanunsecured$2.5billionrevolvingcreditfacilitydueMay31,2024(the"RevolvingCreditFacility"),whichincludesa$750millionaccordionfeature,andanunsecuredoperatingfacilityof$20milliondueMay31,2021.Pembinaalsohasanunsecured$500milliontermloandueAugust2022;anunsecured$800millionrevolvingcreditfacilitydueApril2022;andanunsecuredU.S.$250millionnon-revolvingtermloandueMay2025.Thetermsandconditionsofthe$500milliontermloan,the$800millionrevolvingcreditfacilityandtheU.S.$250millionnon-revolving term loan including financial covenants, are substantially similar to the Revolving Credit Facility. There are norepaymentsdueoverthetermofanyofPembina'screditfacilities.AsatDecember31,2020,Pembinahad$1.5billiondrawnonbankdebtand$81millionincash,leaving$2.7billionofcashandunutilizeddebtfacilities.

MediumTermNotes

Subjecttocertainconditions,asnotedbelow,PembinamayredeemeachseriesofPembinaMediumTermNotes,either inwhole,orinpart,uponnotlessthan30andnotmorethan60dayspriornotice,atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice(asdefinedbelow),plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption. InrespectofthePembinaMediumTermNotes,"CanadaYieldPrice"means, ineffect,apriceequaltothepriceof a specific seriesof PembinaMediumTermNotes, as applicable, calculated in accordancewith generally acceptedfinancialpracticeinCanadatoprovideayieldtomaturityequaltotheGovernmentofCanadaYield(asdefinedbelow)plusthe Redemption Premium set forth in the table below. In respect of the PembinaMedium TermNotes, "Government ofCanadaYield"means, onanydate, in effect, the yield tomaturityon suchdate compounded semi-annuallywhichanon-callable Government of Canada bondwould carry if issued, in Canadian dollars in Canada, at 100 percent of its principalamounton suchdatewitha term tomaturityequal to the remaining term tomaturityof the specified seriesofPembinaMediumTermNotes, as applicable. TheGovernmentofCanadaYieldwill be theaverageof theyieldsdeterminedby twomajorCanadianinvestmentdealersselectedbyPembina.IncertaincircumstancesfollowingaChangeofControl(assuchtermisdefined in theSeniorNote Indenture) anda resultingdowngrade in the ratingsof thePembinaMediumTermNotes tobelowan investmentgrade,Pembinawillberequiredtomakeanoffertorepurchaseallor,attheoptionofanyholderofPembina Medium Term Notes, any part, at a purchase price payable in cash equal to 101 percent of the aggregateoutstandingprincipalamountthereofplusaccruedandunpaidinterest,ifany,tothedateofpurchase.Aftercertaindates(assetforthbelow),theMediumTermNotes,Series3,4,5,6,7,8,9,10,11,12,13,14,15and16mayberedeemedatapriceequaltopar,plusaccruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

Subject tocertainconditions,asnotedbelow,PembinamayredeemeachseriesofVeresenMediumTermNotes,either inwhole,orinpart,uponnotlessthan30andnotmorethan60dayspriornotice,atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice(asdefinedbelow),plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateof redemption. In respectof theVeresenMediumTermNotes, "CanadaYieldPrice"means, ineffect,apriceequal to theprice of a specific series of VeresenMedium TermNotes, as applicable, calculated in accordancewith generally acceptedfinancialpracticeinCanadatoprovideayieldtomaturityequaltotheGovernmentofCanadaYield(asdefinedbelow)plus

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the Redemption Premium set forth in the table below. In respect of the VeresenMedium Term Notes, "Government ofCanadaYield"means, onanydate, in effect, the yield tomaturityon suchdate compounded semi-annuallywhichanon-callable Government of Canada bondwould carry if issued, in Canadian dollars in Canada, at 100 percent of its principalamount on such datewith a term tomaturity equal to the remaining term tomaturity of the specified series of VeresenMediumTermNotes, as applicable. TheGovernmentofCanadaYieldwill be theaverageof theyieldsdeterminedby twomajorCanadianinvestmentdealersselectedbyPembina.IncertaincircumstancesfollowingaChangeofControl(asdefinedintheVeresenSeniorNoteIndenture)andaresultingdowngradeintheratingsoftheVeresenMediumTermNotestobelowaninvestmentgrade,Pembinawill be required tomakeanoffer to repurchaseallor, at theoptionofanyholderofVeresenMediumTermNotes,anypart,atapurchasepricepayableincashequalto101percentoftheaggregateoutstandingprincipalamountthereofplusaccruedandunpaidinterest,ifany,tothedateofpurchase.Aftercertaindates(assetforthbelow),theMediumTermNotes, Series5Amaybe redeemedat apriceequal topar, plus accruedbutunpaid interest, if any, tobutexcludingthedateofredemption.

The table below outlines the aggregate principal amount outstanding, and thematerial provisions of, each of Pembina'sissuedseriesofMediumTermNotesasatDecember31,2020.

Series IssueDate MaturityDatePrincipalandOutstanding

Amount(C$) AnnualCouponRate

RedemptionPremium

(perannum)

1(1) March29,2011 March29,2021 $250,000,000 4.89% 0.395%

2(1) October22,2012 October24,2022 $450,000,000 3.77% 0.460%

3(2)April30,2013

April30,2043

$200,000,000

4.75% 0.585%February2,2015(3) $150,000,000

June16,2015(3) $100,000,000

4(4) April4,2014 March25,2044 $600,000,000 4.81% 0.450%

5(5) February2,2015 February3,2025 $450,000,000 3.54% 0.540%

6(6) June16,2015 June15,2027 $500,000,000 4.24% 0.560%

7(7) August11,2016August11,2026

$500,000,0003.71% 0.655%

May28,2020(8) $100,000,000

8(9) January20,2017January22,2024

$300,000,0002.99% 0.385%August16,2017(10) $350,000,000

9(11) January20,2017January21,2047

$300,000,0004.74% 0.610%August16,2017(12) $250,000,000

10(13) March26,2018March27,2028

$400,000,0004.02% 0.450%

January10,2020(14) $250,000,000

11(15) March26,2018March26,2048

$300,000,0004.75% 0.605%

January10,2020(16) $500,000,000

12(17) April3,2019April3,2029

$400,000,0003.62% 0.475%

January10,2020 $250,000,000

13(19) April3,2019April3,2049

$400,000,0004.54% 0.640%

September12,2019(20) $300,000,000

14(21) September12,2019 June1,2023 $600,000,000 2.56% 0.280%

15(22) September12,2019 February1,2030 $600,000,000 3.31% 0.485%

16(23) May28,2020 May28,2050 $400,000,000 4.67% 0.895%

3A(24) March14,2012 March14,2022 $50,000,000 5.05% 0.750%

5A(25) November10,2016 November10,2021 $350,000,000 3.43% 0.675%

Notes:

(1) PembinamayredeemtheMediumTermNotes,Series1andMediumTermNotes,Series2atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(2) PembinamayredeemtheMediumTermNotes,Series3,(a)atanytimepriortoOctober30,2042atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice,and(b)atanytimeonorafterOctober30,2042atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

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(3) OnFebruary2,2015andJune16,2015,Pembinare-openeditsMediumTermNotes,Series3for$150millionand$100millionaggregateprincipalamounts,respectively.

(4) PembinamayredeemtheMediumTermNotes,Series4,(a)atanytimepriortoSeptember25,2043atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice,and(b)atanytimeonorafterSeptember25,2043atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(5) PembinamayredeemtheMediumTermNotes,Series5,(a)atanytimepriortoNovember3,2024atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice,and(b)atanytimeonorafterNovember3,2024atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(6) PembinamayredeemtheMediumTermNotes,Series6,(a)atanytimepriortoMarch15,2027atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterMarch15,2027atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(7) PembinamayredeemtheMediumTermNotes,Series7,(a)atanytimepriortoMay11,2026atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterMay11,2026atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(8) OnMay28,2020,Pembinare-openeditsMediumTermNotes,Series7for$100millionaggregateprincipal.

(9) PembinamayredeemtheMediumTermNotes,Series8,(a)atanytimepriortoNovember22,2023atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterNovember22,2023atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(10) OnAugust16,2017,Pembinare-openeditsMediumTermNotes,Series8for$350millionaggregateprincipal.

(11) PembinamayredeemtheMediumTermNotes,Series9,(a)atanytimepriortoJuly21,2046atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterJuly21,2046atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(12) OnAugust16,2017,Pembinare-openeditsMediumTermNotes,Series9for$250millionaggregateprincipal.

(13) PembinamayredeemtheMediumTermNotes,Series10,(a)atanytimepriortoDecember27,2027atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterDecember27,2027atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(14) OnJanuary10,2020,Pembinare-openeditsMediumTermNotes,Series10for$250millionaggregateprincipal.

(15) PembinamayredeemtheMediumTermNotes,Series11,(a)atanytimepriortoSeptember26,2047atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterSeptember26,2047atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.


(17) PembinamayredeemtheMediumTermNotes,Series12,(a)atanytimepriortoJanuary3,2029atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterJanuary3,2029atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.


(19) PembinamayredeemtheMediumTermNotes,Series13,(a)atanytimepriortoOctober3,2048atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterOctober3,2048atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(20) OnSeptember12,2019,Pembinare-openeditsMediumTermNotes,Series13for$300millionaggregateprincipal.

(21) PembinamayredeemtheMediumTermNotes,Series14,(a)atanytimepriortoJune1,2023atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterJune1,2023atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(22) PembinamayredeemtheMediumTermNotes,Series15,(a)atanytimepriortoNovember1,2029atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPriceand(b)atanytimeonorafterNovember1,2029atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(23) PembinamayredeemtheMediumTermNotes,Series16,(a)atanytimepriortoNovember28,2049atapriceequaltothegreaterof(i)par)and(ii)theCanadaYieldPriceand(b)atanytimeonorafterNovember28,2049atapriceequaltopar,plus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcludingthedateofredemption.

(24) Pembinamay redeemtheMediumTermNotes, Series3A,atany timeprior to thematuritydateatapriceequal to thegreaterof (i)parand (ii) theCanadaYieldPrice,togetherwithaccruedandunpaidinterestto,butexcluding,thedateofredemption.

(25) PembinamayredeemtheMediumTermNotes,Series5A,(a)atanytimepriortoOctober10,2021atapriceequaltothegreaterof(i)parand(ii)theCanadaYieldPrice,and(b)atanytimeonorafterOctober10,2021atapriceequaltoparplus,ineithercase,accruedbutunpaidinterest,ifany,tobutexcluding,thedateofredemption.

SubordinatedNotes,Series1

InterestandMaturity

Pembinawillpay interestontheSubordinatedNotes,Series1semi-annually, inarrears,onJanuary25andJuly25ofeachyear. From January 25, 2021 to January 25, 2031, the SubordinatedNotes, Series 1will bear interest at 4.80 percent perannum. From January25, 2031, andonevery fifth anniversaryof suchdate, the interest rateon the SubordinatedNotes,Series1willresetforthesubsequentfive-yearperiodatarateperannumequaltotheFiveYearGovernmentofCanadaYield,plus(i)fortheperiodfromJanuary25,2031toJanuary25,2051,4.167percent;and(ii)fortheperiodfromJanuary25,2051toJanuary25,2081,4.917percent.InrespectoftheSubordinatedNotes,Series1,"FiveYearGovernmentofCanadaYield"means the bid yield to maturity (assuming semi-annual compounding) of a Canadian dollar denominated non-callableGovernmentofCanadabondwithatermtomaturityoffiveyears,providedthat,ifsuchrateisnotpubliclyavailable,"FiveYear Government of Canada Yield"means the average of the yields determined by two registered Canadian investmentdealers(eachofwhichisamemberoftheInvestmentIndustryRegulatoryOrganizationofCanada),selectedbyPembina,asbeing the yield to maturity (assuming semi-annual compounding) which a Canadian dollar denominated non-callableGovernmentofCanadabondwouldcarryifissuedinCanadiandollarsat100percentofitsprincipalamountonsuchdatewithatermtomaturityoffiveyears.

TheSubordinatedNotes,Series1matureonJanuary25,2081.

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DeferralRight

SolongasnoeventofdefaultundertheSubordinatedNoteIndenturehasoccurredandiscontinuing,Pembinamayelect,onanydateotherthananinterestpaymentdate,todefertheinterestpayableontheSubordinatedNotes,Series1ononeormore occasions for up to five consecutive years. There is no limit on the number of on the interest deferrals on theSubordinatedNotes,Series1thatmayoccur.

Redemption

SubjecttocertainconditionsfromOctober25,2030toJanuary25,2031andonany interestpaymentdateorany interestreset date, as applicable, Pembinamay redeem the SubordinateNotes, Series 1, at a redemptionprice equal to par, plusaccruedandunpaid(includingdeferred,asapplicable)interesttothedatefixedforredemption.PembinamayalsoredeemtheSubordinatedNotes,Series1incertainotherlimitedcircumstances.

AutomaticDeliveryoftheSeries2021-PreferredShares

Following the occurrence of certain bankruptcy or insolvency events in respect of Pembina, holders of the SubordinatedNotes,Series1,will,subjecttocertainexceptions,beentitledtoreceivetheSeries2021-AClassAPreferredSharesandanyotherassetsheldintrusttosatisfyPembina'sobligationsundertheSubordinatedNoteIndenturefortheSubordinatedNotes,Series1.UpondeliveryoftheSeries2021-AClassAPreferredShares,theSubordinatedNotes,Series1willbeimmediatelyandautomaticallysurrenderedandcancelledandallrightsofanyholdersoftheSubordinateNotes,Series1asdebtholdersofPembinashallautomaticallycease.

CreditRatings

ThefollowinginformationwithrespecttoPembina'screditratingsisprovidedasitrelatestoPembina'sfinancingcostsandliquidity.Specifically,creditratingsaffectPembina'sabilitytoobtainshort-termandlong-termfinancingandimpactthecostofsuchfinancing.AreductioninthecurrentratingsonPembina'sdebtbyitsratingagencies,particularlyadowngradebelowinvestmentgraderatings,couldadverselyaffectPembina'scostoffinancinganditsaccesstosourcesofliquidityandcapital.In addition, changes in credit ratingsmay affect Pembina's ability to enter into, and the associated costs of entering into,normal course derivative or hedging transactions. Credit ratings are intended to provide investors with an independentmeasureofcreditqualityofanyissuesofdebtsecurities.

PembinahaspaideachofS&PandDBRStheircustomaryfeesinconnectionwiththeprovisionofthebelowratings.PembinahasnotmadeanypaymentstoS&PorDBRSoverthepasttwoyearsforservicesunrelatedtotheprovisionofsuchratings.

DBRSLimited

DBRShasconfirmedadebtratingof'BBB'toeachissuedseniorunsecurednoteofPembinaandassignedadebtratingof'BB(high)'totheSubordinateNotes,Series1.

TheBBBratingisthefourthhighestofDBRS'stenratingcategoriesforlong-termdebt,whichrangefromAAAtoD.TheBBBratingindicatesthat,inDBRS'sview,theratedsecuritiesareofadequateinvestmentgradecreditquality.Thecapacityforthepaymentoffinancialobligations isconsideredacceptable;however,the issuermaybevulnerabletofutureevents. TheBBrating isthefifthhighestofDBRS'tenratingcategoriesfor long-termdebt.TheBBrating indicatesthat, inDBRS'view,theratedsecuritiesarespeculative,non-investmentgradecreditqualityandthattheissuer'scapacityforthepaymentoffinancialobligationsisuncertainandisvulnerabletofutureevents.DBRSuses"high"and"low"designationsonratingsfromAAtoCtoindicatetherelativestandingofsecuritiesbeingratedwithinaparticularratingcategory.Theabsenceofa"high"or"low"designationindicatesthataratingisinthemiddleofthecategory.

EachissuedseriesofClassAPreferredShares,otherthantheSeries2021-APreferredShares,hasbeenrated'Pfd-3'byDBRS.ThePfd-3ratingisthethirdhighestofsixratingcategoriesforpreferredshares,whichrangefromahighofPfd-1toalowofD."High"or"low"gradesareusedtoindicatetherelativestandingwithinaratingcategory.Theabsenceofeithera"high"or"low"designationindicatestheratingisinthemiddleofthecategory.AccordingtotheDBRSratingsystem,preferredsharesrated Pfd-3 are of adequate credit quality.While protection of dividends and principal is still considered acceptable, theissuingentityismoresusceptibletoadversechangesinfinancialandeconomicconditions,andtheremaybeotheradverseconditionspresentwhichdetractfromdebtprotection.

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Whenasignificanteventoccursthatdirectly impactsthecreditqualityofaparticularentityorgroupofentities,DBRSwillattempttoprovidean immediateratingopinion.However, if there isuncertaintyregardingtheoutcomeof theevent,andDBRS is unable to provide an objective, forward-looking opinion in a timely fashion, then the ratings of the issuerwill beplaced"UnderReview".

S&P

S&Phasalong-termcorporatecreditratingonPembinaof'BBB'.S&Phasconfirmedaratingof'BBB'toeachissuedseniorunsecurednoteandassignedaratingof'BB+'totheSubordinateNotes,Series1.

TheBBBratingisthefourthhighestrating,ofS&P'stenratingcategoriesforissuancesof long-termdebtwhichrangefrom'AAA' to 'D'. Issues of debt securities rated BBB are judged by S&P to exhibit adequate protection parameters; however,adverse economic conditions or changing circumstances are more weaken the obligor's capacity to meet its financialcommitmentontheobligation.TheBBratingisthefifthhighestratingofS&P'stenratingcategoriesforissuesoflong-termdebt. Issuesofdebt securities ratedBBare,according to theS&Prating system, regardedashavingsignificant speculativecharacteristics.Whilesuchsecuritieswilllikelyhavesomequalityandprotectivecharacteristics,thesemaybeoutweighedbylargeuncertaintiesormajorexposurestoadverseconditions.AnobligationratedBBislessvulnerabletonon-paymentthanother speculative issues; however, S&P regards the obligor as facingmajor ongoing uncertainties or exposure to adversebusiness, financial or economic conditions which could lead to the obligor's inadequate capacity to meet its financialcommitmentontheobligation.Ratingsfrom'AA'to'CCC'maybemodifiedbytheadditionofaplus(+)orminus(–)signtoshowrelativestandingwithinthemajorratingcategories.

EachissuedseriesofClassAPreferredShares,otherthantheSeries2021-APreferredShares,hasbeenrated'P-3(High)'byS&P.S&P'sratingsforpreferredsharesrangefromahighof'P-1'toalowof'D'."High"or"low"gradesareusedtoindicatetherelativestandingwithinaratingcategory.AccordingtotheS&Pratingsystem,securitiesratedP-3areregardedashavingsignificantspeculativecharacteristics.Whilesuchsecuritieswilllikelyhavesomequalityandprotectivecharacteristics,thesemaybeoutweighedby largeuncertaintiesormajorexposures toadverse conditions.Anobligation ratedP-3 (High) is lessvulnerable to non-payment than other speculative issues; however, it faces major ongoing uncertainties or exposure toadversebusiness,financialoreconomicconditionswhichcouldleadtotheobligor'sinadequatecapacitytomeetitsfinancialcommitmentontheobligation.

Thesesecuritiesratingsarenotrecommendationstopurchase,holdorsellthesecuritiesinasmuchassuchratingsdonotcommentas tomarketpriceor suitability for aparticular investor. There is noassurance that any ratingwill remain ineffectforanygivenperiodoftimeorthatanyratingwillnotberevisedorwithdrawnentirelybyaratingagency inthefutureif,initsjudgment,circumstancessowarrant.

See"RiskFactors–GeneralRiskFactors–CreditRatings".

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DIVIDENDSANDDISTRIBUTIONS

CashDividends

ThedeclarationandpaymentofanydividendbyPembina isatthediscretionoftheBoardofDirectorsandwilldependonnumerousfactors,includingcompliancewithapplicablelawsandthefinancialperformance,debtobligations,workingcapitalrequirementsandfuturecapitalrequirementsofPembinaanditssubsidiaries.See"RiskFactors".TheagreementsgoverningPembina'sCreditFacilitiesprovidethatifaneventofdefaulthasoccurredundertheCreditFacilities,theindebtednessmaybe accelerated by the lenders, and the ability to pay dividends thereupon ceases. Pembina is restricted from makingdistributions(includingthedeclarationofdividends)ifitisindefaultunderitsCreditFacilities(oradefaultwouldbeexpectedtooccurasaresultofsuchdistribution)orifitsborrowingsexceeditsborrowingbasethreshold.

CommonShares

PembinapayscashdividendsonitsCommonSharesonamonthlybasistoShareholdersofrecordonthe25thcalendardayofeachmonth (except for theDecember recorddate,which isDecember31st), if, asandwhendeterminedby theBoardofDirectors. Should the record date fall on aweekend or a statutory holiday, the effective record datewill be the previousbusinessday.Thedividendpaymentdateisthe15thofthemonthfollowingtherecorddate.Shouldthepaymentdatefallonaweekendoronaholiday,thebusinessdaypriortotheweekendorholidaybecomesthepaymentdate.ThefollowingtablesetsforththeamountofmonthlycashdividendspaidbyPembinaonitsCommonSharesin2018,2019,2020andtodatein2021.

