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Keyera
Corp
. Ju
ly 2019
Corporate Profile
July 2019
Keyera
Corp
. Ju
ly 2019
2
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 future plans and operations relating to the Company, this document contains certain statements and information that are forward-
looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to herein as “forward-looking
statements". Forward-looking statements in this document include, but are not limited to statements and tables with respect to: capital projects and
expenditures; strategic initiatives; anticipated producer activity and industry trends; and anticipated performance. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their
nature, forward looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause Keyera’s actual
performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by
the forward-looking statements. These assumptions, risks and uncertainties include, among other things: Keyera’s ability to successfully implement strategic
initiatives and whether such initiatives yield the expected benefits; future operating results; fluctuations in the supply and demand for natural gas, NGLs, crude
oil and iso-octane; assumptions regarding commodity prices; activities of producers, competitors and others; the weather; assumptions around construction
schedules and costs, including the availability and cost of materials and service providers; fluctuations in currency and interest rates; credit risks; marketing
margins; potential disruption or unexpected technical difficulties in developing new facilities or projects; unexpected cost increases or technical difficulties in
constructing or modifying processing facilities; Keyera’s ability to generate sufficient cash flow from operations to meet its current and future obligations; its
ability to access external sources of debt and equity capital; changes in laws or regulations or the interpretations of such laws or regulations; political and
economic conditions; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by
Keyera. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are
made as of the date of this document or the dates specifically referenced herein. All forward-looking statements contained in this document are expressly
qualified by this cautionary statement. This document also includes financial measures that are not determined in accordance with Generally Accepted
Accounting Principles (“GAAP”). For additional information on non-GAAP measures and forward-looking statements, refer to Keyera’s public filings available on
SEDAR at www.sedar.com and available on the Keyera website at www.keyera.com.
Keyera
Corp
. Ju
ly 2019
3
Keyera at a Glance1
Leading Canadian Integrated Midstream Company
Market capitalization: $7.0 billion2
Enterprise value: $9.5 billion2
LTM Adjusted EBITDA3: $782 million
LTM Payout Ratio3: 62%
Dividend: $1.80/share p.a. ($0.15/share per month)
Dividend yield: 5.5%2
Corporate credit ratings: BBB/Stable4
Net Debt/EBITDA3: 3.0x5
2019 Growth Capital Program: $800-$900 million
1. All information as at March 31, 2019, unless otherwise stated. 2. As at June 25, 2019. 3. Adjusted EBITDA, Payout Ratio, and
EBITDA are not standard measures under GAAP. See “non-GAAP Financial Measures” in Keyera’s 2019 First Quarter MD&A
for further details. 4. DBRS and S&P. 5. Calculated in accordance with Note Agreements and Covenants.
Keyera
Corp
. Ju
ly 2019
4
Focused on Generating Long-Term Value
Integrated Business, Difficult to Replicate
Customer Focused & Reliable Operator
Focused on Dividend & Cash Flow Growth(on per share basis)
Responsible Stewards of Capital
Dedicated to Financial Strength & Flexibility
Keyera
Corp
. Ju
ly 2019
5
Our CommitmentDoing the Right Thing, for the Right Reasons, Every Time
Prioritizing our people & safety
• Named top Employer in Canada & Alberta
• Zero employee lost-time incidents in 2018
• Committed to Operational Excellence
Improving our environmental performance
• Pursuing opportunities to reduce green house gas &
methane emissions
• Full compliance with environmental laws and regulations
Helping our communities
• Volunteered >8,200 hours to community causes in 2018
• Strong relationships and partnerships with local residents
& Indigenous communities
• Conducted 80 emergency training sessions in 2018
Keyera
Corp
. Ju
ly 2019
6
Delivering Rewarding Returns for Investors
8%
Dividend/Share
CAGR1
12%
Distributable Cash
Flow/Share
CAGR2,3
19%
Total Annual
Shareholder Return2,4
1. Compound annual growth rate from 7/15/2003 to 3/31/2019. 2. Compound annual growth rate from 5/30/2003 to 3/31/2019. 3. Not a standard measure under GAAP. 4 Includes reinvestment of dividends.
