Keyera Corp. · TSX:KEY
Keyera — Investor Day (2022)
80 slides from Keyera's investor day presentation, 2022
Slide 1: Investor Day 2022
INVESTOR DAY 2022 2022 Investor Day 1
Slide 2: Agenda
SAFETY MOMENT Joanna Williams General Manager, Safety and Operational Excellence VISION AND STRATEGY Dean Setoguchi President & Chief Executive Officer Agenda DEMONSTRATING ESG LEADERSHIP Nancy Brennan Senior Vice President, Sustainability, External Affairs & General Counsel Keyera FOCUSING ON FINAN
Slide 3: 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 4: 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) and as a result, may not be comparable to similar measures reported by other entities. Management believes
Slide 5: Safety Moment
SAFETY MOMENT Joanna Williams General Manager, Safety and Operational Excellence 2022 Investor Day 5
Slide 6: It All Starts With Safety
It All Starts With Safety And Safety Starts With Each Of Us Because of me no one ever gets hurt at a Keyera workplace 2022 Investor Day 6
Slide 7: Safety Moment
Safety Moment “ICE” – In Case of Emergency Feature on Your Cell Phone First Responder Emergency Access Steps to Setup: For iPhone: 1. Open the Health app and tap your profile picture 2. Tap Medical ID 3. Tap Edit and then scroll to Emergency Contacts 4. Tap the Add button to add an emergency contact
Slide 8: Our Vision & Strategy
OUR VISION & STRATEGY Dean Setoguchi President and Chief Executive Officer 2022 Investor Day 8
Slide 9: 2022 Investor Day
2022 Investor Day 9
Slide 10: Our Vision
OUR VISION To be the North American leader in delivering energy infrastructure solutions 2022 Investor Day 10
Slide 11: Positioned to generate strong returns for decades to come
OUR BASE BUSINESS WILL REMAIN STRONG AND IN HIGH DEMAND Keyera is positioned to generate strong returns VISIBLE NEAR AND LONG-TERM GROWTH for decades to come UNIQUE ABILITY TO CREATE A STRONG ENERGY TRANSITION BUSINESS 2022 Investor Day 11 11
Slide 12: Our Achievements Since Last Investor Day
Our Achievements Since Last Investor Day • Improved safety performance, TRIF down 33% from 0.82 to 0.55 (’20 vs. ’21) • 9.4% growth in distributable cash flow (“DCF”) per share* from 2019 to 2021 • Maintained strong balance sheet and investment grade credit ratings with net debt-to- adjusted EBITDA*
Slide 13: What's New?
What’s New? • KAPS update • Rich inventory of investment opportunities • Keyera low-carbon hub strategy • Expected adjusted EBITDA* CAGR of 6-7% from 2022-2025 • Detailed run-through of capital allocation priorities for 2022-2025 • Marketing guidance for 2022 and new base guidance for 2023-2025 *Not
Slide 14: A Pathway to Continued Shareholder Value Creation
A Pathway to Continued Shareholder Value Creation Focused on Improving Per Share Metrics Financial Commodity COVID-19 Crisis Price Collapse Pandemic 8% DCF/Sh DCF/Sh* * CAGR $3.26 $3.08 $3.03 $2.84 $2.77 $2.70 $2.56 $2.37 $2.04 $1.84 15.0x $1.53 13.0x $1.43 11.0x $1.31 $1.10 9.0x 7.0x Net Debt to 2.
