CAPP Scotiabank Investment Symposium A p r i l 1 1 , 2 0 1 7 - PowerPoint PPT Presentation

CAPP Scotiabank Investment Symposium A p r i l 1 1 , 2 0 1 7

Disclaimer 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. For additional information please refer to Keyera’s public filings available on SEDAR at www.sedar.com. All forward-looking statements contained in this document are expressly qualified by this cautionary statement. 2

Conservative Financial Strategy % % % cagr cagr dividend per share 2,3 LTM payout ratio 3,4 distributable cash flow per share 1,3 1 Compound annual growth rate from 5/30/2003 to 12/31/2016. 2 Compound annual growth rate from 7/15/2003 to 3/31/2017. 3 Based on dividends declared. Not a standard measure under GAAP. 4 From 1/1/2016 to 12/31/2016, inclusive. Focused On Growing Shareholder Value 3

Investment Opportunities Continue Millions ANNUAL CAPITAL EXPENDITURES $1,000 $800 $600 $400 $200 $- 1 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17e Growth Capital Upper End of Growth Capital Range Acquisitions Maintenance Capital 1 Estimated growth capital for 2017 includes the pipeline acquisition cost of the South Grand Rapids project payable by Keyera upon completion of construction in 2H17. The acquisition capital in 2017 reflects the $55 million purchase price for undeveloped land in the Industrial Heartland of Alberta completed in 1Q17. $600-$700 Million of Growth Capital Spending in 2017 4

Gathering and Processing Business Unit Well maintained, long-life facilities – ~2.9 bcf/d licensed gross capacity 1 – 17 active gas plants; 15 operated by Keyera Extensive gathering systems – Significant gathering pipelines tied into existing gas plants – >5,000 kilometres of pipelines operated by Keyera – Capture areas create franchise regions Fee-for-service revenues with negligible direct commodity exposure – Largely flow-through operating costs 1. Licensed capacity is not equivalent to actual operating capacity. Actual operational 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 5

Simonette Liquids Handling Expansion Project Enables Keyera to handle growing volumes of condensate and improve liquids recoveries for customers Facilities include above-ground storage, truck loading, redesigned existing condensate stabilization and other new services Upon completion by mid-2018 for an estimated cost of $100 million, condensate handling capacity is expected to be ~27,000 bbls/d 1 1 Project cost and timing is subject to finalization of scope, cost estimates and construction schedule variables. Significant Opportunities for Future Development 6

Wapiti Area Gathering & Processing Complex Proposed sour Montney gas gathering and Producers active in the Wapiti area: processing complex: • Apache • CNRL • Conoco ̶ Keyera acquired the Wapiti plant site and a successfully • Encana • NuVista tested acid-gas injection well in 2016 • Paramount • Seven Generations ̶ Producer entered into a long-term gas handling agreement • Shell • Sinopec-Daylight including an area dedication and take-or-pay commitment, subject to a final sanctioning decision at any time prior to the end of 2018 Proposed facilities include: ̶ Plant with up to 300 mmcf/d of sour gas processing capacity and up to 25,000 bbls/d of condensate handling capacity ̶ Acid gas injection ̶ Raw gas gathering and field compression system Estimated total project cost of ~$625 million with a target in-service date of mid-2019 1 Future potential to connect the plant to Keyera’s Wapiti pipeline and Simonette gas plant 1 Project cost and timing subject to project sanctioning, finalization of scope, timely receipt of remaining regulatory approvals and construction schedule variables. Increasing Keyera’s Presence in the Montney 7

Liquids Business Unit SPEC PRODUCT FRACTIONATION STORAGE MARKETING TRANSPORTATION >520,000 bbls of gross NGL MIX TRANSPORTATION w orking tank capacity ~2300 e t h a ne ABOVE GROUND p r o p a n e c o n d en sat e B U T A N E BELOW GROUND ~13.2 million bbls of Rail and truck terminals and ~90,000 bbls/d of net gross cavern capacity pipelines transporting variety fractionation capacity of NGLs at five locations ISO-OCTANE (13,600 bbls/d) AEF Unmatched Infrastructure for NGL and Oil Sands Customers 8

Keylink NGL Gathering Pipeline System New NGL gathering solution for liquids egress and network integration: – NGL gathering pipeline system strengthens Keyera’s value chain by connecting eight Keyera gas plants to the Rimbey energy complex – NGLs can be fractionated at Rimbey or at Keyera Fort Saskatchewan (via Rimbey Pipeline and the FSPL system) – Capacity of ~22,000 bbls/d 1 – Combination of new and re-purposed existing pipelines with a total system length of 264 km 1 – Estimated cost of $147 million, with an expected in-service date of mid-2018 1 1 Capacity, length, cost and timing subject to finalization of scope, timely receipt of third party consent and remaining regulatory approvals and construction schedule variables. An Integrated NGL Transportation Solution 9

Expanding Underground Storage at KFS Underground storage capacity expansion project: – 14 th cavern washing completed in 4Q16; recently brought online 1 – 15 th cavern currently being washed; expected in-service in 1H18 1 – Drilled well bores for 16 th and 17 th caverns in 3Q16; washing of the 16 th cavern commenced in 1Q17 Net cost of four-cavern underground storage development program is approximately $90 million 1 Timing subject to receipt of remaining regulatory approvals and, in the case of cavern 15, completion of washing at the expected pace. Continued Growth at the Fort Saskatchewan Energy Complex 10

Extensive, Flexible Condensate Infrastructure Keyera’s Condensate Network Most connected condensate hub in Western Canada Major oil sands delivery options: – Polaris – Access – Grand Rapids – Norlite – FSPL – South Cheecham Supply through multiple receipt points: – Local fractionators and refineries – Kinder Morgan Cochin pipeline – Enbridge Southern Lights pipeline and CRW pool – Western Canada feeder pipelines – Rail imports at the Alberta Diluent Terminal Storage at Keyera Fort Saskatchewan Long-term take-or-pay and fee-for-service agreements: – Imperial Oil (Kearl) – Cenovus (Christina Lake) – Husky/BP (Sunrise) – CNRL (Kirby, Primrose) – Suncor/Teck/Total (Fort Hills) – JACOS/Nexen (Hangingstone) – North West Upgrading – Devon (Jackfish) Industry-Leading Diluent Handling Services 11