Keyera
Corp
. Ju
ly 2019
$-
$0.30
$0.60
$0.90
$1.20
$1.50
$1.80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
7
Long History of Steady Dividend Growth
• 7% dividend increase declared in 2018
• Current dividend: $1.80/share per year ($0.15/share per month)
Dividend per Share
Keyera
Corp
. Ju
ly 2019
8
Business is Highly Integrated & Difficult to Replicate
1. Percentage of total realized margin for the last twelve months ended March 31st 2019. Realized margin is defined as operating margin excluding unrealized gains and losses from commodity-related risk
management contracts. Realized margin is not a standard measure under GAAP.
Keyera
Corp
. Ju
ly 2019
9
Fee-for-Service Business Continues to GrowFee-for-Service Business Has Doubled Over Last 5 Years
1. Realized margin is defined as operating margin excluding unrealized gains and losses from commodity-related risk management contracts. Realized margin is not a standard measure under GAAP.
Includes intersegment transactions. This graph excludes other income from production associated with Keyera’s oil and gas reserves. 2. Includes Take-or-Pay, non Take-or-Pay, and area or facility dedications.
30%
39%
31%
AEF
Turnaround AEF
Outage
Fee-for-Service2
AEF
Outage
Keyera
Corp
. Ju
ly 2019
10
Marketing Services Enhance ReturnsMarketing’s 2019 Expected Realized Margin is $280 million - $320 million
Utilizes Keyera’s infrastructure to create value
• $1 billion of cash flow generated over last five years
• Enhances return from our fee-for-service businesses
• Provides additional source of funding for capital projects
Estimated to deliver base Realized Margin of between
$180 and $220 million, annually
Iso-octane business provides a strong foundation
• Typically contributes over 50% of Marketing services’ cash flow
• Earns margin by upgrading low-value butane into iso-octane,
a premium gasoline additive, at Keyera’s AEF facility
Condensate marketing & liquids blending also strong
contributors
Effective risk management program
• Program intended to lock in attractive sales margins and supply
costs, and protect the value of inventory
Keyera
Corp
. Ju
ly 2019
11
Investment Opportunities Continue$800 Million to $900 Million of Growth Capital Investments in 2019
Annual Capital Expenditures($ millions)
Keyera
Corp
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ly 2019
12
Growth Projects Currently Under DevelopmentPlan to Fund Current Program Without Issuing Common Equity, excluding DRIP
Approved Projects Capital Cost (Net, in $ Millions)1
2019 2020 2021
Wapiti Gas Plant Complex 1,000
Wapiti Phase I (including Water Disposal System) and NWPS
Wapiti Phase II and Compressor & Gathering System Expansion
Simonette Acid Gas Injection & Inlet Enhancements 100
Simonette Plant Expansion 85
Pipestone Plant (Phase I) 600
Wildhorse Terminal US185
Storage Cavern Development Program at Keyera Fort Saskatchewan 110
KAPS (Key Access Pipeline System)2 650
Sulphur Handling Project2 58
TOTAL ~$2.9 Billion $1.1 Billion Invested as of March 31, 2019
1. Keyera’s share of estimated capital cost. See Keyera’s 2019 First Quarter Report MD&A for capital investment risks and assumptions. 2. Projects expected to be completed in 2022 subject to timely receipt of regulatory approvals and
construction schedule variables.
Keyera
Corp
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ly 2019
13
Attractive Growth Projects on Track$2.9 Billion in Capital Projects Coming on Stream
1. Return on Capital is defined as operating margin divided by estimated cost of capital projects. Keyera expects to achieve this return in 2022 for the projects shown above, except for KAPS which is expected to achieve
this return starting in 2024. See “non-GAAP Financial Measures” and “Forward-Looking Statements” in Keyera’s 2019 First Quarter MD&A for further details.
• Capital program expected to achieve 10% to 15% Return on Capital1
Keyera
Corp
. Ju
ly 2019
14
Our Business Has a Solid Contractual BaseCash Flow Well Supported by Fee-for-Service Contracts, Including Take-or-Pay
Adjusted EBITDA from Keyera’s current ~$2.9 billion capital program will be supported by a combination
of fee-for-service, take-or-pay and area dedication agreements.
