CORPORATE PROFILE - Keyera · Corporate credit ratings: BBB/Stable4 Net Debt/EBITDA3: 3.0x5 2019...

CORPORATE PROFILE

M a y 2 0 1 9

Forward-Looking & Non-GAAP Financial Measures

In the interests of providing Keyera Corp. (“Keyera” or the “Company”) shareholders and potential investors with information regarding Keyera,

including Management’s assessment of future plans and operations relating to the Company, this document contains certain statements and

information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively

referred to herein as “forward-looking statements". Forward-looking statements in this document include, but are not limited to statements and

tables with respect to: capital projects and expenditures; strategic initiatives; anticipated producer activity and industry trends; and anticipated

performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans,

intentions or expectations upon which they are based will occur. By their nature, forward looking statements involve numerous assumptions, as

well as known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts,

projections and other forward-looking statements will not occur and which may cause Keyera’s actual performance and financial results in

future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking

statements. These assumptions, risks and uncertainties include, among other things: Keyera’s ability to successfully implement strategic

initiatives and whether such initiatives yield the expected benefits; future operating results; fluctuations in the supply and demand for natural

gas, NGLs, crude oil and iso-octane; assumptions regarding commodity prices; activities of producers, competitors and others; the weather;

assumptions around construction schedules and costs, including the availability and cost of materials and service providers; fluctuations in

currency and interest rates; credit risks; marketing margins; potential disruption or unexpected technical difficulties in developing new facilities

or projects; unexpected cost increases or technical difficulties in constructing or modifying processing facilities; Keyera’s ability to generate

sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital;

changes in laws or regulations or the interpretations of such laws or regulations; political and economic conditions; and other risks and

uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Keyera. Readers are

cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are made as

of the date of this document or the dates specifically referenced herein. For additional information please refer to Keyera’s public filings

available on SEDAR at www.sedar.com. All forward-looking statements contained in this document are expressly qualified by this cautionary

statement. This document also includes financial measures that are not determined in accordance with Generally Accepted Accounting

Principles (“GAAP”). For additional information on non-GAAP measures and forward-looking statements, refer to Keyera’s public filings

available on SEDAR at www.sedar.com and available on the Keyera website at www.keyera.com.

2

http://www.sedar.com/





20

14

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Keyera at a Glance1

Market capitalization: $7.1 billion2

Enterprise value: $9.6 billion2

LTM Adjusted EBITDA3: $782 million

LTM Payout Ratio3: 62%

Dividend: $1.80/share p.a. ($0.15/share per month)

Dividend yield: 5.4%2

Corporate credit ratings: BBB/Stable4

Net Debt/EBITDA3: 3.0x5

2019 growth capital program: $800-$900 million

Leading Canadian Integrated Midstream Company

3

1. All information as at March 31, 2019, unless otherwise stated. 2. As at May 16, 2019. 3.Adjusted EBITDA, Payout Ratio, and EBITDA are not standard measures under GAAP. See “non-GAAP Financial

Measures” in Keyera’s 2019 First Quarter MD&A for further details. 4. DBRS and S&P. 5. Calculated in accordance with Note Agreements and Covenants.

4

Focused on Generating Long-Term Value

Integrated Business, Difficult to Replicate

Customer Focused, Reliable Operator

Focused on Dividend & Cash Flow Growth (per share basis)

Responsible Stewards of Capital

Dedicated to Financial Strength & Flexibility

5

Our Commitment

Prioritizing our people & safety - Named top Employer in Canada & Alberta

- Zero employee lost-time incidents in 2018

- Committed to Operational Excellence

Improving our environmental performance - Pursuing opportunities to reduce green house gas &

methane emissions

- Full compliance with environmental laws and regulations

Helping our communities - Volunteered >8,200 hours to community causes in 2018

- Strong relationships and partnerships with local residents

& Indigenous communities

- Conducted 80 emergency training sessions in 2018

Doing the right thing, for the right reasons, every time

6

Delivering Rewarding Returns for Investors

8%

Dividend/Share

CAGR1

12%

Distributable Cash

Flow/Share

CAGR2,3

19%

Annual Total

Shareholder Return2,4

1 Compound annual growth rate from 7/15/2003 to 3/31/2019. 2 Compound annual growth rate from 5/30/2003 to 3/31/2019. 3 Not a standard measure under GAAP. 4 Includes reinvestment of dividends.

