Keyera Corp. · TSX:KEY
Keyera — Investor Presentation (November 2022)
21 slides from Keyera's investor presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation November 2022 1
Slide 2: Forward-Looking Information & Non-GAAP and Other Financial Measures
Forward-Looking Information & Non-GAAP and Other Financial Measures To provide readers with information regarding Keyera, including its assessment of future plans, operations In addition to factors referenced above, Keyera’s expectations with respect to future returns associated and financial perfor
Slide 3: Why Invest In Keyera?
Why Invest In Keyera? Compelling Risk-Adjusted Returns Financial Dividend High-Quality Value Creation ESG Focused Strength Sustainability Assets Track Record Emissions on intensity and absolute basis Low leverage of Aim to steadily grow High barrier-to-entry Clearly defined lowered by 12% and 2.4x1
Slide 4: Our ESG Journey
Our ESG Journey 2022 2021 New Board Governance & GHG Targets Sustainability Committee 2020 Parallel Path for ESG-Aligned Materiality Energy Transition Community Assessment; Investment ESG Priorities Enterprise Risk Program 2019 Management ESG-Aligned and Capital Stakeholder Investment Engagement ESG
Slide 5: Demonstrating ESG Leadership
Demonstrating ESG Leadership Long-Term Value Creation is Consistent with Strong ESG Performance BBB A* 41st 8th * D B* 31st 48th * (2018) (2022) (2018) (2022) (2018) (2021) (2018) (2022) *Rating: Lower is better *Percentile: Lower is better *Rating: Lower is better *Score: Higher is better Keyera ca
Slide 6: Sustained Dividend Growth Through Capital Discipline
Sustained Dividend Growth Through Capital Discipline Target Payout Range 50%-70% of Distributable Cash Flow3 8% Financial Commodity COVID-19 Crisis Price Collapse Pandemic DCF/sh CAGR1,3 (since ’08) DCF/sh3 Portion of DCF/sh3 paid as Dividends DCF/sh3 $3.03 7% Net Debt to adjusted EBITDA2,3 Dividend
Slide 7: Our Financial Framework
Our Financial Framework Guiding Our Efforts to Generate Superior Risk-Adjusted Returns Target 2021A Credit ratings BBB BBB/BBB- Preserve Financial Strength and Flexibility Net Debt / Adjusted EBITDA1,2 2.5x - 3.0x 2.4x Corporate ROIC1 >12% 14% Invest for Margin Growth and Cash Flow Stability Fee-for
Slide 8: Capital Allocation Priorities
Capital Allocation Priorities Strong Focus on Long-Term Total Shareholder Returns Non-Discretionary 1 Fund maintenance capital Year Priorities 2 Maintain balance sheet strength 2022 • Fund major strategic growth project (KAPS) 3 Pay current dividend Balance priorities between: • Bringing net debt to
Slide 9: Clear Pathway to Near-Term EBITDA Growth
Clear Pathway to Near-Term EBITDA1 Growth Our ’22 – ’25 Plan 2022 2023 2024 2025E Continued ramp up at Wapiti Filling of Existing Capacity Adj. EBITDA1 ($M) South Cheecham Sulphur Terminal Storage Cavern 18 Pipestone Capacity Expansion (~60 MMcf/d) Assumes Marketing realized margin1 of KAPS Zones 1
Slide 10: Strong Financial Position
Strong Financial Position Long-term debt maturities (C$ MM)3 (excludes drawings under revolver) • 2.4x Net Debt to adjusted EBITDA1,2 • Conservative payout ratio1 Private Notes • 65% for Q3/22 (target of 50 – 70%) • Investment grade credit ratings $264 • DBRS Limited: Affirmed, BBB/Stable $230 • S&P
Slide 11: Managing Cash Flow Stability
Managing Cash Flow Stability Realized Margin1 from Investment Grade Customers and Take-or-Pay Contracts MANAGED THROUGH Non ~29% Investment Grade ~31% Non Fee-for-Service RISK MANAGEMENT PROGRAM PROTECTING ~69% Fee-for-Service DOWNSIDE Investment Grade ~71% (77% including secured PRESERVING counterp