66%
33%
1%
Fee-for-Service
Marketing
Other
2018 Realized Margin1 2018 Fee-for-Service Revenue2
1. Realized Margin is not a standard measure under GAAP. 2. Includes inter-segment transactions. Fee-for-Service Revenue is not a standard measure under GAAP.
37%
63%
Fee-for-SerivceTake-or-Pay
Fee-for-SerivceNon Take-or-Pay
Keyera
Corp
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ly 2019
15
Low Counterparty Credit RiskKeyera Provides Essential Services to Industry
Consolidated1,2,3Creditworthy counterparties
• ~82% Keyera’s 2018 revenue from investment grade/secured and split rated counterparties
Mitigating credit risk
• Letters of credit, netting agreements, pre-payments
Broad domestic & international customer base
• Over 125 different fee-for-service customers
1. Based on 2018 revenues. 2. Counterparty ratings are representative of the counterparties’ rating as of March 15th, 2019. Where parental guarantees are in place, the credit rating of the parent is used.
The secured category includes counterparties who are on prepay terms or have posted a letter of credit. 3. Split denotes counterparties with an investment grade rating by one rating agency and non-
investment grade rating by another agency.
Gathering and Processing Liquids Infrastructure Marketing
69%
13%
18% InvestmentGrade/Secured
Split
Non-IG
30%
11%59%
InvestmentGrade/Secured
Split
Non-IG93%
1%
7%InvestmentGrade/Secured
Split
Non-IG72%
14%
14% InvestmentGrade/Secured
Split
Non-IG
Keyera
Corp
. Ju
ly 2019
16
Gathering and Processing Business Unit
Well maintained, long-life facilities
• ~3.1 bcf/d licensed gross capacity1
• 19 active gas plants; 17 operated by Keyera
Extensive gathering systems
• Network of gathering pipelines tied into existing gas plants
• >4,000 kilometres of pipelines operated by Keyera
• Large capture areas create franchise regions
Fee-for-service revenues, negligible direct commodity exposure
1. Licensed capacity is not equivalent to actual operating capacity. Actual operating capacity can be lower as it depends on operating conditions and capabilities of functional units at each plant.
Network of Facilities Supported by Fee-for-Service Contracts
Keyera
Corp
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ly 2019
17
Diversified G&P Portfolio Enhances Stability
Historical Throughput & the Percentage Change in AECO & WTI to March 31, 20191
200
400
600
800
1000
1200
1400
1600
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross Plant Throughput(MMcf/d)
% Change in AECO PriceSince January 2003
Gas Plant Throughput (MMcf/day) AECO (%) WTI (%)
1. Gross throughput from Keyera Gathering & Processing plants since 2003. Plants acquired after 2003 are presented as if Keyera owned them since 2003 or since start-up of plant.
Source: Internal and Alberta regulatory data.
Keyera
Corp
. Ju
ly 2019
18
Developing Significant Position in the Liquids-Rich MontneySupporting One of the Most Attractive Developments in the WCSB
Gross Sour Gas Processing Capacity (Year End) Condensate Handling Capacity (Year End)
300 300
450 450 450
150
300 300
200
0
100
200
300
400
500
600
700
800
900
1000
2017 2018 2019 2020 2021
mm
cf/
d
Simonette Wapiti Pipestone
10,000
27,000 27,000 27,000 27,000
25,000 25,000 25,000
14,000
14,000 14,000
38,000
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2017 2018 2019 2020 2021
bb
ls/d
Simonette Wapiti Pipestone
950
mmcf/d
90,000
b/d
Keyera
Corp
. Ju
ly 2019
19
Montney Plants Underpinned by Long-Term AgreementsTake-or-Pay Contracts Often Combined with Area Dedications
Keyera’s Simonette, Wapiti and Pipestone gas plants will provide 950 mmcf/d of gas processing
capacity & 90,000 bbls/d of condensate handling facilities in 2021.