CashDividendsPerCommonShare

MonthofPaymentDate 2018 2019 2020 2021

January $0.18 $0.19 $0.20 $0.21(4)

February $0.18 $0.19 $0.21(3) $0.21(5)

March $0.18 $0.19 $0.21 N/A

April $0.18 $0.19 $0.21 N/A

May $0.18(1) $0.19(2) $0.21 N/A

June $0.19 $0.20 $0.21 N/A

July $0.19 $0.20 $0.21 N/A

August $0.19 $0.20 $0.21 N/A

September $0.19 $0.20 $0.21 N/A

October $0.19 $0.20 $0.21 N/A

November $0.19 $0.20 $0.21 N/A

December $0.19 $0.20 $0.21 N/A

Total $2.23 $2.35 $2.51 $0.42

Notes:

(1) OnMay3,2018,Pembinaannouncedanincreasetoitsmonthlydividendfrom$0.18to$0.19.

(2) OnMay2,2019,Pembinaannouncedanincreasetoitsmonthlydividendfrom$0.19to$0.20.

(3) OnDecember16,2019,Pembinaannouncedanincreasetoitsmonthlydividendfrom$0.20to$0.21.

(4) OnJanuary6,2021,PembinaannouncedthattheBoardofDirectorshaddeclaredadividendof$0.21perCommonSharetobepaid,subjecttoapplicablelaw,onFebruary122021toholdersofCommonSharesofrecordonJanuary25,2021.

(5) OnFebruary3,2021,PembinaannouncedthattheBoardofDirectorshaddeclaredadividendof$0.21perCommonSharestobepaid,subjecttoapplicablelaw,onMarch15,2021toholdersofCommonSharesofrecordonFebruary25,2021.

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ClassAPreferredShares

Dividends on each issued series of Class A Preferred Shares (excluding the Series 15, 17, 19,23 and 25 Class A PreferredShares)arepayableonthefirstdayofMarch,June,SeptemberandDecemberofeachyear,if,asandwhendeclaredbytheBoard.DividendsontheSeries15,17and19ClassAPreferredSharesarepayableonthelastdayofMarch,June,SeptemberandDecemberofeachyear,if,asandwhendeclaredbytheBoard.DividendsontheSeries23and25ClassAPreferredSharesarepayableonthe15thdayofFebruary,May,AugustandNovemberofeachyear, if,asandwhendeclaredbytheBoard.Dividends on the Series 2021-A Preferred Shares are only payable, if, as and when declared by the Board, following thedeliverytotheholdersoftheSubordinatedNotes,Series1.AdditionalinformationregardingdividendspayableontheClassAPreferredSharescanbefoundundertheheading"DescriptionoftheCapitalStructureofPembina–ClassAPreferredShares"herein.

ThefollowingtablesetsforththeamountofmonthlycashdividendspaidbyPembinaonitsClassAPreferredSharesin2018,2019,2020andtodatein2021.

CashDividendsPerClassAPreferredShare

QuarterlyPaymentDate(1)

Series1

Series3

Series5

Series7

Series9 Series11(2) Series13

Series15

Series17

Series19 Series21(3) Total

2018

Mar $0.265625 $0.293750 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.312500 $0.312500 $0.281900 $3.354650

June $0.265625 $0.293750 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.312500 $0.312500 $0.306250 $3.379000

Sept $0.265625 $0.293750 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.312500 $0.312500 $0.306250 $3.379000

Dec $0.265625 $0.293750 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.312500 $0.312500 $0.306250 $3.379000

2019

Mar $0.306625 $0.293750 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.312500 $0.312500 $0.306250 $3.379000

June $0.306625 $0.279875 $0.312500 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.312500 $0.306250 $3.394938

Sept $0.306625 $0.279875 $0.285813 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.312500 $0.306250 $3.368251

Dec $0.306625 $0.279875 $0.285813 $0.281250 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.312500 $0.306250 $3.368251

2020

Mar $0.306625 $0.279875 $0.285813 $0.273750 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.312500 $0.306250 $3.360751

June $0.306625 $0.279875 $0.285813 $0.273750 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.312500 $0.306250 $3.360751

Sept $0.306625 $0.279875 $0.285813 $0.273750 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.292750 $0.306250 $3.341001

Dec $0.306625 $0.279875 $0.285813 $0.273750 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.292750 $0.306250 $3.341001

2021

Mar(4) $0.306625 $0.279875 $0.285813 $0.273750 $0.296875 $0.359375 $0.359375 $0.279000 $0.301313 $0.292750 $0.306250 $3.341001

QuarterlyPaymentDate(1) Series23(5) Series25(6) Total

2020

Feb $0.328125 $0.325000 $0.653125

May $0.328125 $0.325000 $0.653125

Aug $0.328125 $0.325000 $0.653125

Nov $0.328125 $0.325000 $0.653125

2021

Feb $0.328125 $0.325000 $0.63125

Notes:

(1) AholderofSeries1,3,5,7,9,11,13and21ClassAPreferredSharesisentitledtoreceiveafixed,cumulativepreferentialdividendpayablequarterlyonthefirstdayofMarch,June,SeptemberandDecember,asdeclaredby theBoardofDirectors.AholderofSeries15,17and19ClassAPreferredShares isentitled to receivea fixed,cumulativepreferentialdividendpayablequarterlyonthelastdayofMarch,June,SeptemberandDecember,asdeclaredbytheBoardofDirectors.AholderofSeries23and25ClassAPreferredSharesisentitledtoreceiveafixed,cumulativepreferentialdividendpayablequarterlyonthe15thdayofFebruary,May,AugustandNovember,asdeclaredbytheBoardofDirectors.AholderoftheSeries2021-AClassAPreferredSharesshallnotbeentitledtoreceiveanydividends,norshallanydividendsaccumulateoraccrue,ontheSeries2021-AClassAPreferredSharespriortodeliverytotheholdersoftheSubordinatedNotes,Series1followingtheoccurrenceofcertainbankruptcyorinsolvencyevents

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in respectofPembina.Thereafter,holdersof theSeries2021-AClassAPreferredShareswillbeentitled to receivea fixed,cumulativepreferentialdividendpayablesemi-annuallyonthe25thdayofJanuaryandJuly,asdeclaredbytheBoardofDirectors.

(2) On January 25, 2021, Pembina announced its intention to redeemall of its 6.8million issued andoutstanding Series 11ClassA Preferred Shares onMarch1, 2021 for aredemptionpriceequalto$25.00perSeries11ClassAPreferredShare.

(3) TheinitialdividendontheSeries21ClassAPreferredShareswaspaidonMarch1,2018fortheperiodcommencingonthedateof issuance(December7,2017)uptobutexcludingMarch1,2018.

(4) OnJanuary6,2021,PembinaannouncedthattheBoardofDirectorshaddeclaredaquarterlydividendof$0.306625perSeries1ClassAPreferredShare,$0.279875perSeries3ClassAPreferredShare,$0.285813perSeries5ClassAPreferredShare,$0.273750perSeries7ClassAPreferredShare,$0.268875perSeries9ClassAPreferredShare,$0.359375perSeries11ClassAPreferredShare,$0.359375perSeries13ClassAPreferredShareand$0.306250perSeries21ClassAPreferredSharetobepaid,subjecttoapplicable law,onMarch1,2021 toholdersof recordonFebruary1,2021.On January6,2021,Pembinaannouncedthat theBoardofDirectorshaddeclaredaquarterlydividendof$0.279000perSeries15ClassAPreferredShare,$0.301313perSeries17ClassAPreferredShareand$0.292750perSeries19ClassAPreferredSharetobepaid,subjecttoapplicablelaw,onMarch31,2021toholdersofrecordonMarch15,2021.

(5) TheinitialdividendontheSeries23ClassAPreferredSharesof$0.328125foreachshareheldwaspaidonFebruary18,2020forafullquarterlyperioduptobutexcludingFebruary15,2020.PriortothecompletionoftheKinderMorganCanadaAcquisition,theholdersofKMLSeries1PreferredShareswerepaidaquarterlydividendof$0.328125byKMLforeachKMLSeries1PreferredShareheld,withthefinaldividendbeingpaidonNovember15,2019.

(6) TheinitialdividendontheSeries25ClassAPreferredSharesof$0.325000foreachshareheldwaspaidonFebruary18,2020forafullquarterlyperioduptobutexcludingFebruary15,2020.PriortothecompletionoftheKinderMorganCanadaAcquisition,theholdersofKMLSeries3PreferredShareswerepaidaquarterlydividendof$0.325000byKMLforeachKMLSeries3PreferredShareheld.,withthefinaldividendbeingpaidonNovember15,2019.

MARKETFORSECURITIES

TradingPriceandVolume

TheCommonSharesarelistedandtradedontheTSXunderthesymbol"PPL".TheCommonSharesarealsolistedontheNYSEunder the trading symbol "PBA". The following table sets forth the price ranges for and trading volumes of the CommonSharesontheTSXfor2020,asreportedbytheTSX,andontheNYSEfor2020,asreportedbyNYSE.

TSX(PPL) NYSE(PBA)

Month High($) Low($) Close($) Volume High(US$) Low(US$) Close(US$) Volume

January 51.30 47.32 50.68 42,846,356 39.32 36.49 38.31 21,784,449

February 53.79 45.93 48.35 35,354,669 40.65 34.14 36.12 21,048,137

March 49.37 15.27 26.40 123,980,144 37.02 10.58 18.81 67,388,811

April 33.58 23.45 31.92 74,557,908 24.18 16.47 22.94 43,884,008

May 36.32 29.98 34.40 52,566,622 26.16 21.27 25.03 25,128,031

June 38.43 31.92 33.94 50,015,297 28.71 23.36 25.00 25,127,716

July 34.67 31.26 32.55 38,009,198 25.66 23.03 24.34 19,114,289

August 35.92 32.11 32.30 29,568,545 27.14 24.03 24.74 17,306,823

September 33.25 27.57 28.26 48,496,510 25.38 20.50 21.23 23,559,214

October 30.10 26.86 27.89 39,228,688 22.89 20.10 20.93 25,203,410

November 34.60 26.77 33.12 49,590,825 26.60 20.53 25.49 25,453,918

December 34.84 29.96 30.10 56,035,748 27.39 23.48 23.66 21,741,178

TheSeries1ClassAPreferredShares,Series3ClassAPreferredShares,Series5ClassAPreferredShares,Series7ClassAPreferredShares,Series9ClassAPreferredShares,Series11ClassAPreferredShares,Series13ClassAPreferredShares,Series15ClassAPreferredShares,Series17ClassAPreferredShares,Series19ClassAPreferredShares,Series21ClassAPreferredShares,Series23ClassAPreferredSharesandSeries25ClassAPreferredSharesarelistedandtradedontheTSXunder the symbols "PPL.PR.A", "PPL.PR.C", "PPL.PR.E", "PPL.PR.G", "PPL.PR.I", "PPL.PR.K", "PPL.PR.M", "PPL.PR.O","PPL.PR.Q","PPL.PR.S","PPL.PF.A","PPL.PF.C"and"PPL.PF.E",respectively.ThefollowingtablessetforththepricerangeforandtradingvolumeoftheSeries1,Series3,Series5,Series7,Series9,Series11,Series13,Series15,Series17,Series19,Series21,Series23andSeries25ClassAPreferredSharesontheTSXfor2020,allasreportedbytheTSX.

Series1(PPL.PR.A) Series3(PPL.PR.C) Series5(PPL.PR.E)

Month High($) Low($) Close($) Volume High($) Low($) Close($) Volume High($) Low($) Close($) Volume

January 18.00 17.05 17.05 134,112 18.00 17.05 17.05 137,820 19.20 18.06 18.18 241,281

February 17.23 16.00 16.21 170,595 17.16 15.69 15.80 62,801 18.45 16.75 17.03 160,188

March 16.33 9.00 11.75 455,214 16.09 8.68 11.08 196,363 16.92 9.00 11.25 390,080

April 12.97 10.60 12.85 831,619 12.94 10.06 12.59 404,673 13.66 10.58 13.63 470,248

May 12.75 11.01 11.40 211,048 12.96 10.71 10.97 113,782 13.82 11.55 11.90 137,366

June 13.42 11.34 12.88 164,055 12.95 10.95 12.48 100,685 14.00 11.89 13.08 200,777

July 13.44 12.43 12.86 218,857 13.84 12.36 12.72 208,163 14.50 13.06 13.73 158,586

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Series1(PPL.PR.A) Series3(PPL.PR.C) Series5(PPL.PR.E)

August 14.50 12.82 14.42 241,793 14.62 12.74 14.62 69,283 15.62 13.98 15.59 114,024

September 14.90 13.25 13.49 156,330 15.23 13.00 13.29 46,575 15.82 14.03 14.70 117,797

October 13.50 12.91 12.95 302,797 13.60 12.14 12.14 107,481 14.61 13.21 13.28 198,283

November 14.46 12.87 14.20 207,645 13.80 12.13 13.70 123,456 15.00 13.25 14.82 268,790

December 15.57 14.23 15.06 272,251 14.86 13.70 14.80 110,494 16.14 14.83 16.14 220,724

Series7(PPL.PR.G) Series9(PPL.PR.I) Series11(PPL.PR.K)

Month High($) Low($) Close($) Volume High($) Low($)

Close($) Volume High($) Low($) Close($) Volume

January 19.00 18.01 18.06 107,943 21.96 20.73 21.00 101,150 26.01 25.65 25.75 73,918

February 18.25 16.99 17.00 72,600 21.38 19.72 19.92 37,414 25.88 25.10 25.17 69,498

March 17.02 8.66 10.84 230,609 19.67 9.30 12.31 210,248 25.55 14.51 19.25 243,292

April 13.30 10.40 13.23 162,470 14.70 11.64 14.67 171,208 21.78 18.55 21.05 149,135

May 13.19 11.17 11.71 150,149 14.68 12.86 13.46 198,609 21.89 20.00 21.55 105,769

June 13.79 11.79 13.00 133,159 15.60 13.39 15.32 205,681 24.40 21.79 23.34 106,676

July 14.49 12.96 13.75 75,341 16.80 15.07 16.77 61,901 24.85 23.49 24.16 118,261

August 15.51 13.52 15.27 78,772 18.84 15.99 18.20 105,459 24.62 24.10 24.49 55,826

September 15.93 13.85 13.87 115,319 18.77 16.41 16.80 48,135 24.75 23.75 24.37 70,593

October 14.10 12.95 13.55 141,903 16.75 15.73 15.81 361,775 25.00 24.20 24.25 115,760

November 14.65 12.98 14.48 93,769 17.77 15.65 17.60 159,185 25.20 23.80 25.20 77,994

December 15.90 14.49 15.85 626,119 19.09 17.59 18.98 347,859 25.29 25.06 25.15 50,427

Series13(PPL.PR.M) Series15(PPL.PR.O) Series17(PPL.PR.Q)


Close($) Volume High($) Low($) Close($) Volume

January 26.30 25.70 25.86 61,021 18.19 17.10 17.14 66,634 19.01 18.10 18.51 75,562

February 26.01 25.20 25.21 69,479 17.75 16.21 16.60 59,625 19.26 17.99 17.99 52,344

March 25.79 13.95 19.50 354,365 16.30 7.98 10.11 240,738 17.95 7.83 12.00 170,841

April 21.75 18.49 21.01 307,674 12.43 9.42 12.13 644,495 13.76 11.00 13.75 471,345

May 21.72 19.79 21.32 217,124 12.18 10.81 11.24 127,663 13.92 12.10 12.75 122,422

June 24.11 21.50 23.69 176,261 12.64 11.27 12.14 336,590 14.49 12.61 13.29 105,443

July 24.99 23.22 24.01 334,280 13.42 12.02 13.00 140,874 14.55 13.26 14.15 78,799

August 24.72 23.82 24.36 137,498 14.47 12.81 14.38 81,447 15.96 14.06 15.80 48,849

September 24.70 23.86 24.40 140,395 14.71 13.25 13.48 98,004 16.45 14.25 14.40 90,338

October 24.96 24.11 24.26 193,164 13.52 12.46 12.54 134,038 14.78 13.45 13.57 87,919

November 25.19 23.81 25.10 72,040 14.40 12.39 14.30 127,171 15.46 13.25 15.28 97,935

December 25.25 24.89 25.24 478,401 15.71 14.08 15.71 220,158 16.22 15.26 16.07 165,437

Series19(PPL.PR.S) Series21(PPL.PF.A) Series23(PPL.PF.C)(1)


Close($) Volume High($) Low($)

Close($) Volume

January 23.70 22.99 23.00 115,845 24.35 23.26 23.26 239,155 24.81 23.82 23.90 273,830

February 23.35 22.17 22.23 183,066 24.00 22.92 23.32 153,325 24.70 23.80 24.00 96,293

March 22.10 10.02 13.55 339,627 23.56 11.69 16.01 469,202 24.00 11.80 16.81 261,901

April 16.23 11.60 16.23 307,499 18.25 15.51 17.92 318,889 18.80 15.61 18.15 313,071

May 16.26 14.43 14.58 61,111 18.28 16.16 17.00 129,200 18.64 16.90 18.05 187,692

June 17.02 14.75 16.84 149,859 20.00 17.05 19.50 124,404 21.16 18.09 20.62 257,689

July 18.35 16.50 17.92 107,074 20.47 18.82 19.60 243,203 22.00 20.41 21.15 157,528

August 20.21 17.26 20.08 36,180 21.81 19.50 21.02 260,718 23.53 21.00 22.68 163,848

September 21.20 18.85 19.28 54,953 22.01 19.32 19.90 348,596 23.26 21.62 22.49 148,814

October 19.17 16.93 17.25 385,337 21.75 19.11 19.64 389,651 23.27 20.80 20.80 103,075

November 19.28 17.01 19.28 73,176 22.39 18.96 22.05 328,744 23.95 20.88 23.74 233,093

December 20.37 19.16 20.27 160,929 23.00 21.85 22.79 305,479 24.36 23.49 24.30 132,199

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Series25(PPL.PF.E)

Month High($) Low($) Close($) Volume

January 24.61 23.40 23.70 161,658

February 24.24 23.40 23.50 144,134

March 23.56 11.65 16.27 429,954

April 18.47 15.20 18.05 260,218

May 18.68 16.74 17.66 150,637

June 20.76 17.78 20.34 164,801

July 21.96 20.00 20.50 162,211

August 22.85 20.65 22.37 95,218

September 23.38 20.95 21.46 138,156

October 22.78 20.11 20.11 158,400

November 23.88 20.24 23.63 291,784

December 24.25 23.34 24.08 117,440

PriorSales

In2020,optionstopurchaseCommonShareswereissuedtoemployeespursuanttoPembina'sOptionPlan.Foradiscussionofoptionsissuedandthetermsthereof,refertoNote25toPembina'sFinancialStatements,theportionsofwhicharefoundundertheheadings"Disclosureofshareoptionplan"and"Shareoptionsgranted"areincorporatedbyreferenceherein.

DIRECTORSANDOFFICERS

DirectorsofPembina

ThefollowingtablesetsoutthenameandresidenceforeachdirectorofPembinaasofthedateofthisAnnualInformationForm,thedateonwhichtheywereappointedasadirectorofPembinaandtheirprincipaloccupationsduringthepastfiveyears.

NameandResidence DateAppointed PrincipalOccupationDuringthePastFiveYears

Anne-MarieN.Ainsworth(4)(5)

Houston,Texas,U.S.October7,2014 Independent businesswoman since March 2014; prior thereto,

PresidentandChiefExecutiveOfficerandamemberof theboardofdirectorsofthegeneralpartnerofOiltankingPartners,L.P.(amasterlimited partnership engaged in independent storage andtransportationofcrudeoil,refinedpetroleumproductsandliquefiedpetroleumgas)andPresidentandChiefExecutiveOfficerofOiltankingHolding Americas, Inc. from November 2012 to March 2014; priorthereto, Senior Vice President of Refining of Sunoco Inc. fromNovember2009toMarch2012.Currentlyamemberoftheboardofdirectors of Archrock, Inc., Kirby Corporation and HollyFrontierCorporation.

CynthiaCarroll(1)(4)(5)

Naples,Florida,U.S.May8,2020 Independent businesswoman since 2013; prior thereto, Chief

ExecutiveOfficerofAngloAmericanplcfrom2007to2013,andpriorthereto,heldvariousexecutiverolesatAlcanAluminumCorporation,includingPresident of Bauxite,Alumina and Specialty Chemicals andChief Executive Officer of the Primary Metal Group, Alcan's corebusiness. Currently a member of the board of directors of each ofHitachi Ltd.,American Securities, Prince International Corporation (aprivatecompany),BakerHughesandGlencoreplc.

MichaelH.DilgerCalgary,Alberta,Canada

January1,2014 President and Chief Executive Officer of Pembina since January 1,2014;priorthereto,PresidentandChiefOperatingOfficerofPembinafrom February 2012 until December 31, 2013; prior thereto, VicePresident,ChiefOperatingOfficerofPembinafromNovember2008toFebruary2012.

RandallJ.Findlay(2)(6)(7)

Calgary,Alberta,CanadaMarch8,2007 Corporate director since 2006; prior thereto, President of Provident

EnergyTrustfrom2001to2006.CurrentlyamemberoftheboardofdirectorsofSuperiorPlusCorp.