Image input resolution: minimum 1510 x 835 pixels @ 96 ppi

Long History of Steady Dividend Growth

7

$-

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend per Share

7% dividend increase declared in 2018

Current dividend: $1.80/share per year ($0.15/share per month)

Business is Highly Integrated & Difficult to Replicate

8

1. Percentage of total realized margin for the last twelve months ended March 31st 2019. Realized margin is defined as operating margin excluding unrealized gains and losses from commodity-related risk

management contracts. Realized margin is not a standard measure under GAAP.


1. Realized margin is defined as operating margin excluding unrealized gains and losses from commodity-related risk management contracts. Realized margin is not a standard measure under GAAP.

Includes intersegment transactions. This graph excludes other income from production associated with Keyera’s oil and gas reserves. 2. Includes Take-or-Pay, non Take-or-Pay, and area or facility

dedications.

Fee-for-Service Business Continues to Grow

Fee-for-Service Business Has Doubled Over Last 5 Years 9

30%

39%

31%

AEF

Turnaround AEF

Outage

Fee-for-Service2

Marketing Services Enhance Returns

10 Marketing’s 2019 Expected Realized Margin is $280 - $320 million

Utilizes Keyera’s infrastructure to create value − $1 billion of cash flow generated over last five years

− Enhances return from our fee-for-service businesses

− Provides additional source of funding for capital projects

Estimated to deliver base Realized Margin of between $180 and $220 million, annually

Iso-octane business provides a strong foundation − Typically contributes over 50% of Marketing services’ cash flow

− Earns margin by upgrading low-value butane into iso-octane, a premium gasoline additive, at Keyera’s

AEF facility

Condensate marketing & liquids blending also strong contributors

Effective risk management program − Program intended to lock in attractive sales margins and supply costs, and protect the value of

inventory


$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19e

Millions ANNUAL CAPITAL EXPENDITURES

Growth Capital Upper End of Growth Capital Range Acquisitions Maintenance Capital

Investment Opportunities Continue

$800 Million to $900 Million of Growth Capital Investments in 2019 11


Approved Projects Capital Cost (Net, in $ Millions)1

2019 2020 2021

Wapiti Gas Plant Complex 1,000

Wapiti Phase I (including Water Disposal System) and NWPS

Wapiti Phase II and Compressor & Gathering System Expansion

Simonette Acid Gas Injection & Inlet Enhancements 100

Simonette Plant Expansion 85

Pipestone Plant (Phase I) 600

Wildhorse Terminal US185

Storage Cavern Development Program at Keyera Fort Saskatchewan 110

KAPS (Key Access Pipeline System)2 650

Sulphur Handling Project2 58

TOTAL ~$2.9 Billion

Growth Projects Currently Under Development

12 Plan to Fund Current Program Without Issuing Common Equity, excl. DRIP

1. Keyera’s share of estimated capital cost. See Keyera’s 2019 First Quarter Report MD&A for capital investment risks and assumptions.

2. Projects expected to be completed in 2022 subject to timely receipt of regulatory approvals and construction schedule variable.

3. Return on Capital is defined as operating margin divided by the estimated capital cost of projects. See “non-GAAP Financial Measures” and “Forward-Looking Statements” in Keyera’s 2019 First Quarter MD&A for further details.

$1.1 Billion Invested as of March 31, 2019

13

Attractive Growth Projects on Track

1. Return on Capital is defined as operating margin divided by estimated cost of capital projects. Keyera expects to achieve this return in 2022 for the projects shown above, except for KAPS which is

expected to achieve this return starting in 2024. See “non-GAAP Financial Measures” and “Forward-Looking Statements” in Keyera’s 2019 First Quarter MD&A for further details.