Keyera
Corp
. Ju
ly 2019
20
KAPS – Montney Condensate and NGL Pipeline SystemStrategic Asset Enhancing Keyera’s Integrated Value Chain
Highly desired liquids pipeline
• Supports growing liquids-rich Montney and Duvernay production in
northwestern Alberta
• Initially connecting to Keyera’s Pipestone, Wapiti and Simonette
gas plants along with numerous third party plants
Long-term contracts with significant take-or-pay
• Initial capacity over 70%1 contracted
• Multiple long-term agreements, averaging 14 years
• Contracts include 75% take-or-pay commitments
Strong returns & well positioned to fund
• Expected to generate return on capital2 of 10-15% starting in 2024
• Plan to fund without additional common equity, excluding DRIP
Strategic 50/50 partnership with SemGroup & KKR
• Two midstream companies with 9 gas plants along KAPS route
Significant growth opportunities
• Could include gas & condensate processing, NGL infrastructure or
other value-added services
1. Includes volumes from Keyera Marketing. 2. Return on Capital is defined as expected operating margin divided by estimated capital cost of the project. See “non-GAAP Financial Measures” and “Forward-Looking Statements” in Keyera’s
2019 First Quarter MD&A for further details.
Keyera
Corp
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ly 2019
21
KAPS Benefits Keyera and Customers
Expected benefits to Keyera
• Generates stable, long-term, take-or-pay, fee-for
service revenues
• Improves the integration of Keyera’s value chain
• Creates a platform for numerous future investment
opportunities
• Provides long-term growth for Keyera
Expected benefits to customers
• Provides a competitive transportation alternative
• Enhances customer condensate netbacks
• Increases the liquids takeaway capacity from the
region, ensuring customers can grow their volumes
Keyera
Corp
. Ju
ly 2019
22
Liquids Business UnitUnmatched Infrastructure for NGL and Oil Sands Customers
Keyera
Corp
. Ju
ly 2019
23
Fractionation Unlocks Value from the Gas StreamFractionation Services in High Demand in Alberta
Rimbey Fractionator
Keyera Fort Saskatchewan
• 65,200 bbls/d of C3+ fractionation capacity
• 30,000 bbls/d of C2+ fractionation capacity
Other fractionation capacity includes
• Rimbey, Gilby, Nevis, Dow Fort Saskatchewan
• Total net capacity
~90,000 bbls/d of C3+ fractionation capacity
~50,000 bbls/d of C2+ fractionation capacity
Growth opportunities
• Land at KFS to build a third fractionator
Keyera
Corp
. Ju
ly 2019
24
Expanding Underground Storage at KFSGrowing Demand as Customers Value the Flexibility Storage Offers
Largest underground storage position in WCSB
• ~15 million barrels of storage capacity in high demand
• Provides customers with optionality & flexibility
Growth opportunities
• 16th and 17th caverns currently being washed; expected
in-service 1H201 and1H211
• 18th cavern currently being drilled
• Expected net cost of $110 million2 to complete three
cavern program, including brine pond expansion
• ~1,300 acres of undeveloped land nearby
1. Timing subject to receipt of remaining regulatory approvals and completion of final work to bring into service.2. Costs subject to construction and schedule variables.
Keyera Fort Saskatchewan (KFS)
Keyera
Corp
. Ju
ly 2019
25
Strong Condensate Fundamentals Benefit KeyeraBitumen Production Growth Driving Demand for Keyera’s Condensate Services
Keyera’s premier condensate system is connected to all major delivery & receipt points,
with significant storage capacity
0
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MB
bl/
d
Actual CIBC World Markets Forecast
0
100
200
300
400
500
600
700
800
900
1,000
2018A 2019E 2020E 2021E 2022E 2023E 2024E 2025E
MB
bl/
d
WCSB Supply Forecast Demand
Bitumen Production Growing Condensate Shortage
Source: CIBC World Markets Inc.
See Slide 36 for new projects expected to support future bitumen production growth.
