Keyera Corp. TD Securities London Energy Conference 2012 Jim Bertram, CEO
Disclaimer • The information contained in this presentation (“Presentation”) has been prepared by Keyera Corp. (“Keyera”) and is being delivered for informational purposes and only in relation to shares of Keyera. The Presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither Keyera nor its shareholders, directors, managers, agents, employees or advisors give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any person (all such information being referred to as “Information”) and liability therefor is expressly disclaimed. Accordingly, neither Keyera nor any of its shareholders, directors, managers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. In furnishing this Presentation, Keyera does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. • This Presentation should not be considered as the giving of investment advice by Keyera or any of its shareholders, directors, managers, agents, employees or advisors. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters. • This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Keyera, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect to any such securities. • The delivery or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In particular, this Presentation has not been approved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) of the United Kingdom and accordingly in the United Kingdom it is only being delivered to and directed at persons who fall within paragraphs 19 (investment professionals) and 49 (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. Any investment or investment activity to which the Presentation relates is available only to such persons or will be engaged in only with such persons, and persons who do not have professional experience in matters relating to investments, and persons of any other description, should not rely or act upon it. • This Presentation has not been approved as a prospectus by the UK Financial Services Authority ("FSA") under Section 87A of FSMA and has not been filed with the FSA pursuant to the United Kingdom Prospectus Rules. In addition, neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or Canada or distributed, directly or indirectly, in the United States of America or Canada, or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of applicable U.S. or Canadian securities laws. By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the laws of any relevant jurisdiction. This Presentation must not be copied, published, reproduced or distributed in whole or in part at any time without the prior written consent of Keyera, or used for any other purpose, and any other person who receives this Presentation should not rely or act upon it. 2 • Nothing in this disclaimer shall be effective to limit or exclude any liability which by law cannot be limited or excluded.
Who is Keyera? ● Energy infrastructure services business ● Key service provider to crude oil and natural gas producers in Western Canada ● Two integrated business lines - Gathering & Processing - poised to capture new liquids-rich gas production - Liquids Business Unit - positioned to benefit from increased NGL production and growing oil sands sector One of Canada’s Largest Midstream Companies 3
Strong History of Income and Growth dividend increases 1 CAGR 2 in dividends per share 24% compound annual total return 3 to shareholders KEY Daily Closing Share Price and Dividends $60 $0.30 $50 $0.25 $40 $0.20 KEY Dividend $30 $0.15 $20 $0.10 KEY Share Price $10 $0.05 $0 $0.00 1 Since going public in 2003 4 2 From 2003, including the November 2011 dividend 3 From 2003 to Dec 30, 2011
Conservative Balance Sheet with Financial Flexibility Debt 1 / EBITDA 1.7x Net debt 1 / Enterprise Value 2 12% YTD 1 2011 payout ratio 67% 1 As of September 30, 2011, including convertible debentures 2 As of January 5, 2012 5
Attractive Metrics $ Canadian � Trading Symbols (TSX) KEY; KEY.DB.A � Market Capitalization 1 C$ 3.6B � Enterprise Value 1 C$ 4.1B � Share Price 1 C$ 50.51 � Dividend C$ 0.17 per share per month C$ 2.04 per share annually � Current Yield 2 4.0% 1 Based on closing share price at January 5, 2012. 2 Based on closing share price at January 5, 2012 and an annual dividend of $2.04 per share. 6
Rich History of Legacy Assets 1998 2000 2003 2004 2011 2005 • Name changes • Keyera Facilities • Begins trading on • Acquires EnerPro • KeySpan Corp. • Gulf Canada to Keyera Income Fund the TSX under buys Gulf’s Midstream Resources enters the name Facilities Income converts to a remaining 50% Company from into 50:50 Fund: “Key corporate KeySpan Chevron Canada partnership with interest in Gulf facilities for a structure and is Facilities Income • Includes all of KeySpan Corp. Midstream new Era” renamed Keyera Fund Chevron’s Services • Partnership is Corp. (TSX:KEY.UN) as • Name changes to Western named Gulf a publicly listed KeySpan Energy Canadian gas Midstream income trust gathering and Services Canada • $170M initial processing • Includes several of public offering facilities and NGL Alberta’s large gas representing 39% infrastructure plants and related of entity assets natural gas and • KeySpan NGL infrastructure Facilities Income Fund becomes 100% publicly owned as KeySpan Corp. divests its remaining interest in the business 7
What Drives Our Success? � Majority of services provided are essential (non-discretionary) to oil and gas producers � Strategically located assets and broad customer base � 70% of operating margin from fee- for-service revenue streams � Numerous growth opportunities −Liquids-rich natural gas developments in Gathering & Processing business −Oil sands growth provides opportunities in Liquids Business Unit 8 8
Two Integrated Business Lines Liquids Business Unit Gathering & Processing NGL Marketing NGL Infrastructure Terminalling Gathering & Raw Gas NGL Fractionation Compression Processing Ethane End-use Customers Propane NGL Mix Wholesalers Butane Refineries Condensate Petrochemicals Sales Gas NGL Storage • 47% of 2010 Operating Margin* • 23% of 2010 Operating Margin* • 30% of 2010 Operating Margin* • Fee-for-service revenues • Fee-for-service revenues • Margin business • Largely flow through operating costs • No frac spread exposure • No frac spread exposure • Essential service for producers * Non-GAAP measure. See Keyera’s Q3 2011 MD&A for a definition of Operating Margin. Creating Value All Along the Value Chain 9
Western Canada Sedimentary Basin A Prolific Natural Gas Basin ● Canada is home to some of the most economic natural gas plays in North America ● Larger, liquids-rich gas reserves being developed rapidly ● Multi-zone gas potential on the deeper (west) side of WCSB ● “Game changing” horizontal drilling & multi-stage completions unlocking tight reservoirs and shale gas ● NEB permits issued to export LNG off west coast to Asian markets Western Canada Surface Sedimentary Basin (WCSB) Cardium Notikewin Wilrich Glauconite Sandstone/Siltstone Nordegg Carbonate Shale Montney Pekisko Bakken Duvernay 1 Since going public in 2003, including the November 2011 dividend Muskwa 2 From 2003, including the November 2011 dividend 10 3 From 2003 to Oct 31, 2011 SlavePoint/Swan Hills Source: CAPP 10
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