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Corporate Profile September 2014
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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. The acquisition of certain reserves that were
acquired as part of the Cynthia acquisition is subject to a right of first refusal claim. 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.
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Providing Investors with Income and Growth
3
One of Canada’s Largest Midstream Operators
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
Total Cumulative Return of $100 Investment
KEY S&P/TSX Composite
TSX:KEY
23% Compound annual TSR1
8% CAGR2 in dividends per share
1 From 5/30/2003 to 6/30/2014 2 From 7/15/2003 to 6/30/2014
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Projects Capital Cost
($ Millions)1 2013 2014 2015 2016 2017
Rimbey turbo expander 210
Wapiti raw gas and condensate pipelines 180
Simonette plant modifications 95
Strachan vitasul project 66
Gas gathering pipelines 129
Fort Saskatchewan de-ethanizer 155
Fort Saskatchewan frac expansion 175
Alberta Crude Terminal 75
Hull Terminal refurbishment 45
Josephburg Terminal 95
Other projects (including the Norlite pipeline
and underground storage caverns) >400
Growing to Meet Customer Demand
4
1 Keyera’s share of estimated capital cost. See Keyera’s Q2 2014 MD&A for capital investment risks and assumptions.
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Industry Fundamentals Driving Keyera’s Growth
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Infrastructure Required to Meet Growing Oil and Gas Production
3 Assuming timely receipt of approvals
and no construction delays
• Natural gas producers require significant infrastructure to support growing natural gas activity
Liquids-rich natural gas production
• Bitumen producers require diluent handling and other logistics services
Oil sands development
Keyera Business Driver Canadian Industry Focus
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Integrated Business Lines – Superior Service Offering
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• Delivering Midstream Energy Solutions Along the Value Chain
* Fee-for Service Revenues were 68% of Keyera’s 2013 Operating Margin, including intersegment transactions. Operating margin refers to total operating revenues less total operating expenses and G&A expenses associated with the Marketing segment.
*
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Benefitting from Liquids-Rich Gas Geological Horizons
• Canada is home to some of the most economic
natural gas plays in North America
• Larger, liquids-rich gas reserves are being
developed rapidly
• High NGL content supports favourable
producer economics
• Multi-zone gas potential on the deeper (west)
side of Western Canadian Sedimentary Basin
• “Game changing” horizontal drilling & multi-
stage completions unlocking tight reservoirs
and shale gas
• National Enery Board permits issued to export
LNG off west coast to Asian markets
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Surface
Cardium
Sandstone/
Siltstone
Carbonate
Shale
Notikewin
Wilrich
Glauconite
Nordegg
Montney
Pekisko
Bakken
Duvernay
Muskwa
SlavePoint/Swan Hills
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Gathering and Processing Business Unit
• Well maintained, long-life facilities
– 2.5 Bcf/d licensed gross capacity
– Keyera operates 15 of 16 plants
– NGL extraction capability at 95% of plants
• Extensive gathering systems
– ~4,000 km of 4”-12” diameter pipelines
– Capture areas create franchise regions
• Fee-for-service revenues with negligible direct
commodity exposure
– Largely flow-through operating costs
• Expansion of gas processing and liquids
handling capacity, as well as addition of gas
gathering pipelines, expected
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Glauconite
Cardium
Duvernay
Montney
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New Pipelines Capturing Growing Gas Production in Core Area
• Carlos Offload pipelines
– Two 25-km pipelines now in service; 8-inch raw
gas pipeline and a 6-inch condensate pipeline
– Pipeline capital cost ~$23 million
• Wilson Creek gathering system
– Two 30-km pipelines now in service; 12-inch raw
gas pipeline and a 6-inch condensate pipeline
– Pipeline capital cost ~$26 million
• Twin Rivers pipeline
– Scheduled to begin construction later this year;
anticipate both phases to be on stream by Q2
20151
– Pipeline capital cost ~$80 million
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Carlos Extension, Wilson Creek and Twin Rivers Pipelines Latest Initiatives