Condensate
Shortage
Keyera
Corp
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26
Most Connected Condensate Hub in CanadaA Well Contracted Industry-Leading Diluent Hub
Major oil sands delivery options
• Polaris, Access, Norlite, Grand Rapids
Multiple supply and receipt points
• Local fractionators and refineries
• Southern Lights and Cochin pipeline from the US
• Western Canada feeder pipelines
• Rail imports at the Alberta Diluent Terminal
Storage at Keyera Fort Saskatchewan
Long-term take-or-pay agreements
• Investment grade & creditworthy counterparties
• Virtually all major oil sands producers including
Imperial Oil, Suncor, Teck, Total, Husky, BP,
CNRL, Cenovus, North West Upgrading,
CNOOC, JACOS
Keyera
Corp
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ly 2019
27
Conservative Capital StructureWell Positioned to Fund Keyera’s $2.9 Billion Capital Program
1. Calculated as of March 31, 2019 in accordance with Keyera’s debt covenants. For further information regarding covenant calculations, please see Keyera’s 2019 First Quarter Report MD&A or copies of the note purchase
agreements, all of which are filed on SEDAR. 2. All US dollar denominated debt is translated into Canadian dollars at its swap rate. 2019 maturities as of June 30, 2019. 3. Midstream Peer Group includes ENB, GEI, IPL, PPL, and
TRP. 4. Source Peters & Co. as of May 6, 2019. 5.$600MM Hybrid bond issuance is callable after 10-years in June 2029.
Long-term Debt Maturities2 (excludes drawings under revolver)
Issuer credit ratings
• DBRS Limited: BBB with a Stable trend
• S&P Global: BBB/Stable
3.0x Net Debt1 to EBITDA
• Midstream Peer Group3 Average >4.7x4
$109$60
$30
$143
$264$230
$400
$267
$75
$400
$6005
$0
$100
$200
$300
$400
$500
$600
$700
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
C$
MM
Hybrid Note
Public Debt
Private Notes
Keyera
Corp
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ly 2019
28
Investment SummaryProviding Growth and Income for Shareholders1,2
1. Total return includes the reinvestment of dividends paid by Keyera and the TSX between May 30, 2003 and March 31, 2019.2. Distributable cash flow is not a standard measure under GAAP. See Keyera’s 2019 First Quarter
Report for a definition of distributable cash flow and for a reconciliation of distributable cash flow to its related GAAP measure. Payout ratio is not a standard measure under GAAP. Payout ratio is defined as dividends
declared to shareholders divided by distributable cash flow.
Keyera
Corp
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29
Keyera’s Investment Highlights20 Year Track Record of Profitable Operations & Project Execution
Integrated Business, Difficult to Replicate
Customer Focused, Reliable Operator
Focused on Dividend & Cash Flow Growth (on a per share basis)
Responsible Stewards of Capital
Dedicated to Financial Strength & Flexibility
Keyera
Corp
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ly 2019
Keyera
Corp
. Ju
ly 2
019
30
AppendixBusiness & Asset Overview
Keyera
Corp
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ly 2019
31
Simonette Gas Plant – Record Volumes in 2018Supporting Liquids-Rich Montney and Duvernay Developments
Gas plant expansion
• Increasing processing capacity by 150 mmcf/d
• Expanded plant will have 450 mmcf/d of gas
processing capacity with 27,000 bbls/d of
condensate handling facilities
• Project expected to be completed 4Q191 at an
estimated cost of $85 million1
Acid gas injection & other enhancements
• Moving to acid gas injection which is the most
reliable and environmentally responsible method to
dispose of acid gas, virtually eliminating emissions
• Project expected to be operational in 3Q191 at an
estimated cost of $100 million1,2
• Backed by gas handling agreements, including take-
or-pay commitments and facility dedications
Growth opportunities
• Ability to connect to Keyera’s Wapiti gas plant
1. Project costs and timing are subject to construction and commissioning schedules.2. Includes costs to improve inlet capabilities of the plant as well.
Keyera
Corp
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Wapiti Gas Plant Complex – Phase I CompletePhase I 100% Contracted Under a Long-term Agreement
