PEMBINA PIPELINE INCOME FUND $16.03 Toronto symbol PIF.UN

PEMBINA PIPELINE INCOME FUND $16.03 (Toronto symbol PIF.UN; SI Rating: Extra risk) has interests in 14 feeder pipeline systems with a total length of 8,350 kilometres. This includes the Pembina System, in operation since 1954. The company also holds a 50% interest in the Fort Saskatchewan Ethylene Storage Limited Partnership. Pembina’s total network is the largest feeder operation in Canada. These pipelines bring oil and gas from fields in northeastern B.C. and western and northern Alberta to refineries, or feed into major pipelines such as the Enbridge Pipeline System. In the three months ended September 30, 2006, Pembina’s revenues rose 16.7%, to $85.3 million, from $73.1 million. Cash flow per unit rose 7.1%, to $0.30 from $0.28. Pembina’s units yield 7.5%. Pembina has a number of projects underway to increase its pipeline operations. One is a $290 million pipeline from Canadian Natural’s Horizon Oil Sands Project to Edmonton, Alberta, due to start up in 2008. Pembina Pipeline Income Fund is still a buy.

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