CIBC 18th Annual Whistler Institutional Investor Conference January 22, 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 stable and growing cash flows Track record of efficient capital allocation…
Keyeras Vision To be the North American Leader in Delivering Midstream Energy Solutions How will this be achieved By leveraging our strong market position in the natural gas and oil sands sectors By continuing to make customer…
Excellent Track Record of Financial Performance 13% Per Share Historical Financial Results Payout Ratio 4.50 100% 4.00 90% 3.50 80% 3.00 70% CAGR in distributable cash flow 2.50 60% per share3 50% 2.00 40% 1.50 1.00…
Industry Fundamentals Driving Keyeras Growth 3Assuming timely receipt of approvals and no construction delays Infrastructure Required to Meet Growing Oil and Gas Production 6
Growing to Meet Customer Demand Capital Cost Approved Projects ( Millions)1 2014 2015 2016 2017 2018 Rimbey turbo expander 210 Wapiti raw gas and condensate pipelines 180 Simonette plant modifications 95 Strachan Vitasul project 66 Gas…
Keyeras Integrated Business Lines * Fee-for-Service revenues were 68% of Keyeras 2013 Operating Margin, including intersegment transactions. Operating margin refers to total operating revenues less total operating expenses and G&A…
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…
Gathering and Processing Business Unit Well maintained, long-life facilities 2.71 Bcf/d licensed gross capacity Adding up to 274 MMcf/d licensed gross capacity with development of 2 new Montney plants2 Keyera operates 16 of 17…
Montney A World Class Resource Large portion of current western Canadian natural gas production coming from the Montney geological horizon Recent Montney study1 estimates marketable volumes of: 449 Tcf of natural gas 14 billion Bbls…
Simonette Expanding to Handle Montney Production Pipeline Legend Constructed Wapiti pipeline system Keyera New Keyera Legacy Opening new capture area northwest of plant in Wapiti / Third Party Elmworth area where producers are…
Duvernay An Emerging Resource Development Duvernay developing in two areas (Northern Duvernay and Southern Duvernay) Multinationals have acquired significant land positions in both areas Initial indications are that Duvernay gas…
Southern Duvernay Significant Infrastructure Available Keyera is 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 274…
New Pipelines Capturing Growing Gas Production Wilson Creek Pipeline Producers targeting numerous geological zones in west central Alberta Keyera continues to expand plant capture areas through addition of gathering pipelines…
Enhancing Service Offering at Rimbey Adding 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 210 million Expected…
Growing Through Selective Acquisitions Disciplined evaluation criteria used to identify acquisition opportunities Acquisitions completed in 2014: Existing Plants: 85% operating owner of Cynthia gas plant 71% operating owner of…
Stable and Growing Plant Throughput Gross Plant Throughput Average AECO Price (MMcf/d) (C/gJ) Historical Gross Throughput vs. Natural Gas Price 1,750 12.50 11.25 1,500 10.00 1,250 8.75 7.50 1,000 6.25 750 5.00 500 3.75…
LNG Development Will Require Upstream Infrastructure Multi-decade development in early stages of development 14 LNG projects1 identified 7 export licenses approved1 by NEB Producers likely to develop highest netback gas zones…
Liquids Business Unit Fractionation: Marketing: 80,000 bbls/d of capacity at Providing products to North 5 locations American customers Storage: Rail & truck terminals: 11.5 million bbls in 12 Propane, butane, condensate, underground…
Keyera Fort Saskatchewan (KFS) Expanding Fractionation Capacity Adding 30,000 bbls/d de-ethanizer To fractionate an ethane-rich stream of NGLs (C2+ mix) Net cost to Keyera 155 million, including pipeline connections and cavern for…
KFS Adding Underground Storage Capacity 13th storage cavern being washed; expected in-service H2 20151 14th storage cavern washing began in Q4 2014; expected in- service H2 20161 15th storage cavern drilling underway; washing to…
Oil Sands Production Growth Expected to Continue Bitumen Production Forecast (Historical + Risked) Sources: Peters & Co. Limited estimates, AER, and geoSCOUT. Majors and Multi-Nationals Driving Oil Sands Growth 23
Diluent Demand Drives Logistics Services Top 8 Consumers by Ranking of Operated Production Diluent supply from WCSB- based production to increase from 170Mb/d by 100-150 MB/d; remainder of diluent to be supplied via…
Extensive, Flexible Condensate Infrastructure Keyeras Condensate Network Multiple receipt points: Kinder Morgan Cochin pipeline (sole receipt point) Enbridge Southern Lights pipeline Western Canada feeder pipelines Rail imports at…
Enbridge Norlite Pipeline Expanding our Condensate Service Offering Diluent pipeline from Fort Saskatchewan to Athabasca oil sands region Keyera will be participating as 30% non-operating owner Long-term take-or-pay agreement with…
South Cheecham Terminal Diluent, Crude 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 onto Rail 50/50 partnership with Kinder Morgan Connection to Kinder Morgans extensive storage facility provides customers access to several crude qualities Project underpinned by Irving Oil…
Josephburg Terminal A Propane Solution for Industry Josephburg terminal will help address the need for new propane rail infrastructure to handle: Cochin propane volumes as the pipeline is no longer in propane service Growing…
Hull, Texas Terminal Access to Mont Belvieu Rail and truck facility in Hull, Texas, located between Mont Belvieu and Beaumont refining centre Terminal intended to facilitate the movement of NGL mix, propane, butane and iso-butane…
Iso-octane Manufacturing Alberta EnviroFuels Facility acquired from Chevron & Neste in early 2012 Iso-octane an additive to create high octane, low vapour pressure gasoline Only merchant facility in North America that manufactures…
Keyeras Marketing Services Condensate Consumed in Alberta as diluent for bitumen C5 Demand significantly exceeds Alberta supply Significant imports today required Butane Consumed in Alberta C4 Feedstock for iso-octane…
All Three Business Segments Growing Millions Operating Margin1,2 500 450 400 350 300 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 3 YTD Gathering & Processing NGL Infrastructure NGL Marketing 1 Operating…
Conservative Capital Structure 1.80X 12% Net Debt1 to Net Debt1 to Long-Term Debt Maturities EBITDA2 Enterprise Value3 300 250 200 CAD MM 150 264 100 167 125 109 143 50 97 60 60 75 46 0 2015 2016 2017 2018 2019…
Third Quarter Results (Millions of Canadian dollars, except where noted) Q3/14 Q3/13 Operating Margin1 Gathering & Processing 54.0 40.7 NGL Infrastructure 45.8 31.4 Marketing 79.9 33.2 Other 10.9 1.7 Total Operating Margin1 190.6…
Trading Metrics KEY Trading Symbols (TSX) 81.07 Common Share Price1 6.8 B Market Capitalization1 7.8 B Enterprise Value1,2 84.3 M Common Shares Outstanding3 491,235 Daily Trading Volume4 2.58 Annualized Dividend per Share…
Providing Critical Infrastructure for the Oil and Gas Sector in Canada Keyeras growth driven by liquids-rich gas production & oil sands development Western Canadian geology provides multi-decade resource Business based on providing…
For Further Information Contact: John Cobb Vice-President, Investor Relations Lavonne Zdunich Director, Investor Relations Nick Kuzyk Manager, Investor Relations 888-699-4853 irkeyera.com Keyera Corp. 600, 144 4 Avenue SW…
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