Slide 15: Dividend Growth Tied to DCF Per Share Growth
Dividend Growth Tied to DCF Per Share Growth Long History of Steady Dividend Per Share Growth Financial Crisis Commodity Price Collapse COVID-19 Pandemic Steady Dividend Growth Current dividend viewed as non- discretionary 7% Dividend/Sh* $1.85 $1.92 $1.92 Covered by fee-for- service DCF* CAGR $1.73
Slide 16: Our Strategy
Our Strategy Focused on Generating Strong Risk-Adjusted Returns Demonstrate Focus Drive Strengthen ESG On Financial Competitiveness Our Integrated Leadership Discipline of Our Assets Value Chain Underpinned by our focus on safety excellence 2022 Investor Day 16
Slide 17: Natural Gas: More Than A Bridge Fuel
Natural Gas: More Than A Bridge Fuel Demand Expected to Grow for Decades to Come 2050 Global Energy Mix Projection (Quad Btu) Natural Gas Propels Natural Gas Energy Transition 40 High Energy Density Oil 30 Lower Emissions 20 Renewables Accessible and Portable 10 Coal Abundant Low-Cost Supply NGLs 0
Slide 18: Canada's Energy Can Meet Rising Global Demand
Canada’s Energy Can Meet Rising Global Demand Large Supply of Low-Cost and Responsibly Produced Energy BRITISH COLUMBIA ALBERTA Oil Sands Basin Egress Expansion* MONTNEY 298 Bbbl* 567 Tcf* Natural Gas DUVERNAY 77 Tcf* Coastal GasLink - 2.1 Bcf/d LNG Canada 2 - 4 Bcf/d* NGTL – 1.4 Bcf/d CONVENTIONAL
Slide 19: Canada's Responsibly Produced Energy
Canada’s Responsibly Produced Energy Well Placed to Meet Growing Global Demand Canada Ranks Transparent Highly on Regulatory “E”, “S” and “G” Framework Established Incentives for Carbon Pricing Decarbonization Mechanism 2022 Investor Day 19
Slide 20: Top Gas-Producers Positioned for Growth
Top Gas-Producers Positioned for Growth Strong Financial Positions Allow for Cash Returns AND Growth Canadian Natural Gas Producers 2022 to 2023 $8 2.4x $7 $6 2.1x 1.8x $16B $10B Cumulative Free Cumulative Net Debt to Adj. EBITDA $5 1.5x Cash Flow Capex $4 1.2x Billions TCF $3 0.9x $2 0.6x Debt $1 0
Slide 21: Keyera Benefits From Resource Play Growth
Keyera Benefits From Resource Play Growth Zone 4 Strong Liquids Volume Growth 700 70% % of Total WCSB Production (Condensate/NGL) Condensate/NGL Production (Mbbl/d) Pipestone 600 60% 500 50% Wapiti 400 40% Simonette KAPS 300 30% Condensate 200 20% Keyera Fort Legend System Saskatchewan 12 Gas Plants
Slide 22: KAPS: A Game Changer for Keyera
KAPS: A Game Changer for Keyera Liquids Infrastructure Assets Zone 4 Grand Rapids Access Polaris Norlite KAPS Pipestone Cold Lake Wapiti Simonette KAPS Keyera Fort Saskatchewan Condensate System Cochin Legend 12 Gas Plants Keyera gas processing Alberta Crude / Diluent Terminal Keyera liquids infrast
Slide 23: KAPS: A Game Changer for Keyera
KAPS: A Game Changer for Keyera Improving Our Zone 4 Competitiveness Meets strong customer Pipestone demand for alternative provider Wapiti One of only two integrated Simonette KAPS liquids solutions Condensate Basin asset in a high- Keyera Fort Legend Saskatchewan System barrier-to-entry market 12
Slide 24: Growth Across Our Integrated Value Chain
Growth Across Our Integrated Value Chain Projects Paced to be Internally Funded C2 Ethane C3 Propane C4 Butane C5+ Condensate iC8 Iso-Octane Gas Plants Keyera Fort Saskatchewan Alberta EnviroFuels Condensate System KAPS and Keylink Spec NGL Transportation Spec NGL Transportation Oil Sands Diluent Su
Slide 25: Clear Pathway to Near-Term EBITDA Growth