Capital Program Expected to Achieve 10 to 15% Return on Capital1

KAPS

2022


Solid Contractual Base

14

Adjusted EBITDA from Keyera’s current ~$2.9 billion capital program will be supported by a combination

of fee-for-service, take-or-pay and area dedication agreements

Cash Flow Well Supported by Fee-for-Service Contracts, including ToP

66%

33%

1%

Fee-for-Service

Marketing

Other

2018 Realized Margin1 2018 Fee-for-Service Revenue2

1.Realized Margin is not a standard measure under GAAP. 2. Includes inter-segment transactions. Fee-for-Service Revenue is not a standard measure under GAAP.

37%

63%

Fee-for-SerivceTake-or-Pay

Fee-for-SerivceNon Take-or-Pay


Low Counterparty Credit Risk

15

Consolidated1,2,3 Credit worthy counterparties – ~82% of Keyera’s 2018 revenue from investment

grade/secured and split rated counterparties

Mitigating credit risk – Letters of credit, netting agreements, pre-payments

Broad domestic & international customer base – Over 125 different fee-for-service customers

1. Based on 2018 revenues. 2. Counterparty ratings are as of March 15th, 2019. Where parental guarantees are in place, the credit rating of the parent is used. The secured category includes

counterparties who are on prepay terms or have posted a letter of credit. 3. Split denotes counterparties with an investment grade rating by one rating agency and non-investment grade rating by another

agency.

Gathering and Processing Liquids Infrastructure Marketing

69%

13%

18% InvestmentGrade/Secured

Split

Non-IG

30%

11%59%

InvestmentGrade/Secured

Split

Non-IG93%

1%

7%InvestmentGrade/Secured

Split

Non-IG72%

14%

14% InvestmentGrade/Secured

Split

Non-IG

Keyera Provides Essential Services to Industry


Gathering and Processing Business Unit

Well maintained, long-life facilities – ~3.1 bcf/d licensed gross capacity1

– 19 active gas plants; 17 operated by Keyera

Extensive gathering systems – Network of gathering pipelines tied into existing gas plants

– >4,000 kilometres of pipelines operated by Keyera

– Large capture areas create franchise regions

Fee-for-service revenues with negligible direct commodity exposure

Network of Facilities Supported by Fee-for-Service Contracts

1. Licensed capacity is not equivalent to actual operating capacity. Actual operating capacity can be lower as it depends on

operating conditions and capabilities of functional units at each plant.

16


HISTORICAL THROUGHPUT & THE PERCENTAGE CHANGE IN AECO & WTI TO March 31 , 2019 1

Diversified G&P Portfolio Enhances Stability

17

200

400

600

800

1000

1200

1400

1600

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Gross Plant Throughput (MMcf/d)

% Change in AECO Price Since January 2003

Gas Plant Throughput (MMcf/day) AECO (%) WTI (%)

1.Gross throughput from Keyera Gathering & Processing plants since 2003. Plants acquired after 2003 are presented as if Keyera owned them since 2003 or since start-up of plant. Source: Internal and Alberta

regulatory data.

Developing Significant Position in the Liquids-Rich Montney

Supporting One of the Most Attractive Developments in the WCSB 18

Gross Sour Gas Processing Capacity (Year End) Condensate Handling Capacity (Year End)

300 300

450 450 450

150

300 300

200

0

100

200

300

400

500

600

700

800

900

1000

2017 2018 2019 2020 2021

mm

cf/

d

Simonette Wapiti Pipestone

10,000

27,000 27,000 27,000 27,000

25,000 25,000 25,000

14,000

14,000 14,000

38,000

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2017 2018 2019 2020 2021

bb

ls/d

Simonette Wapiti Pipestone

950

mmcf/d 90,000

b/d

Montney Plants Underpinned by Long-Term Agreements

Keyera’s Simonette, Wapiti and Pipestone gas plants will provide 950 mmcf/d of gas processing

capacity & 90,000 bbls/d of condensate handling facilities in 2021.