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NameandResidence DateAppointed PrincipalOccupationDuringthePastFiveYears

RobertG.Gwin(4)(6)Houston,Texas,U.S.

May8,2020 Independent businessman since 2019; prior thereto, President ofAnadarko Petroleum Corporation, until its acquisition by OccidentalPetroleum Corporation in 2019; prior thereto, Executive VicePresident,FinanceandChiefFinancialOfficerofAnadarkofrom2009to 2018; President and Chief Executive Officer of Western GasPartners,LPfrom2007to2010,aswellasamemberoftheboardofdirectors from 2007 to 2019; served on the board of directors ofLyondellBasellIndustries,N.V.from2011to2018,includingservingasitsChairmanfrom2013to2018.CurrentlyamemberandChairoftheboardofdirectorsofEnableMidstreamPartners,LP.

MaureenE.Howe(3)(6)(9)

Vancouver,BritishColumbia,Canada

October2,2017 Independent businesswoman since 2008; prior thereto, a ResearchAnalystandManagingDirectoratRBCCapitalMarkets from1996 to2008; previously served as amember of the board of directors andactedasChairoftheauditcommitteeofMosaicForestManagementCorp. Currently a member of the board of directors of MethanexCorporation.

GordonJ.Kerr(3)6)(8)

Calgary,Alberta,CanadaJanuary15,2015 Independent businessman since 2013; prior thereto, President and

ChiefExecutiveOfficeranddirectorofEnerplusCorporation(aNorthAmerican energy producer) from May 2001 until July 2013; priorthereto, Chairman of the Canadian Association of PetroleumProducers, a former director of Deer Creek Energy Limited andLaricina Energy Ltd., and a pastmember of the Canadian Council ofChiefExecutives.

DavidM.B.LeGresley(4)(6)

Toronto,Ontario,CanadaAugust16,2010 Corporate director since 2010; prior thereto, Vice Chairman of

National Bank Financial from 2006 to 2008 and Executive VicePresident, Corporate and Investment Banking from 1999 to 2006.CurrentlyamemberandChairof theboardofdirectorsofEquitableGroupInc.anditssubsidiary,EquitableBankInc.

LeslieA.O'Donoghue(3)(5)

Calgary,Alberta,CanadaDecember17,2008

Retired as Executive Advisor to the Chief Executive Officer andExecutiveVicePresident,ChiefStrategyandCorporateDevelopmentOfficerofNutrienLtd.in2019after20yearswiththecompany;priorthereto, Executive Vice President, Corporate Development andStrategy and Chief Risk Officer of Agrium Inc. (merged with PotashCorporation of Saskatchewan to form Nutrien Ltd.) since October2012; prior thereto, Executive Vice President, Operations of AgriumInc.fromApril30,2011toOctober30,2012;priorthereto,ChiefLegalOfficer and Senior Vice President, Business Development of AgriumInc. Currently a member of the board of directors of MethanexCorporation.

BruceD.Rubin(3)(5)

Swarthmore,Pennsylvania,U.S.May5,2017 Independent businessman since 2014; prior thereto, Operating

Advisor for The Carlyle Group from 2015 to 2017; prior thereto,Advisor for Braskem America Inc. from 2014 to 2017; ExecutiveAdvisor forCourt SquarePartners from2013 to2015;prior thereto,Chief ExecutiveOfficer of BraskemAmerica Inc., and executivewithBraskem America Inc. from 2010 until 2013; prior thereto, ChiefExecutiveOfficerofSunocoChemicals Inc.andSeniorVicePresidentofSunocoInc.from2008until2010.CurrentlyamemberoftheboardofdirectorsofDISAGlobalSolutions(aCourtSquareCapitalPartnerscompany)andtheM.HollandCompany.

HenryW.Sykes(3)(4)(9)(10)

Calgary,Alberta,CanadaOctober2,2017 Independent businessman since 2014; prior thereto, the President

andadirectorofMGMEnergyCorp.fromJanuary2007toJune2014;President of ConocoPhillips Canada Limited from 2001 to 2006;Executive Vice President, Business Development of Gulf CanadaResourcesLtd.

Notes:

(1) SubsequenttotheannualandspecialmeetingofShareholdersonMay8,2020,Ms.CarrollwasappointedtotheBoardofDirectorseffectiveMay8,2020andwillstandforelectionattheannualmeetingofShareholdersonMay7,2021.

(2) ChairoftheBoard.

(3) MemberofAuditCommittee.

(4) MemberofHumanResources,HealthandCompensationCommittee.

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(5) MemberoftheSafetyandEnvironmentCommittee.

(6) MemberoftheGovernance,NominatingandSocialResponsibilityCommittee.

(7) Mr. Findlaywas a director of Spyglass Resources Corp. (a TSX listed company) fromMarch 2013 untilMay 13, 2015. Spyglass Resources Corp., anintermediateoilandgasexplorationandproductioncompany,wasplacedintoreceivershipbyasyndicateofitslendersonNovember26,2015.

(8) Mr.Kerrwasadirectorof LaricinaEnergyLtd.,aprivatecompany,until February5,2016. LaricinaEnergyLtd.was subject toproceedingsunder theCompanies’CreditorsArrangementAct(Canada)in2015.OnFebruary1,2016,theproceedingswereconditionallydischarged.

(9)FollowingclosingoftheVeresenAcquisition,Ms.HoweandMr.SykeswereappointedtoPembina'sBoardofDirectorseffectiveOctober2,2017.

(10) Mr. SykeswasadirectorofParallelEnergyTrust ("Parallel") fromMarch2011until February2016.OnoraboutNovember9,2015,Parallel filedanapplication in the Alberta Court of Queen’s Bench for creditor protection under the Companies' Creditors Arrangement Act (Canada) and voluntarypetitionsforreliefunderChapter11oftheUnitedStatesBankruptcyCode.IntheChapter11proceedings,theBankruptcyCourtapprovedthesaleoftheassetsofParallelandthesaleclosedonJanuary28,2016.Further,onMarch3,2016,theCanadianentitiesofParallel filedforbankruptcyundertheBankruptcyandInsolvencyAct(Canada)andanoticetocreditorswassentbythetrusteeonMarch4,2016.

ShareholderselectthedirectorsofPembinaateachannualmeetingoftheShareholders.ThedirectorsofPembinaserveuntilthenextannualmeetingoftheShareholdersoruntiltheirsuccessorsaredulyelectedorappointed.AllofPembina'sdirectorsare "independent" within the meaning of National Instrument 58–101 – Disclosure of Corporate Governance Practices,adoptedby theCanadianSecuritiesAdministrators,with theexceptionofMr.Dilger,who isPresidentandChiefExecutiveOfficer of Pembina. In addition, Pembina has adopted Standards for Director Independence which meet or exceed therequirements set out in National Policy 58–201 – Corporate Governance Guidelines, National Instrument 52–110 – AuditCommittees,theSECrulesandregulations,theSarbanes-OxleyActof2002andtheNYSErules.

The Board of Directors has four committees, the Audit Committee, the Safety and Environment Committee, the HumanResources, Health and Compensation Committee, and the Governance, Nominating and Corporate Social ResponsibilityCommittee. Additional information regarding the responsibilities of these committees will be contained in Pembina'smanagementinformationcircularforits2021meetingofShareholders.

ExecutiveOfficersofPembina

Thefollowingtablesetsoutthename,residenceandofficeheldwithPembinaforeachexecutiveofficeroftheCompanyasatthedateofthisAnnualInformationForm,aswellastheirprincipaloccupationsduringatleastthepastfiveyears.

NameandResidence OfficewithPembinaPrincipalOccupation

DuringthePastFiveYears

MichaelH.DilgerCalgary,Alberta,Canada

PresidentandChiefExecutiveOfficer

PresidentandChiefExecutiveOfficersinceJanuary1,2014.

PaulJ.MurphyCalgary,Alberta,Canada

SeniorVicePresidentandCorporateServicesOfficer

SeniorVicePresidentandCorporateServicesOfficer since January1,2018;priorthereto,SeniorVicePresident,PipelineandCrudeOilFacilitiesofPembinasinceSeptember4,2013.

StuartV.TaylorCalgary,Alberta,Canada

SeniorVicePresident,MarketingandNewVenturesandCorporateDevelopmentOfficer

SeniorVicePresident,MarketingandNewVenturesandCorporateDevelopment Officer since January 1, 2018; prior thereto, SeniorVice President, NGL and Natural Gas Facilities of Pembina sinceSeptember4,2013.

J.ScottBurrowsCalgary,Alberta,Canada

SeniorVicePresidentandChiefFinancialOfficer

Senior Vice President and Chief Financial Officer since August 1,2017; prior thereto, Vice President, Finance and Chief FinancialOfficerofPembinasinceJanuary1,2015.

HaroldK.AndersenCalgary,Alberta,Canada

SeniorVicePresident,ExternalAffairsandChiefLegalOfficer

SeniorVicePresident,ExternalAffairsandChiefLegalOfficersinceAugust 1, 2017; prior thereto, Vice President, Legal and GeneralCounselofPembinasinceApril1,2013.

JasonT.WiunCalgary,Alberta,Canada

SeniorVicePresidentandChiefOperatingOfficer,Pipelines

Senior Vice President and Chief Operating Officer, Pipelines sinceJanuary 1, 2018; prior thereto, Vice President, ConventionalPipelinesofPembinasinceJanuary1,2014.

JaretA.SprottCalgary,Alberta,Canada

SeniorVicePresidentandChiefOperatingOfficer,Facilities

Senior Vice President and Chief Operating Officer, Facilities sinceJanuary 1, 2018; prior thereto, Vice President, Gas Services ofPembinasinceJanuary1,2015.

AsatFebruary24,2021,thedirectorsandexecutiveofficersofPembinabeneficiallyowned,orcontrolledordirected,directlyor indirectly, an aggregate of 632,829 Common Shares, representing approximately 0.1 percent of the then outstandingCommonShares.

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ConflictsofInterest

ThedirectorsandofficersofPembinamaybedirectorsorofficersofentitieswhichareincompetitionwithorarecustomersorsuppliersofPembinaorcertainentitiesinwhichPembinaholdsanequityinvestment.Assuch,thesedirectorsorofficersofPembinamay encounter conflicts of interest in the administration of their dutieswith respect to Pembina. Directors andofficersofPembinaarerequiredtodisclosetheexistenceofpotentialconflictsinaccordancewithPembina’sCodeofEthicsandothercorporategovernancepolicieswhichcanbefoundonPembina'swebsiteatwww.pembina.comandinaccordancewiththeABCA.See"RiskFactors–GeneralRiskFactors–PotentialConflictsofInterest".

AUDITCOMMITTEEINFORMATION

TheAuditCommittee'sCharter

TheAuditCommitteeCharterissetforthinAppendix"A"tothisAnnualInformationForm.

CompositionoftheAuditCommitteeandRelevantEducationandExperience

Pembina'sAuditCommitteeiscomprisedofGordonJ.Kerr,asChair,MaureenE.Howe,LeslieO'Donoghue,BruceD.RubinandHenryW.Sykes,eachofwhomisindependentandfinanciallyliteratewithinthemeaningofNI52–110andinaccordancewithPembina'sStandardsforDirector Independenceavailableatwww.pembina.com.SetforthbelowareadditionaldetailsregardingeachmemberoftheAuditCommittee.

GordonJ.Kerr

Mr.KerristheChairoftheAuditCommitteeandhasbeenamemberoftheAuditCommitteesinceFebruary27,2015.Mr.KerrisindependentwithinthemeaningofsuchterminNI52–110,andinaccordancewiththerulesprescribedbytheSECandtheNYSE.Mr.KerrisamemberoftheManagementAdvisoryCounciloftheHaskayneSchoolofBusinessattheUniversityofCalgary.Mr.KerrisaformerPresidentandChiefExecutiveOfficerofEnerplusCorporation,apositionheheldfromMay2001untilJuly2013.HeisalsoapastChairoftheCanadianAssociationofPetroleumProducers,aformerdirectorofDeerCreekEnergyLimitedandapastmemberof theCanadianCouncilofChiefExecutives.Sincebeginninghiscareer in1979,hehasgainedextensivemanagementexperienceinleadershippositionsatvariousoilandgascompanies.

Mr.Kerr commencedemploymentwithEnerplusCorporationand itspredecessors in1996,holdingpositionsof increasingresponsibility, including the positions of Chief FinancialOfficer and ExecutiveVice President.Mr. Kerr graduated from theUniversityofCalgaryin1976withaBachelorofCommercedegree.HereceivedaCharteredAccountantdesignationandwasadmittedasamemberoftheInstituteofCharteredAccountantsofAlbertain1979andwaslaterappointedaFellowoftheInstituteofCharteredAccountantsofAlbertainFebruary2011.Mr.KerrisamemberoftheInstituteofCorporateDirectors.ThisbusinessexperienceprovidesMr.KerrwiththeskillsetandfinancialliteracyrequiredtocarryouthisdutiesasamemberoftheAuditCommittee.

MaureenE.Howe

MaureenE.HowehasbeenamemberoftheAuditCommitteesinceOctober2,2017.Ms.Howeis independentwithinthemeaningofsuchterminNI52–110,andinaccordancewiththerulesprescribedbytheSECandtheNYSE.ShecurrentlyservesasamemberoftheboardofdirectorsofMethanexCorporation.Ms.Howepreviouslyservedasamemberoftheboardofdirectorsandchairof theauditcommitteeofMosaicForestManagement,aprivatecompanyShehasservedasManagingDirectoratRBCCapitalMarketsinequityresearchandwasregularlyatoprankedanalystinCanadabyindependentindustrysurveys.PriortojoiningRBCCapitalMarkets,Ms.Howeheldfinancepositionsintheutilityindustry,investmentbankingandportfoliomanagement.Ms.HoweholdsaBachelorofCommerce(Honours)fromtheUniversityofManitobaandaPh.D. inFinancefromtheUniversityofBritishColumbia.Ms.HoweisamemberoftheInstituteofCorporateDirectors.ThisbusinessexperienceprovidesMs.Howewith theskill setand financial literacy required tocarryoutherdutiesasamemberof theAuditCommittee.

LeslieO'Donoghue

LeslieO'DonoghuehasbeenamemberoftheAuditCommitteesinceMay8,2020.Ms.O'DonoghueisindependentwithinthemeaningofsuchterminNI52-110,andinaccordancewiththerulesprescribedbytheSECandtheNYSE.Ms.O'DonoghuecurrentlyservesasamemberoftheBoardofDirectorsandsitsontheSafetyandEnvironmentCommittee.Ms.O'Donoghue

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retired from Nutrien Ltd. at end of 2019, after 20 years with the company. Her most recent roles were Executive VicePresident&Chief Strategy&CorporateDevelopmentOfficer and ExecutiveAdvisor to theCEO.While atAgrium Inc., thepredecessortoNutrienLtd.priortoitsmergerwithPotashCorporationofSaskatchewan,Ms.O'DonoghueheldanumberofrolesincludingExecutiveVicePresident,CorporateDevelopment&Strategy&ChiefRiskOfficer,ExecutiveVicePresidentandChief LegalOfficer.Before joiningAgrium Inc.,Ms.O'Donoghuewasapartner in thenational law firmofBlake,Cassels&Graydon LLP. She holds a Bachelor of Arts (Economics) degree from the University of Calgary and an LL.B. fromQueen'sUniversity; shewas admitted to theAlbertaBar in 1989. She currently serves as adirectorofMethanexCorporation.Ms.O'DonoghueisalsoamemberoftheInstituteofCorporateDirectors.ThisbusinessexperienceprovidesMs.O'DonoghuewiththeskillsetandfinancialliteracyrequiredtocarryoutherdutiesasamemberoftheAuditCommittee.

BruceD.Rubin

Mr.RubinhasbeenamemberoftheAuditCommitteesinceMay5,2017.Mr.Rubinis independentwithinthemeaningofsuchterminNI52–110,andinaccordancewiththerulesprescribedbytheSECandtheNYSE.Mr.Rubinisanindependentbusinessmanwithover39yearsofexperience,includingvariousexecutiveandadvisorypositionsandboardmembershipsintheenergy,refiningandpetrochemicalsectors.HeservedastheChiefExecutiveOfficerofSunocoChemicalsandwasaSeniorVicePresidentofSunocoInc.,from2008until2010,andheldvariousotherexecutivepositionsduringa32-yearcareerwiththat company.Mr. Rubinwas BraskemAmerica's first Chief ExecutiveOfficer, and he servedwith BraskemAmerica in anexecutivecapacityfrom2010until2013.HeoversawthesuccessfultransitionofSunocoChemicalstoBraskemAmericaandsupported the successful acquisition by Braskem America of Dow Chemicals' polypropylene business. Mr. Rubin was anadvisorforBraskemAmerica.Mr.RubinservedontheboardofdirectorsofSylvatex Inc. from2012to2016,andcurrentlyserves on the board of DISA Global Solutions (a Court Square Capital Partners company). He is currently an advisor forSylvatex Inc. and previously served as an Executive Advisor for Court Square Partners from 2013 to 2015 as well as anOperatingAdvisorforTheCarlyleGroupfrom2015to2017.Mr.RubinhasaMasterofBusinessAdministrationDegreefromWidenerUniversityaswellasaBachelorofSciencedegreeinChemicalEngineeringfromtheUniversityofPennsylvania.Mr.RubinisamemberoftheInstituteofCorporateDirectorsThisbusinessexperienceprovidesMr.RubinwiththeskillsetandfinancialliteracyrequiredtocarryouthisdutiesasamemberoftheAuditCommittee.

HenryW.Sykes

Mr.SykeshasbeenamemberoftheAuditCommitteesinceMay4,2018.Mr.Sykes is independentwithinthemeaningofsuch term in NI 52-110, and in accordance with the rules prescribed by the SEC and the NYSE. Mr. Sykes is the formerPresidentanddirectorofMGMEnergyCorp.,aCanadianpublicenergycompanyfocusedontheacquisitionanddevelopmentofhydrocarbonresourcesinCanada'sNorthwestTerritoriesandArcticregions(January2007toJune2014).HewasPresidentofConocoPhillipsCanada(2001to2006)andExecutiveVice-President,BusinessDevelopmentofGulfCanadaResourcesLtd.beforethat.Mr.Sykesbeganhiscareerasalawyerandspecializedinmergersandacquisitions,securitiesandcorporatelaw.He ispastChairandmemberof theboardsofArtsCommonsandTheArctic InstituteofNorthAmerica,andadirectorofseveralprivatecompaniesinvolvedintheoilandgasindustry.HehasaBachelorofArtsineconomicsfromMcGillUniversity,alawdegreefromtheUniversityofTorontoandamastersoflawdegreefromtheLondonSchoolofEconomics.Mr.SykesisamemberoftheInstituteofCorporateDirectors.ThisbusinessexperienceprovidesMr.SykeswiththeskillsetandfinancialliteracyrequiredtocarryouthisdutiesasamemberoftheAuditCommittee.

Pre-ApprovalPoliciesandProceduresforAuditandNon-AuditServices

AsoutlinedinPembina'sAuditCommitteeCharterandthetermsofengagementwithPembina'sexternalauditors,theAuditCommittee of the Board is directly responsible for overseeing the relationship, reports, qualifications, independence andperformanceoftheexternalauditorandauditservicesbyotherregisteredpublicaccountingfirmsengagedbyPembina.TheAuditCommitteehastheauthorityandresponsibilitytorecommendtheappointmentandtherevocationoftheappointmentoftheexternalauditorsengagedforthepurposeofpreparingorissuinganauditreportorperformingotheraudit,revieworattest services, and to fix their remuneration. The external auditor reports directly to the Audit Committee. The AuditCommittee'sappointmentoftheexternalauditorissubjecttoannualapprovalbytheShareholders.

The Audit Committee is also responsible for the pre-approval of all permissible non-audit services to be provided by theexternalauditorsconsideringthepotentialimpactofsuchservicesontheindependenceofexternalauditorsand,subjecttoanydeminimisexemptionavailableunderapplicablelaws.Suchapprovalcanbegiveneitherspecificallyorpursuanttopre-approvalpolicies andproceduresadoptedby theAuditCommittee, including thedelegationof this ability tooneormoremembers of the Audit Committee to the extent permitted by applicable law, provided that any pre-approvals grantedpursuant to any such delegation must be detailed as to the particular service to be provided, may not delegate Audit

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Committee responsibilities to management of Pembina, and must be reported to the full Audit Committee at the firstscheduledmeetingoftheAuditCommitteefollowingsuchpre-approval.

ExternalAuditorServiceFees

ThefollowingtablesetsoutthefeespaidorpayablePembinaforprofessionalservicesprovidedbyKPMGLLPduringeachofthelasttwofinancialyears:

YEAR AUDITFEES(1) AUDIT-RELATEDFEES(2) TAXFEES(3) ALLOTHERFEES(4)

2020 $2,197,500 $128,500 $95,000 $31,750

2019 $2,969,500 $134,000 $120,086 NIL

Notes:

(1) Audit fees were for professional services rendered by KPMG LLP for the audit of Pembina's annual financial statements and reviews of Pembina'squarterly financialstatements,aswellasservicesprovided inconnectionwithstatutoryandregulatory filingsorengagements. In2020, fees includedadditionalexpenses for: (a)pricingsupplements in relation to thesaleand issueofMediumTermNotes,Series7,Series10,Series11,Series12andSeries16;(b)the2020BaseShelfProspectus;and(c)theprospectussupplementsinrelationtothesaleandissueoftheSubordinatedNotes,Series1.In2019,feesincludedadditionalexpensesfor:(a)the2019BaseShelfProspectus;(b)the2019MTNProspectus;and(c)pricingsupplementsinrelationtothesaleandissueofMediumTermNotesSeries10,11,12,13,14and15.