Slide 12: Our Integrated Value Chain
Our Integrated Value Chain High Barrier-to-Entry Asset Base with Access to High Value Markets Raw Gas NGL Spec Products External Markets Customers Gathering & Processing Liquids Infrastructure Marketing End Users • Strategically located gas • Highly utilized • Utilizes Keyera’s plants in the liquids
Slide 13: Delivering Energy Infrastructure Solutions
Delivering Energy Infrastructure Solutions Focused on Maximizing Customer Netbacks Energy Infrastructure + Marketing Demand Drivers LNG Canada ESG Natural Gas (C1) LOW-EMISSIONS ENERGY SOURCE ENERGY SECURITY ESG MEDICAL GRADE PLASTIC, Ethane (C2) STERILE PACKAGING ESG Propane (C3) LIGHT WEIGHTING AU
Slide 14: KAPS – A Basin Asset
KAPS – A Basin Asset A Game Changer for Keyera Zone 4 Improving Our Competitiveness KAPS pipeline system highly desired by industry Pipestone Competitive alternative, adding Wapiti optionality and additional connectivity for producers Simonette KAPS Provides secure, long-term cash flow with 75% take
Slide 15: Growth Across Our Integrated Value Chain
Growth Across Our Integrated Value Chain Projects Paced to be Internally Funded C2 Ethane C3 Propane C4 Butane C5+ Condensate iC8 Iso-Octane Gas Plants Keyera Fort Saskatchewan Alberta EnviroFuels Condensate System KAPS and Keylink Spec NGL Transportation Spec NGL Transportation Oil Sands Diluent Su
Slide 16: Playing A Role In The Energy Transition
Playing A Role In The Energy Transition Transitioning to A Low-Carbon Economy Carbon Capture & Storage Clean Fuels • Acid gas injection at six of our • Exploring opportunities to help existing locations1 refiners meet CFS requirements • Potential to provide CCS services using iso-octane for customer
Slide 17: Building A Strong Energy Transition Business
Building A Strong Energy Transition Business Unique Ability to Evolve Existing Asset Base through Energy Transition Potential Shell Keyera H2 Caverns IPL Potential Keyera Fort Saskatchewan (KFS) H2 Cogen and H2 Demand Shell Fort Dow Sask. ATCO IPL Keyera Alberta Crude Terminal (ACT)/ Alberta Diluent
Slide 18: 2022 & 2023 Guidance
2022 & 2023 Guidance Balancing modest growth, balance sheet strength and returning cash to shareholders 2022 Guidance 2023 Guidance Growth Capital Expenditures $770-$800 MM Growth Capital Expenditures $140-$180 MM Marketing Realized Margin1 $380-$410 MM Annual Base Marketing Realized Margin1 (update
Slide 19: Why Invest In Keyera?
Why Invest In Keyera? Compelling Risk-Adjusted Returns Financial Dividend High-Quality Value Creation ESG Focused Strength Sustainability Assets Track Record Emissions on intensity and absolute basis Low leverage of Aim to steadily grow High barrier-to-entry Clearly defined lowered by 12% and 2.4x1
Slide 20: Notes
Slide 3 Notes All information as of December 31, 2021, unless otherwise stated. 1. As of September 30, 2022. 2. Distributable cash flow (“DCF”), payout ratio, compound annual growth rate (“CAGR”) for DCF per share, compound annual growth rate (“CAGR”) for dividends per share, adjusted EBITDA and ret
Slide 21: Contact Information
Contact Information Dan Cuthbertson Director, Corporate Development & Investor Relations Calvin Locke, P.Eng, MBA Manager, Investor Relations Rahul Pandey, CFA, P.Eng Senior Advisor, Investor Relations Keyera Corp. The Ampersand, West Tower 200 144 – 4th Avenue SW Calgary, Alberta 1-888-699-4853 T2P