Take-or-Pay Contracts often combined with Area Dedications 19

KAPS – Montney Condensate and NGL Pipeline System

20 Platform for Future Growth


KAPS - Montney Condensate and NGL Pipeline System

Strategic Asset Enhancing Keyera’s Integrated Value Chain 21

Highly desired liquids pipeline Supports growing liquids-rich Montney and Duvernay production

in northwestern Alberta Initially connecting to Keyera’s Pipestone, Wapiti and Simonette gas plants along with numerous

third party gas plants

Long-term contracts with significant TOP Initial capacity over 70%1 contracted Multiple long-term agreements, averaging 14 years Contracts include 75% take-or-pay commitments Meaningful commitments from investment grade producers

Strong returns & well positioned to fund Expected to generate return on capital2 of 10-15% starting in 2024 Plan to fund without additional common equity, excluding DRIP

Strategic 50/50 partnership with SemGroup & KKR Two midstream companies with nine gas plants along KAPS route

Significant future growth opportunities Could include gas & condensate processing, NGL infrastructure

and other value-added services

1. Includes volumes from Keyera Marketing 2.Return on Capital is defined as expected annual operating margin divided by estimated capital cost of the project.

22

KAPS Benefits Keyera and Customers

Expected benefits to Keyera

Generates stable, long-term, take-or-pay, fee-for service revenues

Improves the integration of Keyera’s value chain

Creates a platform for numerous future investment opportunities

Provides long-term growth for Keyera

Expected benefits to customers

Provides a competitive transportation alternative

Enhances customer condensate netbacks

Increases the liquids takeaway capacity from the region, ensuring customers can grow their volumes

Liquids Business Unit

Unmatched Infrastructure for NGL and Oil Sands Customers 23


Keyera Fort Saskatchewan (“KFS”)

Fractionation Unlocks Value from the Gas Stream

Fractionation Services in High Demand in Alberta 24

Keyera Fort Saskatchewan – 65,200 bbls/d of C3+ Fractionation Capacity

– 30,000 bbls/d of C2+ Fractionation Capacity

– Room for expansion

Other fractionation capacity includes – Rimbey, Gilby, Nevis, Dow Fort Saskatchewan

– Total Net Capacity

~90,000 bbls/d of C3+ Fractionation Capacity

~50,000 bbls/d of C2+ Fractionation Capacity

Future growth opportunities – Room for expansion at KFS


Continuing to Expand Underground Storage at KFS

Capacity of 15 million barrels

Expansion underway – 16th and 17th caverns currently being

washed; expected in-service 1H201 and1H211

– 18th cavern currently being drilled

– Expected net cost of $110 million2 to complete three cavern program, including brine pond expansion

Growing Demand as Customers Value the Flexibility Storage Offers

1 Timing subject to receipt of remaining regulatory approvals and completion of final work to bring into service. 2 Costs subject to construction and schedule variables.

25

Keyera Fort Saskatchewan


Strong Condensate Fundamentals Benefit Keyera

26 Bitumen Production Growth Driving Condensate Demand

Keyera’s condensate system connected to all major delivery & receipt points, with

significant storage capacity

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MB

bl/

d

Actual CIBC World Markets Forecast

0

100

200

300

400

500

600

700

800

900

1,000

2018A 2019E 2020E 2021E 2022E 2023E 2024E 2025E

MB

bl/d

WCSB Supply Forecast Demand

Bitumen Production Growing Condensate Shortage

Source: CIBC World Markets Inc.


