TD Securities Calgary Energy Conference David G. Smith, President & CEO, Keyera Corp. July 8, 2015
Who Is Keyera Key service provider to oil and gas producers in western Canada Facilities well situated to capture decades- long energy resources History of growth in cash flow per share Track record of efficient capital allocation…
Excellent Track Record of Financial Performance Per Share (split-adj.) Historical Financial Results Payout Ratio 2.50 100% 2.00 90% 80% 70% 14% CAGR in distributable cash flow 1.50 60% per share2,4 50% 1.00 40% 0.50 30%…
Industry Fundamentals Driving Keyeras Growth Infrastructure Required to Meet Growing Oil and Gas Production 5
Recently Completed Growth Projects Completed Projects In-Service Date Capital Cost1 (Net, in Millions) Alder Flats New Gas Plant Construction (Phase I) May 2015 40 Twin Rivers Pipelines (Phases I & II) April 2015 75 Simonette Gas…
Growth Projects Currently Under Development Approved Projects Capital Cost 2014 2015 2016 2017 (Net, in Millions)1 Rimbey Turbo Expander & Debottlenecking 250 Josephburg Rail Terminal 95 Zeta Creek New Gas Plant Construction 41…
Keyeras Integrated Business Lines 62% * 38% * * Operating Margin from Keyeras fee-for-service business represents 62% of total operating margin (LTM). Operating Margin refers to total operating revenues less total operating expenses…
Western Canada Sedimentary Basin Canada is home to some of the most economic natural gas plays in North America Significant multi-zone gas potential on the deeper (west) side of Western Canada Sedimentary Basin Majority of geological…
Gathering and Processing Business Unit Well maintained, long-life facilities 2.81 Bcf/d licensed gross capacity Adding up to 164 MMcf/d licensed gross capacity with the development of 2 new Montney gas plants2 Keyera operates 16 of…
Montney A World Class Resource Pipeline Legend Growing amount of western Canadian natural gas production Keyera New Keyera coming from the Montney geological horizon Third Party Recent Montney study1 estimates marketable volumes…
Simonette Expanding to Handle Montney Production Wapiti pipeline system construction Pipeline opened a new capture area northwest of plant in the Wapiti area, where producers are drilling liquids-rich Montney zone Two 90-km…
Duvernay An Emerging Resource Development Duvernay developing in two areas Northern Duvernay and Southern Duvernay Multinationals have acquired significant land positions in both areas High levels of condensate and other NGLs…
Southern Duvernay Significant Infrastructure Available Keyera well positioned to capture Southern Duvernay volumes: 12 plants in the area with 2.2 Bcf/d gross licensed capacity1 2 new plants being developed, adding up to 164 MMcf/d…
Growing Through Selective Acquisitions Acquisitions completed in 2014: New Plants (under construction): 35% non-operating owner of Alder Flats gas plant 60% operating owner of Zeta Creek gas plant Existing Plants: 85% operating…
Enhancing Service Offering at Rimbey Added 400 MMcf/d turbo expander to enhance liquids extraction: Ethane capacity up to 20,000 bbls/d Project underpinned by long-term ethane purchase agreement Gross capital 230 million…
Stable and Growing Gas Plant Throughput Gross Plant Throughput % Change in Commodity (MMcf/d) Historical Throughput and the Percentage Change in AECO & WTI Price since January 2003 350% 1,600 300% 1,400 250% 1,200 200% 1,000…
Liquids Business Unit Fractionation: Storage: 102,000 bbls/d of C2+ and C3+ net Currently 11.6 million bbls of gross capacity at 5 locations capacity in 12 underground caverns for various NGLs Rail & truck terminals: Iso-octane…
Keyera Fort Saskatchewan (KFS) Expanding Fractionation Capacity Added 30,000 bbls/d de-ethanizer Fractionates an ethane-rich stream of NGLs (C2+ mix) into spec products Net cost to Keyera 179 million1, including pipeline connections…
KFS Adding Underground Storage Capacity 13th storage cavern expected in- service Q3 20151 14th storage cavern washing underway; expected in-service H2 20161 15th storage cavern drilling of well bore completed; washing to commence…
Oil Sands Production Growth Expected to Continue Bitumen Production Forecast (Historical + Risked) Project Sanctioned and/or Capacity MB/d Company Under Construction (MB/d) Timing Imperial Oil Nabiye 40 2015 Pengrowth Lindbergh…
Diluent Demand Drives Logistics Services Top 8 Consumers by Ranking of Operated Production Source: Peters & Co. Limited estimates. Continued Growth In Demand For Condensate Infrastructure 22
Extensive, Flexible Condensate Infrastructure Multiple receipt points: Keyeras Condensate Network Local fractionators Kinder Morgan Cochin pipeline (sole receipt point) Enbridge Southern Lights pipeline Western Canada feeder…
Enbridge Norlite Pipeline Expanding our Condensate Service Offering Diluent pipeline from Fort Saskatchewan to Athabasca oil sands region Operated by Enbridge Keyera will be 30% non-operating owner Long-term take-or-pay agreement…
South Cheecham Terminal Diluent, Dilbit and Bitumen by Rail South Cheecham Rail and Truck Terminal completed in Q3, 2013 Ownership Keyera 50% (operator), Enbridge 50% Terminal capable of receiving diluent and loading dilbit and…
Alberta Crude Terminal Loading Crude Oil onto Rail 50/50 joint venture with Kinder Morgan Land Acquired in 2014 operated by Keyera completed in Q3 2014 Connection to Kinder Morgans extensive storage facility provides customers…
Josephburg Terminal A Propane Solution for Industry Josephburg terminal will provide new propane rail infrastructure to handle growing propane supply from new liquids- rich production Capacity of approximately 40,000 bbls/d Capital…
Hull, Texas Terminal Access to Mont Belvieu Rail and truck facility in Hull, Texas commissioned in Q4 2014 Pipeline connected to Mont Belvieu NGL hub and Beaumont refining centre Handles NGL mix, propane, butane and iso-butane…
Base Line Terminal A Crude Oil Storage Solution for Industry 50/50 joint venture operated by Kinder Morgan (KM) Base Line Terminal Concept Rendering 12 crude oil storage tanks with 4.8 million bbls of capacity (View Looking North)…
All Three Business Segments Growing Millions Operating Margin1,2 700 600 500 400 300 Over the last 12 months, 62% of Operating Margin 200 has been derived from fee-for-service contracts 100 (65% when excluding 0 oil and…
Conservative Capital Structure 2.3x 16.2% Net Debt to Net Debt1 to Long-Term Debt Maturities3 EBITDA1 Enterprise Value2 300 250 200 CAD MM 150 264 100 109 167 143 125 50 97 60 60 75 46 0 2015 2016 2017 2018…
Providing Critical Infrastructure for the Oil and Gas Sector in Canada Keyeras growth driven by liquids-rich gas production and oil sands development Western Canadian geology with layered zones provides long-term resource Business…
For Further Information Contact: Lavonne Zdunich, CA Director, Investor Relations & Communications Nick Kuzyk, MBA Manager, Investor Relations 888-699-4853 irkeyera.com Keyera Corp. 600, 144 4 Avenue SW Calgary, Alberta…
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