Business
Keyera Reiterates Confidence in its Business & Provides Marketing Guidance for 2020
Keyera Reiterates Confidence in its Business & Provides Marketing Guidance for 2020 ...
About this update from Keyera Corp.
[{"type":"text","content":"\n\n\n\nKeyera Reiterates Confidence in its Business & Provides Marketing Guidance for 2020\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\nKeyera Reiterates Confidence in its Business & Provides Marketing Guidance for 2020\nCanada NewsWire\nCALGARY, March 16, 2020\n\n\n\nCALGARY, March 16, 2020 /CNW/ - Due to the unprecedented environment and the sharp decline in Keyera's share price, Keyera Corp. (TSX:KEY) (\"Keyera\") is providing the following information to address investor inquiries. Keyera remains confident in its business outlook given its strong financial position and integrated portfolio of diverse assets and services that serve both natural gas and oil sands producers. \nKeyera's Strong Financial PositionKeyera's financial position includes the following:\na strong balance sheet with Net Debt to Adjusted EBITDA of 2.7x as of December 31, 2019, including 50% of the subordinated hybrid notes as debt; a long-term payout ratio target range of between 50% and 70% (2019 – 67%; 2018 – 56%); BBB investment grade corporate credit ratings from DBRS Limited and S&P Global; a $1.5 billion line of credit ($90 million drawn as of December 31, 2019); and no meaningful long-term debt maturities in the next five years (less than 15% of total long-term debt). Keyera's 2020 Marketing GuidanceBased on year-to-date performance and negotiation of natural gas liquids (\"NGL\") supply agreements for the contract year beginning April 1, Keyera expects 2020 realized margin for the Marketing segment to range between $270 million and $310 million, which exceeds the base guidance range of between $180 million and $220 million. The expected range for 2020 reflects Keyera's effective risk management program, Marketing's strong contribution year-to-date and the following assumptions: i) current forward pricing for any unhedged volumes in the remainder of 2020; ii) AEF operating near capacity; iii) no significant logistics or transportation curtailments; and iv) a risk adjustment for contracted NGL supply volumes. Keyera plans to provide a fu...