Most Connected Condensate Hub in Canada

Major oil sands delivery options such as:

– Polaris, Access, Norlite, Grand Rapids

Multiple supply and receipt points such as:

– Local fractionators and refineries

– Southern Lights and Cochin pipeline from the US

– Western Canada feeder pipelines

– Rail imports at the Alberta Diluent Terminal

Storage at Keyera Fort Saskatchewan

Long-term take-or-pay agreements

– Investment grade & creditworthy counterparties

– Virtually all major oil sands producers including Imperial

Oil, Suncor, Teck, Total, Husky, BP, CNRL, Cenovus,

North West Upgrading, Devon, CNOOC, JACOS

A Well Contracted Industry-Leading Diluent Hub 27


1. Calculated as of March 31, 2019 in accordance with Keyera’s debt covenants. For further information regarding covenant calculations, please see Keyera’s

2019 First Quarter Report MD&A or copies of the note purchase agreements, all of which are filed on SEDAR. 2. All US dollar denominated debt is translated

into Canadian dollars at its swap rate. 2019 maturities as of February 1, 2019. 3. Midstream Peer Group includes ENB, GEI, IPL, PPL, and TRP. 4. Source

Peters & Co. as of May 6, 2019

LONG-TERM DEBT MATURIT IES 2 (exc ludes d rawings under revo l ve r )

3.0x

Net Debt1 to EBITDA vs Midstream Peer Group3 Average >4.7x4

Conservative Capital Structure

28 Well Positioned to Fund Keyera’s $2.9 Billion Capital Program

Issuer Credit Ratings:

• DBRS Limited: BBB with a Stable trend

• S&P Global: BBB/Stable


1 Total return includes the reinvestment of dividends paid by Keyera and the TSX between May 30, 2003 and March 31, 2019. 2 Distributable cash flow is not a standard measure under GAAP. See Keyera’s 2018 Year End Report for a definition of distributable cash flow and for a reconciliation of distributable cash flow to its related

GAAP measure. 3 Payout ratio is not a standard measure under GAAP. Payout ratio is defined as dividends declared to shareholders divided by distributable cash flow.

Investment Summary

Providing Growth and Income for Shareholders 29

2 3

1

30

Investment Highlights

Integrated Business that is Difficult to Replicate

Focused on Dividend & Cash Flow Growth, on a Per Share Basis

Responsible Stewards of Capital

Dedicated to Financial Strength & Flexibility

20 Year Track Record of Profitable Operations & Project Execution

Customer Focused, Reliable Operator

31

Appendix - Business & Asset Overview


Simonette Gas Plant – Record Volumes in 2018

Gas plant expansion − Increasing processing capacity by 150 mmcf/d

− Expanded plant will have 450 mmcf/d of gas processing capacity with 27,000 bbls/d of condensate handling facilities

− Project expected to be completed 4Q191 at an estimated cost of $85 million1

Acid gas injection & other enhancements − Moving to acid gas injection which is the most reliable

and environmentally responsible method to dispose of acid gas, virtually eliminating emissions

− Project expected to be operational in 3Q191 at an estimated cost of $100 million1,2

− Backed by gas handling agreements, including take-or-pay commitments and facility dedications

Future growth opportunities

Ability to connect to Keyera’s Wapiti gas plant

Supporting Liquids-Rich Montney and Duvernay Developments

1 Project costs and timing are subject to construction and commissioning schedules. 2 Includes costs to improve inlet capabilities of the plant as well.

32


Wapiti Gas Plant Complex – Phase I Complete

Phase I infrastructure includes 150 mmcf/d of sour gas processing capacity

25,000 bbls/d of condensate handling capacity

Water disposal system

Raw gas gathering and field compression system

Acid gas injection, the most reliable and environmentally responsible method to dispose of acid gas, virtually eliminating emissions

Phase I fully contracted Long-term gas handling agreement with Paramount

Includes area dedication and take-or-pay commitments

Phase II expected to be completed mid-20201

Incremental 150 mmcf/d of sour gas processing capacity

Compressor and gas gathering system expansion

Future growth opportunities Ability to connect to Keyera’s Simonette & Pipestone

gas plants

Phase I 100% Contracted Under Long-term Agreements

1 Project timing subject to timely receipt of all regulatory approvals and timely construction schedule variables.

33


North Wapiti Pipeline System – Increases Capture Area

Extends Wapiti Gas Plant capture area north of Wapiti River

New infrastructure includes 12-inch sour gas gathering pipeline 8-inch condensate and water pipeline Compressor station Expected to be completed in 2H19