(2) Audit-related feesare forassuranceand relatedservices, includingFrench translations inconnectionwithstatutoryand regulatory filings, reasonablyrelatedtotheperformanceoftheauditorreviewofPembina'sfinancialstatementsandnotreportedunder"AuditFees"above.In2020and2019,thesefeesincludedauditfeesforthepensionplanandYoungerfacilitypensionplanauditsof$30,000and$20,000respectively.

(3) Taxfeeswerefortaxcomplianceof$2,700(2019:$39,925)andtaxadviceandtaxplanningof$92,300(2019:$80,161).2020and2019feesincludedtaxconsultationandtaxcompliancefeesincurredforpreparingandfilingthetaxreturnsforPembina'ssubsidiaries.

(4) AllotherfeesarefeesforproductsandservicesprovidedbyPembina'sauditorsotherthanthosedescribedas"AuditFees","Audit-relatedFees"and"TaxFees"whichincludedfeesrelatedtoadviceandassistancewithGHGemissionsreporting.

RISKFACTORS

The following information is a summary only of certain risk factors relating to Pembina, its subsidiaries and/or its equityaccountedinvestees,oraninvestmentinsecuritiesofPembina,andisqualifiedinitsentiretybyreferenceto,andmustberead inconjunctionwith, thedetailed informationappearingelsewhere in thisAnnual InformationForm.Shareholdersandprospective investors should carefully consider these risk factorsbefore investing inPembina's securities, aseachof theserisks may negatively affect the trading price of Pembina's securities, the amount of dividends paid to Shareholders andholdersofClassAPreferredSharesandtheabilityofPembinatofunditsdebtobligations,includingobligationsunderdebtsecurities that Pembinamay issue from time to time. Information regarding Pembina's risk assessment andmanagementprocessescanbefoundinPembina’smanagementinformationcircularforits2021annualmeetingofShareholders.

ProspectiveinvestorsshouldcarefullyconsidertheriskfactorssetoutbelowandconsiderallotherinformationcontainedhereinandinPembina'sotherpublicfilingsbeforemakinganinvestmentdecisioninrespectofanysecuritiesofPembina.

Pembina'svalueproposition isbasedonbalancingeconomicbenefitagainst risk.Whereappropriate,Pembinawill seek toreducerisk.Pembinacontinuallyworks tomitigate the impactofpotential risks to itsbusinessby identifyingall significantriskssothattheycanbeappropriatelymanaged.Toassistwith identifyingandmanagingrisk,Pembinahas implementedacomprehensiveRiskManagementProgram.

OngoingImpactoftheCOVID-19Pandemic

COVID-19RelatedImpacts

Pembina's business and operations have been and may continue to be materially adversely affected by the COVID-19pandemic, includingongoinguncertaintywith respect to theextent anddurationof thepandemic. TheongoingCOVID-19pandemicandactionsthathave,andmaybe,takenbygovernmentalauthoritiesinresponsetheretohasresulted,andmaycontinuetoresultin,amongotherthings:anoverallslowdownintheglobaleconomy;adecreaseinglobalenergydemand;increased volatility in financial and commodity markets; disruptions to global supply chains; labour shortages; significantimpactstotheworkforce;reductions intradevolumes;temporaryoperationalrestrictionsandrestrictionsongatheringsofindividuals, aswell as shelter-in-place declarations and quarantine orders; business closures and travel bans; political andeconomic instability; and civil unrest. The recent resurgenceof theCOVID-19 virus and the recent spreadof newvariants

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thereofincertaingeographicareas,includingcertainareasinwhichPembinaoperates,andthepossibilitythataresurgenceoftheCOVID-19virusorthespreadofsuchneworothervariantsormutationsthereofmayoccurinotherareas,hasresultedinthere-impositionofcertainoftheforegoingrestrictions,andmayresultinfurtherrestrictions,bygovernmentalauthoritiesin certain jurisdictions, including certain jurisdictions in which Pembina operates. This further increases the risk anduncertaintyastotheextentanddurationoftheCOVID-19pandemicanditsultimateimpactoftheglobaleconomyandotheritemsnotedabove.

The risks to Pembina of the ongoing COVID-19 pandemic include, among other things: risks to the health and safety ofPembina'semployees;aslowdownortemporarysuspensionofoperationsincertaingeographiclocationsinwhichPembinaoperates;delaysinthecompletion,ordeferral,ofPembina'sgrowthandexpansionprojects;andsupplychaindisruptions,alloranyofwhichcouldmateriallyadverselyimpactPembina'sbusinessoperationsandfinancialresults.PembinahasalreadydeferredcertaingrowthprojectsasaresultoftheCOVID-19pandemicandtheassociateddeclineinglobalenergydemandandtheresultingdecreaseincommoditypricesduring2020.

ThefullextentandimpactoftheCOVID-19pandemiccontinuestobeunknownatthistimeandthedegreetowhichitmayimpactPembina'sbusinessoperationsandfinancialresultswilldependonfuturedevelopments,whicharehighlyuncertainandcannotbepredictedwithanydegreeofcertainty,including:theduration,severityandgeographicspreadoftheCOVID-19virusandvariantsandmutationsthereof,includinginrespectoftherecentresurgenceofthevirusandtherecentspreadofnewvariantsthereofincertaingeographicareas,includingcertainareasinwhichPembinaoperates;furtheractionsthatmaybe takenbygovernmentalauthorities, including in respectof travel restrictionsandbusinessdisruptions; theeffectivenessandtimingofactionstakentocontainandtreattheCOVID-19virusandvariantsandmutationsthereof,includingthevaccinesdevelopedinresponsethereto;andhowquicklyandtowhatextentnormaleconomicandoperatingconditionscanresume.

ImpactonGeneralRisks

Dependingon theextentanddurationof theCOVID-19pandemic, itmayalsohave theeffectofheighteningmanyof theother risks described herein, including the risks relating to Pembina's exposure to commodity prices; the successfulcompletion of Pembina's growth and expansion projects, including the expected return on investment thereof; Pembina'sability to maintain its credit ratings; restricted access to capital and increased borrowing costs; Pembina's ability to paydividends and service obligations under its debt securities and other debt obligations; and otherwise complying with thecovenantscontainedintheagreementsthatgovernPembina'sexistingindebtedness.

RisksInherentinPembina'sBusiness

CommodityPriceRisk

Pembina'sbusinessisexposedtocommoditypricevolatilityandasubstantialdeclineinthepricesofthesecommoditiescouldadverselyaffectitsfinancialresults.

CertainofthetransportationcontractsortollingarrangementswithrespecttoPembina'spipelineassetsdonotincludetake-or-paycommitments fromcrudeoilandgasproducersand,asaresult,Pembina isexposedtovolumeriskwithrespect tothose assets. A decrease in volumes transported can directly and adversely affect Pembina's revenues and earnings. Thedemandfor,andutilizationof,Pembina'spipelineassetsmaybeimpactedbyfactorssuchaschangingmarketfundamentals,capacitybottlenecks,operationalincidents,regulatoryrestrictions,systemmaintenance,weatherandincreasedcompetition.Market fundamentals, suchas commodityprices andpricedifferentials, natural gas andgasoline consumption, alternativeenergysourcesandglobalsupplydisruptionsoutsideofPembina’scontrolcanimpactboththesupplyofanddemandforthecommoditiestransportedonPembina'spipelines.See"ReserveReplacement,ThroughputandProductDemand"below.

Pembina'sMarketingbusiness includesactivitiesrelatedtoproductstorage, terminalling,andhubservices.Theseactivitiesexpose Pembina to certain risks relating to fluctuations in commodity prices and, as a result, Pembina may experiencevolatilityinrevenueandimpairmentsrelatedtothebookvalueofstoredproductwithrespecttotheseactivities.Primarily,Pembinaentersintocontractstopurchaseandsellcrudeoil,condensate,NGLandnaturalgasatfloatingmarketprices;asaresult, thepricesofproducts thataremarketedbyPembinaaresubject tovolatilityasa resultof factorssuchasseasonaldemandchanges,extremeweatherconditions(theseverityofwhichcouldincreaseduetoclimatechange),marketinventorylevels,generaleconomicconditions,changes incrudeoilmarketsandother factors.Pembinamanages its riskexposurebybalancingpurchasesandsalestosecure lessvolatilemargins.NotwithstandingPembina'smanagementofpriceandqualityrisk, marketing margins for commodities can vary and have varied significantly from period to period in the past. ThisvariabilitycouldhaveanadverseeffectontheresultsofPembina'sMarketingbusinessanditsoverallresultsofoperations.Toassist in reducing this inherent variability in itsMarketing business, Pembina has invested, andwill continue to invest, inassetsthathaveafee-basedrevenuecomponent.

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Pembina isalsoexposedtopotentialpricedeclinesanddecreasingfracspreadsbetweenthetimePembinapurchasesNGLfeedstockandsellsNGLproducts.FracspreadisthedifferencebetweentherevenuefromthesaleofNGLifremovedfromagasstreamandthevaluesuchNGLwouldhavehadifleftinthegasstreamandsoldatnaturalgasprices.Fracspreadscanchange significantly from period to period depending on the relationship between NGL and natural gas prices (the "fracspreadratio"),absolutecommodityprices,transportdifferentialsandchangesintheCanadiantoU.S.dollarexchangerate.Inadditiontothefracspreadratiochanges,thereisalsoadifferentialbetweenNGLproductpricesandcrudeoilpriceswhichcan changemargins realized formidstreamproducts. The amount of profit or lossmadeon the extraction portion of thebusinesswillgenerallyincreaseordecreasewithfracspreads.ThisexposurecouldresultinvariabilityofcashflowgeneratedbytheMarketingbusiness,whichcouldaffectPembinaandthecashdividendsthatPembinaisabletodistribute.

TheCompanyutilizesfinancialderivativeinstrumentsaspartofitsoverallriskmanagementstrategytoassistinmanagingtheexposure to commodity price, interest rate, cost of power and foreign exchange risks. As an exampleof commodity pricemitigation, the Company actively fixes a portion of its exposure to fractionation margins through the use of derivativefinancial instruments.Additionally,Pembina'sMarketingbusiness isalsoexposedtovariability inquality, timeand locationdifferentials for various products, and financial instruments may be used to offset the Company's exposures to thesedifferentials.TheCompanydoesnottradefinancialinstrumentsforspeculativepurposes.Commoditypricefluctuationsandvolatility can also impact producer activity and throughput in Pembina's infrastructure, which is discussed inmore detailbelow.

FormoreinformationwithrespecttoPembina'sfinancialinstrumentsandfinancialriskmanagementprogram,seeNote27toPembina'sConsolidatedFinancialStatements,whichnoteisincorporatedbyreferenceherein.

RegulationandLegislation

LegislationinAlbertaandBritishColumbiaexiststoensurethatproducershavefairandreasonableopportunitiestoproduce,process andmarket their reserves. Regulatory authorities in Alberta and British Columbiamay declare the operator of apipelineacommoncarrierofcrudeoil,NGLornaturalgasand,assuch,mustnotdiscriminatebetweenproducerswhoseekaccess to thepipeline.Regulatoryauthoritiesmayalsoestablish conditionsunderwhich thecarriermustacceptandcarryproduct, including the tariffs thatmay be charged. Producers and shippersmay also apply to the appropriate regulatoryauthorities for a review of tariffs, and such tariffs may then be regulated if it is proven that the tariffs are not just andreasonable.Thepotentialfordirectregulationoftariffs,whileconsideredremotebyPembina,couldresultintarifflevelsthatarelessadvantageoustoPembinaandcouldimpairtheeconomicoperationofsuchregulatedpipelinesystems.

TheAERistheprimaryregulatorybodythatoverseesPembina'sAlberta-issuedenergypermits,withsomeminorexceptions.CertainofPembina'ssubsidiariesownpipelines inBritishColumbia,whichare regulatedby theBCOGCandtheBCUC,andpipelines that cross provincial or international boundaries, which are regulated by the CER and/or the FERC and PHMSA.CertainofPembina'soperationsandexpansionprojectsare subject toadditional regulations,andasPembina'soperationsexpand throughout Canada andNorth America, Pembinamay be required to complywith the requirements of additionalregulators and legislative bodies, including the Impact Assessment Agency of Canada, the BCEAO, theOntarioMinistry ofNaturalResourcesandForestry,theSaskatchewanMinistryofEnergyandResourcesandThePetroleumBranchofManitobaMineralResourcesunderManitobaAgricultureandResourceDevelopment.

IntheU.S.,FERCregulates interstatenaturalgaspipelinesandthetransportationofcrudeoil,NGLandrefinedproducts ininterstatecommerce.UndertheNGA,FERCregulatestheconstruction,extension,andabandonmentofinterstatenaturalgaspipelinesandthetolls,termsandconditionsofserviceandotheraspectsofthebusinessofinterstatenaturalgaspipelines.Interstate natural gas pipelines tolls, terms and conditions of service are filed at FERC and publicly available. Under theInterstateCommerceAct,FERCregulatesthetolls,termsandconditionsofthetransportationininterstatecommerceofcrudeoil,NGLsandrefinedproducts.PipelinesafetyisregulatedbythePHMSA,whichsetsstandardsforthedesign,construction,pressure testing, operation andmaintenance, corrosion control, training andqualificationof personnel, accident reportingand recordkeeping.TheOfficeofPipelineSafety,within thePHMSA, inspectsandenforces thepipelinesafety regulationsacrosstheU.S.Allregulationsandenvironmental,safetyandeconomiccomplianceobligationsaresubjecttochangeattheinitiativeofFERC,PHMSAorotherUnitedStatesFederalagencieswithjurisdictionoveraspectsoftheoperationsofpipelines,including environmental, economic and safety regulations. Changes by FERC in its regulations or policies could adverselyimpact Pembina's natural gas pipelines, making the construction, extension or expansion of such pipelines more costly,causing delay in the permitting of such projects or impacting the likelihood of success of completion of such projects.Similarly,changes inFERC'sregulationsorpoliciescouldadversely impactthetollsthatPembina'sFERCregulatedpipelinesareabletochargeandhowsuchpipelinesdobusiness,whethersuchpipelinesareregaledbyFERCpursuanttotheNGAortheICA.Pembinacontinuallymonitorsexistingandchangingregulationsinalljurisdictionsinwhichitcurrentlyoperates,or

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intowhich itmayexpand in the future,and thepotential implications to itsoperations;however,Pembinacannotpredictfutureregulatorychanges,andanysuchcomplianceandregulatorychangesinanyoneormultiplejurisdictionscouldhaveamaterialadverseimpactonPembina,itsfinancialresultsanditsShareholders.

In2019,thefederalgovernmentoverhauledtheenvironmentalassessmentandfederalenergyregulationregimeinCanada.TheNationalEnergyBoard("NEB")andNEBActwerereplacedbytheCERandtheCanadianEnergyRegulatorAct("CERAct").Similarly,theCanadianEnvironmentalAssessmentAct,2012 (Canada)("CEAA")wasreplacedbythe ImpactAssessmentAct(Canada) ("IAA") and the Canadian Environmental Assessment Agency was replaced by the new IAA as the authorityresponsible for conducting all federal impact assessments (formerly "environmental assessments") for certain designatedprojects under the IAA, unless referred to a reviewpanel. The list of designatedprojectswhich are subject tomandatoryassessmentunder the IAA is similar to the listunder theCEAA;however, the lengthofnewpipelines forwhichan impactassessment is required has been increased from 40 km to 75 km. The proposed IAA also contains a broader projectassessment process than under the CEAA and provides for enhanced consultation with groups that may be affected byproposedprojects,whilealsoexpandingthescopeoffactorsandconsiderationsthatneedtobetakenintoaccountundertheprojectassessmentprocess.TheCERcontinuestooverseeapprovedfederal,interprovincialandinternationalenergyprojectsinamannersimilartotheformerregimeundertheNEB,withnewprojectsbeingreferredtoareviewpanelundertheIAA.OnJuly16,2020,thefederalgovernmentpublishedtheStrategicAssessmentofClimateChange("SACC")undertheprovisionsfor such assessments in the IAA. The SACC imposes the new requirements regardingGHG emissions planning on projectssubjecttotheIAA.

At this point, while few projects have been subject to the new federal impact assessment regime, Pembina continues toactivelymonitordevelopmentsinthisarea.Totheextentthesechangeslengthenthereviewtimelineforprojectsorexpandthescopeofthematterstobeconsidered,thenewregimecouldmateriallyimpacttheamountoftimeandcapitalresourcesrequiredbyPembinatoseekandobtainapprovaltoconstructandoperateinternationalorinterprovincialpipelinesorotherprojectsdesignatedpursuanttotheIAAproject listorministerialdesignationpowersundertheIAA.Thenewregimecouldtherefore materially and directly impact Pembina's business and financial results, and could indirectly affect Pembina'sbusiness and financial results by impacting the financial condition and growth projects of its customers and, ultimately,productionlevelsandthroughputonPembina'spipelinesandinitsfacilities.

Pembina'sbusinessandfinancialconditionmayalsobe influencedbyfederalandforeign legislationaffecting, inparticular,foreign investment, through legislation such as the Competition Act (Canada), the Investment Canada Act (Canada) andequivalentlegislationinforeignjurisdictions.

Therecanbenoassurancethatchangestoincometaxlaws,regulatoryandenvironmentallawsorpoliciesandgovernmentincentiveprogramsrelatingtothepipelineorcrudeoilandnaturalgasindustrywillnotadverselyaffectPembinaorthevalueofitssecurities.

See"OtherInformationRelatingtoPembina’sBusiness–IndustryRegulation".

OperationalRisks

Operationalrisksinclude,butarenotlimitedto:pipelineleaks;thebreakdownorfailureofequipment,pipelinesandfacilities,information systemsor processes; the compromiseof information and control systems; theperformanceof equipment atlevels below those originally intended (whether due to misuse, unexpected degradation or design, construction ormanufacturing defects); releases at truck terminals and hubs; releases associated with the loading and unloading ofpotentiallyharmfulsubstancesontorailcarsandtrucks;adverseseaconditions(includingstormsandrisingsea levels)andreleasesorspillsfromshippingvessels loadedatPembina'smarineterminal;failuretomaintainadequatesuppliesofspareparts; operator error; labour disputes; disputes with interconnected facilities and carriers; operational disruptions orapportionmentonthird-partysystemsorrefineries,whichmaypreventthefullutilizationofPembina'sfacilitiesandpipelines;andcatastrophicevents,including,butnotlimitedto,thoserelatedtoclimatechangeandextremeweatherevents,includingfires, floods and other natural disasters, explosions, train derailments, earthquakes, widespread epidemics or pandemicoutbreaks,actsofcivilprotestordisobedience,terrorismorsabotage,andothersimilarevents,manyofwhicharebeyondthecontrolofPembinaandallofwhichcouldresult inoperationaldisruptions,damagetoassets,relatedreleasesorotherenvironmental issues,anddelaysinconstruction, labourandmaterials.Pembinamayalsobeexposedfromtimetotimetoadditional operational risks not stated in the immediately preceding sentence. In addition, the consequences of anyoperational incident (includingas a resultof adverse sea conditions) atVancouverWharvesor involvinga vessel receivingproductsfromVancouverWharves,maybeevenmoresignificantasaresultofthecomplexitiesinvolvedinaddressingleaksandreleasesoccurring in theoceanoralongcoastlinesand/or the repairofmarine terminals.Any leaks, releasesorother

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incidents involving such vessels, or other similar operators along theWest Coast, could result in significant harm to theenvironment, curtailment of, or disruptions of and/or delays in, offshore shipping activity in the affected areas, includingPembina's ability to effectively carry on operations at VancouverWharves. The occurrence or continuance of any of theforegoing events could increase the cost of operating Pembina's assets or reduce revenue, thereby impacting earnings.Additionally,facilitiesandpipelinesarereliantonelectricalpowerfortheiroperations.Afailureordisruptionwithinthelocalor regional electrical power supply or distribution or transmission systems could significantly affect ongoing operations.Further,asignificantincreaseinthecostofpowerorfuelcouldhaveamateriallynegativeeffectonthelevelofprofitrealizedin caseswhere the relevant contracts do not provide for recovery of such costs. In the long-term, constraints on naturalresourcedevelopmentcouldbe impactedbyclimatechange initiativesorpolicies, resulting inadditionaloperationalcosts,delaysorrestrictions.

Pembinaiscommittedtopreservingcustomerandshareholdervaluebyproactivelymanagingoperationalriskthroughsafeand reliable operations. Senior managers are responsible for the supervision of operational risk by ensuring appropriatepolicies, procedures and systems are in place within their business units and internal controls are operating efficiently.Pembinaalsohasanextensiveprogramtomanagepipelinesystemintegrity,whichincludesthedevelopmentanduseofin-lineinspectiontoolsandvariousotherleakdetectiontechnologies.Pembina'smaintenance,excavationandrepairprogramsare focused on risk mitigation and, as such, resources are directed to the areas of greatest benefit and infrastructure isreplacedorrepairedasrequired.Pembinacarriesinsurancecoveragewithrespecttosome,butnotall,casualtyoccurrencesinamountscustomaryforsimilarbusinessoperations,whichcoveragemaynotbesufficienttocompensateforallcasualtyoccurrences. Inaddition,PembinahasacomprehensiveSecurityManagementProgramdesignedtoreducesecurity-relatedrisks.