Phase I infrastructure includes
• 150 mmcf/d of sour gas processing capacity
• 25,000 bbls/d of condensate handling capacity,
water disposal system, a raw gas gathering and
field compression system
• Acid gas injection, the most reliable and
environmentally responsible method to dispose of
acid gas, virtually eliminating emissions
Phase I fully contracted
• Long-term gas handling agreement with Paramount
• Includes area of dedication and take-or-pay
commitments
Phase II expected to be completed mid-20201
• Incremental 150 mmcf/d of sour gas processing
capacity
• Compressor and gas gathering system expansion
Growth opportunities
• Ability to connect to Keyera’s Simonette &
Pipestone gas plants
1. Project timing subject to timely receipt of remaining regulatory approvals and construction schedule variables.
Keyera
Corp
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33
North Wapiti Pipeline System – Increases Capture AreaAttracting Production Volumes North of the Wapiti River
Extends Wapiti Gas Plant capture area north of the Wapiti River
New Infrastructure includes
• 12-inch sour gas gathering pipeline
• 8-inch condensate and water pipeline
• Compressor station
• Expected to be completed in 2H191
Project backed by long-term agreements
• Long-term take-or-pay obligation for raw gas handling and
processing as well as pipeline transportation
• Long-term NGL fractionation and marketing services
• Anchored by Pipestone Energy Corp. (privately backed)
Growth opportunities
• Secured volume commitments to support Phase II of the Wapiti
Gas Plant, which is under construction
• Opportunity to secure additional volumes and fully contract
Phase II as producers increase production north of the Wapiti
River
• Ability to connect to Keyera’s Pipestone Gas Plant
Keyera Wapiti
Gas Plant
NWPS
Compressor
Station
Grande
Prairie
Wapiti River
Smoky River
North Wapiti
Gathering Pipeline
Producers in the
Pipestone area:
• CNRL
• Encana
• Hammerhead
• Inception
• Iron Bridge
• NuVista
• Paramount
• Pipestone Energy
• Seven Generations
• Shell
• Sinopec
• Velvet
Montney Well
1. Project timing subject to timely receipt of remaining regulatory approvals and construction schedule variables.
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Pipestone Gas Plant – Construction on SchedulePhase I 100% Contracted Under Long-Term Agreements
1. Project timing and cost subject to timely receipt of regulatory approvals, completing engineering and cost estimates, and construction schedule variables. Estimate excludes the cost of the Liquids Hub.
Strategic partnership with Encana
• Major gas producer focused on developing the liquids-rich
Montney; contracted 85% of the available capacity
• Keyera will own the facilities with the option to operate after
five years of plant start up
• Expected to be completed in 2021 at a cost of $600 million1
New infrastructure includes
• 200 mmcf/d of sour gas processing capacity
• 24,000 bbls/d of condensate processing facilities
• Liquids hub with an additional 14,000 bbls/d of condensate
processing capacity (completed in 2018)
• Acid gas injection, the most reliable and environmentally
responsible method to dispose of acid gas, virtually
eliminating emissions
Phase I 100% contracted & backed by Long-term Agreements
• Includes an area dedication and revenue guarantee
• In May new customer contracted available capacity with long-
term take-or-pay commitment
Growth Opportunities
• Ability to expand gas plant by 200 mmcf/d
Source: Peters & Co.
Pipestone Liquids
Hub and Plant
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Keylink NGL Gathering Pipeline SystemEnhancing Keyera’s Integrated Service Offering
1. Capacity is estimated based on certain assumptions.
A safe, reliable & economical transportation solution
• Eliminates the need for trucked volumes
• Connects 8 Keyera gas plants to the Rimbey gas plant
• Provides increased reliability and flexibility
Enhanced service offering
• Onsite fractionation at Rimbey gas plant
• Rimbey gas plant pipeline connected to Keyera’s
Edmonton Terminal and Ft. Saskatchewan
fractionation and storage complex
Completed on time in 2018 and under budget
Growth opportunities
• Increase volumes on the system with additional
connections and/or growing production volumes
• Connected to two third party plants plus truck terminal
• Pipeline capacity ~22,000 bbls/d1
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New Expected Oil Sands ProductionBitumen Production Growth Driving Condensate Demand
Company
Select Projects Sanctioned
and/or Under Construction Capacity (MB/d) Timing
MEG Christina eMSAGP / Brownfield 20 2018-2020
Cenovus Christina Lake Phase G 50 2019-2020
Canadian Natural Kirby North Phase 1 40 2019
Imperial / Exxon Kearl Reliability 20 2020
CNOOC / NexenLong Lake Southwest
Expansion26 2021
Imperial Aspen Phase 1 75 2022-2023
Total Capacity Additions of Certainty 231
Company Projects with a High Likelihood
Capacity
(MB/d) Timing
Canadian Natural Horizon Debottlenecks (SCO) 40 2020-2023
Suncor Fort Hills Debottleneck 30 2020-2023
Cenovus Foster Creek Phase H 30 2021-2022
Imperial Cold Lake Expansion Project 55 2022-2023
Suncor / CNOOC Meadow Creek East Phase 1 40 2022-2023
Cenovus Narrows Phase A 65 2022-2023
Canadian Natural Kirby Phase 2 (North or South) 40 2022-2023
Cenovus Christina Lake Phase H 50 2022-2023
Canadian NaturalHorizon PFT Expansion
(Bitumen)45 2024
Total Capacity Additions of High Likelihood 395
Source: Peters & Co.
