Keyera Corp. · TSX:KEY
Keyera — Investor Presentation (August 2021)
17 slides from Keyera's investor presentation, August 2021
Slide 1: Investor Presentation
Investor Presentation Connecting energy for life August 2021 1
Slide 2: Forward-looking information & non-GAAP measures
Forward-looking information & non-GAAP measures In the interests of providing Keyera Corp. (“Keyera” or the “Company”) shareholders and potential investors with information regarding Keyera, including management’s assessment of Keyera’s future plans and operations, its financial outlook and future p
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 SASB aligned disclosures; Low leverage of 2.7X1 net Aim to steadily grow High barrier-to-entry Clearly defined financial TCFD report in 2021 d
Slide 4: ESG is a top priority
ESG is a top priority Long-term value creation is consistent with strong ESG performance “OUTPERFORMER” “GLOBAL ESG BEST IDEA” “#1 ESG PERFORMER” “A” RATING Sustainalytics1 RBC2 Scotiabank3 MSCI4 Keyera can play a leading role in the transition to a low carbon economy E S Material Factors Emissions
Slide 5: Strong financial position
Strong financial position • 2.7x net debt1 to adjusted EBITDA2 Long-term debt maturities (C$ MM)3 (excludes drawings under revolver) • Conservative payout ratio2 o 68% LTM & YTD (target of 50 – 70%) Private Notes • Investment grade credit ratings Minimal upcoming o DBRS Limited: BBB, Stable long-ter
Slide 6: Prudent financial framework
Prudent financial framework Financial priorities Target 2Q21 2020 5 year avg3 Credit ratings BBB BBB/BBB- BBB/BBB- - Preserve Net Debt / Adjusted EBITDA1,2 2.5x - 3.0x 2.7x 2.9x 2.5x financial flexibility Long-term dividend Payout 50% - 70% 72% 59% 61% Ratio1 Fee-for-Service Continue contribution of
Slide 7: Managing cash flow stability
Managing cash flow stability Realized margin from investment grade customers and take-or-pay contracts MANAGED THROUGH Non Non ~32% Investment Grade ~30% Fee-for-Service RISK MANAGEMENT PROGRAM PROTECTING ~70% Fee-for-Service DOWNSIDE Investment Grade ~68% (75% including secured PRESERVING counterpa
Slide 8: Clear capital allocation priorities
Clear capital allocation priorities Strong focus on Total Shareholder Returns 1 PRESERVING BALANCE SHEET STRENGTH Maintain Investment Grade Credit Ratings Low Leverage and Financial Flexibility Rated by DBRS and S&P Target net debt to adjusted EBITDA between 2.5-3.0x1 2 NON – DISCRETIONARY FUNDING C
Slide 9: Sustained dividend growth through capital discipline
Sustained dividend growth through capital discipline Target payout range 50-70% of distributable cash flow 9% DCF/sh CAGR1,3 Commodity COVID-19 Pandemic Since ‘08 DCF/sh Price Collapse $3.26 DCF/sh 7% Portion of DCF/sh paid as Dividends Net Debt to adjusted EBITDA2,3 Dividend/sh CAGR3 Since ‘08 $1.9
Slide 10: Our integrated value chain
Our integrated value chain High barrier-to-entry asset base with access to high value markets Raw Natural Spec External gas Gas product markets Liquids • Highly utilized fractionation, • Utilizes Keyera’s • Strategically located storage, transportation and infrastructure to access gas plants in liqu
Slide 11: Delivering energy infrastructure solutions
Delivering energy infrastructure solutions Focused on maximizing customer netbacks Energy Infrastructure + Marketing Global Macro Drivers ESG LOW-EMISSIONS LNG Canada Natural Gas (C1) ENERGY SOURCE Liquids ESG Capture Area MEDICAL GRADE PLASTIC, Ethane (C2) STERILE PACKAGING Logistics ESG LIGHT WEIG
Slide 12: KAPS – Liquid pipeline solution
KAPS – Liquid pipeline solution Integrated services, more volumes & future opportunities MONTNEY ALBERTA OIL SANDS Pipestone • KAPS pipeline system highly desired by industry • Competitive alternative, adding optionality and additional Grande Prairie connectivity for producers • Provides secure, lon
Slide 13: Playing a role in the energy transition
Playing a role in the energy transition Carbon Capture & Storage Clean Fuels • Acid gas injection at 6 of our • Exploring opportunities to help existing locations1 refiners meet CFS requirements • Potential to provide CCS services using iso-octane for customer • Further enhance the value of iso- oct
Slide 14: 2021 guidance
2021 guidance $45 – $65 Million in Annual Cost Reductions, Mostly Realized by The End of 2021 2021 Guidance Project Completion Schedule Growth Capital Expenditures $400-$450M Brazeau North Gas Plant Suspension Complete Maintenance Capital Expenditures $30-$40M Wildhorse Terminal Complete Cash Tax Ex
Slide 15: 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 SASB aligned disclosures; Low leverage of 2.7X1 net Aim to steadily grow High barrier-to-entry Clearly defined financial TCFD report in 2021 d
Slide 16: Contact information
Contact information Dan Cuthbertson Director, Investor Relations Calvin Locke, P.Eng, MBA Manager, Investor Relations Keyera Corp. The Ampersand, West Tower 200 888-699-4853 144 – 4th Avenue SW Calgary, Alberta ir@keyera.com T2P 3N4 www.keyera.com 16
Slide 17: Notes
Notes Slide 3 and 16 All information as of December 31, 2020, unless otherwise stated. 1. As of June 30, 2021 2. Not a standard measures under GAAP. See “Forward-Looking Information & Non-GAAP Measures” slide. 3.Net Debt to Adjusted EBITDA calculation for covenant test purposes excludes 100% of the