Project backed by long-term agreements Long-term take-or-pay obligation for raw gas handling

and processing as well as pipeline transportation Long-term NGL fractionation and marketing services Anchored by Pipestone Energy Corp. (privately backed)

Future growth opportunities Secured volume commitments to support Phase II of the

Wapiti Gas Plant, which is under construction Opportunity to secure additional volumes and fully

contract Phase II as producers increase production north of the Wapiti River

Ability to connect to Keyera’s Pipestone Gas Plant

Keyera Wapiti

Gas Plant

NWPS

Compressor

Station

Grande

Prairie

Wapiti River

Smoky River

North Wapiti

Gathering Pipeline

Producers in the

Pipestone area:

• CNRL

• Encana

• Hammerhead

• Inception

• Iron Bridge

• NuVista

• Paramount

• Pipestone Energy

• Seven Generations

• Shell

• Sinopec

• Velvet

Montney Well

34 Attracting Production Volumes North of the Wapiti River


Pipestone Gas Plant – Construction on Schedule

Phase I 100% Contracted Under Long-Term Agreements

1 Project timing and cost subject to timely receipt of regulatory approvals, completing engineering and cost estimates, and construction schedule variables. Estimate excludes the cost of the Liquids Hub.

35

Pipestone Liquids

Hub and Plant

Source: Peters & Co.

Strategic partnership with Encana Major gas producer focused on developing the liquids-

rich Montney; contracted 85% of the available capacity Keyera will own the facilities with the option to operate

after five years from plant start up

Construction currently on time & on budget Expected to be completed in 2021 Estimated cost of $600 million1

New infrastructure includes: 200 mmcf/d of sour gas processing capacity 24,000 bbls/d of condensate processing facilities Liquids hub with an additional 14,000 bbls/d of

condensate processing capacity (completed in 2018) Acid gas injection, the most reliable and

environmentally responsible method to dispose of acid gas, virtually eliminating emissions

Project backed by long-term agreements Includes an area dedication and revenue guarantee In May new customer contracted available capacity

with long-term take-or-pay commitment

Future growth opportunities Phase 1 fully contracted; ability to expand gas plant by

additional 200 mmcf/d


Keylink NGL Gathering Pipeline System

– Connects eight Keyera gas plants to the Rimbey gas

plant for on site fractionation

– Provides a safe, reliable and economically improved

transportation alternative

– Enhanced service offering as Rimbey is pipeline

connected to Keyera’s Edmonton Terminal and Ft.

Saskatchewan fractionation and storage complex

– Completed on time in 2018 for $125 million, $25 million

lower than original forecast

– Capacity of ~22,000 bbls/d1

NGL gathering solution enhancing Keyera’s integrated service offering

An Integrated & Economic NGL Transportation Solution

1 Capacity is estimated based on certain assumptions

36


New Expected Oil Sands Production

37 Bitumen Production Growth Driving Condensate Demand

Company

Select Projects Sanctioned

and/or Under Construction Capacity (MB/d) Timing

MEG Christina eMSAGP / Brownfield 20 2018-2020

Cenovus Christina Lake Phase G 50 2019-2020

Canadian Natural Kirby North Phase 1 40 2019

Imperial / Exxon Kearl Reliability 20 2020

CNOOC / Nexen Long Lake Southwest Expansion 26 2021

Imperial Aspen Phase 1 75 2022-2023

Total Capacity Additions of Certainty 231

Company Projects with a High Likelihood

Capacity

(MB/d) Timing

Canadian Natural Horizon Debottlenecks (SCO) 40 2020-2023

Suncor Fort Hills Debottleneck 30 2020-2023

Cenovus Foster Creek Phase H 30 2021-2022

Imperial Cold Lake Expansion Project 55 2022-2023

Suncor / CNOOC Meadow Creek East Phase 1 40 2022-2023

Cenovus Narrows Phase A 65 2022-2023

Canadian Natural Kirby Phase 2 (North or South) 40 2022-2023

Cenovus Christina Lake Phase H 50 2022-2023

Canadian Natural Horizon PFT Expansion (Bitumen) 45 2024

Total Capacity Additions of High Likelihood 395 Sourc

e:

Pete

rs &

Co.