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Norlite PipelineProvides Additional Stable Long-Term Cash Flows
Diluent pipeline supporting Fort Hills oil sands project
• 30% joint venture interest, operated by Enbridge
• Project in service in June 2017
Provides stable long-term cash flows
• Backed by long-term take-or-pay agreement with owners of Fort
Hills project (Suncor, Total & Teck)
• Creditworthy counterparties
Future growth opportunities
• Initial capacity of 218,000 bbls/d with potential to expand up to
465,000 bbls/d1
• Ability to generate fees in other parts of our condensate system,
such as storage, rail and marketing
• Since start up, three new shippers have contracted to both
Norlite and Keyera’s condensate system
• Ability to continue to contract additional volumes
1. Pipeline capacities are estimated based on certain assumptions.
Keyera
Corp
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South Grand Rapids PipelineFurther Enhancing and Expanding Our Condensate Network
38
Diluent pipeline supporting oil sands growth
• 50/50 joint venture between Keyera and Grand Rapids
Pipeline LP (ie. TC Energy and PetroChina Canada)
• Operated by Keyera
Enhances Keyera’s condensate network
• Provides redundancy and reliability between Keyera’s
Edmonton and Fort Saskatchewan assets
• Provides Keyera with an additional 225,000 bbls/d of net
capacity1 for diluent transportation
• 45-kilometre 20-inch diluent pipeline
Future growth opportunities
• A portion of the available capacity will be used to meet
commitments under existing customer agreements
• Keyera will pursue new diluent transportation business with
the remaining capacity available
1. Pipeline capacities are estimated based on certain assumptions.
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Corp
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Base Line TerminalExpanding and Diversifying Keyera’s Service Offering
Crude oil storage for WCSB
• Provides customers with optionality & flexibility
• 50/50 joint venture operated by Kinder Morgan
Fully contracted with 100% take-or-pay contracts
• Long-term contracts up to 10 years in length
• Backstopped by 8 creditworthy customers
New infrastructure includes
• 12 crude oil storage tanks with 4.8 million barrels of
capacity
• Located on Keyera’s Alberta EnviroFuels site in Edmonton
• Connected to Kinder Morgan’s Edmonton Terminal
Growth opportunities
• Potential to add additional tanks for total storage capacity
of up to 6.6 million barrels
1. Subject to finalization of outstanding costs.
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Undeveloped Land for Future GrowthStrategic Optionality in the Industrial Heartland of Alberta
Close
proximity
to pipelines
and railroads
Keyera holds
salt rights
beneath
most of these
lands
166 undeveloped acres1290 undeveloped acres132 undeveloped acres
Keyera Josephburg Terminal (KJT)Keyera Fort Saskatchewan (KFS)
350 undeveloped acres
Keyera’s Hull Terminal in Texas
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Wildhorse Crude Oil Terminal at Cushing, OKExpanding Keyera’s Presence at a Major Liquids Hub
Strategic crude oil storage and blending terminal1
• Located at the major crude oil hub in the US
• Backed by fee-for-service take-or-pay storage contracts
ranging from 2 - 6 years in length
• Provides significant commercial opportunities by blending
lower value products into higher value product streams
• Leverages Keyera’s liquids handling expertise
New infrastructure includes
• 12 crude oil storage tanks with 4.5 million barrels of working
storage capacity under construction
• Terminal will initially be pipeline connected to two existing
storage terminals in Cushing, OK
Expected to be in service in mid-2020, net capital cost of
US$185 million2
Growth opportunities
• Complemented by acquisition of Oklahoma Liquids Terminal,
a nearby logistics and diluent blending facility
• Subject to customer demand, site allows for additional tanks
1. 90/10 joint venture with an affiliate of Lama Energy Group.2. Cost and timing subject to construction and schedule variables.