Clear Pathway to Near-Term EBITDA Growth Our ’22 – ’25 Plan 2022 2023 2024 2025 Continued ramp up at Wapiti Filling of Existing Capacity Adj. EBITDA* ($M) South Cheecham Sulphur Terminal Storage Cavern 18 Pipestone Capacity Expansion (~60 MMcf/d) KAPS Zones 1 – 3 completion and initial capacity ramp
Slide 26: Energy Paradigm Shift
Energy Paradigm Shift Growing Demand for Lower-Carbon Products Low-carbon Hydrogen and derivatives for Liquified Natural Gas Hydrogen powered-locomotive cogeneration industrial use Bio-fuels Carbon capture and Net-zero petrochemicals Biofuels sequestration 2022 Investor Day 26
Slide 27: Building A Strong Energy Transition Business
Building A Strong Energy Transition Business 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 Terminal (ADT) Potential H2 CP Keyera CN Keyera and/or CO2 Josephburg
Slide 28: Positioned to generate strong returns for decades to come
OUR BASE BUSINESS WILL REMAIN STRONG AND IN HIGH DEMAND Keyera is positioned to generate strong returns VISIBLE NEAR AND LONG-TERM GROWTH for decades to come UNIQUE ABILITY TO CREATE A STRONG ENERGY TRANSITION BUSINESS 2022 Investor Day 28 28
Slide 29: Demonstrating ESG Leadership
Demonstrating ESG Leadership Nancy Brennan SVP, Sustainability, External Affairs and General Counsel 2022 Investor Day 29
Slide 30: Demonstrate ESG Leadership
PRINCIPLED APPROACH ESTABLISH STRONG, CREDIBLE FOUNDATION Demonstrate ESG Leadership OPEN AND RESPONSIVE TO STAKEHOLDERS 2022 Investor Day 30
Slide 31: Our Guiding Principles
Our Guiding Principles ESG Approach Our ESG Priorities Strong Prioritize Corporate Emissions Governance Management Safety of People and Operations Emissions Community and People and Transparent, Effective Indigenous Engagement Culture Decision-Useful Stakeholder Disclosure Engagement Water Land Mana
Slide 32: Our ESG Journey
Our ESG Journey 2022 2021 New Board Governance & GHG Targets Sustainability Committee 2020 Parallel Path for ESG-Aligned Materiality Energy Transition Community Assessment; Investment ESG Priorities Enterprise Risk Program 2019 Management ESG-Aligned and Capital Stakeholder Investment Engagement ESG
Slide 33: Recognition of Our Progress
Recognition of Our Progress ESG Rating Agency 2018 2021 (Rating) BBB A (Percentile* – lower is better) 41st 18th (Rating) D B (Ranking – lower is better) 18th 4th RECENTLY RECOGNIZED MATURING AS MOST IMPROVED OUR OPERATIONAL ESG SCOREFRAMEWORK EXCELLENCE IN CANADA IN 2022* 2022 shown *Percentile Inv
Slide 34: Strong Corporate Governance
Strong Corporate Governance Highly Independent, Diverse, and Engaged Board 40% 30% Over 7 3 years years or less 100% 6Average years Independent & Median& Average 33% Independent* Tenure: Median Female 9/10 6 years Tenure* Directors* 30% 4 to 7 years New Governance & Sustainability Committee • Corpor
Slide 35: Strong Pay-For-Performance Focus
Strong Pay-For-Performance Focus Aligned with Shareholder Interests; ESG Priorities CEO Compensation* ESG-Aligned STIP Metrics 15% 70% Salary 15% LTIP STIP Financial Safety Performance Performance (DCF/Sh) Operational Environmental 85% total “at risk” Performance Performance Incentive Compensation 2
Slide 36: Social Performance
Social Performance Caring for Our People and Communities Improving Safety Investing in People Community and Performance and Culture Indigenous Engagement Senior Executive 17% of KAPS 66% Team Diversity Construction Spend with Indigenous Businesses* Improved TRIF by 50% since 2017 36% Female Executiv
Slide 37: Keyera's Energy Transition Strategy
