6th Annual AltaCorp / ATB Institutional Investor Conference J a n u - - PowerPoint PPT Presentation

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6th Annual AltaCorp / ATB Institutional Investor Conference

J a n u a r y 1 0 , 2 0 1 8

Disclaimer

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

• r 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

• f 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. 2

1 Compound annual growth rate from 5/30/2003 to 9/30/2017. 2 Compound annual growth rate from 7/15/2003 to 12/29/2017. 3 Not a standard measure under GAAP. Based on dividends declared. 4 From 10/1/2016 to 9/30/2017, inclusive. 5 Based on Keyera’s closing share price of $35.42 and total post-offering number of shares outstanding on December 29, 2017.

%

cagr

distributable cash flow per share 1,3

%

cagr

dividend per share 2,3

%

LTM payout ratio 3,4

Strong Track Record of Creating Shareholder Value Conservative Capital Structure Provides Flexibility

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• $8.6 billion enterprise value5
• BBB credit rating from both DBRS and S&P
• One of the lowest leverage profiles in the sector

RAW GAS

gathering compression sweetening NGL extraction

E X T R A C T I O N C O N S U M P T I O N GATHERING & PROCESSING LIQUIDS BUSINESS UNIT

fractionation storage transportation marketing

ethane propane butane condensate iso-octane

F E E F O R S E R V I C E C O N T R A C T S M A R G I N

E N D M A R K E T S

An Integrated Value Chain with Diversified Cash Flows Essential Midstream Infrastructure and Services

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1 Acquisition capital in 2017 reflects the $55 million purchase price for undeveloped land in the Industrial Heartland of Alberta completed in 1Q17, among other actual YTD costs.

• 2. Estimated growth capital for 2018 includes the acquisition cost for 50% of the South Grand Rapids pipeline payable by Keyera upon completion of construction in mid-2018.

$- $200 $400 $600 $800 $1,000 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17e 12/31/18e Millions

ANNUAL CAPITAL EXPENDITURES

Growth Capital Upper End of Growth Capital Range Acquisitions Maintenance Capital

1 2

Investment Opportunities Continue $800-$900 Million of Growth Capital Spending in 2018

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$1.6 billion in projects came into service

• ver the

last three years $1.7 billion (net) in sanctioned projects currently under construction,

• r ~20% of

Keyera’s enterprise value

Wapiti and Simonette Area Gathering & Processing Projects

• Almost $800 million

in sanctioned capital projects for the Wapiti and Simonette areas1

• Positions Keyera

for potential expansions at both Simonette and Wapiti Increasing Keyera’s Presence in the Liquids-Rich Montney and Duvernay

• 1. Project cost subject to timely receipt of remaining regulatory approvals

and construction schedule variables.

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Producers active in the Wapiti and North Wapiti areas:

• Blackbird
• Cenovus
• CNRL
• Encana
• Hammerhead
• Inception
• Iron Bridge
• NuVista
• Paramount
• Pipestone Oil Corp.
• Seven Generations
• Shell
• Sinopec
• Velvet

North Wapiti Pipeline System

Sanctioned Capital = $120 million

Wapiti Gas Plant Complex

Sanctioned Capital = $470 million Sanctioned Capital = $185-200 million

Extensive, Flexible Condensate Infrastructure

Most connected condensate hub in Western Canada Major oil sands delivery options: Supply through multiple receipt points:

– Local fractionators and refineries – Kinder Morgan Cochin pipeline – Enbridge Southern Lights pipeline and CRW pool – Western Canada feeder pipelines – Rail imports at the Alberta Diluent Terminal

Storage at Keyera Fort Saskatchewan Long-term take-or-pay and fee-for-service agreements:

Industry-Leading Diluent Handling Services

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– Polaris – Norlite – Access – FSPL – Grand Rapids – South Cheecham – Imperial Oil (Kearl) – Husky/BP (Sunrise) – Suncor/Teck/Total (Fort Hills) – North West Upgrading – Cenovus (Christina Lake) – CNRL (Kirby, Primrose) – JACOS/Nexen (Hangingstone) – Devon (Jackfish)

Base Line Terminal – a Crude Oil Storage Solution

50/50 joint venture operated by Kinder Morgan 12 crude oil storage tanks with 4.8 million bbls of capacity under construction at Keyera’s Alberta EnviroFuels site Connected to Kinder Morgan’s Edmonton terminal Backstopped by 8 customers with take-or-pay contracts up to 10 years in length Expected net capital cost to Keyera of $330 million1 Potential to add additional tanks for total storage capacity of up to 6.6 million bbls, subject to customer demand Phased commissioning of tanks starting in 1Q181

Expanding and Diversifying Keyera’s Service Offering

1 Cost and timing subject to construction and schedule variables.

Tank Legend: Proposed = White Future = Brown

Base Line Terminal Concept Rendering

(View Looking North)

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A Well Positioned Midstream Company

diversified customer base & service

• ffering

strong balance sheet & low payout ratio Alberta EnviroFuels iso-octane business industry leading condensate system NGL fractionation & cavern storage capacity networked gas plants & gathering systems

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