Insight Information 4 th Annual Canadian Oil Sands Summit. January 17, 2007

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1 Insight Information 4 th Annual Canadian Oil Sands Summit January 17, 2007

2 Pembina Pipeline Income Fund Robert B. Michaleski President and Chief Executive Officer

3 Forward-Looking Statements The information contained in this presentation contains certain forward-looking information and statements within the meaning of applicable securities laws. Such information and statements includes, among other things, statements regarding business strategy, future cash flows and cash distributions, the completion and inservice dates of future projects, future expansion and diversification opportunities and other expectations, beliefs, goals, objectives, assumptions or statements about future events or performances. Undue reliance should not be placed on these forward-looking statements and information as both known and unknown risks and uncertainties, including those business risks stated below, may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking statements and information. Forward-looking statements are based on the Fund s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends as well as current market conditions and perceived opportunities.

4 Forward-Looking Statements: Continued These statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including but not limited to, the impact of competitive entities and pricing, reliance on key alliances and agreements, the strength and operations of the oil and natural gas production industry and related commodity prices, regulatory environment, fluctuations in operating results, the availability and cost of labour and other materials, the ability to finance future projects on advantageous terms, tax laws and tax treatment of distributions and certain other risks detailed from time to time in the Fund s public disclosure documents. Additional information on these and other factors that could affect the Fund's future operations and financial results are contained in the Fund's Annual Information Form and its Management's Discussion and Analysis filed with the Canadian securities regulatory authorities. Except as required by applicable securities laws, the Fund and its subsidiaries assume no obligation to update forward-looking information and statements should circumstances or management's expectations, estimates, projections or assumptions change.

5 Fund Profile at December 29, 2006 Trust Units Outstanding MM Trust Unit Trading Price $ Week Trading Range $18.58-$12.88 Annual Distribution Rate (per trust unit) 1 $1.32 Total Enterprise Value $2.5 billion S&P and DBRS Corporate Credit Rating BBB DBRS Stability Rating STA-2 (low) 1 Paid Monthly, $1.20 per unit until December 31, 2006, $1.32 effective January 2007

6 Stable Cash Distributions $150 $125 $100 $75 $50 $25 $0 Distributed Cash ($ millions) $ Per Unit Q306 distribution annualized for illustrative purposes only annualized projection per based unit distribution: Management s $1.14 to July, outlook 2006, and $1.20 guidance to December, as at presentation Annual Distribution date. rate increased to $1.32 per unit effective January $1.20 $1.15 $1.10 $1.05 $1.00 $0.95 $0.90 $0.85 PIF.UN

7 Slide Title Conservative Capital Structure 1 Debt Equity Debt to Total EV 1 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Senior Debt to EBITDA ($ billions) Q % 28.6% 35.8% 34.2% 27.3% 23.5% Debt includes convertible debentures

8 Diversified Energy Infrastructure Assets in Three Segments CONVENTIONAL Conventional Pipelines A leading integrated transportation service provider in western Canada Oil Sands Pipelines By Others Ethylene Storage Facility FORT McMURRAY MIDSTREAM Proposed Pipeline TAYLOR Growing midstream business leverages inherent value of existing pipeline and storage infrastructure to access low-risk alternative supplemental revenue KITIMAT PRINCE GEORGE EDMONTON OIL SANDS A competitive player in oil sands transportation infrastructure with contracted capacity of 389,000 bpd, growing to 640,000 bpd by mid-2008 VANCOUVER KAMLOOPS CALGARY

9 Segmented Net Operating Income $250 ($ millions) $200 $150 $100 $50 $ * Conventional Oilsands Midstream * Third quarter 2006 results, annualized for illustrative purposes only.

10 Q Throughput and Net Operating Income Composition Throughput Composition Net Operating Income 28% 36% 36% 17% 22% 61% Conventional crude oil Synthetic crude oil Condensate and Natural Gas Liquids Conventional Pipelines Oil Sands Midstream Business

11 Oil Sands Infrastructure: Strategy Pembina is uniquely positioned with infrastructure and operating knowledge in the oil sands region We will continue to use this competitive position to pursue future opportunities in this key area The fully-contracted and very long term returns generated by the oil sands assets provide a secure stream of stable cash flow to the Fund

12 Oil Sands Infrastructure: Development Activity AOSPL Pipeline Horizon Pipeline Cheecham Lateral CNRL Horizon Athabasca River Athabasca Oil Sands Syncrude Fort McMurray Edmonton Scotford Terminal Sherwood Park Control Centre

13 Oil Sands Infrastructure: Projects Horizon & Cheecham Pipelines: 25-year extendible contract term fixed rate of return on invested capital flow-through operating costs no commodity price or pipeline utilization risk

14 Other Oil Sands Development Projects* AOSPL Pipeline Horizon Pipeline Petro Canada Ft. Hills CNRL Horizon Total Joslyn Syncrude Athabasca River Synenco Northern Lights IOL Kearl Lake Encana Borealis Husky Fort McMurray Cheecham Athabasca Oil Sands Cheecham Lateral Oil Sands Development Projects * Map depicts partial listing only of regional publicly announced project proposals; project locations on map are approximate. Edmonton Scotford Terminal Sherwood Park Control Centre

15 Pembina s Proposed Kitimat to Summit Lake Condensate Pipeline Project 100,000 bpd throughput (16,000 m3/day) Condensate imported globally (by Shippers) delivered to Kitimat, B.C. Arrangement with existing marine terminal at Kitimat, B.C. sought Combination of new (880 km) and existing (530 km) for a total of 1410 km of pipeline Project cost $1.2 billion Estimated completion January 2010

16 Proposed Condensate Pipeline Route British Columbia Taylor Rainbow Alberta Northern Route Fort McMurray Dawson Creek Kitimat Prince George Edmonton Enbridge Legend Existing Pembina New New Pembina C5 C5 Existing Pembina to to C5 C5 Other Other Pipelines Vancouver Kamloops Rangeland Calgary

17 Proposed Kitimat to Summit Lake Condensate Pipeline Project Agreement in Principle on Contract Terms with Shippers include: 15-year extendible contract term fixed rate of return on invested capital flow-through operating costs no commodity price or pipeline utilization risk

18 Investment Highlight Summary Stable, liquid trust sector investment Diversified base of premium energy infrastructure assets, dominant market position Consistent & sustainable monthly cash distributions Conservative capital structure Investment grade credit ratings (S&P s and DBRS) Excellent business development prospects

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