Norlite Pipeline

Provides Additional Stable Long-Term Cash Flows

1 Pipeline capacities are estimated based on certain assumptions.

38

Diluent pipeline supporting Fort Hills oil sand project − 30% joint venture interest, operated by Enbridge

− Project in service in June 2017

Provides stable long-term cash flows − Backed by long-term take-or-pay agreement with owners of Fort

Hills project (Suncor, Total & Teck)

− Creditworthy counterparties

Future growth opportunities Initial capacity of 218,000 bbls/d with potential to expand up to

465,000 bbls/d1

Ability to generate fees in other parts of our condensate system, such as storage, rail and marketing

Since start up, three new shippers have contracted to both Norlite and Keyera’s condensate system

Ability to continue to contract additional volumes


South Grand Rapids Pipeline

Further Enhancing and Expanding our Condensate Network

1 Pipeline capacities are estimated based on certain assumptions.

39

Diluent pipeline supporting oil sands growth − 50/50 joint venture between Keyera and Grand Rapids

Pipeline LP (ie. TransCanada PipeLines and PetroChina

Canada)

− Operated by Keyera

Enhances Keyera’s condensate network − Provides redundancy and reliability between Keyera’s

Edmonton and Fort Saskatchewan assets

− Provides Keyera with an additional 225,000 bbls/d of net

capacity1 for diluent transportation

− 45-kilometre 20-inch diluent pipeline

Future growth opportunities A portion of the available capacity will be used to meet

commitments under existing customer agreements

Keyera will pursue new diluent transportation business with the remaining capacity available


Base Line Terminal

Crude oil storage for WCSB Provides customers with optionality & flexibility 50/50 joint venture operated by Kinder Morgan

Fully contracted with 100% take-or-pay contracts Long-term contracts up to 10 years in length

Backstopped by 8 creditworthy customers

New infrastructure includes 12 crude oil storage tanks with 4.8 million barrels of capacity

Located on Keyera’s Alberta EnviroFuels site in Edmonton

Connected to Kinder Morgan’s Edmonton Terminal

Future growth opportunities Potential to additional tanks for total storage capacity of up to

6.6 million barrels, subject to customer demand

Completed in 4Q18 for $315 million1, net to Keyera

Expanding and Diversifying Keyera’s Service Offering

1 Subject to finalization of outstanding costs.

40

Close

proximity

to pipelines

and railroads

Keyera holds

salt rights

beneath

most of these

lands

166 undeveloped acres 1290 undeveloped acres 132 undeveloped acres

Keyera Josephburg Terminal (KJT) Keyera Fort Saskatchewan (KFS)

350 undeveloped acres

Keyera’s Hull Terminal in Texas

Undeveloped Land for Future Growth

Strategic Optionality in the Industrial Heartland of Alberta 41


Wildhorse Crude Oil Terminal at Cushing, OK

Strategic crude oil storage and blending terminal1

Located at a major liquids hub in the US Extension of Keyera’s liquids handling expertise Provides significant commercial opportunities by blending

lower value products into higher value product streams Backed by fee-for-service take-or-pay storage contracts

ranging from 2 - 6 years in length

New infrastructure includes 12 crude oil storage tanks with 4.5 million barrels of working

storage capacity under construction Terminal will initially be pipeline connected to two existing

storage terminals in Cushing, OK

Expected to be in service in mid-2020 with a net capital cost to Keyera of US$185 million2

Future growth opportunities Complemented by acquisition of Oklahoma Liquids Terminal,

a nearby logistics and diluent blending facility

Subject to customer demand, site allows for additional tanks

Expanding Keyera’s Presence at a Major Liquids Hub

1 90/10 joint venture with an affiliate of Lama Energy Group 2 Cost and timing subject to construction and schedule variables.