Keyera’s Energy Transition Strategy Our Journey Proceeds on Two Parallel Paths 25% 50% Emissions intensity reduction* by 2025 Emissions intensity reduction* by 2035 Decarbonizing our base Pursuing energy transition operations TODAY opportunities FOR TOMORROW Solvents Solvents that that reduce redu
Slide 38: Demonstrate ESG Leadership
PRINCIPLED APPROACH ESTABLISH STRONG, CREDIBLE FOUNDATION Demonstrate ESG Leadership OPEN AND RESPONSIVE TO STAKEHOLDERS 2022 Investor Day 38
Slide 39: Financial Discipline
FINANCIAL DISCIPLINE Eileen Marikar SVP and Chief Financial Officer 2022 Investor Day 39
Slide 40: Focus On Financial Discipline
PRESERVE FINANCIAL STRENGTH AND FLEXIBILITY RIGOROUS INVESTMENT CRITERIA Focus On Financial CASH RETURNS FOR SHAREHOLDERS Discipline 2022 Investor Day 40 40
Slide 41: Our Financial Framework
Our Financial Framework Guiding Our Efforts to Generate Superior Risk-adjusted Returns Target 2021A Credit ratings BBB BBB/BBB- Preserve Financial Strength and Flexibility Net Debt / Adjusted EBITDA* 2.5x - 3.0x 2.4x Corporate ROIC* >12% 14% Invest for Margin Growth and Cash Flow Stability Fee-for-S
Slide 42: Clear Pathway to Near-Term EBITDA Growth
Clear Pathway to Near-Term EBITDA Growth Our ’22 – ’25 Plan 2022 2023 2024 2025E Continued ramp up at Wapiti Filling of Existing Capacity Adj. EBITDA* ($M) South Cheecham Sulphur Terminal Storage Cavern 18 Pipestone Capacity Expansion (~60 MMcf/d) Assumes Marketing realized margin of KAPS Zones 1 –
Slide 43: Increasing Cash Flow Stability
Increasing Cash Flow Stability Expected to Reach Fee-For-Service Target in 2023 80% Fee-for-service realized margin* as % of total 75% Fee-for-Service Target >75% 70% 65% 60% 55% 50% 2018 2019 2020 2021 2022E 2023E 2024E 2025E *Not a2022 Investor standard Dayunder GAAP or is a supplementary financia
Slide 44: Preserving Balance Sheet Strength
Preserving Balance Sheet Adj. EBITDA* vs. Net Debt/Adj. EBITDA* Strength 4.0x $1,200 Leverage to be within Net Debt/ Adj. EBITDA* Adj. EBITDA ($M) the target range by year end 2023 3.5x $1,000 Adjusted EBITDA* growth to $800 drive leverage back to the 3.0x Leverage target range of 2.5x-3.0x Target $
Slide 45: Rigorous Investment Criteria
Rigorous Investment Criteria Investment Screening Process Strategic Screen Investment Opportunity Scoring Project Execution Capability Assess Against Strategic Priorities Assess Risk & Opportunity Ability to Deliver 4 Strategic Pillars Capital Investment Scorecard Project Development • Safety • Demo
Slide 46: Rich Inventory of High-Quality Growth Projects
Rich Inventory of High-Quality Growth Projects Focus on Self-funded Value Creation: Strong Returns, Highly Contracted Organic Investment Runway SEGMENT 2022 2023 2024 2025 2026 2027 2028+ 2024-2025 growth capital expected Gathering and Pipestone Capacity Expansion (~60 MMcf/d) Processing to average
Slide 47: Marketing Segment Provides Significant Cash Flow
New Base Marketing Realized Margin* Guidance Marketing Segment AEF Higher Commodity $250 - $280 million Provides Significant Debottleneck Prices $180 - $220 & Margin Expansion million US Assets Cash Flow A Physical Margin Business Delivering Products to High Value Markets Throughout North America We
Slide 48: A Pathway to Continued Shareholder Value Creation
A Pathway to Continued Shareholder Value Creation Focused on Improving Per Share Metrics Financial Commodity COVID-19 Crisis Price Collapse Pandemic 8% DCF/Sh DCF/Sh* * CAGR $3.26 $3.08 $3.03 $2.84 $2.77 $2.70 $2.56 $2.37 $2.04 $1.84 15.0x $1.53 13.0x $1.43 11.0x $1.31 $1.10 9.0x 7.0x Net Debt to 2.