CompletionandTimingofExpansionProjects

The successful completion of Pembina's growth and expansion projects is dependent on a number of factors outside ofPembina'scontrol,includingtheimpactofgeneraleconomic,businessandmarketconditions,availabilityofcapitalontermsand rates acceptable to Pembina, receipt of regulatory approvals, reaching long-term commercial arrangements withcustomers inrespectofcertainportionsoftheexpansions,constructionschedules,commissioningdifficultiesordelaysandcosts that may change depending on supply, demand and/or inflation, labour, materials and equipment availability,contractor non-performance, acts of civil protest or disobedience, terrorism or sabotage, weather conditions, cost ofengineeringservices,andchangeingovernmentsthatgrantedtherequisiteregulatoryapprovals.Thereisnocertainty,norcanPembinaprovideanyassurance,thatnecessaryregulatoryapprovalswillbereceivedontermsthatmaintaintheexpectedreturn on investment associated with a specific project, or at all, or that satisfactory commercial arrangements withcustomerswillbeenteredintoonatimelybasis,oratall,orthatthirdpartieswillcomplywithcontractualobligationsinatimelymanner.Factorssuchasspecialinterestgroupopposition,Indigenous,landownerandotherstakeholderconsultationrequirements, civil protest or disobedience, changes in shipper support, and changes to the legislative or regulatoryframeworkcouldallhavean impactonmeetingcontractualandregulatorymilestones.Asa result, thecostestimatesandcompletiondates forPembina'smajorprojectsmaychangeduringdifferentstagesof theproject.Earlystageprojects faceadditional challenges, including securing leases, easements, rights-of-way, permits and/or licenses from landowners orgovernmental authorities allowingaccess for suchpurposes, aswell as Indigenous consultation requirements.Accordingly,actualcostsandconstructionschedulesmayvaryfrominitialestimatesandthesedifferencescanbesignificant,andcertainprojectsmaynotproceedasplanned,oratall. Further, there isa risk thatmaintenancewillbe requiredmoreoften thancurrentlyplannedorthatsignificantmaintenancecapitalprojectscouldarisethatwerenotpreviouslyanticipated.

UndermostofPembina's constructionandoperatingagreements, theCompany isobligated to construct the facilitiesandpipelines regardless of delays and cost increases and Pembina bears the risk for any cost overruns. Future agreementsenteredintowithcustomerswithrespecttoexpansionsmaycontainsimilarconditions.WhilePembinaisnotcurrentlyawareofanysignificantundisclosedcostoverrunswithrespecttoitscurrentprojectsatthedatehereof,anysuchcostoverrunsmayadverselyaffecttheeconomicsofparticularprojects,aswellasPembina'sbusinessoperationsandfinancialresults,andcouldreducePembina'sexpectedreturnoninvestmentwhich,inturn,couldreducethelevelofcashavailablefordividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligations.

See"GeneralRiskFactors–AdditionalFinancingandCapitalResources"and"CustomerContracts"below.

PossibleFailuretoRealizeAnticipatedBenefitsofCorporateStrategy

Pembina evaluates the value proposition for expansion projects, new acquisitions and divestitures on an ongoing basis.Planning and investment analysis is highly dependent on accurate forecasting assumptions and, to the extent that these

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assumptions do not materialize, financial performance may be lower or more volatile than expected. Volatility in theeconomy,changeincostestimates,failuretoobtainregulatoryapprovalsandpermits,projectscopingandriskassessmentcouldresultinalossinprofitsforPembina.Aspartofitsongoingstrategy,Pembinamaycompleteacquisitionsofassetsorother entities in the future. Achieving the benefits of completed and future acquisitions depends, in part, on successfullyconsolidating functions and integrating operations, procedures and personnel in a timely and efficientmanner, aswell asPembina'sabilitytorealizetheanticipatedgrowthopportunitiesandsynergiesfromcombiningtheacquiredbusinessesandoperationswiththoseofPembina. Inparticular, largescaleacquisitionsmay involvesignificantpricingand integrationrisk.The integration of acquired businesses and entities requires the dedication of substantial management effort, time andresources, whichmay divert management's focus and resources from other strategic opportunities and from operationalmatters during this process. The integration process may also result in the loss of key employees and the disruption ofongoing business, customer and employee relationships, which may adversely affect Pembina's ability to achieve theanticipatedbenefitsofanyacquisitions.AcquisitionsmayalsoexposePembinatoadditionalrisks, includingrisksrelatingtoentryintomarketsorbusinessesinwhichPembinahaslittleornodirectpriorexperience,increasedcreditrisksthroughtheassumptionofadditionaldebt,costsandcontingentliabilitiesandexposuretoliabilitiesoftheacquiredbusinessorassets.

As part its value proposition evaluation, Pembinamay also desire to divest assets to optimize its operations and financialperformance.Pembinamay,however,beunabletosellcertainassetsor,ifPembinaisabletosellcertainassets,itmaynotreceive theoptimalordesiredamountofproceeds fromsuchasset sales.Additionally, the timing to closeanyasset salescouldbesignificantlydifferentthanPembina'sexpectedtimeline.See"GeneralRiskFactors–AdditionalFinancingandCapitalResources"below.

JointOwnershipandThird-PartyOperators

CertainofPembina'sassetsarejointlyownedandaregovernedbypartnershiporshareholderagreementsenteredintowiththird-parties.Asaresult,certaindecisionsrelatingtotheseassetsrequiretheapprovalofasimplemajorityoftheowners,whileothersrequireunanimousapprovaloftheowners.Inaddition,certainoftheseassetsareoperatedbyunrelatedthird-partyentities.Thesuccessoftheseassetsis,tosomeextent,dependentontheeffectivenessofthebusinessrelationshipanddecision-makingamongPembinaandtheother jointowner(s)andtheexpertiseandabilityofany third-partyoperators tooperateandmaintaintheassets.WhilePembinabelievesthatthereareprudentgovernanceandothercontractualrightsinplace,therecanbenoassurancethatPembinawillnotencounterdisputeswithjointownersorthatassetsoperatedbythirdpartiesmaynotperformasexpected.Sucheventscouldimpactoperationsorcashflowsoftheseassetsorcausethemtonotoperate as Pembina expectswhich, in turn, could have a negative impact on Pembina's business operations and financialresults,andcouldreducePembina'sexpectedreturnoninvestment,therebyreducingthelevelofcashavailablefordividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligations.

ReserveReplacement,ThroughputandProductDemand

Pembina'spipelinerevenueisbasedonavarietyoftollingarrangements,includingfee-for-service,cost-of-serviceagreementsand market‑based tolls. As a result, certain pipeline revenue is heavily dependent upon throughput levels of crude oil,condensate,NGLandnaturalgas.Futurethroughputoncrudeoil,NGLandnaturalgaspipelinesandreplacementofoilandgasreservesintheserviceareaswillbedependentupontheactivitiesofproducersoperatinginthoseareasastheyrelatetoexploitingtheirexistingreservebasesandexploringforanddevelopingadditionalreserves,andtechnologicalimprovementsleadingtoincreasedrecoveryrates.Similarly,thevolumesofnaturalgasprocessedthroughPembina'sgasprocessingassetsdepends on the production of natural gas in the areas serviced by the gas processing business and associated pipelines.Withoutreserveadditions,orexpansionoftheserviceareas,volumesonsuchpipelinesandinsuchfacilitieswoulddeclineovertimeasreservesaredepleted.Asoilandgasreservesaredepleted,productioncostsmayincreaserelativetothevalueof the remaining reserves in place, causing producers to shut-in production or seek out lower cost alternatives fortransportation. If, as a result, the level of tolls collected by Pembina decreases, cash flow available for dividends toShareholders and to service obligations under Pembina's debt securities and Pembina's other debt obligations could beadverselyaffected.

Over the long-term, theabilityandwillingnessofshippers tocontinueproductionwillalsodepend, inpart,onthe levelofdemandandpricesforcrudeoil,condensate,NGLandnaturalgasinthemarketsservedbythecrudeoil,NGLandnaturalgaspipelinesandgasprocessingandgatheringinfrastructureinwhichPembinahasaninterest.Producersmayshut-inproductionatlowerproductpricesorhigherproductioncosts.

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Globaleconomiceventsmaycontinuetohaveasubstantial impactonthepricesofcrudeoil,condensate,NGLandnaturalgas. Pembina cannot predict the impact of future supply/demand or economic conditions, fuel conservation measures,alternativefuelrequirements,governmentalregulationortechnologicaladvancesinfuelefficiencyandenergygenerationintheenergyandpetrochemical industriesor futuredemand forandpricesofnaturalgas,crudeoil, condensateandNGL.Alower commodity price environment will generally reduce drilling activity and, as a result, the demand for midstreaminfrastructure could decline. Producers in the areas serviced by Pembina may not be successful in exploring for anddeveloping additional reserves or achieving technological improvements to increase recovery rates and lower productioncostsduringperiodsoflowercommodityprices,whichmayalsoreducedemandformidstreaminfrastructure.

Futurepricesofthesehydrocarbonsaredeterminedbysupplyanddemandfactors,includingweatherandgeneraleconomicconditions aswell as economic, political and other conditions in other crude oil and natural gas regions, all ofwhich arebeyondPembina'scontrol.Therateandtimingofproductionfromprovennaturalgasreservestiedintogasplantsisatthediscretionofproducersandissubjecttoregulatoryconstraints.Producershavenoobligationtoproducefromtheirnaturalgasreserves,whichmeansproductionvolumesareatthediscretionofproducers.Lowerproductionvolumesmay increasethecompetitionfornaturalgassupplyatgasprocessingplants,whichcouldresultinhighershrinkagepremiumsbeingpaidtonaturalgasproducers.Inaddition,lowerproductionvolumesmayleadtolessdemandforpipelinesandprocessingcapacityandcouldadverselyimpactPembina'sabilitytore-contractonfavourabletermswithshippersascurrentagreementsexpire.

Pembina's gas processing assets are connected to various third-party trunk line systems. Operational disruptions orapportionmentonthosethird-partysystemsmaypreventthefullutilizationofPembina'sgasprocessingassets,whichmayhaveanadverseeffectonPembina'sbusiness.

Competition

Pembinacompeteswithotherpipeline,midstream,marketingandgasprocessing,fractionationandhandling/storageserviceproviders in itsserviceareasaswellasothertransportersofcrudeoil,NGLandnaturalgas.TheintroductionofcompetingtransportationalternativesintoPembina'sserviceareascouldlimitPembina'sabilitytoadjusttollsasitmaydeemnecessaryand could result in the reduction of throughput in Pembina's pipelines. Additionally, potential pricing differentials on thecomponentsofNGLmayresultinthesecomponentsbeingtransportedbycompetinggaspipelines.Pembinaisdeterminedtomeet,andbelievesthatitispreparedfor,theseexistingandpotentialcompetitivepressures,includingthroughagreementswhich provide for areas of dedication over the geographic areas in which Pembina's pipeline infrastructure is located.Pembina also competes with other businesses for growth and business opportunities, including competition related topotential greenfield development opportunities, which could impact its ability to grow through acquisitions anddevelopmentsandcouldimpactearningsandcashflowavailabletopaydividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligations.

See"DescriptionofPembina'sBusinessandOperations".

RelianceonPrincipalCustomers

Pembina sells services and products to large customers within its area of operations and relies on several significantcustomers to purchase product for the Marketing business. If for any reason these parties are unable to perform theirobligationsunderthevariousagreementswithPembina,therevenueanddividendsoftheCompanyandtheoperationsofPembinacouldbenegativelyimpacted.See"GeneralRiskFactors–CounterpartyCreditRisk"below.

CustomerContracts

ThroughputonPembina'spipelinesisgovernedbytransportationcontractsortollingarrangementswithvariouscrudeoilandnaturalgasproducers.Pembinaispartytonumerouscontractsofvaryingdurationsinrespectofitsgasgathering,processingandfractionationfacilitiesaswellasitsterminallingandstorageservices.Anydefaultbycounterpartiesundersuchcontractsoranyexpirationorearly terminationofsuchcontractsor tollingarrangementswithoutrenewalorreplacement,providedthatsuchcontractsarematerialtoPembina'sbusinessandoperations,mayhaveanadverseeffectonPembina'sbusinessandresults from operations and there is no guarantee that any of the contracts that Pembina currently has in place will berenewedattheendoftheirterm,includingontermsfavourabletoPembina,orreplacedwithothercontractsintheeventofearlytermination.Further,somecontractsassociatedwiththeservicesdescribedabovearecomprisedofamixtureoffirmandnon-firmcommitments.TherevenuethatPembinaearnsonnon-firmorfirmcommitmentswithouttake-or-payserviceisdependentonthevolumeofcrudeoil,condensate,NGLandnaturalgasproducedbyproducers intherelevantgeographic

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areas.Accordingly,lowerproductionvolumesintheseareas,includingforreasonssuchaslowcommodityprices,mayhaveanadverseeffectonPembina'srevenue.

See"DescriptionofPembina'sBusinessandOperations".

RisksRelatingtoLeasesandRightsofWayAccess

CertainPembinafacilitiesandassociatedinfrastructurearelocatedonlandsleasedorlicensedfromthirdpartiesthatmustberenewedfromtimetotime.FailuretorenewtheleasesorlicensesontermsacceptabletoPembinacouldsignificantlyreducetheoperationsofsuchfacilitiesandcouldresultinrelateddecommissioningcostsforPembina,pursuanttothetermsofsuchleasesor licenses.Successfuldevelopmentofnewpipelinesorextensionstoexistingpipelinesdepends inpartonsecuringleases,easements, rights-of-way,permitsand/or licenses from landownersorgovernmentalauthoritiesallowingaccess forsuchpurposes.Theprocessofsecuringrights-of-wayorsimilaraccessisbecomingmorecomplex,particularlyinmoredenselypopulated,environmentallysensitiveandotherareas.Theinabilitytosecuresuchrights-of-wayorsimilaraccesscouldhaveanadverseeffectonPembina'soperationsandfinancialresults.

Reputation

Reputational risk is the potential risk that market- or company-specific events, or other factors, could result in thedeterioration of Pembina's reputation with key stakeholders. Pembina's business and operations, projects and growthopportunities require us to have strong relationships with key stakeholders, including local communities, Indigenouscommunities and other groups directly impacted by the Company's activities, as well as governments and governmentagencies.

The potential for deterioration of Pembina's reputation exists in many business decisions, which may negatively impactPembina'sbusinessandthevalueofitssecurities.Reputationalriskcannotbemanagedinisolationfromotherformsofrisk.Credit, market, operational, insurance, liquidity, regulatory and legal, and technology risks, among others, must all bemanaged effectively to safeguard Pembina's reputation. Pembina's reputation could also be impacted by the actions andactivitiesofothercompaniesoperatingintheenergyindustry,particularlyotherenergyinfrastructureproviders,overwhichPembina has no control. In particular, Pembina's reputation could be impacted by negative publicity related to pipelineincidents,expansionplansornewprojectsorduetooppositionfromciviliansororganizationsopposedtoenergy,oilsandsand pipeline development and, particularly, with shipment of production from oil sands regions. Further, Pembina'sreputation could be negatively impacted by changing public attitudes towards climate change and the perceived causesthereof,overwhichtheCompanyhasnocontrol.Negativeimpactsresultingfromacompromisedreputation,whethercausedbyPembina’s actionsor otherwise, could include revenue loss, reduction in customerbase, delays in obtaining regulatoryapprovalswithrespecttogrowthprojects,reducedaccesstocapitalordecreasedvalueofPembina'ssecuritiesandreducedinsurancecapacityandcoverage.

EnvironmentalCostsandLiabilities

Pembina's operations, facilities and petroleum product shipments are subject to extensive national, regional and localenvironmental,healthandsafetylawsandregulationsgoverning,amongotherthings,dischargestoair,landandwater,thehandling and storage of petroleumproducts and hazardousmaterials,waste disposal, the protection of employee health,safety and the environment, and the investigation and remediation of contamination. Pembina's facilitiesmay experienceincidents,malfunctionsorotherunplannedeventsthatmayresultinspillsoremissionsand/orresultinpersonalinjury,fines,penalties,othersanctionsorpropertydamage.Pembinamayalsoincurliabilityforenvironmentalcontaminationassociatedwithpastandpresentactivitiesandproperties.

Pembina's facilitiesandpipelinesmustmaintainanumberofenvironmentalandotherpermits fromvariousgovernmentalauthoritiesinordertooperate,andthesefacilitiesaresubjecttoinspectionfromtimetotime.Failuretomaintaincompliancewiththeserequirementscouldresultinoperationalinterruptions,finesorpenalties,ortheneedtoinstalladditionalpollutioncontrol technology. Licenses andpermitsmustbe renewed from time to timeand there is no guarantee that a licenseorpermitwillberenewedonthesameorsimilarconditionsasitwasinitiallygranted.TherecanbenoassurancethatPembinawill be able to obtain all licenses, permits, registrations, approvals and authorizations that may be required to conductoperationsthat itmaywishtoundertake.Further, ifatanytimeregulatoryauthoritiesdeemanyofPembina'spipelinesorfacilitiesunsafeornotincompliancewithapplicablelaws,theymayordersuchfacilitiestobeshutdown.Certainsignificantenvironmental legislative initiatives thatmaymaterially impactPembina'sbusinessand financial resultsandconditionsareoutlinedbelow.

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OnDecember11,2020,thefederalgovernmentannounced"AHealthyEnvironmentandaHealthyEconomy"("NewFederalClimatePlan"),whichaimstoexceedthefederalgovernment'sprevious2030targetfornationalGHGemissionsreductionsandtosetCanadaonatracktonet-zeroGHGemissionsby2050.Theupstreamoilandgasindustryisexpectedtocontributeasignificantamountofthereductionneededtoachievethesegoals.TheNewFederalClimatePlanimplementsanumberofspecific measures described below, but is also expected to affect the decision-making of all federal government bodies,including federal regulators, consistent with, for instance, the application of the SACC to projects subject to the IAA, asdescribedabove.

Thefederalgovernmentmandatedapan-Canadiancarbonpricebeginningat$20pertonnein2019,risingby$10pertonneperyearto$50pertonnein2022.PursuanttotheNewFederalClimatePlan,past2022thepriceoncarbonwillriseby$15ayear to $170 in 2030. The Greenhouse Gas Pollution Pricing Act ("GGPPA") introduces a carbon pricing regime on thoseprovincesthatfailtoimposeadequateprovincialcarbonpricingmeasures.TheNewFederalClimatePlanindicatesthefederalgovernmentwillreviewthestandardforadequacyofprovincialcarbonpricingmeasuresundertheGGPPA.ThismayresultintheGGPPAapplyingmorebroadly to theprovincesand territories. In2020, theAlbertaCourtofAppeal found theGGPPAunconstitutional,adecisionwhich followed twounsuccessful constitutional challengesof theGGPPAbySaskatchewanandOntario in2019.TheAlberta,Saskatchewan,andOntarioconstitutionalchallengeswereappealedtotheSupremeCourtofCanada,whichheardthecasein2020buthas,atthistime,yettoreleaseadecision.ManitobahasalsoinitiatedachallengetotheGGPPAinFederalCourt.TheresultsofthechallengestotheGGPPAcouldsignificantlyimpacthowGHGemissionsareregulatedthroughoutCanadaincludingintheprovincesdiscussedbelow.

ThefederalRegulationsRespectingReductionintheReleaseofMethaneandCertainVolatileOrganicCompounds(UpstreamOilandGasSector)("FederalMethaneRegulations"),whichrequirereductionoffugitiveandventedgasemissionsfromtheupstreamoil and gas sector, came into force on January 1, 2020. According to theNew Federal Climate Plan, the federalgovernmentwill reportontheeffectivenessof theFederalMethaneRegulations in2021andthestringencyof theFederalMethane Regulations is expected to be increased in 2025, if not sooner. The Federal Methane Regulations may imposeadditionalcostsontheoperationsofPembinaandPembina'scustomers.

ThefederalgovernmentisalsodevelopingaCleanFuelStandardthatwillrequireallproducersandimportersofliquidfossilfuels in Canada to reduce or offset the carbon intensity of the fuels they produce or import. The final version of theregulations implementing the Clean Fuel Standard is expected in late 2021. Pembina will continue to monitor thedevelopmentofregulationsonliquidfossilfuels.ThepotentialcostsandbenefitsoftheCleanFuelStandardtoPembinaanditscustomersarecontinuingtobeassessed.

Albertaonlypartiallysatisfies federal requirementswithrespect tocarbonpricingand is subject to the federal fuelchargepursuant to theGGPPAasof January1,2020.The fuel chargewas$20per tonneon January1,2020and rose to$30pertonneonApril1,2020.

