D AVID G. S MITH – P RESIDENT & COO CIBC Unlock the Rock 2012 Stampede Conference July 10, 2012
Forward Looking Information 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 (collectively “statements”) 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
Keyera – One of Canada’s Largest Midstream Operators » Natural gas gathering and processing – Focused in western part of Western Canada Sedimentary Basin (WCSB) » NGL facilities – Fractionation, storage, transportation and terminalling » Marketing – Propane, butane, condensate, iso-octane Providing Essential Services to Producers 3
Company Snapshot Trading Symbols (TSX): KEY; KEY.DB.A Common Shares Outstanding 1 : 76,957,809 Share Price 2 : $43.01 Market Capitalization 2 : $3.3B Enterprise Value 2 : $3.8B Trading Volume 3 : 256,221 Monthly Dividend: $0.17 Current Yield 2 : 4.7% 1 Basic shares outstanding at June 30, 2012. 2 Based on closing share price at July 4, 2012. 3 Second quarter 2012 daily average. Track Record of Stability and Growth 4
Two Integrated Business Lines Liquids Business Unit Gathering & Processing NGL Marketing NGL Infrastructure Terminalling Gathering & Raw Gas End-use Compression Processing NGL Fractionation Customers Ethane Wholesalers NGL Propane Mix Refineries Condensate Petrochemicals Butane AEF Sales Gas NGL Storage Iso-octane » 52% of 2011 Operating Margin* » » 23% of 2011 Operating Margin* 25% of 2011 Operating Margin* » Fee-for-service revenues » » Fee-for-service revenues Margin business » Largely flow-through operating » » No frac spread exposure No frac spread exposure costs » Essential service for producers * Non-GAAP measure. See Keyera’s First Quarter 2012 MD&A for a definition of Operating Margin. Creating Value through Business Integration 5
Gathering and Processing – Franchise Facilities West of 5 th Meridian » Large flexible gas processing plants – Operate 15 of 17 gas plants – Licensed capacity of 2.6 bcf/d – NGL extraction – Sweet and sour gas processing capability » Extensive gathering systems – Large capture areas create franchise regions » Long life assets » Fee-for-service revenues with no commodity exposure 6
Canada’s Liquids-Rich Gas Development » Renewed focus on liquids-rich gas resource development in WCSB – Multiple well-understood MONTNEY geological horizons – High liquids content – Improved Alberta royalty regime – Application of technologies DUVERNAY – Access to available processing & transportation capacity » Tight gas plays – Cardium, Glauconite, Montney CARDIUM » Duvernay – significant potential GLAUCONITE from deep shale 7
NGL Infrastructure – Positioned for Growth » Providing services to NGL & bitumen producers at Canada’s energy hub – Fractionating NGL mix into ethane, propane, butane and condensate – Storing NGLs, including diluent – Transporting NGLs to and from the Edmonton/Fort Saskatchewan hub – Rail and truck terminalling to load and offload NGLs and other liquids – Manufacturing iso-octane Pipelines Sales Terminals Fractionation Storage Rail Cars Rail & Truck Racks (7) (80,000 bbls/d) (10.9 million bbls) (800+) 8 (19)
Strategic NGL Infrastructure in Edmonton/Fort Saskatchewan Fort Saskatchewan Edmonton Terminal • 30,200 bbls/d fractionation capacity • Logistics & transportation hub • Pipeline system to & from Edmonton • Pipeline control centre market hub • Rail and truck terminal • 10.6 million bbls of underground • Above ground storage storage in 11 caverns • Multiple pipeline connections • Potential to add 9 additional caverns • Oil midstream business • Storage expansion program underway 9
Strategic NGL Infrastructure In Edmonton/Fort Saskatchewan Alberta Diluent Terminal Alberta EnviroFuels (ADT) (AEF) • Condensate & solvent distribution • Largest iso-octane plant in North America terminal • Produces up to 14,000 bbls/d iso-octane • 20 car rail offloading from butane feedstock • 200 car rail yard • Pipeline connected to Edmonton • Unit train capability Terminal, ADT, Suncor refinery & Kinder Morgan TransMountain Pipeline • Connected to CP and CN railways • Above ground storage • Rail & truck loading via Edmonton • Ability to offload up to 50,000 bbls/d Terminal (Q4 2012) • Truck loading & offloading • 80 acres of undeveloped land Adding Value along the NGL Value Chain 10
Keyera’s Condensate Logistics » Keyera’s fractionation, storage, transportation & terminal facilities provide hub services for bitumen producers » Long-term fee-for-service agreements with Imperial Oil and Husky for Kearl and Sunrise oil sands projects » Condensate imports by: ‒ Rail ‒ Enbridge Southern Lights Pipeline (2010) ‒ Kinder Morgan Cochin Pipeline (2014) Edmonton/Fort Saskatchewan is Key Condensate Logistics Hub 11
Condensate Infrastructure – Investing for the Future » Keyera and Enbridge have signed MOU to pursue diluent transportation initiatives » Proceeding with construction of South Cheecham Rail and Truck Terminal to enable receipt of diluent or solvents via railcar and delivery of dilbit to upgraders (possible ownership Keyera 50%/Enbridge 50%) » Soliciting interest from oil sands producers to support construction of: − Norlite Pipeline – diluent pipeline from Fort Sask. to Athabasca oil sands region (Enbridge 70%/Keyera 30%) Meeting the Needs of Canadian Bitumen Producers 12
In Summary … » Canada continues to be a key part of shifting North American gas & NGL supply/demand fundamentals » Keyera is well positioned for: − Growing production of Canadian liquids-rich gas & associated NGLs − Growing diluent & solvent logistics needs for Canadian oil sands development 13
For Further Information Contact: John Cobb Director, Investor Relations 888-699-4853 ir@keyera.com KEYERA 600, 144 – 4 TH AVENUE S.W. CALGARY, ALBERTA T2P 3N4 WWW.KEYERA.COM
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