42

Cushing, OK

Unparalleled

connectivity with

90 mmbls of storage

Wildhorse

Terminal


Hull Terminal and Pipeline System

Enhancing Keyera’s Access to Mont Belvieu

South pipeline system completed in 2Q18

43

Enhancing Keyera’s access to markets

Extension of Keyera’s liquids handling expertise Provides connections to Beaumont and Mont Belvieu,

North America’s largest NGL hub Rail, truck and pipeline terminal handles NGL mix,

propane, butane and iso-butane

Growth opportunities Provides commercial opportunities for Keyera’s

marketing business along with 3rd party fee-for-service opportunities

Agreement with major US midstream company securing storage and other midstream services in Mont Belvieu


Marketing Services

Utilizing Keyera’s Infrastructure to Create Value 44

C3

Propane

• Demand and pricing vary seasonally

• Keyera uses its storage and logistics to

access markets

• Majority sold into U.S. markets

• Supply exceeds demand in North America

C2

Ethane

• Sold under long-term agreements to

petrochemical producers in Alberta

• Limited spot market in western Canada

• Produced at three Keyera facilities

C4

Butane

• Sourced and consumed in Alberta

• Feedstock for iso-octane production at

Alberta EnviroFuels

• Seasonal imports from the U.S.

iC8

Iso-octane

• High quality gasoline additive

• Produced from butane at Keyera’s

Alberta EnviroFuels facility

• Majority of sales in the U.S.

C5+ Condensate

• Keyera’s C5+ hub creates industry liquidity

• Consumed in Alberta as diluent for bitumen

• Significant imports required to meet

demand


Alberta EnviroFuels (AEF)

AEF upgrades low-value butane into a iso-octane

Iso-octane is a high-octane, low vapour gasoline

additive

Demand is driven by premium gasoline demand

Iso-octane trades at a premium to gasoline prices

Seasonality is complementary to propane & butane

Keyera is the only merchant facility in North America

Butane is the feedstock, majority sourced from

Keyera’s facilities

Licensed capacity of 13,600 bbls/d

Financial forward markets enable hedging of large

portion of feedstock costs

45 Iso-octane is a Premium Value-Added Product


Iso-octane Business and its Margin Components

46 Iso-octane is a High-Value, Niche Business

NOTE: Components are not indicative of their relative size in the margin equation.

Cost

Components

Revenue

Components

Risk Management Hedges

Foreign Exchange

(iC8 sold in USD)

Iso-Octane (iC8)

Premium over RBOB

RBOB Premium over WTI

WTI

Strong demand for iso-octane - 13,600 bbls/d of facility capacity

- Annual peak occurs during summer driving season

Access to low value butane feedstock - Sourced locally and from the US

- Utilize cavern storage assets and pipeline network to

manage volumes and costs

Operational expertise to maximize utilization

Access to continental markets - Leverage Keyera’s rail terminals, storage facilities

and logistical expertise to identify best opportunities

- Sell into regions with the strongest demand across

North America, including the US Gulf Coast and

Midwest to maximize iso-octane premiums

Risk Management Hedges

Periodic Plant Maintenance

Plant Operating Expenses,

Storage & Transportation Costs

~1.4 bbl of C4 per bbl of iC8

Butane (C4) cost is a Fraction

of WTI (priced in USD)

www.keyera.com

Contact Information

Lavonne Zdunich, CPA, CA

Director, Investor Relations & Communications

Calvin Locke, P.Eng, MBA

Manager, Investor Relations

888-699-4853

[email protected]

Keyera Corp. Sun Life Plaza West Tower

200, 144 4 Avenue SW

Calgary, Alberta

T2P 3N4

47

CORPORATE PROFILE - Keyera · Corporate credit ratings: BBB/Stable4 Net Debt/EBITDA3: 3.0x5 2019...

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Transcript of CORPORATE PROFILE - Keyera · Corporate credit ratings: BBB/Stable4 Net Debt/EBITDA3: 3.0x5 2019...