Slide 49: Dividend Growth Tied to DCF Per Share Growth
Dividend Growth Tied to DCF Per Share Growth Long History of Steady Dividend Per Share Growth Financial Crisis Commodity Price Collapse COVID-19 Pandemic Steady Dividend Growth Current dividend viewed as non- discretionary 7% Dividend/Sh* $1.85 $1.92 $1.92 Covered by fee-for- service DCF* CAGR $1.73
Slide 50: Capital Allocation Priorities
Capital Allocation Priorities Non-Discretionary Capital Allocation Priorities by Year 1 Fund maintenance capital Year Priorities 2 Maintain balance sheet strength 2022 3 Pay current dividend • Fund major strategic growth project (KAPS) Balance priorities between: Discretionary • Bringing net debt to
Slide 51: Focus On Financial Discipline
PRESERVE FINANCIAL STRENGTH AND FLEXIBILITY RIGOROUS INVESTMENT CRITERIA Focus On Financial CASH RETURNS Discipline FOR SHAREHOLDERS 2022 Investor Day 51 51
Slide 52: Driving the Competitiveness of Our Assets
DRIVING THE COMPETITIVENESS OF OUR ASSETS Jarrod Beztilny SVP, Operations and Engineering 2022 Investor Day 52
Slide 53: Driving Competitiveness of Our Assets
SAFETY, RELIABILITY AND COMPETITIVE COST STRUCTURE MAXIMIZE UTILIZATION FROM OUR FACILITIES Driving Competitiveness LEVERAGE INNOVATION & of Our Assets TECHNOLOGY 2022 Investor Day 53
Slide 54: Safety Is Foundational
Safety Is Foundational Committed to Best-in-Class Performance Enhanced Critical Task Accountability Excellence Prescribing Safety Visible Safety Expectations Leadership 2021 TRIF DECREASED MATURING 33%, OUR WHILE TOTAL EXCELLENCE OPERATIONAL HOURS WORKED INCREASED BY FRAMEWORK 85% 2022 Investor Day
Slide 55: Driving Reliability Through Operational Excellence
Driving Reliability Through Operational Excellence Ensuring our Facilities and Pipelines are Available When Needed Measuring Consistent delivery Performance of exceptional utilizing data and performance year technology over year Standardization Continuous of design, Improvement: maintenance and Neve
Slide 56: Continuous Improvement In Action
Continuous Improvement In Action Better Service for Customers and Delivers Margin Upside Can we photoshop KEYERA these sky’s blue? RELIABILITY IMPROVED TO 98.1% IN 2021 FROM 95.6% IN 2020 Wapiti Gas Plant Reliability Improvements at both Wapiti and Alberta EnviroFuels in 2021 2022 Investor Day 56
Slide 57: Effective Cost Management
Effective Cost Management Improving Returns Improving Resource Cost Stabilizing Utility Maintenance Efficiency Optimization Costs Managing Carbon Project Development and Supply Chain Maturity Compliance Cost Execution 2022 Investor Day 57
Slide 58: Leveraging Existing Footprint to Provide Margin Upside
Leveraging Existing Footprint to Provide Margin Upside Growth Capital Largely Directed Toward Highly Contracted Projects C2 Ethane C3 Propane C4 Butane C5+ Condensate iC8 Iso-Octane Gas Plants Keyera Fort Saskatchewan Alberta EnviroFuels Condensate System Oil Sands KAPS & Keylink Pipeline Spec NGL T
Slide 59: Gathering & Processing South Region
Gathering & Processing South Region Investing in Higher Efficiency and Increasing Throughput of Remaining Plants Optimization Program Complete* 1390 • Increased utilization from 50% to 65% MMcf/d 490 • Reduced absolute emissions by 12% MMcf/d Available Capacity • Contribute ~$15 million in ongoing a