1 Assuming timely receipt of regulatory approvals and construction schedule is met.
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West Central Alberta – Significant Infrastructure Exists to Meet Growing Producer Demand
• Keyera is well positioned to capture southern
Duvernay volumes:
– 11 plants (2 bcf/d processing capacity and liquids
recovery)
– Extensive gathering systems in place
• Existing deep-cut capacity at Cynthia, Rimbey, Gilby,
Strachan and Minnehik Buck Lake gas plants
• Full fractionation at Rimbey plant for plant and
trucked-in NGL mix
• Access to Edmonton/ Fort Saskatchewan NGL
market via pipeline from Rimbey gas plant
• Ethane from Rimbey to Alberta Ethane Gathering
System (AEGS) for delivery to Alberta’s
petrochemical facilities at Joffre and Fort
Saskatchewan
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Producers active in the
West Central Area:
• Encana.
• Shell
• Talisman
• Sinopec Daylight
• ConocoPhillips
• Vermilion
• Enerplus
• Bonavista
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Enhancing Service Offering at Rimbey
• Adding 400 MMcf/d turbo expander to enhance
liquids extraction
– Ethane capacity 20 Mbbls/d
– Project underpinned by long-term ethane purchase
agreement
– Gross capital ~$210 million
– Expected start-up in first half 20151
• De-bottlenecking fractionator to expand capacity by
~6,900 Bbls/d
• Potential to expand plant capacity significantly by
running turbo expander and lean oil system
(additional capital investment would be required)
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Providing Full Service Solution to Liquids-Rich Gas Producers
1 Assuming construction schedule is met.
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Northern Duvernay – Majors Acquiring Significant Land Positions
• Emerging natural gas resource development
east of Simonette
• Initial indications are that Duvernay gas
contains high levels of condensate and other
NGLs
• Significant infrastructure required to develop
resource
– Raw gas processing
– Condensate stabilization
– NGL mix transportation to Fort Saskatchewan
– Additional NGL fractionation
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Northern Duvernay Region Requires Significant Infrastructure
Producers active in
Simonette/Kaybob area
• Exxon Mobil
• Athabasca Oil Corp.
• Encana
• Trilogy
• Chevron
• Shell
• ConocoPhillips
• Yoho
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Producers active in area
• NuVista
• Paramount
• 7 Generations
• Sinopec Daylight
• Harvest
• Exxon Mobil
• CIOC
• Wapiti pipelines
– Opening new capture area northwest of plant in Wapiti /
Elmworth area where producers drilling liquids-rich Montney
zone
– Two 90-km pipelines; a 12-inch sour gas gathering pipeline
and a 6-inch condensate pipeline expected to be operational
this quarter
– Pipeline capital cost ~$180 million, including inlet separation
• Plant modifications
– Modifying plant to add 100 MMcf/d of processing capacity &
improve condensate handling
– Plant capital cost estimated at ~$95 million, including
condensate stabilization; anticipate plant expansion start up in
second half 20141
1 Assuming construction schedule is met.
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New Area Experiencing Significant Liquids-Rich Development
Simonette – Expanding to Handle New Gas Production
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Cynthia Gas Plant – Growing Through Acquisition
• Acquired ownership interests in deep-cut
facilities in west Central Alberta
- 85% ownership interest in Cynthia gas plant
- 5% remaining interest in Bigoray gas plant (to
now own 100%)
- Natural gas and NGL reserves (average 2013
production ~8,700 Bbls/d1 )
• Purchase price ~$113 million
• Deep cut capability provides potential for
higher customer netbacks
• Prospective area (producers actively
drilling Cardium, Ellerslie, Spirit River
geological zones)
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Potential for Interconnectivity Offers Customers Increased Flexibility and Reliability