The Technology Innovation and Emissions Reduction ("TIER") Regulation replaced the Carbon Competitiveness IncentiveRegulation ("CCIR") as Alberta's output-based emission allocations for large facility emitters on January 1, 2020. The TIERcontinuestofacilitateemissionsreductionsrelativetofacilitiesthatemitted100,000tonnesofGHGsormorein2016oranysubsequentyear.ForfacilitieswhicharesubjecttotheTIER,itreplacesthefederaloutput-basedcarbonpriceincludedintheGGPPA. Pembina has three natural gas processing facilities subject to the TIER. At present, the operational and financialimpactsareminimalandareanticipatedtonotchangesubstantiallyoverthenextfewyears.Asmorefacilitiesexpandandincreaseproduction,itisanticipatedthatadditionalfacilitieswillbecomesubjecttotheTIER.ThepotentialcostsandbenefitstoPembinaofthosefacilitiesundertheTIERarecontinuingtobeassessed.

Byanequivalencyagreementwiththefederalgovernment,whichcame into forceOctober26,2020, theFederalMethaneRegulationsdonotcurrentlyapplyinAlberta.TheapplicationoftheFederalMethaneRegulationsinAlbertamaychangein2023orearlierasthefederalgovernmentworkstomeetitsdesiredgasemissionsreductiontargets.TheMethaneEmissionReductionRegulationcameintoforceinAlbertaonJanuary1,2020,and,alongwithcertainAERDirectives,imposeslargelythesameconstraintsastheFederalMethaneRegulations.

TheGovernmentofAlberta, in itsclimatechange legislationandguidelines,has legislatedanoverall caponoil sandsGHGemissions.Thelegislatedemissionscaponoilsandsoperationshasbeensettoamaximumof100megatonnesinanyyear.Oilsandsoperationscurrentlyemitapproximately70megatonnesperyear.Thislegislatedcapmaylimitoilsandsproductiongrowthinthefuture.

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SimilarpolicyreviewsonclimatechangeareongoinginBritishColumbia,Saskatchewan,ManitobaandOntario.SubjecttotheoutcomeofthechallengestotheGGPPAnotedabove,thecarbonpricingregimeintheGGPPAcurrentlyappliestodifferentdegreesinSaskatchewan,ManitobaandOntario.BritishColumbiahasaseparatecarbonpricingregimeinplacewithacarbonpricelevellargelyequivalenttothatintheGGPPA.TheFederalMethaneRegulationsapplyinOntarioandManitobabutnotcurrently,byequivalencyagreementssimilar to that ineffect inAlberta, inBritishColumbiaorSaskatchewan.Ontarioalsomade substantial amendments to the Ontario Environmental Assessment Act on July 21, 2020. The impact of theseamendmentshasyettobedetermined.

Throughactiveparticipationwithindustryassociationsanddirectengagementwithregulatorybodies,PembinawillcontinuetomonitorandassessformaterialimpactstoPembina'sbusinessasregulationsandpoliciescontinuetobedeveloped.

WhilePembinabelieves itscurrentoperationsare incompliancewithallapplicableenvironmental,healthandsafety laws,therecanbenoassurancethatsubstantialcostsorliabilitieswillnotbeincurredasaresultofnon-compliancewithsuchlaws.Moreover,itispossiblethatotherdevelopments,suchaschangesinenvironmental,healthandsafetylaws,regulationsandenforcement policies thereunder, including with respect to climate change, claims for damages to persons or propertyresulting from Pembina's operations, and the discovery of pre-existing environmental liabilities in relation to Pembina'sexistingorfuturepropertiesoroperations,couldresultinsignificantcostsandliabilitiestoPembina.IfPembinaisnotabletorecover the resulting costsor increasedcosts through insuranceor increased tolls, cash flowavailable topaydividends toShareholders and to service obligations under Pembina's debt securities and Pembina's other debt obligations could beadverselyaffected.Changes inenvironmental,healthandsafetyregulationsandlegislation, includingwithrespecttoclimatechange,mayalsoimpact Pembina's customers and could result in crude oil and natural gas development and production becominguneconomical,whichwouldimpactthroughputandrevenueonPembina'ssystemsandinitsfacilities.

See"ReserveReplacement,ThroughputandProductDemand"above.

WhilePembinamaintainsinsurancefordamagecausedbyseepageorpollutionfromitspipelinesorfacilitiesinanamountitconsidersprudentandinaccordancewith industrystandards,certainprovisionsofsuchinsurancemaylimittheavailabilitythereof in respect of certain occurrences unless they are discoveredwithin fixed timeperiods,which typically range from72 hours to 30 days. Although Pembina believes it has adequate pipeline monitoring systems in place to monitor for asignificantspillofproduct, ifPembina isunawareofaproblemor isunableto locatetheproblemwithintherelevanttimeperiod,insurancecoveragemaylapseandmaynotbeavailable.

AbandonmentCosts

Pembinaisresponsibleforcompliancewithallapplicablelawsandregulationsregardingthedismantling,decommissioning,environmental,reclamationandremediationactivitiesonabandonmentofitspipelinesystemsandotherassetsattheendoftheireconomiclife,andtheseabandonmentcostsmaybesubstantial.Anaccountingprovisionismadefortheestimatedcostofsite restorationand iscapitalized in therelevantassetcategory.Aprovision is recognized if,asa resultofapastevent,Pembinahasapresent legalorconstructiveobligationthatcanbeestimatedreliably,and it isprobablethatanoutflowofeconomic benefits will be required to settle the obligation. Pembina's estimates of the costs of such abandonment ordecommissioningcouldbemateriallydifferentthantheactualcostsincurred.FormoreinformationwithrespecttoPembina'sestimatednetpresentvalueofdecommissioningobligations, seeNote18 to theConsolidatedFinancial Statements,whichnoteisincorporatedbyreferenceherein.

The proceeds from the disposition of certain assets, including in respect of certain pipeline systems and line fill, may beavailabletooffsetabandonmentcosts.Pembinamay,inthefuture,determineitprudentorberequiredbyapplicablelawsorregulations toestablishand fundadditional reclamation funds toprovide forpaymentof futureabandonment costs. SuchreservescoulddecreasecashflowavailabletopayfordividendstoShareholdersandtoserviceobligationsunderPembina'sdebtsecuritiesandPembina'sotherdebtobligations.

Tothebestofitsknowledge,PembinahascompliedwithCERrequirementsonitswholly-ownedCER-regulatedpipelinesforabandonmentfundingandhascompletedthecompliance-basedfilingsthatarerequiredundertheapplicableCERrulesandregulations regarding the abandonment of its pipeline systems and assets. Pembina also has ownership in CER-regulatedpipelinesincludinginrespectoftheAlliancePipeline,theTupperpipelinesandtheKerrobertpipeline,whichareoperatedbyorwithitsjointventurepartners.PembinaandthejointventurepartnerineachcaseareresponsiblefortheabandonmentfundingandthesubmissionoftheCER-compliancebasedfilingsforthoseCER-regulatedpipelines.Pembinawillcontinueto

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monitoranyregulatorychangespriortothenextfive-yearreviewandwillcompletetheannualreportingasrequiredbytheCER.

OperatingandCapitalCosts

TheoperatingandcapitalcostsofPembina'sassetsmayvaryconsiderablyfromcurrentandforecastedvaluesandratesandrepresentsignificantcomponentsofthecostofprovidingservice.Ingeneral,asequipmentages,costsassociatedwithsuchequipmentmayincreaseovertime. Inaddition,operatingandcapitalcostsmayincreaseasaresultofanumberoffactorsbeyondPembina'scontrol,includinggeneraleconomic,businessandmarketconditionsandsupply,demandand/orinflationinrespectofrequiredgoodsand/orservices.Dividendsmaybereducedifsignificantincreasesinoperatingorcapitalcostsareincurred and this may also impact the ability of Pembina to service obligations under its debt securities and other debtobligations.

AlthoughcertainoperatingcostsarerecapturedthroughthetollschargedonnaturalgasvolumesprocessedandcrudeoilandNGL transported, respectively, to the extent such tolls escalate, producers may seek lower cost alternatives or stopproductionoftheircrudeoiland/ornaturalgas.

RisksRelatingtoNGLbyRail

Pembina's operations include rail loading, offloading and terminalling facilities. Pembina relies on railroads and trucks todistribute its products for customers and to transport raw materials to its processing facilities. Costs for environmentaldamage, damage to property and/or personal injury in the event of a railway incident involving hydrocarbons have thepotentialtobesignificant.Atthistime,theRailwaySafetyAct(Canada),whichgovernstheoperationofrailwayequipment,doesnotcontemplateregulatoryenforcementproceedingsagainstshippers,butconsignorsandshippersmaybesubjecttoregulatory proceedings under the Transportation of Dangerous Goods Act (Canada), which specifies the obligations ofshipperstoidentifyandclassifydangerousgoods,selectappropriateequipmentandprepareshippingdocumentation.WhiletheCanada Transportation Act was amended in 2015 to preclude railway companies from shifting liability for third-partyclaimstoshippersbytariffpublicationalone,majorCanadianrailwayshaveadoptedstandardcontractprovisionsdesignedtoimplement such a shift. Under various environmental statutes in both Canada and the U.S., Pembina could be heldresponsibleforenvironmentaldamagecausedbyhydrocarbonsloadedatitsfacilitiesorbeingcarriedonitsleasedrailcars.Pembinapartiallymitigatesthisriskbysecuringinsurancecoverage,butsuchinsurancecoveragemaynotbeadequateintheeventofanincident.

Railway incidents in Canada and theU.S. have prompted regulatory bodies to initiate reviews of transportation rules andpublishvariousdirectives.RegulatorsinCanadaandtheU.S.havebeguntophase-inmorestringentengineeringstandardsfortankcarsusedtomovehydrocarbonproducts,whichrequireallNorthAmericantankcarscarryingcrudeoilorethanoltoberetrofittedandalltankcarscarryingflammableliquidstobecompliantinaccordancewiththerequiredregulatorytimelines.Inaddition,in2020,theGovernmentofCanadadirectedindustrytoreviewandupdatetherulesregardingthetransportationofcrudeoilandliquefiedpetroleumgas.Whilemostlegislativeandregulatorychangesapplydirectlytorailwaycompanies,costsassociatedwithretrofittinglocomotivesandrailcars,implementingsafetysystems,increasedinspectionandreportingrequirements may be indirectly passed on to Pembina through increased freight rates and car leasing costs. In addition,regulators inCanadaand theU.S.have implementedchanges that imposeobligationsdirectlyonconsignorsandshippers,suchasPembina,relatingtothecertificationofproduct,equipmentproceduresandemergencyresponseprocedures.

IntheeventthatPembinaisultimatelyheldliableforanydamagesresultingfromitsactivitiesrelatingtotransportingNGLbyrail, for which insurance is not available, or increased costs or obligations are imposed on Pembina as a result of newregulations,thiscouldhaveanimpactonPembina'sbusiness,operationsandprospectsandcouldimpactearningsandcashflowavailabletopaydividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligations.

RiskFactorsRelatingtotheSecuritiesofPembina

DilutionofShareholders

Pembinaisauthorizedtoissue,amongotherclassesofshares,anunlimitednumberofCommonSharesforconsiderationonterms and conditions as established by the Board of Directorswithout the approval of Shareholders in certain instances.ExistingShareholdershavenopre-emptiverightsinconnectionwithsuchfurtherissuances.AnyissuanceofCommonSharesmayhaveadilutiveeffectonexistingShareholders.

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RiskFactorsRelatingtotheActivitiesofPembinaandtheOwnershipofSecurities

ThefollowingisalistofcertainriskfactorsrelatingtotheactivitiesofPembinaandtheownershipofitssecurities:

• thelevelofPembina'sindebtednessfromtimetotimecouldimpairPembina'sabilitytoobtainadditionalfinancingonatimelybasistotakeadvantageofbusinessopportunitiesthatmayarise,whichmayhaveanadverseeffectonthevalueofPembina'ssecurities;

• theuncertaintyoffuturedividendpaymentsbyPembinaandthelevelthereof,asPembina'sdividendpolicyandthefunds available for the payment of dividends from time to time will be dependent upon, among other things,operatingcashflowgeneratedbyPembinaanditssubsidiaries,financialrequirementsforPembina'soperations,theexecutionofitsgrowthstrategyandthesatisfactionofsolvencytestsimposedbytheABCAforthedeclarationandpaymentofdividends;

• Pembinamaymakefutureacquisitionsormayenter intofinancingsorothertransactionsinvolvingtheissuanceofsecuritiesofPembinawhichmaybedilutivetotheholdersofPembina'ssecurities;

• the inability of Pembina to manage growth effectively, and realize the anticipated growth opportunities fromacquisitionsandnewprojects,couldhaveanadverseimpactonPembina'sbusiness,operationsandprospects,whichmayalsohaveanadverseeffectonthevalueofPembina'ssecurities;and

• themarketvalueoftheCommonSharesmaydeterioratemateriallyifPembinaisunabletomeetitscashdividendtargetsormakecashdividendsinthefuture.

MarketValueofCommonSharesandOtherSecurities

PembinacannotpredictatwhatpricetheCommonShares,ClassAPreferredSharesorothersecuritiesissuedbyPembinawilltrade inthefuture.CommonShares,ClassAPreferredSharesandothersecuritiesofPembinawillnotnecessarily tradeatvaluesdeterminedsolelybyreferencetotheunderlyingvalueofPembina'sassets.Oneofthefactorsthatmayinfluencethemarket price of the Common Shares and the Class A Preferred Shares is the annual dividend yield of such securities. Anincrease in interest ratesmay leadholdersand/orpurchasersofCommonSharesorClassAPreferredShares todemandahigher annual dividend yield, which could adversely affect the market price of the Common Shares or Class A PreferredShares.Inaddition,themarketpriceforCommonSharesandtheClassAPreferredSharesmaybeaffectedbyannouncementsof new developments, changes in Pembina's operating results, failure to meet analysts' expectations, changes in creditratings, changes in general market conditions, fluctuations in the market for equity or debt securities and other factorsbeyondthecontrolofPembina.

Accordingly,holdersareencouragedtoobtainindependentlegal,taxandinvestmentadvicewithrespecttotheholdingofCommonSharesorClassAPreferredSharesandothersecuritiesissuedbyPembina.

GeneralRiskFactors

HealthandSafety

TheoperationofPembina'sbusiness is subject tohazardsof gathering,processing, transporting, fractionating, storingandmarketing hydrocarbon products. Such hazards include, but are not limited to: blowouts; fires; explosions; gaseous leaks,includingsournaturalgas;migrationofharmfulsubstances;oilspills;corrosion;andactsofvandalismandterrorism.Thesehazardsmayinterruptoperations,impactPembina'sreputation,causelossoflifeorpersonalinjurytotheCompany'sworkersorcontractors,resultinlossofordamagetoequipment,property,informationtechnologysystems,relateddataandcontrolsystems or cause environmental damage thatmay include pollutingwater, land or air. Further, several of the Company'spipelinesystemsandrelatedassetsareoperatedincloseproximitytopopulatedareasandamajor incidentcouldresult ininjury or loss of life to members of the public. A public safety incident could also result in reputational damage to theCompany,materialrepaircostsorincreasedcostsofoperatingandinsuringPembina'sassets.

AdditionalFinancingandCapitalResources

ThetimingandamountofPembina'scapitalexpendituresandcontributionstoequityaccountedinvestees,andtheabilityofPembinatorepayorrefinanceexistingdebtasitbecomesdue,directlyaffectstheamountofcashavailableforPembinato

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pay dividends. Future acquisitions, expansions of Pembina's assets, other capital expenditures and the repayment orrefinancingofexistingdebtas itbecomesduemaybe financed fromsourcessuchascashgenerated fromoperations, theissuanceofadditionalCommonShares,ClassAPreferredSharesorothersecurities(includingdebtsecurities)ofPembinaandborrowings.Dividendsmaybereduced,oreveneliminated,attimeswhensignificantcapitalorotherexpendituresaremade.There can be no assurance that sufficient capital will be available on terms acceptable to Pembina, or at all, to makeadditional investments,fundfutureexpansionsormakeotherrequiredcapitalexpenditures.Duringperiodsofweakness intheglobaleconomy,andinparticularthecommodity-relatedindustrysectors,Pembinamayexperiencerestrictedaccesstocapitaland increasedborrowingcosts.TheabilityofPembinatoraisecapitaldependson,amongotherfactors, theoverallstateof capitalmarkets, Pembina's credit rating, investordemand for investments in theenergy industry anddemand forPembina'ssecurities.Totheextentthatexternalsourcesofcapital,includingtheissuanceofadditionalCommonShares,ClassA Preferred Shares or other securities or the availability of additional credit facilities, become limited or unavailable onacceptableterms,oratall,duetocreditmarketconditionsorotherwise,theabilityofPembinatomakethenecessarycapitalinvestmentstomaintainorexpanditsoperations,torepayoutstandingdebtortoinvestinassets,asthecasemaybe,maybeimpaired.TotheextentPembinaisrequiredtouseoperatingcashflowtofinancecapitalexpendituresoracquisitionsortorepayexistingdebtasitbecomesdue,thelevelofdividendspayablemaybereduced.

CounterpartyCreditRisk

Counterpartycreditriskrepresentsthefinancial lossPembinamayexperienceifacounterpartytoafinancial instrumentorcommercialagreement fails tomeet itscontractualobligationstoPembina inaccordancewiththetermsandconditionsofsuch instruments or agreements with Pembina. Counterparty credit risk arises primarily from Pembina's short-terminvestments, trade and other receivables, advances to related parties and from counterparties to its derivative financialinstruments.

Pembinacontinuestocloselymonitorandreassessthecreditworthinessofitscounterparties,includingfinancialinstitutions.Pembinamayreduceormitigateitsexposuretocertaincounterpartieswhereit isdeemedwarrantedandpermittedundercontractualterms.Pembinamanagescounterpartycreditriskthroughestablishedcreditmanagementtechniques, includingconducting comprehensive financial and other assessments on all new counterparties and regular reviews of existingcounterparties to establish andmonitor counterparties' creditworthiness, set exposure limits, monitor exposure to theselimits and seek to obtain financial assurances where warranted and permitted under contractual terms. Pembina utilizesvarious sourcesof financial, credit andbusiness information in assessing the creditworthiness of a counterparty, includingexternal credit ratings,where available, and, in other cases, detailed financial statement analysis in order to generate aninternal credit rating based on quantitative and qualitative factors. The establishment of counterparty exposure limits isgoverned by a Board-designated counterparty exposure limit matrix which represents the maximum dollar amounts ofcounterpartyexposurebydebtratingthatcanbeapprovedforaparticularcounterparty.

Financialassurancesfromcounterpartiesmayincludeguarantees,lettersofcreditandcash.AsatDecember31,2020,lettersof credit totalingapproximately$130million (December31,2019:$90million)wereheldprimarily in respectof customertradereceivables.

Pembinahastypicallycollecteditsreceivablesinfull.AtDecember31,2020,approximately94percent(December31,2019:95percent)ofreceivableswerecurrent.Pembinahasagenerallienandacontinuingandfirstprioritysecurityinterestin,andasecuredchargeon,allofashipper'spetroleumproductsinitscustody.Theriskofnon-collectionisconsideredtobelowandnomaterialimpairmentoftradeandotherreceivableshasbeenmadeasofthedatehereof.

Pembinamonitors andmanages its concentrationof counterparty credit risk on anongoingbasis. Pembina also evaluatescounterparty risk from the perspective of future exposurewith existing or new counterparties that support future capitalexpansionprojects.Pembinabelieves thesemeasuresareprudentandallow foreffectivemanagementof its counterpartycreditriskbutthereisnocertaintythattheywillprotectPembinaagainstallmateriallosses.Aspartofitsongoingoperations,Pembinamustbalanceitsmarketandcounterpartycreditriskswhenmakingbusinessdecisions.

DebtService

AsatDecember31,2020,Pembinahadexposuretofloatinginterestratesonapproximately$1.2billion(2019:$2.1billion)indebt. Certain borrowings which occur under floating rates have been swapped to fixed rates using derivative financialinstruments.

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Variationsininterestratesandscheduledprincipalrepayments,ifrequiredunderthetermsofPembina'sbankingagreementscouldresult insignificantchanges intheamountsrequiredtobeappliedtodebtservicebeforepaymentofanydividends.Certain covenants in the Company's agreements with its lenders may also limit certain payments and dividends paid byPembina.

Pembina and its subsidiaries are permitted to borrow funds to finance the purchase of pipelines and other energyinfrastructureassets,tofundcapitalexpendituresorotherfinancialobligationsorexpendituresinrespectofsuchassetsandforworkingcapitalpurposes.Amountspaid in respectof interestandprincipalondebt incurred in respectof thoseassetsreducetheamountofcashflowavailablefordividendsonCommonShares.Pembinaisalsorequiredtomeetcertainfinancialcovenants under the Credit Facilities and is subject to customary restrictions on its operations and activities, includingrestrictionsonthegrantingofsecurity,incurringindebtednessandthesaleofitsassets.

ThelendersunderPembina'sCreditFacilitieshavebeenprovidedwithguaranteesandsubordinationagreements.IfPembinabecomesunabletopayitsdebtservicechargesorotherwisecommitsaneventofdefault,paymentstothelendersunderitsCreditFacilitieswillrankinprioritytodividends.