Slide 60: Gathering & Processing North Region
Gathering & Processing North Region Capturing Growing Volumes from the Liquids Rich Montney and Duvernay Industry Tailwinds • Most economic plays in North America Proposed Pipestone • Demand growth from LNG Capacity Expansion 950 MMcf/d Proposed Pipestone Expansion 410 MMcf/d • Add ~60 MMcf/d for to
Slide 61: Strong Integration Across Downstream Liquids Assets
Strong Integration Across Downstream Liquids Assets Premier Assets Provide Flexibility & Access to High Value Markets C2 Ethane C3 Propane C4 Butane C5+ Condensate #1 iC8 Iso-Octane #3 Gas Plants Keyera Fort Saskatchewan Alberta EnviroFuels Condensate System #4 Oil Sands KAPS & Keylink Pipeline Spec
Slide 62: Further Enhancing Competitiveness
Further Enhancing Competitiveness Premier Assets Provide Flexibility & Access to High Value Markets C2 Ethane C3 Propane C4 Butane C5+ Condensate #1 iC8 Iso-Octane #3 Gas Plants Keyera Fort Saskatchewan Alberta EnviroFuels Condensate System #4 Oil Sands KAPS & Keylink Pipeline Spec NGL Transportatio
Slide 63: KAPS: A Platform For Growth
KAPS: A Platform For Growth Liquids Infrastructure Assets Zone 4 Grand Rapids Access Polaris Norlite KAPS Pipestone Cold Lake Wapiti Simonette KAPS Keyera Fort Saskatchewan Condensate System Cochin Legend 12 Gas Plants Keyera gas processing Alberta Crude / Diluent Terminal Keyera liquids infrastruct
Slide 64: Driving Competitiveness of Our Assets
SAFETY, RELIABILITY AND COMPETITIVE COST STRUCTURE MAXIMIZE UTILIZATION FROM OUR FACILITIES Driving LEVERAGE Competitiveness INNOVATION & of Our Assets TECHNOLOGY 2022 Investor Day 64
Slide 65: Strengthening Our Integrated Value Chain
STRENGTHENING OUR INTEGRATED VALUE CHAIN Jamie Urquhart SVP and Chief Commercial Officer 2022 Investor Day 65
Slide 66: Strengthen Integrated Value Chain
ACQUIRE AND CONSTRUCT HIGH BARRIER-TO-ENTRY ASSETS ENHANCE AND EXTEND OUR INTEGRATED ASSETS TO ACCESS HIGH-VALUE MARKETS Strengthen EXPAND SERVICES, Integrated INCLUDING LOW CARBON Value Chain ENERGY SOLUTIONS 2022 Investor Day 66
Slide 67: KAPS: A Platform For Growth
KAPS: A Platform For Growth Zone 4 Strong Liquids Volume Growth 700 70% % of Total WCSB Production (Condensate/NGL) Condensate/NGL Production (Mbbl/d) Pipestone 600 60% 500 50% Wapiti 400 40% Simonette KAPS 300 30% Condensate 200 20% Keyera Fort Legend System Saskatchewan 12 Gas Plants Keyera gas pr
Slide 68: KAPS: A Platform For Growth
KAPS: A Platform For Growth Liquids Infrastructure Assets Zone 4 Grand Rapids Access Polaris Norlite KAPS Pipestone Cold Lake Wapiti Simonette KAPS Keyera Fort Saskatchewan Condensate System Cochin Legend 12 Gas Plants Keyera gas processing Alberta Crude / Diluent Terminal Keyera liquids infrastruct
Slide 69: KAPS Expected to Meet Targeted Returns
KAPS Expected to Meet Targeted Returns Commercial Progress Zone 4 Increased existing Pipestone customer commitments for zones 1 - 3 Wapiti New committed Simonette KAPS volumes at Pipestone to mostly flow through Legend Keyera Fort Saskatchewan Condensate System KAPS 12 Gas Plants Keyera gas processi
Slide 70: Frac (C3+) Demand Expected to Outpace Capacity