Cushing, OK
Unparalleled
connectivity with
90 mmbls of storage
Wildhorse
Terminal
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Hull Terminal and Pipeline SystemEnhancing Keyera’s Access to Global Markets
South pipeline system completed in 2Q18Connections to North America’s largest NGL hub
• Pipeline connected to Mont Belvieu and Beaumont
• Provides Keyera with proprietary access to market
clearing mechanism for NGLs
• Rail, truck and pipeline terminal handles NGL mix,
propane, butane and iso-butane
Fee-for-service business with commercial
opportunities
Growth opportunities
• Agreement with major US midstream company
securing storage and other midstream services in
Mont Belvieu
• Additional third party fee-for-service opportunities
• Additional commercial opportunities for Keyera’s
marketing business
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Marketing ServicesUtilizing Keyera’s Infrastructure to Create Value
C3
Propane
• Demand and pricing vary seasonally
• Keyera uses its storage and logistics to
access markets
• Majority sold into U.S. markets
• Supply exceeds demand in North America
C2
Ethane
• Sold under long-term agreements to
petrochemical producers in Alberta
• Limited spot market in western Canada
• Produced at three Keyera facilities
C4
Butane
• Sourced and consumed in Alberta
• Feedstock for iso-octane production at
Alberta EnviroFuels
• Seasonal imports from the U.S.
iC8
Iso-octane
• High quality gasoline additive
• Produced from butane at Keyera’s
Alberta EnviroFuels facility
• Majority of sales in the U.S.
C5+
Condensate
• Keyera’s C5+ hub creates industry liquidity
• Consumed in Alberta as diluent for bitumen
• Significant imports required to meet
demand
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Alberta EnviroFuels (AEF)Iso-octane is a Premium Value Added Product
AEF upgrades low-value butane into iso-octane, a high-
value gasoline additive
• Iso-octane trades at a premium to gasoline prices & WTI
• Butane trades at a discount to WTI
• Majority of butane sourced from Keyera’s facilities
Demand is strong for iso-octane
• A premium gasoline additive compared to alkylates, with
high octane & low vapour properties
• Demand driven by premium gasoline market
• Only merchant facility in North America, with licensed
capacity of 13,600 bbls/d
Effective risk management program
• Financial forward markets enable hedging of large portion
of butane feedstock costs & gasoline margins
• Seasonality is complementary to propane & butane
Alberta EnviroFuels (AEF)
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Iso-octane Business and its Margin ComponentsIso-octane is a High-Value, Niche Business
NOTE: Components are not indicative of their relative size in the margin equation.
Cost
Components
Revenue
Components
Risk management hedges
Foreign exchange
(Iso-octane sold in USD)
Iso-octane
premium over RBOB
RBOB premium over WTI
WTI
Strong demand for iso-octane
• 13,600 bbls/d of facility capacity
• Annual peak occurs during summer
driving season
Access to low value butane feedstock
• Sourced locally and from the US
• Utilize cavern storage assets and pipeline
network to manage volumes and costs
Access to continental markets
• Leverage Keyera’s rail terminals, storage
facilities and logistical expertise to identify
best opportunities
• Sell into regions with the strongest demand
across North America, including the US
Gulf Coast and Midwest to maximize iso-
octane premiums
Risk management hedges
Periodic plant maintenance
Plant operating expenses,
storage & transportation costs
~1.4 bbl butane to 1.0 bbl of
iso-octane
Butane cost - a fraction
of WTI (priced in USD)
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Contact Information
www.keyera.com
Lavonne Zdunich, CPA, CA
Director, Investor Relations
Calvin Locke, P.Eng, MBA
Manager, Investor Relations
888-699-4853
[email protected] Keyera Corp.
Sun Life Plaza West Tower
200, 144 4 Avenue SW
Calgary, Alberta
T2P 3N4