AlthoughPembinabelievesitsexistingCreditFacilitiesaresufficientforitsimmediateliquidityrequirements,therecanbenoassurance that the amount available thereunder will be adequate for the future financial obligations of Pembina or thatadditionalfundswillbeabletobeobtainedontermsacceptabletoPembina,oratall.

CreditRatings

RatingagenciesregularlyevaluatePembinaandbasetheirratingsofPembina's long-termandshort-termdebtandClassAPreferredSharesonanumberof factors. These factors includePembina's financial strengthaswell as factorsnotentirelywithinPembina'scontrol,includingconditionsaffectingtheindustryinwhichPembinaoperatesgenerallyandthewiderstateoftheeconomy.TherecanbenoassurancethatoneormoreofPembina'screditratingswillnotbedowngraded.AcreditratingdowngradecouldalsolimitPembina’saccesstodebtandpreferredsharemarkets.

Pembina's borrowing costs and ability to raise funds are directly impacted by its credit ratings. Credit ratings may beimportant to suppliers or counterparties when they seek to engage in certain transactions with Pembina. A credit ratingdowngrade may impair Pembina's ability to enter into arrangements with suppliers or counterparties, engage in certaintransactions,limitPembina'saccesstoprivateandpubliccreditmarketsorincreasethecostsofborrowingunderitsexistingCreditFacilities.AcreditratingdowngradecouldalsolimitPembina'saccesstodebtandpreferredsharemarkets.

RelianceonManagement,KeyIndividualsandaSkilledWorkforce

PembinaisdependentonseniormanagementanddirectorsoftheCompanyinrespectofthegovernance,administrationandmanagement of all matters relating to Pembina and its operations and administration. The loss of the services of keyindividuals could have a detrimental effect on Pembina. In addition, Pembina's operations require the retention andrecruitmentofaskilledworkforce,includingengineers,technicalpersonnelandotherprofessionals.Pembinacompeteswithothercompaniesintheenergyindustryforthisskilledworkforce.IftheCompanyisunabletoretaincurrentemployeesand/or recruit new employees or comparable skill, knowledge and experience, Pembina's business and operations could benegativelyimpacted.ThecostsassociatedwithretainingandrecruitingkeyindividualsandaskilledworkforcecouldadverselyaffectPembina'sbusinessopportunitiesandfinancialresultsandthereisnoassurancethatPembinawillcontinuetoattractandretainallpersonnelnecessaryforthedevelopmentandoperationofitsbusiness.

IndigenousLandClaimsandConsultationObligations

Indigenous people have claimed title and rights to a considerable portion of the lands inwestern Canada. The successfulassertionofIndigenoustitleorotherIndigenousrightsclaimsmayhaveanadverseeffectonwesternCanadiancrudeoilandnaturalgasproductionoroilsandsdevelopmentandmayresultinreduceddemandforPembina'sassetsandinfrastructurethatservicethoseareas,whichcouldhaveamaterialadverseeffectonPembina'sbusinessandoperations.

In Canada, the federal and provincial governments (the "Crown") have a duty to consult and, when appropriate,accommodate Indigenous people when the interests of the Indigenous peoples may be affected by a Crown action ordecision.CrownactionsincludethedecisiontoissuearegulatoryapprovalrelatingtoactivitiesthatmayimpactIndigenousrights, interestsor lands.TheCrownmay relyonstepsundertakenbya regulatoryagency to fulfill itsduty toconsultandaccommodateinwholeorinpart.Therefore,theprocessesestablishedbyregulatorybodies,suchastheAER,theBCOGC,the

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BCEAOandtheCER,oftenincludeanassessmentofIndigenousrightsclaimsandconsultationobligations.WhiletheCrownholdsultimateresponsibilityforensuringconsultationisadequate,thisissueisoftenamajoraspectofregulatorypermittingprocesses.Ifaregulatorybody,ortheCrownitself,determinesthatthedutytoconsulthasnotbeenappropriatelydischargedrelative to the issuance of regulatory approvals required by Pembina, the issuance of such approvalsmay be delayed ordenied,therebyimpactingPembina'sCanadianoperations.

As described in "Regulation and Legislation" above, the CER Act, IAA, and associated amendments to the Fisheries Act(Canada)andtheCanadianNavigableWatersAct (Canada) replacedpreviousapplicable regimes in2019.Anumberof thefederal regulatoryprocessamendmentspertaintotheparticipationof Indigenousgroupsandtheprotectionof Indigenousandtreatyrights.Thenewlegislationgenerallycodifiesexistinglawandpracticewithrespecttothesematters.Forexample,decision makers are now expressly required to consider the effects (positive or negative) of a proposed project onconstitutionally-protected Indigenous rights, as well as Indigenous peoples themselves, and ensure that consultation isundertaken during the planning phase of impact assessment processes. The new legislation also creates a larger role forIndigenous governing bodies in the impact assessment process (enabling the delegation of certain aspects of the impactassessment process to such groups) and requires decisionmakers to consider Indigenous traditional knowledge in certaincases.

ThefederalgovernmentisadvancingchangestotherecognitionofIndigenousrightsacrossCanada.Aspartoftheseefforts,onDecember 3, 2020, the federal government introduced2020Bill C-15, theUnitedNationsDeclaration on theRights ofIndigenousPeoples("UNDRIP")Act.ThepurposeofthelegislationistoaffirmtheapplicationoftheUNDRIPinCanadianlaw,but thepractical effectsof the legislationare yet tobedeterminedas itwill only require thegovernment toprepareandimplement an action plan for this application, and annually report on its progress. Pembinawill continue tomonitor andassess the impacts Bill C-15 and other federal government initiatives on Indigenous rights may have on its business aslegislationand/orpoliciescontinuetobedeveloped.

In 2018, the British Columbia government enacted the 2018 Environmental Assessment Act (the "EA Act") as part of itscommitment to revitalize environmental assessment in the province and facilitate its commitment to implementing theUNDRIP.TheEAAct came into force in late2019.TheEAAct isdesignedasa "consent-based"environmental assessmentmodel and is intended to support reconciliation with Indigenous peoples and the implementation of the UNDRIP. Thelegislation requires the BCEAO to seek participating Indigenous groups' consentwith respect to, among other things, thedecision to issue an environmental assessment certificate to a given project. While the EA Act does not strictly requireconsentinmostcases,thelegislationcreatessignificantnewparticipationopportunitiesforparticipatingIndigenousgroupsduringthecourseofenvironmentalassessments,whichmay increasethetimerequiredtoobtainregulatoryapprovalsandthereby impact Pembina's operations in British Columbia. In 2019, British Columbia enacted its own legislation, theDeclaration on the Rights of Indigenous Peoples Act ("DRIPA") to implement UNDRIP, which is structurally similar to thefederalBillC-15.TheDRIPA furtherprovides theBritishColumbiagovernmentwith theability toenter into jointdecision-makingagreementswithIndigenousgovernments.PembinacontinuestoactivelymonitorthedevelopmentoftheregulationsrequiredtofacilitatetheimplementationoftheEAActandtheDRIPA.

PotentialConflictsofInterest

ShareholdersandothersecurityholdersofPembinaaredependentonseniormanagementandthedirectorsofPembinaforthegovernance,administrationandmanagementofPembina.CertaindirectorsandofficersofPembinamaybedirectorsorofficersofentities incompetitiontoPembinaormaybedirectorsorofficersofcertainentities inwhichPembinaholdsanequity investment in. As such, certain directors or officers of Pembina may encounter conflicts of interest in theadministration of their duties with respect to Pembina. Pembinamitigates this risk by requiring directors and officers todisclosetheexistenceofpotentialconflictsinaccordancewithPembina'sCodeofEthicsandinaccordancewiththeABCA.

Litigation

Inthecourseoftheirbusiness,Pembinaanditsvarioussubsidiariesandaffiliatesmaybesubjecttolawsuitsandotherclaims,includingwithrespecttoPembina'sgrowthorexpansionprojects.Defenceandsettlementcostsassociatedwithsuchlawsuitsandclaimsmaybesubstantial,evenwithrespecttolawsuitsandclaimsthathavenomerit.Duetotheinherentuncertaintyofthe litigationprocess, theresolutionofanyparticular legalorotherproceedingmayhaveamaterialadverseeffectonthefinancialpositionoroperatingresultsofPembina.

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ChangesinTaxLegislation

Tax legislation that Pembina is subject to may be amended (or the interpretation of such legislation may change),retroactivelyorprospectively,resultingintaxconsequencesthatmateriallydifferfromthosecontemplatedbyPembinainthejurisdictionsinwhichPembinahasoperations,whichmaycreateariskofnon-complianceandre-assessment.WhilePembinabelieves that its tax filing positions are appropriate and supportable, it is possible that governing tax authoritiesmay: (i)amend tax legislation (or its interpretation of such legislation may change), or (ii) successfully challenge Pembina'sinterpretationoftaxlegislation,eitherofwhichcouldexposePembinatoadditionaltaxliabilitiesandmayaffectPembina'sestimateof currentand future income taxesandcouldhaveanadverseeffecton the financial conditionandprospectsofPembinaandthedistributablecashflowavailabletopaydividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligations.

ForeignExchangeRisk

Pembina'scashflows,namelyaportionofitscommodity-relatedcashflows,certaincashflowsfromU.S.-basedinfrastructureassets,anddistributionsfromU.S.-basedinvestmentsinequityaccountedinvestees,aresubjecttocurrencyrisk,arisingfromthe denomination of specific cash flows in U.S. dollars. Additionally, a portion of Pembina's capital expenditures, andcontributions or loans to Pembina's U.S.-based investments in equity accounted investees, may be denominated in U.S.dollars.Pembinamonitors,assesses,andrespondstotheseforeigncurrencyrisksusinganactiveriskmanagementprogram,whichmayincludetheexchangeofforeigncurrencyfordomesticcurrencyatafixedrate.

CyberSecurity

Pembina'sinfrastructure,technologiesanddataarebecomingincreasinglyintegrated.SuchintegrationcreatesariskthatthefailureofonesystemcouldleadtofailureofothersystemswhichmayalsohaveanimpactontheCompany'sphysicalassetsanditsabilitytosafelyoperatesuchassets.Furthermore,Pembinaanditsthird-partyvendorscollectandstoresensitivedataintheordinarycourseofbusiness,includingpersonalidentificationinformationofemployeesaswellasproprietarybusinessinformationandthatoftheCompany'scustomers,suppliers,investorsandotherstakeholders.Thereisanincreasingriskofacyber-attacktargetingtheindustryandanybreachinthesecurityorfailureofPembina'sinformationtechnologycouldresultin operational outages, delays, damage to assets or the environment, reputational harm, lost profits, lost data and otheradverseoutcomesforwhichPembinacouldbeheldliable,allofwhichcouldadverselyaffectPembina'sreputation,business,operationsorfinancialresults.Asaresultofacyber-attackorsecuritybreach,Pembinacouldalsobeliableunderlawsthatprotecttheprivacyofpersonalinformationorsubjecttoregulatorypenalties.

PoliticalUncertainty

Recent political and social events and decisions made in Canada, the U.S. and elsewhere, including changes to federal,provincial, stateormunicipalgovernments inCanadaandtheU.S.,have,andcancontinuetocreate futureuncertaintyonglobalfinancialandeconomicmarkets.ThisuncertaintymayimpacttheenergyindustryinCanadaandmayhaveanadverseeffectonPembina'sbusinessandfinancialresults.

RisksRelatingtoBreachofConfidentiality

Pembina regularly enters into confidentiality agreements with third parties prior to the disclosure of any confidentialinformation when discussing potential business relationships or other transactions. Breaches of confidentiality could putPembinaatcompetitiveriskandmaycausesignificantdamagetoitsbusiness.Thereisnoassurancethat, intheeventofabreachofconfidentiality,Pembinawillbeabletoobtainequitableremediesfromacourtofcompetentjurisdictioninatimelymanner,ifatall,inordertopreventormitigateanydamagetoitsbusinessthatsuchabreachofconfidentialitymaycause.

ConcentrationofAssetsintheWesternCanadianSedimentaryBasin

The majority of Pembina's assets are concentrated in the WCSB, which leaves the company exposed to the economicconditionsofthatarea.PembinamitigatesthisriskthroughadiversityofbusinessactivitieswithintheareaandbyowningandoperatingassetsintheU.S.

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RisksRelatedtoClimateChange

RisksRelatingtoChangingInvestorSentimentintheOilandGasIndustry

Anumberoffactors,includingtheconcernsoftheeffectsoftheuseoffossilfuelsonclimatechange,concernsoftheimpactofoil andgasoperationson theenvironment, concernsof environmental damage relating to spills of petroleumproductsduringtransportationandconcernsofIndigenousrights,haveaffectedcertaininvestors'sentimentstowardsinvestingintheoilandgasindustry.Asaresultoftheseconcerns,someinstitutional,retailandpublicinvestorshaveannouncedthattheyarenolongerwillingtofundorinvestinoilandgaspropertiesorcompaniesand/orarereducingtheamountofsuchinvestmentsovertime.Inaddition,certaininstitutional investorsarerequestingthatissuersdevelopandimplementmorerobustsocial,environmentalandgovernancepoliciesandpractices.Developingand implementingsuchpoliciesandpracticescan involvesignificantcostsandrequireasignificanttimecommitmentfromPembina'sBoardofDirectors,managementandemployees.Failuretoimplementthepoliciesandpracticesasrequestedbyinstitutional investorsmayresult insuchinvestorsreducingtheir investment inPembinaornot investing inPembinaat all.Any reduction in the investorbase interestedorwilling toinvest intheoilandgas industryand,morespecifically,Pembinamayresult in limitsonPembina'sabilitytoaccesscapital,increasestothecostofcapital,adowngradeinPembina'screditratingsandoutlooks,andadecreaseinthepriceandliquidityof Pembina's securities even if Pembina's operating results, underlying asset values or prospects have not changed.Additionally,thesefactors,aswellasotherrelatedfactors,maycauseadecreaseinthevalueofanassetwhichmayresultinanimpairmentcharge.

EnergyMarketTransition

Changing consumer preferences, new technologies, government regulation or other external factorsmay result in a rapidtransition from fossil-based sources of energy, including energy derived from crudeoil andnatural gas, to renewable andother alternative sources of energy. This may lead to lower global demand for crude oil and natural gas and relatedcommoditiesand, inturn,may leadto lowerprices forcrudeoil,naturalgasandNGLandrelatedcommodities.Thiscouldnegatively impact the Company's producing customers and lead to less demand for Pembina's services, which couldnegatively impact therevenuetheCompanyreceives from,andthevalueof, itspipeline, facilitiesandother infrastructureassets.

In addition, Pembina may invest in opportunities related to an energy transition, which may involve investments inbusinesses,operationsorassets relating to renewableorotheralternative formsofenergy.Such investmentsmay involvecertainrisksanduncertainties inadditiontothose identifiedherein inrespectofPembina'sexistingbusinesses,operationsandassets, includingtheobligationtocomplywithadditionalregulatoryandotherlegalrequirementsassociatedwithsuchbusinesses, operations or assets and the potential requirement for additional sources of capital tomake, develop and/ormaintainsuch investmentsandPembina'sabilitytoaccesssuchsourcesofcapital. IntheeventPembinaweretocompletesuch investments, there can be no guarantee that Pembina will realize a return on those investments or businesses,operationsorassetsthatissimilartothereturnsitreceivesinrespectofitsexistingbusiness,operationsandassetsorthatwould offset any loss in revenue from, or the value of, the Company's existing pipeline, facilities and other infrastructureassetsresultingfromtheimpactofthepotentialenergytransition.Asaresult,anysuchinvestmentcouldreducethelevelofcashavailablefordividendsandtoserviceobligationsunderPembina'sdebtsecuritiesandotherdebtobligationsandmayalsonegativelyimpactthetradingpriceofPembina'ssecurities.

RisksRelatingtoWeatherConditions

Weatherconditions(includingthoseassociatedwithclimatechange)canaffectthedemandforandpriceofnaturalgasandNGL. As a result, changes in weather patternsmay affect Pembina's gas processing business. For example, colder wintertemperatures generally increase demand for natural gas and NGL used for heating which tends to result in increasedthroughputvolumeontheAlliancePipelineandattheCompany'sgasprocessingfacilitiesandhigherpricesintheprocessingandstoragebusinesses.Pembinahascapacitytohandleanysuchincreasedvolumeofthroughputandstorageatitsfacilitiestomeetchangesinseasonaldemand;however,atanygiventime,processingandstoragecapacityisfinite.

Weather conditions (including those associated with climate change) may impact Pembina's ability to complete capitalprojects,repairsorfacilityturnaroundsontime,potentiallyresultingindelaysandincreasedcosts.Weathermayalsoaffectaccess toPembina's facilities, and theoperationsandprojectsofPembina's customersor shippers,whichmay impact thesupply and/or demand for Pembina's services.With respect to construction activities, in areaswhere construction can beconductedinnon-wintermonths,Pembinaattemptstoscheduleitsconstructiontimetablessoastominimizepotentialdelaysduetocoldwinterweather.

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Changesand/orextremevariability inweatherpatterns, aswell as increases in the frequencyof extremeweatherevents,such as floods, cyclones, hurricanes, droughts and forest fires, increases the potential risk for Pembina's assets, includingoperationaldisruptions,transportationdifficulties,supplychaindisruptions,employeesafetyincidents,anddamagetoassets,whichmayresultinlowerrevenues,highercostsorprojectdelays.

Seealso"RiskFactors–RisksInherentinPembina'sBusiness–EnvironmentalCostsandLiabilities";and"RiskFactors–RisksInherentinPembina'sBusiness–Reputation".

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INTERESTOFMANAGEMENTANDOTHERSINMATERIALTRANSACTIONS

TotheknowledgeofthedirectorsandexecutiveofficersofPembina,noneofthedirectorsorexecutiveofficersofPembina,andnopersonorcompanythatisthedirectorindirectbeneficialownerof,orwhoexercisescontrolordirectionover,morethan10percentoftheCommonShares,andnoassociateoraffiliateofanyoftheforegoing,hashadanymaterial interest,direct or indirect, in any transactionwith Pembina since January 1, 2015 that hasmaterially affected Pembina, or in anyproposedtransactionthatwouldreasonablybeexpectedtomateriallyaffectPembina.

MATERIALCONTRACTS

Otherthanassetforthherein,nocontractsmaterialtoPembinaanditssubsidiarieswereenteredintoduring2020or2021todateorarecurrentlyineffect,otherthancontractsenteredintointheordinarycourseofbusiness.

LEGALPROCEEDINGSANDREGULATORYACTIONS

Other than as set forth herein, there are no outstanding legal proceedings, or regulatory actions, penalties or sanctionsimposedbyacourtorregulatorybodymaterialtoPembinatowhichPembinaoranyofitsdirectorindirectsubsidiariesisorwasapartyor inrespectofwhichanyofthepropertiesofPembinaoranyof itsdirector indirectsubsidiariesareorweresubject, during Pembina’smost recent financial year, nor are there any such proceedings, actions, penalties or sanctionsknowntobecontemplated.

REGISTRARANDTRANSFERAGENT

The registrar and transfer agent for the Common Shares, the Class A Preferred Shares, theMedium TermNotes and theSubordinatedNotes,Series1isComputershareTrustCompanyofCanada,atitsprincipalofficesinCalgary,Alberta,Canadaand Toronto, Ontario, Canada. The co-transfer agent and registrar for the Common Shares in the U.S. is ComputershareInvestorServicesU.S.,atitsprincipalofficesinGolden,Colorado,U.S.

INTERESTSOFEXPERTS

KPMG LLP are the auditors of the Company andhave confirmed that they are independentwith respect to the CompanywithinthemeaningoftherelevantrulesandrelatedinterpretationsprescribedbytherelevantprofessionalbodiesinCanadaandanyapplicable legislationor regulationsandalso that theyare independentaccountantswith respect to theCompanyunderallrelevantU.S.professionalandregulatorystandards.

ADDITIONALINFORMATION

Additional information relating to Pembina filed with the Canadian securities commissions and the SEC can be found onPembina'sprofileontheSEDARwebsiteatwww.sedar.com,theEDGARwebsiteatwww.sec.gov,andonPembina'swebsiteatwww.pembina.com. Additional information, including directors' and officers' remuneration and indebtedness, principalholders of Pembina's securities and securities authorized for issuance under equity compensation plans, as applicable, iscontained inPembina'smanagement informationcircular for itsmostrecentannualmeetingofShareholders that involvedtheelectionofdirectors.Additionalfinancial informationrelatingtoPembinaisprovidedinPembina'sFinancialStatementsandMD&A,whichhavealsobeenfiledonSEDARandEDGAR.

AnydocumentreferredtointhisAnnualInformationFormanddescribedasbeingfiledonSEDARatwww.sedar.comandonEDGARatwww.sec.gov(includingthosedocumentsreferredtoasbeingincorporatedbyreferenceinthisAnnualInformationForm)maybeobtainedfreeofchargefromusbycontactingPembina'sInvestorRelationsDepartmentbytelephone(tollfree1-855-880-7404)orbyemail([email protected]).

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I. ROLEANDOBJECTIVES

The Audit Committee (the “Committee”) is a committee of the Board of Directors (the "Board") of Pembina Pipeline

Corporation (the "Corporation") to which the Board has delegated certain oversight responsibilities relating to the

Corporation’s financial statements, theexternal auditors, the internal audit function, compliancewith legal and regulatory

requirements andmanagement information technology. In this Charter, the Corporation and all entities controlled by the

Corporationarecollectivelyreferredtoas"Pembina".