Frac (C3+) Demand Expected to Outpace Capacity Keyera Fort Saskatchewan Frac Capacity and Demand Forecast 450 400 350 Brine Pond 300 250 Mbbl/d De-Ethanizer 200 Frac II 150 Frac I 100 Area for 50 Frac III Expansion - 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E Proposed
Slide 71: Best Positioned to Meet Frac Demand Growth
Best Positioned to Meet Frac Demand Growth Leveraging Superior Storage and Connectivity Keyera Fort Saskatchewan • Provides fully-integrated service offerings to customers Brine Pond • Superior connectivity to propane, butane and condensate markets De-Ethanizer • Existing storage (~17.5 MMbbls*) pro
Slide 72: Accessing Higher Value Markets
Accessing Higher Value Markets Extending Butane and Propane Value Chains Iso-Octane • Upgrading Butane to Iso-Octane at Keyera Alberta EnviroFuels • Selling Iso-Octane into higher value markets • Connectivity to all major North-American markets Keyera Alberta EnviroFuels West Coast Solvents for Oil
Slide 73: Opportunities to Reduce Canada's GHG Emissions
Opportunities to Reduce Canada’s GHG Emissions Alberta Represents ~40% of Canada’s GHG Emissions Carbon Emissions Abatement Breakdown (1.5ºC by 2050 Scenario) Oil Sands Renewables 31 Facilities 25% (Power and Direct Users) Western Alberta 54% of AB’s CO2 Emissions 25 Facilities 3.5% of AB’s CO2 Emis
Slide 74: Our Infrastructure Positioned to Decarbonize
Our Infrastructure Positioned to Decarbonize Collaboration Opportunities With Industry Potential Shell Keyera H2 Caverns IPL Potential Keyera Fort Saskatchewan (KFS) H2 Cogen and H2 Demand Fort Keyera Fort Saskatchewan Keyera H2 Network Network Dow Sask. CO2 3rd Parties Fort Keyera Alberta Crude Sas
Slide 75: Building A Strong Energy Transition Business
Building A Strong Energy Transition Business The Low-Carbon Hub Strategy • Large addressable market for emissions reduction services • Strategically advantaged location Shell • Existing connectivity and storage IPL capabilities CP CN Keyera Josephburg • Access to both major rail lines Land KFS Dow 2
Slide 76: Strategic Relationship With Shell
Strategic Relationship With Shell MOU to Create Regional Infrastructure Supporting Industry Decarbonization • Open access transportation system for captured CO2 • Access to Shell’s proposed Polaris CCS hub for CO2 sequestration • Leverage Keyera’s existing hydrogen rated pipeline for Keyera Low dist
Slide 77: Decarbonizing Our Core Business
Decarbonizing Our Core Business Unique Ability to Evolve Existing Asset Base Through Energy Transition Natural Gas Cogeneration • Lower carbon power • Reduce emissions Low Carbon • Meets return criteria on standalone basis Hub Keyera Fort Saskatchewan • Underpinned by long-term 3rd party agreement F
Slide 78: Strengthen Integrated Value Chain
ACQUIRE AND CONSTRUCT HIGH BARRIER-TO-ENTRY ASSETS ENHANCE AND EXTEND OUR INTEGRATED ASSETS TO ACCESS HIGH-VALUE MARKETS Strengthen EXPAND SERVICES, Integrated INCLUDING LOW CARBON Value Chain ENERGY SOLUTIONS 2022 Investor Day 78
Slide 79: Positioned to generate strong returns for decades to come
OUR BASE BUSINESS WILL REMAIN STRONG AND IN HIGH DEMAND Keyera is positioned to generate strong returns VISIBLE NEAR AND LONG-TERM GROWTH for decades to come UNIQUE ABILITY TO CREATE A STRONG ENERGY TRANSITION BUSINESS 2022 Investor Day 79 79
Slide 80: 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