Keyera Corp. · TSX:KEY
Keyera — Investor Presentation (November 2024)
22 slides from Keyera's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024 1
Slide 2: Forward-Looking Information
Forward-Looking Information To provide readers with information regarding Keyera, including its assessment of future plans, operations and financial performance, certain statements contained herein contain forward- looking information within the meaning of applicable Canadian securities legislation
Slide 3: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures This presentation refers to certain financial and other measures that are not determined in accordance with Generally Accepted Accounting Principles (GAAP), such as: adjusted EBITDA, distributable cash flow (DCF), DCF per share, payout ratio, return on invested
Slide 4: Why Invest In Keyera?
Why Invest In Keyera? Compelling Risk-Adjusted Returns Sustainable Strong ESG Financial High-Quality Value Creation Dividend Performance Strength Assets Track Record Growth Emissions reduced1 on Current Annual Low leverage of 1.9x High barrier-to-entry Clearly defined intensity and absolute Dividend
Slide 5: Our Sustainability Progress
Our Sustainability Progress Long-Term Value Creation is Consistent with Strong Environmental, Social, and Governance Performance BBB AA 41st 4th * D B (2018) (2024) (2018) (2024) (2018) (2023) *Percentile: Lower is better Ensuring Long-Term Business Sustainability E S G Disclosure Meaningful Emissio
Slide 6: Decarbonizing Our Business
Decarbonizing Our Business Supporting the Transition to A Lower-Carbon Economy Decarbonizing GHG Targets1 Strategies Using 2019 as our baseline year, we have Supporting Renewable Energy committed to reduce our scope 1 & 2 equity-based emissions intensity by: ~10% of our current commercial power is s
Slide 7: Sustained Dividend Growth Through Capital Discipline
Sustained Dividend Growth Through Capital Discipline Target Payout Range 50%-70% of Distributable Cash Flow1,2 (“DCF”) 8% Financial Commodity COVID-19 Crisis Price Collapse Pandemic DCF/sh CAGR1,2 $3.73 (since ’08) DCF/sh2 6% Dividend/sh CAGR2 (since ’08) $1.96 Dividend/sh MAINTAINED STRONG Net debt
Slide 8: Our Financial Framework
Our Financial Framework Guiding Our Efforts to Generate Superior Risk-Adjusted Returns Target 2023A Credit Ratings BBB BBB/BBB Preserve Financial Strength and Flexibility Net Debt / Adjusted EBITDA1 2.5x - 3.0x 2.2x Invest for Margin Growth Corporate ROIC2 >12% 16% and Cash Flow Stability Dividend P
Slide 9: Strong Free Cash Flow Generation in 2024
Strong Free Cash Flow Generation in 2024 Sources and Uses Adjusted EBITDA1 Vs. Cash Uses Capital Allocation Priorities Non-Discretionary 2024 Free Cash Flow Uses Free • Pay down short-term 1 Fund maintenance capital Cash Flow debt, building balance sheet optionality 2 Maintain balance sheet strength
Slide 10: Expected to Reach High End of Growth Target
Expected to Reach High End of Growth Target 6-7% CAGR for Adjusted EBITDA Holding Marketing Constant1 Fee-For-Service Growth Drivers ’22-’25 >20% realized margin1 growth since beginning of ’22; Near-term growth requires little incremental capital Gathering & Processing • Filling available capacity a
Slide 11: Strong Financial Position
Strong Financial Position Long-term debt maturities (C$ MM)3 • 1.9x net debt to adjusted EBITDA1 at the end (excludes drawings under revolver) of Q3/24 • Conservative payout ratio2 • 53% for 2023 (target of 50 - 70%) Public & Private Notes • Investment grade credit ratings • S&P Global: Affirmed, BB
Slide 12: Managing Cash Flow Stability
Managing Cash Flow Stability Realized Margin1 from Investment Grade Customers and Take-or-Pay Contracts MANAGED THROUGH Non ~32% Investment Grade ~35% Non Fee-for-Service RISK MANAGEMENT PROGRAM PROTECTING ~65% Fee-for-Service DOWNSIDE Investment Grade ~68% (71% including secured PRESERVING counterp
Slide 13: 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 14: Delivering Energy Infrastructure Solutions
Delivering Energy Infrastructure Solutions Focused on Maximizing Customer Netbacks Energy Infrastructure + Marketing Demand Drivers LNG Canada Natural Gas (C1) LOW-EMISSIONS ENERGY SOURCE ENERGY SECURITY MEDICAL GRADE PLASTIC, Ethane (C2) STERILE PACKAGING Propane (C3) LIGHT WEIGHTING AUTOMOTIVE, FO
Slide 15: Marketing: A Unique Competitive Advantage
Marketing: A Unique Competitive Advantage A Physical Business That Enhances Returns Marketing is a Physical Business Products Natural Gas Liquids (NGLs) Products Destinations Pipeline Ethane (C2) Eastern Canada Propane (C3) West Coast Canada Butane (C4) Oilsands Stronger cash Condensate (C5+) Bakken
Slide 16: KAPS: A Game Changer for Keyera
KAPS: A Game Changer for Keyera Ending Decades Long Monopoly Significantly Improves Our Competitiveness Gordondale Fully Integrates our value chain KAPS Zone 4 Pipestone Allows to better compete for Grand Prairie volumes and earn full-value chain Wapiti returns North G&P Simonette Offer customers a
Slide 17: 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 18: 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 19: Guidance and Planned Turnarounds/Outages
Guidance and Planned Turnarounds/Outages 2024 Guidance Growth Capital Expenditures $80-$100 MM Maintenance Capital Expenditures $120-$140 MM Marketing Realized Margin1 $450-$480 MM Cash Taxes $90-$100 MM 2024 Planned Turnarounds and Outages Alberta EnviroFuels Outage (Complete) 6 weeks Q2 2024 Keyer
Slide 20: Why Invest In Keyera?
Why Invest In Keyera? Compelling Risk-Adjusted Returns Sustainable Strong ESG Financial High-Quality Value Creation Dividend Performance Strength Assets Track Record Growth Emissions reduced1 on Current Annual Low leverage of 1.9x High barrier-to-entry Clearly defined intensity and absolute Dividend
Slide 21: Notes
Slide 4 Notes All information as of December 31, 2023, unless otherwise stated. 1. Emissions data is equity-based scope 1 & scope 2 greenhouse gas emissions data. 2. Net debt to adjusted EBITDA calculation for covenant test purposes excludes 100% of the company’s subordinated hybrid notes. 3. Is not
Slide 22: Contact Information
Contact Information Dan Cuthbertson General Manager, Investor Relations Rahul Pandey, CFA, P.Eng Senior Advisor, Investor Relations 1.888.699.4853 Keyera Corp. ir@keyera.com The Ampersand, West Tower 200 144 – 4th Avenue SW Calgary, Alberta T2P 3N4 www.keyera.com 22