TheCommitteecarriesout its responsibilitieswithaview to thepurposeofPembina,and its role is to supportPembina’s

commitmenttoprovidingsustainableindustry-leadingtotalreturnstoinvestors.

TheobjectivesoftheCommitteearetomaintainoversightof:

(a) theintegrityofPembina’sfinancialstatements,thereportingprocessandinternalcontrolsoverfinancialreporting;

(b) therelationship,reports,qualifications,independenceandperformanceoftheexternalauditor;

(c) theinternalauditfunction;

(d) thefinancialriskidentification,assessmentandmanagementprogram;

(e) compliancewithlegalandregulatoryrequirementsrelatedtofinancialreportingandfinancialcontrols;

(f) managementofinformationtechnologyrelatedtofinancialreportingandfinancialcontrols;and

(g) maintenanceofopenavenuesofcommunicationamongmanagementoftheCorporation,theexternalauditors,the

internalauditorsandtheBoard.

II. MEMBERSHIPANDACCESS

The Board will appoint or reappoint members of the Committee. Each member shall serve until his or her successor is

appointedunlessthememberresigns,isremovedorceasestobeadirector.TheBoardmayaddorremovemembersofthe

CommitteeorfillavacancythatoccursintheCommitteeatanytime.

TheCommitteemustbecomposedofnot less than three (3)membersof theBoard,eachofwhommustbe independent

pursuanttotheCorporation'sStandardsforDirectorIndependenceandfinanciallyliterateasdeterminedbytheBoardusing

itsbusinessjudgment.Inaddition,atleastonemembermustbean"auditcommitteefinancialexpert"withinthemeaningof

thattermundertheUnitedStatesSecuritiesExchangeActof1934,asamended,andtherulesadoptedbytheUnitedStates

APPENDIX"A"–AUDITCOMMITTEECHARTER

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Securities and Exchange Commission thereunder. The Board Chair, in consultation with the Governance, Nominating and

CorporateSocialResponsibilityCommittee,willappointorreappointtheChairoftheCommitteefromamongstitsmembers.

TheCommitteemayatany timeretainoutside financial, legalorotheradvisorsas itdeterminesnecessary tocarryout its

duties, at theexpenseofPembina.Pembina shall provide for appropriate funding, asdeterminedby theCommittee in its

capacityasacommitteeoftheBoard,forpaymentof:(i)compensationtotheexternalauditorforthepurposeofpreparingor

issuing an audit report or performing other audit, review or attestation services for Pembina, (ii) compensation to any

advisors employed by the Committee, and (iii) ordinary administrative expenses of the Committee that are necessary or

appropriateincarryingoutitsduties.

IndischargingitsdutiesunderthisCharter,theCommitteemayinvestigateanymatterbroughttoitsattentionandwillhave

access to all books, records, facilities and personnel, may conduct meetings or interview any officer or employee, the

Corporation's legal counsel, external auditors and consultants, andmay invite any suchpersons to attendanypart of any

meetingoftheCommittee.

TheCommitteehasneitherthedutynortheresponsibilitytoconductaudit,accountingorlegalreviews,ortoensurethatthe

Corporation'sfinancialstatementsarecomplete,accurateandinaccordancewithInternationalFinancialReportingStandards

("IFRS") as issued by the International Accounting Standards Board ("IASB"); rather, management is responsible for the

financial reporting process, internal review process, and the preparation of the Corporation's financial statements in

accordancewithIFRS,andtheCorporation'sexternalauditorisresponsibleforauditingthosefinancialstatements.

III. FUNCTIONS

A. Pembina’sFinancialStatements,theReportingProcessandInternalControlsoverFinancialReporting

TheCommitteewillmeetwithmanagement,theinternalauditorandtheexternalauditortoreviewanddiscussannualand

quarterly financial statements, management's discussion and analyses (“MD&A”), the earnings press releases, and other

financialdisclosuresanddeterminewhethertorecommendtheapprovalofsuchdocumentstotheBoard.

(a) Inconnectionwith theseprocedures, theCommitteewill,asapplicableandwithout limitation, reviewanddiscuss

withmanagement,internalauditandtheexternalauditor:

i. theinformationtobeincludedinthefinancialstatementsandfinancialdisclosureswhichrequireapprovalby

theBoardincludingPembina’sannualandquarterlyfinancialstatements,notesthereto,MD&Aandearnings

pressreleasespayingparticularattentiontoanyuseof"proforma","adjusted"and"non-GAAP"information,

andensuring thatadequateproceduresare inplace for thereviewof theCorporation'spublicdisclosureof

financialinformationextractedorderivedfromthefinancialstatements;

ii. anysignificantfinancialreportingissuesidentifiedduringthereportingperiod;

iii. anychangeinaccountingpolicies,orselectionorapplicationofaccountingprinciples,andtheirimpactonthe

resultsandthedisclosure;

iv. all,significantrisksanduncertainties identifiedandsignificantestimatesandjudgmentsmadeinconnection

with the preparation of Pembina's financial statements that may have a material impact to the financial

statements;

v. any significant deficiencies or material weaknesses identified by management, internal auditors or the

externalauditor,compensatingormitigatingcontrolsandfinalassessmentandimpactondisclosure;

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vi. anymajor issuesas to theadequacyof the internalcontrolsandanyspecialaudit stepsadopted in lightof

materialcontroldeficiencies;

vii. significantadjustmentsidentifiedbymanagement,internalauditor,ortheexternalauditorandassessmentof

associatedinternalcontroldeficiencies,asapplicable;

viii. any unresolved issues between management and the external auditor that could materially impact the

financialstatementsandotherfinancialdisclosures;

ix. any material correspondence with regulators, government agencies, any employee or whistleblower

complaints,reportsofnon-compliancewhichraiseissuesregardingtheCorporation'sfinancialstatementsor

accounting policies and significant changes in regulations which may have a material impact on the

Corporation’sfinancialstatements;

x. theeffectofregulatoryandaccountinginitiatives,aswellasanyoff-balancesheetstructures;

xi. thecompetenciesandperformanceofemployeesintheCorporation’sinternalauditdepartmentandidentify

staffingneeds;

xii. significantmattersof concern respectingaudits and financial reportingprocesses, includingany illegal acts,

thathavebeenidentifiedinthecourseofthepreparationorauditofPembina'sfinancialstatements;and

xiii. anyanalysespreparedbymanagementand/ortheexternalauditorsettingforthsignificantfinancialreporting

issuesandjudgmentsmadeinconnectionwiththepreparationoffinancialstatements includinganalysesof

theeffectsofIFRSonthefinancialstatements.

(b) InconnectionwiththeannualauditofPembina'sfinancialstatements,theCommitteewillreviewwiththeexternal

auditor:

i. priortocommencementoftheannualaudit,plans,scope,staffing,engagementtermsandproposedfees;

ii. reportsoropinions tobe rendered in connection therewith including theexternalauditor's revieworaudit

findingsreportincludingalternativetreatmentsofsignificantfinancialinformationwithinIFRSthathavebeen

discussedwithmanagementandassociatedimpactsondisclosure;and

iii. theadequacyofinternalcontrols,anyauditproblemsordifficulties,including:

a) anyrestrictionsonthescopeoftheexternalauditor'sactivitiesoronaccesstorequestedinformation;

b) any significant disagreements with management, and management's response (including discussion

amongmanagement,theexternalauditorand,asnecessary,internalandexternallegalcounsel);

c) any litigation, claimor contingency, including taxassessmentsandclaims, that couldhaveamaterial

impactonthefinancialpositionoftheCorporation;and

d) theimpactoncurrentorpotentialfuturedisclosures.

Inconnectionwith itsreviewoftheannualauditedfinancialstatementsandquarterlyfinancialstatements,theCommittee

willalsoreviewanysignificantconcernsraisedduringtheChiefExecutiveOfficer("CEO")andChiefFinancialOfficer("CFO")

certificationswithrespecttothefinancialstatementsandPembina'sdisclosurecontrolsandinternalcontrols. Inparticular,

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theCommitteewill reviewwith theCEO,CFO, internalauditorandexternalauditor: (i)all significantdeficiencies,material

weaknessesorsignificantchangesinthedesignoroperationofPembina'sinternalcontroloverfinancialreportingthatcould

adverselyaffectPembina'sabilitytorecord,process,summarizeandreportfinancialinformationrequiredtobedisclosedby

theCorporationinthereportsthatitfilesorsubmitsunderapplicablesecuritieslaws,withintherequiredtimeperiods;and

(ii)anyfraud,whetherornotmaterial,thatinvolvesmanagementofPembinaorotheremployeeswhohaveasignificantrole

in Pembina's internal control over financial reporting. In addition, the Committeewill reviewwith the CEO, CFO and the

internal auditorPembina'sdisclosure controls andprocedures andat least annuallywill reviewmanagement's conclusions

about the efficacy of disclosure controls and procedures, including any significant deficiencies, material weaknesses or

materialnon-compliancewithdisclosurecontrolsandprocedures.

TheCommitteewillalsomaintainaWhistleblowerPolicy,includingproceduresforthe:

(a) receipt retentionand treatmentof complaints received, including those regardingaccounting, internal accounting

controlsorauditingmatters;and

(b) confidential, anonymous submissions of concerns, including those regarding questionable accounting or auditing

matters.

B. TheExternalAuditor

TheCommittee, in itscapacityasacommitteeoftheBoard, isdirectlyresponsibleforoverseeingtherelationship,reports,

qualifications,independenceandperformanceoftheexternalauditorandauditservicesbyotherregisteredpublicaccounting

firmsengagedbytheCorporation.TheCommitteeshallhavetheauthorityandresponsibilitytorecommendtheappointment

and the revocation of the appointment of the external auditors engaged for the purpose of preparing or issuing an audit

reportorperformingotheraudit,revieworattestservices,andtofixtheirremuneration.

TheexternalauditorwillreportdirectlytotheCommittee.TheCommittee'sappointmentoftheexternalauditorissubjectto

annualapprovalbytheShareholders.

Withrespecttotheexternalauditor,theCommitteeisresponsiblefor:

(a) theappointment,termination,compensation,retentionandoversightoftheworkoftheexternalauditorengagedby

theCorporation includingthereviewandapprovalofthetermsoftheexternalauditorsannualengagement letter

andtheproposedfees;

(b) resolutionofdisagreementsordisputesbetweenmanagementandtheexternalauditorregardingfinancialreporting

foraudit,revieworattestationservices;

(c) pre-approval of all legally permissible non-audit services to be provided by the external auditors considering the

potentialimpactofsuchservicesontheindependenceofexternalauditorsand,subjecttoanydeminimisexemption

availableunderapplicablelaws.Suchapprovalcanbegiveneitherspecificallyorpursuanttopreapprovalpoliciesand

procedures adopted by the committee including the delegation of this ability to one or more members of the

Committeetotheextentpermittedbyapplicablelaw,providedthatanypre-approvalsgrantedpursuanttoanysuch

delegationmaynotdelegateCommitteeresponsibilitiestomanagementofPembina,andmustbereportedtothe

fullCommitteeatthefirstscheduledmeetingoftheCommitteefollowingsuchpre-approval;

(d) obtainingandreviewing,atleastannually,awrittenreportbytheexternalauditordescribingtheexternalauditor's

internalquality-controlprocedures,anymaterialissuesraisedbythemostrecentinternalquality-controlreview,or

peerreview,ofthefirm,orbyany inquiryor investigationbygovernmentalorprofessionalauthorities,withinthe

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precedingfiveyears,respectingoneormoreindependentauditscarriedoutbythefirm,andanystepstakentodeal

withanysuchissuesandallrelationshipsbetweentheexternalauditorsandtheCorporation;

(e) reviewoftheexternalauditorwhichassessesthreekeyfactorsofauditqualityfortheCommitteetoconsiderand

assessincluding:independence,objectivityandprofessionalskepticism;qualityoftheengagementteam;andquality

of communications and interactions with the external auditor. A written comprehensive review of the external

auditortobeconsideredifrequiredeachyearandcompletedatleasteveryfive(5)yearswhichwillincludean:

i. assessmentofqualityofservicesandsufficiencyofresourcesprovidedbytheexternalauditor;

ii. assessmentofauditorindependence,objectivityandprofessionalskepticism;

iii. assessmentofvalueofservicesprovidedbytheexternalauditor;

iv. assessmentofwritteninputfromexternalauditorsummarizing:

a) background of firm, size, resources, geographical coverage, relevant industry experience, including

reputationalchallenges,systemicauditqualityissuesidentifiedbyCanadianPublicAccountabilityBoard

("CPAB")andPublicCompanyAccountingOversightBoard("PCAOB")inpublicreports;

b) industryexperienceoftheauditteamandplansfortraininganddevelopmentoftheteam;

c) howtheexternalauditordemonstratedobjectivityandprofessionalskepticismduringtheaudit;

d) howthefirmandteammetallcriteriaforindependenceincludingidentificationofallrelationshipsthat

the external auditor has with the Corporation and its affiliates and steps taken to address possible

institutionalthreats;

e) involvementofengagementqualitycontrolreview("EQCR")partnerandsignificantconcernsraisedby

theEQCRpartner;

f) mattersraisedtonationalofficeorspecialistsduringthereview;

g) significantdisagreementsbetweenmanagementandtheexternalauditorsandstepstakentoresolve;

h) satisfactionwithcommunicationandcooperationwithmanagementandtheCommittee;and

i) findingsandfirmresponsestoreviewsoftheCorporationbyCPABandPCAOB;

v. communication of the results of the comprehensive review of the external auditor to the Board and

recommendingthattheBoardtakeappropriateaction,inresponsetothereview,asrequired.Itisunderstood

that the Committee may recommend tendering the external auditor engagement at their discretion. In

additiontorotationoftheEQCRpartnerasrequiredbylaw,theCommittee,togetherwiththeBoard,willalso

considerwhetheritisnecessarytoperiodicallyrotatetheexternalauditfirmitself.Itwillbeatthediscretion

oftheCommitteeiftheincumbentexternalauditorisinvitedtoparticipateinthetenderingprocess;and

j) setting clear hiring policies for Pembina regarding external auditor partners and employees and former

partnersandemployeesofthepresentandformerexternalauditoroftheCorporation.Beforeanyexternal

auditorpartner,seniormanagerormanager isofferedemploymentbytheCorporation,priorapprovalfrom

theCommitteeChairmustbereceivedandaoneyeargraceperiodmustpass fromthedateanyworkwas

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completed on a Pembina audit engagement before an external auditor employee can be considered for

contractoremploymentbytheCorporation.

C. TheInternalAuditProcess

TheCommittee, in its capacityasa committeeof theBoardwill carryout the following responsibilitieswith regard to the

internalauditfunction:

(a) reviewwithmanagementandtheheadofinternalauditthecharter,activities,staffing,andorganizationalstructure

ofinternalaudit,includingtheperformanceoftheinternalauditfunction;

(b) havefinalauthoritytoreviewandapprovetheannualauditplanandallmajorchangestotheplan;

(c) annuallyconveyitsviewoftheperformanceoftheheadofinternalaudittotheChiefExecutiveOfficerasinputinto

thecompensationapprovalprocess;

(d) ensuretherearenounjustifiedrestrictionsorlimitations,andreviewandconcurintheappointment,replacement,

ordismissaloftheheadofinternalaudit;and

(e) onaregularbasis,meetseparatelywiththeheadofinternalaudittodiscussanymattersthattheCommitteeorthe

headofinternalauditbelievesshouldbediscussedprivately.

D. Other

TheCommitteewillalso:

(a) meetseparatelywithmanagement, theChiefFinancialOfficer, the internalauditor, theexternalauditorand,as is

appropriate, internalandexternal legalcounselandindependentadvisors inrespectof issuesnotelsewherelisted

concerninganyotheraudit,financeorfinancialriskmatters;

(b) reviewtheappointmentoftheCFOandanyotherkeyfinancialexecutiveswhoareinvolvedinthefinancialreporting

process;

(c) reviewtheCorporation’sinformationtechnologypracticesanddevelopmentsastheyrelatetofinancialreporting;

(d) fromtimetotimediscussthestaffinglevelsandcompetenciesofthefinanceteamwiththeExternalAuditor;

(e) review incidents, alleged or otherwise, as reported by whistleblowers, management, internal audit, the external

auditor, internal or external counsel or otherwise, of fraud, illegal acts or conflicts of interest and establish

proceduresforreceipt,treatmentandretentionofrecordsofincidentinvestigations;

(f) assist board oversight in respect of issues not elsewhere listed concerning the integrity of the listed company's

financial statements, the listed company's compliance with legal and regulatory requirements, the independent

auditor'squalificationsandindependence,andtheperformanceofthelistedcompany'sinternalauditfunctionand

independentauditors;

(g) monitorthefundingexposureoftheCorporation’spensionplan;

(h) receiveandreviewreportsfromtheCorporatePensionCommitteeatPembinaandrecommendorapprovechanges

asappropriatewithrespecttoriskmanagementofpensionassetsandliabilities,actuarialvaluationasrequiredby

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statute, the Statement of Investment Policies and Procedures, funding policy and corporate performance for the

pensionplans;

(i) jointlywiththeHumanResourcesandCompensationCommittee,reportonthestatusof thepensionplanstothe

Boardatleastannually;and

(j) have the authority and responsibility to recommend the appointment and the revocation of the appointment of

registered public accounting firms (in addition to the external auditors) engaged for the purpose of preparing or

issuinganauditreportorperformingotheraudit,revieworattestservices,andtofixtheirremuneration.

Inaddition,theCommitteewillperformsuchotherfunctionsasareassignedbylawandtheCorporation'sby-laws,andonthe

instructionsoftheBoard.

IV. MEETINGS

TheCommitteewillmeetquarterly,ormorefrequentlyatthediscretionofthemembersoftheCommittee,ascircumstances

require.

Additionally, theexternalauditormaycall ameetingof theCommitteeprovided theexternalauditorabidesby thenotice

requirementssetforthbelow.

NoticeofeachmeetingoftheCommitteewillbegiventoeachmemberandtotheinternalandexternalauditors,whoare

invitedtoattendeachmeetingoftheCommittee.Thenoticewill:

(a) beinwriting(whichmaybecommunicatedbyfaxoremail);

(b) beaccompaniedbyanagendathatstatesthenatureofthebusinesstobetransactedatthemeetinginreasonable

detail;

(c) begivenatleast48hoursprecedingthetimestipulatedforthemeeting,unlessnoticeiswaivedbytheCommittee

members;and

(d) ifdocumentationistobeconsideredatthemeeting,itshouldbeprovidedseven(7)daysinadvanceofthemeeting

ifpracticable,andinanyeventwithreasonablysufficienttimetoreviewdocumentation.

AquorumforameetingoftheCommitteeisamajorityofthememberspresentinperson,byvideoconference,webcastor

telephone.

If theChair isnotpresentatameetingof theCommittee,aChairwillbeselected fromamongthememberspresent.The

Chairwillnothaveasecondordecidingvoteintheeventofanequalityofvotes.

Ateachmeeting, theCommitteewillmeet"in-camera",withoutmanagementor internalorexternalauditorspresent,and

willmeet inseparatesessionswitheachof theheadof internalauditandthe leadpartnerof theexternalauditorat least

annually.

TheCommitteemayinviteotherstoattendanypartofanymeetingoftheCommitteeasitdeemsappropriate.Thisincludes

other directors, members of management, any employee, the Corporation's internal or external legal counsel, external

auditors,advisorsandconsultants.

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Minuteswill be kept of allmeetings of the Committee. Theminuteswill include copies of all resolutions passed at each

meeting,willbemaintainedwiththeCorporation'srecords,andwillbeavailableforreviewbymembersoftheCommittee,

theBoard,andtheexternalauditor.

V. ADDITIONALRESPONSIBILITIES

A. ReviewofCharter

TheCommitteeshallreviewandreassesstheadequacyofthisCharteratleastannuallyorotherwise,asitdeemsappropriate,

andproposerecommendedchangestotheGovernance,NominatingandCorporateSocialResponsibilityCommittee.

B. ReviewofPolicies

TheCommitteeshallreviewproposedchangestoBoardpoliciesrelatingtothematterssetoutinthisCharter,annuallyoras

itotherwisedeemsappropriate.

C. FinancialRiskManagement

TheCommitteeshallprovideoversightoffinancialriskmanagementwithrespecttotheareasoutlinedinthisCharter.

D. Evaluation

TheassessmentoftheCommitteeshallbefacilitatedannuallybytheBoardChair.

E. ReportingandBoardAdvisoryRole

TheCommitteeshallreportregularlytotheBoardonitsactivities,includingtheresultsofmeetingsandreviewsundertaken,

andanyassociatedrecommendations.TheCommitteeshallperiodicallyfacilitateandpromoteeducationoftheBoardwith

regard to the matters set out in this Charter, including education sessions with external consultants at the Committee’s

discretion.

TheCommittee shall facilitate information sharingwithotherBoard committeesas required toaddressmattersofmutual

interest or concern in respect ofmatters set out in this Charter. The Committeewill perform such other functions as are

assignedbylawandtheCorporation'sby-laws,andontheinstructionsoftheBoard.

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