Jim Bertram CEO PETERS & CO. LIMITED 2012 NORTH AMERICAN OIL AND GAS CONFERENCE SEPTEMBER 12, 2012

Transcription

1 Jim Bertram CEO PETERS & CO. LIMITED 2012 NORTH AMERICAN OIL AND GAS CONFERENCE SEPTEMBER 12, 2012

2 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 All forward-looking statements contained in this document are expressly qualified by this cautionary statement. 2

3 Integrated Business Lines Integral to Success * Non-GAAP measure. Includes intersegment transactions. See Keyera s Second Quarter 2012 MD&A for a definition of Operating Margin. Delivering Midstream Energy Solutions Along the Value Chain 3

4 Gathering and Processing The Core of our Business»Well maintained, long life assets 2.6 Bcf/d licensed capacity 15 of 17 plants Keyera operated Sweet/sour gas processing expertise NGL extraction capability»extensive gathering systems Over 3400 km of 4-12 diameter pipelines Capture areas create franchise regions»fee-for-service revenues with no direct commodity exposure Largely flow-through operating costs Franchise Facilities West of the 5 th Meridian 4

5 Liquids-Rich Natural Gas Development (W5M)» Renewed focus on liquids-rich gas resource development Multiple geological horizons, well-understood High liquids content enhances producer economics Improved Alberta royalty regime Application of technologies Access to available infrastructure» Cardium, Glauconite, Montney tight gas plays» Duvernay significant potential from deep shale MONTNEY CARDIUM DUVERNAY GLAUCONITE The Right Facilities in the Right Place 5

6 NGL Infrastructure Supports Western Canadian Producers» Services to NGL producers at Canada s energy hub NGL Fractionation propane, butane and condensate NGL Logistics Services Storage Pipelines Rail and Truck Terminals Fractionation (80,000 bbls/d) Storage (10.9 MM barrels) Rail & Truck Racks (19) Pipelines (7) Rail Cars (~1,000) Sales Terminals 6

7 Fractionation» 80,000 barrels per day of fractionation capacity currently» Location of fractionators key to increasing NGL netback» Keyera making significant capital investment to grow fractionation capacity New Fractionation Capacity Needs To Be Developed 7

8 Broadening our Service Offering Adding De-ethanization at KFS» Adding a 30,000 barrel per day de-ethanizer at Keyera s Fort Saskatchewan Fractionation and Storage Facility (KFS)» Project will enable fractionation of an ethane-rich stream of NGLS (C2+ mix)» Creates specification ethane for consumption by Alberta s petrochemical industry» Project underpinned by a large deep basin producer» Gross costs of ~$110 million, including pipeline connections and conversion of cavern to C2+ raw feed storage» Expected on-stream in 2014 Providing Timely, Value-Added Services to Our Customers 8

9 Storage (Caverns and Above Ground)» Storage a key strategic infrastructure advantage» Over 10 million barrels in cavern storage at Fort Saskatchewan» Keyera continues to invest to meet increasing NGL production and oil sands diluent requirements Two new caverns being developed A Large NGL Storage Provider At Fort Saskatchewan 9

10 NGL Pipelines» Pipelines critical to the movement of NGLs» Four pipelines between Edmonton and Fort Saskatchewan provide bidirectional flows and access to markets» Pipeline connectivity in Edmonton and Fort Saskatchewan creates optionality for our customers» Connectivity allows Keyera to be a strategic NGL market player Pipeline Connections Create Market Optionality 10

11 Rail and Truck Terminals» Fort Saskatchewan truck loading/offloading compliments fractionation and storage options» Keyera continues to evaluate new terminals to expand NGL optionality Edmonton Terminal being modified to ship iso-octane as well as propane and butane Operational changes at ADT to expand condensate offloading capability (up to 50,000 bbls/day) South Cheecham under construction for planned 2013 startup of diluent offloading and dilbit loading Rail Terminal Expansions To Facilitate NGL Transport 11

12 Investing for the Future»Near term organic growth opportunities Gas plant expansion/enhancement and pipeline construction projects driven by liquids-rich gas development Fractionation and storage expansions to handle increasing NGL production Storage, terminalling and pipeline opportunities from oil sands growth»projects and acquisitions that leverage existing facilities and expertise»typical organic project characteristics Scalable to meet changing industry environment Flexible Driven by industry needs A Focused Approach to Growing Our Business 12

13 Summary»Aligned with customers»strategic geographic footprint»integrated NGL value-chain becoming more important»investing to support customer value creation»strong balance sheet One of Canada s Largest Midstream Operators 13

14 For Further Information Contact: John Cobb Vice-President, Investor Relations KEYERA CORP. 600, AVENUE SW CALGARY, ALBERTA T2P 3N4