FIXED INCOME INVESTOR PRESENTATION A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before J u n e 1 3 - 1 5 , 2 0 1 8 making an investment decision.
Disclaimer In the interests of providing Keyera Corp. (“Keyera” or the “Company”) investors 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; investment opportunities; 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; Keyera’s ability to maintain its corporate credit rating; credit ratings for securities that may be issued in the future; current and future counterparty risk profile; 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. Except as required by law, Keyera does not undertake any obligation to update or revise any forward-looking information. This document also contains non-GAAP measures. See the section titled “Non -GAAP Financial Measures” in Keyera’s 2017 Annual Management Discussion and Analysis and 2018 Q1 Management Discussion and Analysis for further information. 2
Keyera Attendees Steven Kroeker Senior Vice President and Chief Financial Officer • Over 25 years experience in the oil and gas industry • 12 years with Keyera • Over 5 years as CFO; Over 6 years as VP Corporate Development • 9 years in Energy Investment Banking • MBA from Ivey Business School and B.Comm from University of Calgary Avery Reiter Director, Treasury • Over 22 years experience in the oil and gas industry • 17 years with Keyera • CPA and B.Comm from the University of Alberta 3
Agenda I. Overview of Keyera II. Business Unit Overview III. Growth and Capital Expenditures IV. Financial Overview V. Conclusion 4
I. Overview of Keyera 5
Overview of Keyera Structure Canadian Listed Public Corporation Stock Ticker KEY Market Capitalization 1 $6.9 billion Adjusted EBITDA 2 (LTM) $658 million Debt 3 $1.8 billon Enterprise Value 1,3 $8.7 billion Credit Ratings DBRS: BBB Stable S&P: BBB/Stable Debt 3 / Capitalization 4 42.0% Debt 3 / Adj. EBITDA 2 (LTM) 2.8x Dividend Payout Ratio (LTM) 60% Dividend Yield 1 5.01% ($1.68/yr dividend) 1. Based on shares outstanding and closing share price of $33.51 on March 31, 2018. 2. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, accretion, impairment expenses, unrealized gains/losses and any other non-cash items such as gains/losses on the disposal of property, plant and equipment. EBITDA and Adjusted EBITDA are not standard measures under GAAP. See section of the MD&A titled “EBITDA” for a reconciliation of Adjusted EBITDA to its most closely related GAAP measure. As of March 31, 2018. 3. Includes current portion of long term debt As of March 31, 2018. 4. Capitalization equals long term debt plus total shareholders equity as of March 31, 2018.
Investment Highlights Long life integrated assets in the right liquids rich areas Strong business risk profile Provides essential services for producers 20 year track record of profitable operations and project execution Disciplined financial approach with a proven commitment to a strong balance sheet 7
Our History 8
Our Business Strategy Our vision: To be the North American Leader in Delivering Midstream Energy Solutions In support of this vision, Keyera has maintained a consistent commitment to its strategy of delivering steady value growth built around sustainable, competitive energy facilities. As part of this strategy, Keyera: • Focuses on operational safety • Strives to provide reliable midstream services at a competitive price • Pursues opportunities to increase throughput at its existing facilities • Invests in expansion and optimization opportunities to meet its customer needs and complement its service offerings • Selectively pursues acquisitions • Builds on the interconnectivity of its infrastructure and its integrated business model • Maintains a conservative capital structure 9
An Integrated Value Chain LIQUIDS BUSINESS UNIT Gathering & Processing Liquids Infrastructure Marketing 37% LTM Realized Margin 1 41% 20% F E E F O R S E R V I C E M AR G I N E N D M A R K E T S C O N S U M P T I O N E X T R A C T I O N RAW GAS Fractionation Gathering Storage Transportation Marketing Compression Ethane Sweetening Propane NGL extraction Butane OIL Condensate Iso-octane SANDS 1. Realized margin is defined as operating margin excluding unrealized gains and losses from risk management contracts from the Marketing segment. Realized margin is not a standard measure under GAAP . See section of the MD&A titled “Results of Operations: Marketing” for a reconciliation of Operating Margin to Realized Marg in as it relates to the marketing segment only. Includes intersegment 10 transactions. LTM is last twelve months ending March 31, 2018.
Diversified and Growing Realized Margin Percent of Last Realized Margin (Rolling Last Four Quarters) 1 Millions Four Quarters $800 Realized Margin 1 $700 20% $600 $500 41% $400 Fee-for- Service $300 (including Take-or-Pays) $200 37% $100 $0 03/31/17 06/30/17 09/30/17 12/31/17 03/31/18 Production 2% (not shown) Gathering & Processing Liquids Infrastructure Marketing 1. Realized margin is defined as operating margin excluding unrealized gains and losses from risk management contracts from the Marketing segment. Realized margin is not a standard measure under GAAP. See section of the MD&A titled “Results of Operations: Marketing” for a reconciliation of Operating Margin to Realized Margin as it relates to the marketing segment only. Includes intersegment transactions. This graph excludes other income from production associated with Keyera’s oil and gas reserves . Fee-for-Service Business Underpins Balanced Growth 11
II. Business Unit Overview 12
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