1 Production decline estimated to be between 25% and 30% annually.
LNG Development May Drive Increased NGL Production
• 14 LNG projects in various stages1
• 7 export licenses approved1
• Liquids-rich zones expected to be a
significant source of gas
• Edmonton/Fort Saskatchewan energy
hub logical destination for NGL
production
1 Globe and Mail, April 12, 2014
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Positioned to Support Natural Gas and NGL Growth Opportunities
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• Adding 35,000 Bbls/d of C3+ fractionation capacity at
Keyera’s Fort Saskatchewan facility (KFS)
– Long-term agreements in place
– Net cost to Keyera ~$175 million
– Anticipate online Q1 20161
• Adding 30,000 Bbls/d de-ethanizer at KFS
– Project will enable fractionation of an ethane-rich stream
of NGLs (C2+ mix) and increase the flexibility of KFS
– Project underpinned by a large deep basin producer
– Net cost to Keyera ~$155 million, including pipeline
connections and cavern to C2+ raw feed storage
– Expected on-stream in Q1 20152
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Continuing to Grow Fort Saskatchewan Energy Complex
Expanding Fractionation Capacity
1 Assuming timely receipt of regulatory approvals and construction schedule is met. 2 Assuming current construction schedule is maintained
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Oil Sands – Multi-Decade Production
• Large reserve base (170 Billion barrels
recoverable1)
• Represents approximately half of world oil
reserves not under sovereign control1
• Majority of future production expected to come
from in-situ developments
• Bitumen expected to be sent to upgraders
across North America for processing
• Condensate is required to dilute bitumen to
facilitate pipeline movement
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Diluent Transportation, Storage and Terminalling Services Required
1 Source: CAPP
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0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
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In Situ (SAGD)
In Situ (CSS)
Mining
MB/d
Bitumen Production
Growing Demand for Diluent from Oil Sands Producers
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Meeting the Needs of Oil Sands Producers
0
200
400
600
800
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Demand (Bitumen Blending)
Supply (WCSB Production)
Source: Peters & Co. Limited estimates.
MB/d
Western Canada Condensate Supply and Demand
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Extensive, Flexible Infrastructure Serving Oil Sands Producers
• Multiple receipt and delivery options provide
significant flexibility for customers
• Adding new receipt points:
– Connected to the Cochin pipeline system to
receive condensate at KFS
• Strong service offering attracting oil sands
producers:
– Long-term take-or-pay and fee-for-service deal
signed with Cenovusm, Imperial Oil (Kearl) and
Husky/ BP (Sunrise)
– Multi-year deal with another major oilsands
producer to commence mid-2014
• Polaris connects this diluent hub to the Cold Lake
and Fort McMurray bitumen production
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Keyera’s Crude & Condensate Network
Increasing Underground Storage Capacity at KFS
• Meeting the growing demand
for diluent storage, by
continuing to add storage
capacity at Fort
Saskatchewan
• Thirteenth and fourteenth
storage caverns currently
under development
• Developing plans for the next
phases of development,
which is expected to add
another ~4 million barrels of
storage capacity
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Expanding our Condensate Service Offering
• Enbridge proceeding with development of Norlite pipeline,
a diluent pipeline from Fort Saskatchewan to Athabasca oil
sands region
• Keyera will be participating as 30% non-operating owner
• Norlite shippers may access Keyera’s condensate
infrastructure in Edmonton/Fort Saskatchewan region
• In addition to pipeline capacity, shippers may need other
Keyera services, such as storage and rail terminalling
services
• Initial capacity of approximately 224,000 Bbls/d with
potential to be expanded to 400,000 Bbls/d
• Enbridge estimates completion in 2017 at a gross cost of
~$1.4 billion1
1 Subject to finalization of scope, timely receipt of regulatory approvals and construction schedule variables.
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Enhancing Cash Flow Stability
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South Cheecham Rail and Truck Terminal
• South Cheecham Rail and
Truck Terminal completed in
Q3, 2013
• Ownership Keyera 50%
(operator), Enbridge 50%
• Terminal capable of receiving
diluent and solvents and
loading dilbit and bitumen onto
railcars for delivery to
upgraders
• Agreements in place with
Statoil and JACOS
• Evaluating facility expansion
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Meeting the Growing Rail Needs of Canadian Oil Sands Producers
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Alberta Crude Terminal – Loading Crude onto Rail
• 50/50 partnership with Kinder Morgan
• Connection to Kinder Morgan’s extensive
storage facility provides customers access
to several crude qualities
• Project underpinned by Irving Oil
• Terminal served by CN and CP railways
• 40,000 Bbls/d crude oil loading capacity
• Potential for up to 125,000 Bbls/d
incremental capacity
• Net capital cost to Keyera of ~$75 million;
