Business
Keyera Reducing its Capital Program and Suspending its Dividend Reinvestment Plan
Keyera Reducing its Capital Program and Suspending its Dividend Reinvestment Plan ...
About this update from Keyera Corp.
[{"type":"text","content":"\n\n\n\nKeyera Reducing its Capital Program and Suspending its Dividend Reinvestment Plan\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, April 22, 2020\n\n\n\nCALGARY, April 22, 2020 /CNW/ - Keyera Corp. (TSX:KEY) (\"Keyera\") announced today that it is preserving its financial flexibility by reducing its 2020 capital program following a decision to defer construction of the KAPS pipeline system for approximately one year. Keyera is also suspending its Premium DividendTM and Dividend Reinvestment Plan (\"DRIP\"). These actions are in response to challenging industry conditions related to the unfolding COVID-19 crisis and the significant decrease in global oil prices. \n\n \n \n \n \n \n \n\n \nOne Year Deferral of the KAPS Capital ProjectKeyera along with its partner, SemCAMS Midstream ULC, have agreed to defer construction of KAPS, the previously approved Montney condensate and natural gas liquids pipeline system, for approximately one year. Regulatory activities will continue throughout 2020, positioning the project for construction activities in the second half of 2021. The project remains highly desired by industry as it provides an additional and alternative transportation solution for condensate and natural gas liquids from liquids-rich developments in northwestern Alberta. With the cooperation of the KAPS customers, all transportation agreements have been amended to support the one-year deferral. There have been no changes to the long-term volume commitments as a result of this deferral; accordingly, expectations at this time are that economic returns will be materially consistent with prior guidance.\nKeyera's Revised Growth Capital GuidanceWith this decision, Keyera now expects to invest growth capital of between $475 million and $525 million in 2020. (Previously, Keyera expected to invest between $700 million and $800 million in 2020.) This capital investment will complete the second phase of the Wapiti gas plant in the Montney, the Wildhorse crude oil storage and blending terminal in Cushing, Oklahoma, and the Pipest...