FirstEnergy Conference Emerging Resources David G. Smith November - - PowerPoint PPT Presentation

firstenergy conference emerging resources david g smith
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FirstEnergy Conference Emerging Resources David G. Smith November - - PowerPoint PPT Presentation

FirstEnergy Conference Emerging Resources David G. Smith November 2013 Forward-Looking Information In the interests of providing Keyera Corp. (Keyera or the Company) shareholders and potential investors with information


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FirstEnergy Conference “Emerging Resources” David G. Smith November 2013

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Forward-Looking Information

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 (collectively “statements”) 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-

  • ctane; 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.

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8.1%

CAGR2 in dividends per share

$900+MM

Estimated Growth Capital for 2013/20143

Exciting Growth Opportunities Tied to our Integrated Business Lines

About Keyera (TSX:KEY)

  • Disciplined approach to value creation
  • Fee-for-service focus

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2 From 07/15/2003 to 09/30/13

22%

Compound annual TSR1

1 From 05/30/03 to 09/30/13 3 Assuming timely receipt of approvals

and no construction delays

  • Strategically positioned assets
  • Proven operational expertise
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Infrastructure and Market Access are Key to Unlocking Value

Producers Need an Integrated Solution

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* Includes intersegment transactions. See Keyera’s Third Quarter 2013 MD&A for a definition of Operating Margin.

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Processing Liquids-Rich Gas in the Right Locations

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Keyera’s Gathering and Processing Business Unit

  • Well maintained, long-life facilities
  • Extensive capture area

– ~ 4,000km gas gathering system

  • Gathering and processing solutions

can be linked to NGL fractionation and marketing alternatives

MONTNEY CARDIUM

DUVERNAY

GLAUCONITE

Strategically Located Facilities

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Can the Duvernay be Accelerated to Take Advantage of Existing Infrastructure?

Southern Duvernay – Significant Infrastructure in Place Today

  • Keyera is well positioned

– 10 plants (1.9 bcf/d processing capacity) and liquids recovery) – Extensive gathering systems in place

  • Full fractionation at Rimbey plant

– 400 mmcf/d turbo being installed

  • Access to Edmonton/ Fort Saskatchewan

market via pipeline from Rimbey

  • Ethane from Rimbey to Alberta Ethane

Gathering System (AEGS) pipeline

  • 50% ownership in Bonnie Glen oil /

condensate pipeline to Edmonton

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Sources: Peters & Co. Limited ,geoSCOUT.

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Keyera Progressing a Number of Infrastructure Growth Projects Simonette / Kaybob Area

  • Keyera Simonette gas plant is a

150 MMcf/d sour gas plant

  • New plant modifications

underway will add 100 MMcf/d of processing capacity and improve condensate handling

  • Constructing 90-km Wapiti

pipeline system (12-inch sour gas pipeline and 6-inch condensate pipeline)

  • Possible future expansions for

additional capacity or deep-cut extraction under review

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Sources: Peters & Co. Limited ,geoSCOUT.

Northern Duvernay - Needs Significant Infrastructure Buildout

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Adding Capacity and New Services to a Strong Foundation of Assets

Expanding NGL Infrastructure to Accommodate Liquids-Rich Drilling

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Keyera’s Liquids Business Unit

  • NGL Infrastructure :

– 80,000 bbls/d of fractionation capacity at 5 locations – Rail & truck handling facilities at 19 Locations, including a 1,500+ rail car fleet (3 major terminals under construction) – 11.4 million barrels of underground storage at 12 caverns plus >300,000 barrels of above ground storage

  • Marketing:

– Utilizing Keyera’s integrated facilities and logistics expertise to move spec products to markets across North America

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Providing Customers with Significant Receipt and Delivery Flexibility

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Keyera’s Fort Saskatchewan Condensate System

Keyera is Part of the Largest, Most Liquid Condensate Hub in Western Canada

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Disciplined Growth Builds Strong Cash Flow

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Alberta EnviroFuels (AEF) 2012 Acquisition Turbo Expander at Strachan and MBL Alberta Diluent Terminal (ADT) 24/7 Operations South Cheecham Rail and Truck Terminal 12th Storage Cavern Kearl Contract - Diluent and Solvent Handling Delivering Iso-Octane by Rail New Gas Gathering Pipelines Alberta Crude Terminal Rimbey Turbo Expander Wapiti Pipelines (2 x 90km) Simonette Modifications Strachan Sulphur Expansion Hull, Texas Terminal Refurbishment New Gas Gathering Pipelines 13th and 14th Storage Caverns KFS De-ethanizer NGL Fractionator Expansions 4th Brine Pond Norlite Diluent Pipeline to Oilsands South Cheecham Expansion Hull, Texas Terminal Expansion New Gas Gathering Pipelines Alberta Liquids Pipeline System (ALPS) Simonette Future Expansion New Rail Terminals Enhancing NGL Recoveries at Gas Plants Future Storage Caverns ACT Future Expansion

Under Evaluation Under Development Operational

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KEY to success

Focused strategy, disciplined approach 2014 growth plans to be largest in Keyera’s history Track record of steady value creation Stable cash flows with demonstrated growth Positioned to benefit from liquids-rich gas production Positioned to capitalize on growth in oil sands activities

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For Further Information Contact: John Cobb Vice-President, Investor Relations

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Julie Puddell Manager, Investor Relations 888-699-4853 ir@keyera.com Keyera Corp. 600, 144 – 4 Avenue SW Calgary, Alberta T2P 3N4 WWW.KEYERA.COM