anticipate online this quarter with
commissioning of full capacity expected
Q4 20141
1 Assuming construction schedule is met.
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Josephburg Terminal – A Propane Solution for Industry
• Josephburg terminal will help address the
need for new propane rail infrastructure to
handle:
– Cochin propane volumes as the pipeline is no
longer in propane service
– Growing propane supply from new liquids-rich
production
• Capacity of approximately 40,000 Bbls/d
• Capital costs of ~$95 million, including
pipeline connections and storage bullets
• Expected on-stream mid-20151
1 Assuming construction schedule is met.
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Helping Provide Market Access for Western Canadian Producers
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Rail Terminal Hull, Texas
• Facility intended to facilitate the
movement of NGL mix,
propane, butane and iso-
butane into the Mont Belvieu
market
• Complementary storage
agreement at Daisetta, TX
• Commissioning underway
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Extending Keyera’s Value Chain
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Alberta EnviroFuels (AEF)
• Iso-octane added to gasoline to
create high octane, low vapour
pressure gasoline
• Facility uses butane as
feedstock
• Iso-octane supplied to key
refinery markets in North
America (Western Canada,
California and the US Gulf
Coast)
• Product currently moves by
truck, rail and pipeline to
market
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• Largest iso-octane facility in
North America, capacity of
13,600 Bbls/d of iso-octane
Creating Positive Synergies with Keyera’s Marketing Business
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• Purchase and fractionate NGL mix into specification
products (propane, butane, and condensate)
• Store NGLs as required to meet demand and
operational fluctuations
• Utilize Keyera’s integrated facilities and logistics
expertise to move spec products to markets across
North America
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Infrastructure and Expertise Provide Access to High-Value Markets
NGL Marketing Services
Ethane
Propane
Butane
Condensate
Natural Gas Liquids
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Recent Financial Highlights
• Closed $318 million equity issue on May 29, 2014
– Net proceeds used to partially fund Keyera’s capital
growth program, reduce short term indebtedness and
for general corporate purposes
• Increased dividend by 7.5% to $0.215 per month
with dividend payable on June 16, 2014
– Keyera’s 12th dividend increase in 11 years
• Record operating margin in fee-for-service
businesses in the first half of 2014
• Record EBITDA of $250 million in the first half of
2014
• Growth capital investment expected to be between
$700 million and $800 million in 2014
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Conservative Capital Structure
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Growth and Flexibility to Fund our Capital Program
$0
$50
$100
$150
$200
$250
$300
$350
$400
2009 2010 2011 2012 2013 1H 2014
Adjusted EBITDA Dividends2
Adjusted EBITDA1
$ Millions
1 Non-GAAP measure. See Keyera’s Q2 2014 MD&A for a definition of EBITDA and adjusted EBITDA. 2 2009 dividends normalized to exclude $29.2 million paid out as a special dividend. 3 As of June 30, 2014 and calculated as per Keyera’s debt covenants.
4 As at June 30, 2014. Net debt was $834.3 million and is net of working capital; LTM adjusted EBITDA
was $432.8 million. 5 Enterprise value based on August 28, 2014 closing price of $ 94.76 (KEY)
1.78X3
Net Debt4 to
EBITDA1
9% Net Debt4 to
Enterprise Value5
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Trading Metrics
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KEY Trading Symbols (TSX)
$94.76 Common Share Price1
$8.0 B Market Capitalization1
$8.9 B Enterprise Value1,2
84.0 M Common Shares Outstanding3
178,337 Daily Trading Volume4
$2.58 Annualized Dividend per Share5 (21.5¢/month)
2.70 % Current Dividend Yield1
61 % Payout Ratio6
1 Based on closing share price at August 28, 2014 2 Enterprise value includes debt (as at June 30, 2014) less working capital 3 Basic shares outstanding at July 31, 2014 4 Second quarter 2014 daily average 5 Effective with the August dividend payable September 15, 2014 6 2014 first half average
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Positioned for the Future
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• Positioned to benefit from liquids-rich gas production
• Positioned to capitalize on growth in oil sands activities
• 2014 growth capital expected to be largest in Keyera’s history
• Continued focus on delivering value and returns for our shareholders
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For Further Information Contact:
John Cobb
Vice-President, Investor Relations
888-699-4853
Keyera Corp.
600, 144 – 4 Avenue SW
Calgary, Alberta T2P 3N4
WWW.KEYERA.COM