Keyera Corp. · TSX:KEY
Keyera — Investor Presentation (January 2024)
18 slides from Keyera's investor presentation, January 2024
Slide 1: 2024 Guidance and Business Update
2024 Guidance and Business Update 1
Slide 2: Forward-Looking Information
Forward-Looking Information To provide readers with information regarding Keyera, including its assessment of future plans, Proposed construction and completion schedules and budgets for capital projects are subject operations and financial performance, certain statements contained herein contain fo
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 Realized Margin from the Fee-for-Service Business Segments with Generally Accepted Accounting Principles (GAAP) and as a result, may not be comparable to simil
Slide 4: What You Will Hear Today
What You Will Hear Today • Strong strategy execution in 2023 • Keyera’s assets continue to be well positioned for long-term growth • Expect to reach high end of 6%-7% CAGR for adjusted EBITDA holding Marketing constant* for ’22-’25 • Growth in fee-for-service business is improving quality of cash fl
Slide 5: Solid Execution of Strategy in 2023
Solid Execution of Strategy in 2023 Focused on Delivering Strong Returns for Shareholders Demonstrate Drive Strengthen Ensure Financial Competitiveness Our Integrated Long-Term Businesss Discipline of Our Assets Value Chain Sustainability Strategy Driving Strong Results • Improved safety performance
Slide 6: WCSB Oil & Gas Production Growth to Continue
WCSB Oil & Gas Production Growth to Continue Egress will finally be unconstrained BRITISH COLUMBIA ALBERTA Western Canada Sedimentary Basin (“WCSB”) MONTNEY Oil & Gas Production Growth Oil Sands 567 Tcf 298 Bbbl 24 5.4 DUVERNAY Forecast 77 Tcf Oil Production (mbbl/d) Gas Production ((bcf/d) 22 5.2 C
Slide 7: Keyera Benefits From Expected Basin Growth
Keyera Benefits From Expected Basin Growth Capturing NGL’s through strategically located and fully-integrated asset base Montney and Duvernay Condensate and NGL Production Gordondale KAPS Zone 4 800 Forecast 80% % of Total WCSB Production 700 70% Pipestone Production (mbbl/d) Grand Prairie 600 60% 5
Slide 8: Expected to Reach High End of Growth Target
Expected to Reach High End of Growth Target 6-7% CAGR for adjusted EBITDA holding Marketing constant* Fee-For-Service Growth Drivers ’22-’25 >20% realized margin* growth since beginning of ’22; Near-term growth requires little incremental capital Gathering & Processing • Filling available capacity a
Slide 9: Successful Gathering & Processing Transformation
Successful Gathering & Processing Transformation Growing higher quality cash flow Growth Drivers G&P Realized Margin* Growth • Completed optimization of South region, driving higher profitability ~40% $MM $400 Growth • Over 70% of realized margin* now comes from the North Region: $300 • Higher take-
Slide 10: Liquids Infrastructure Growth
Liquids Infrastructure Growth Growing the core of our business Liquids Infrastructure Realized Margin* Growth Growth Drivers ~70% • Continued ramp up of KAPS $MM $500 Growth where existing contracts are 75% take-or-pay for average $400 duration of 14 years KFS Frac II • Re-contracting stronger terms
Slide 11: Increasing Base Marketing Guidance to $310-$350 MM
Increasing Base Marketing Guidance to $310-$350 MM Structural shifts driving higher base estimate New Base Marketing Realized Margin* Guidance Structural Shifts $310 - $350 • Fee-for-service volume million growth gives the $250 - $280 Diversified million Markets Marketing group more More Volume barr
Slide 12: Marketing: A Unique Competitive Advantage
Marketing: A Unique Competitive Advantage Physical business and natural extension of integrated value chain 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)
Slide 13: Financial Framework & Capital Allocation Context
Financial Framework & Capital Allocation Context Maintaining financial strength, disciplined investment approach, growing shareholder returns Target Near-Term Context Preserve Credit Ratings BBB • Maintain credit rating Financial • Remain within targeted range Strength and • Deploy some excess cash
Slide 14: 2024 Guidance
2024 Guidance Focused on capital discipline Adjusted EBITDA Base Marketing holding Marketing constant* Realized Margin* $310-$350 MM CAGR (’22-’25) 2024 onward Growth Capital Maintenance Capital Cash Taxes Expenditures Expenditures $80-$100 MM $90-$110 MM $45-$55 MM FY 2024 FY 2024 FY 2024 *Is not a
Slide 15: Strong Free Cash Flow Generation in 2024
Strong Free Cash Flow Generation in 2024 Sources and uses Adjusted EBITDA* Vs. Cash Uses Capital Allocation Priorities Non-Discretionary Free 2024 Free Cash Flow Uses • Pay down short-term 1 Fund maintenance capital Cash Flow debt, building balance sheet optionality 2 Maintain balance sheet strength
Slide 16: Strong Financial Position
Strong Financial Position S&P Credit Upgrade Affirms Improved Cash Flow Stability and Strong Business Outlook Long-Term Debt Maturities (C$ MM) (excludes drawings under revolver) Credit Rating S&P: BBB (Stable) All debt at fixed rates, with weighted average interest rate 4.97%* including hybrid debt
Slide 17: What You Heard Today
What You Heard Today • On track for record year in 2023 • Keyera’s assets continue to be well positioned for long-term growth • Improving quality of cash flow • Marketing segment gives Keyera a unique competitive advantage • Context for near-term capital allocation priorities • Strong free cash flow
Slide 18: Contact Information
Contact Information Dan Cuthbertson Director, 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 3N4 ir@keyera.com www.k