Peters & Co. Luncheon December 10 & 11, Deep Basin Development - Expanding Opportunities. David Smith, President & COO

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1 Peters & Co. Luncheon December 10 & 11, 2013 Deep Basin Development - Expanding Opportunities David Smith, President & COO

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 isooctane; 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 forwardlooking 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 Deep Basin Drilling Driving NGL Value Chain in Alberta Liquids-Rich Drilling NGL Infrastructure Oil Sands Services Surface Cardium Notikewin Glauconite Wilrich Nordegg Montney Pekisko Bakken Duvernay Muskwa SlavePoint/Swan Hills Sandstone/ Siltstone Carbonate MB/d Oil Sands Condensate Demand (Risked) Mining In Situ FORECAST Sources: Peters & Co. Limited estimates, AER, and geoscout. Shale NGL & Condensate Bottlenecks Require Focus & Capital 3

4 Integrated Business Lines Required for Liquids-Rich Production * Includes intersegment transactions. See Keyera s Third Quarter 2013 MD&A for a definition of Operating Margin. Delivering Midstream Energy Solutions Along the Value Chain 4

5 Supporting Liquids-Rich Natural Gas Development Well maintained, long-life gas processing facilities 2.4 Bcf/d licensed gross capacity Operate 14 of 15 gas processing plants 95% of processing capacity able to extract NGLs Extensive gathering systems ~4,000 km of 4-12 diameter pipelines Capture areas create franchise regions 80,000 Bbls/d of NGL fractionation capacity; 12 MMBbls of storage; NGL truck, rail and pipeline transportation; NGL marketing services MONTNEY CARDIUM DUVERNAY GLAUCONITE Providing Producers with Access to Gas Processing and Liquids Handling Services 5

6 Montney A World Class Resource Large portion of western Canadian natural gas production currently coming from the Montney Horizontal drilling / multi-stage completions enabled economic development Recent Montney study 1 estimates marketable volumes of: 449 Tcf of natural gas 14 billion Bbls of NGLs & 1 billion Bbls of oil Montney a traditional sandstone/siltstone reservoir not a shale Near-term focus will be liquids-rich areas such as Wapiti, Elmsworth, Simonette This formation expected to be the key zone underpinning west-coast LNG projects 1 From 05/30/03 to 09/30/13 2 From 07/15/2003 to 09/30/13 3 Assuming timely receipt of approvals and no construction delays 1 Source: National Energy Board; BC Oil Gas Commission; Alberta Energy Regulator; British Columbia Ministry of Natural Gas Development Keyera Well Positioned to Provide Services to Montney Producers 6

7 Simonette New Pipelines Extend Capture Area Producers active in area NuVista Paramount 7 Generations Sinopec Daylight Harvest Exxon CIOC Building two 90-km pipelines; a 12-inch sour gas gathering pipeline and a 6 inch condensate pipeline Opening new capture area northwest of plant in Wapiti / Elmsworth area Wapiti seeing significant producer activity drilling liquids-rich Montney Contractual underpinning for raw gas pipeline provided by NuVista Energy Keyera in discussions with others to fill remaining pipeline capacity Capital cost ~$180 million, including inlet separation Anticipate on stream by Q Assuming construction schedule is met. New Area Experiencing Significant Liquids-Rich Development 7

8 Duvernay Potential World Class Resource Play An emerging natural gas resource development 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 Producers active in Simonette/Kaybob area Exxon Athabasca Oil Corp. Encana Trilogy Chevron Shell ConocoPhillips Yoho Northern Duvernay Region Requires Significant Infrastructure Sources: Peters & Co. Limited,geoSCOUT. 8

9 Simonette Plant Modifications to Enhance Deep Basin Processing Currently a 150 MMcf/d sour gas plant Plant modifications will: Add 100 MMcf/d of processing capacity Improve condensate handling Significant liquids-rich drilling underway, focused on Montney and Duvernay zones Capital expenditure estimated at ~$90 million including condensate stabilization Anticipate start up in second half Future expansions for additional capacity or deep cut extraction 1 Assuming construction schedule is met. Next Step in Developing a Major Processing Complex at Simonette 9

10 Proposed Alberta Liquids Pipeline System (ALPS) Keyera is soliciting producer interest to underpin construction of a new pipeline system System would enable producers to transport NGL mix and condensate from the Simonette/Edson area to Fort Saskatchewan Deep Basin area is seeing significant producer activity due to: multiple geological horizons gas rich in NGLs Potential to feed Keyera NGL infrastructure in Fort Saskatchewan Keyera s condensate infrastructure in Fort Saskatchewan allows significant access to growing oil sands demand for diluent Extending Service Offering for Producer Customers 10

11 Southern Duvernay Significant Infrastructure in Place Today Keyera is well positioned 10 plants (1.9 bcf/d processing capacity and liquids recovery) Extensive gathering systems in place Existing deep-cut capacity at 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 Producers active in the West Central Area: Encana. Shell Talisman Sinopec Daylight ConocoPhillips Vermilion Enerplus Bonavista Sources: Peters & Co. Limited,geoSCOUT. Can the Duvernay be Accelerated to Take Advantage of Existing Infrastructure? 11

12 Keyera s Condensate Infrastructure Providing Customers with Significant Receipt and Delivery Flexibility Diluent transportation, storage and terminalling services in Edmonton/Fort Saskatchewan Connections to access all diluent streams in Alberta Strong service offering attracting new business: Kearl (Imperial Oil) 25-year diluent transportation services began July year storage services agreement Sunrise (Husky/ BP) Services to begin in 2014 Storage and transportation agreement Keyera s Fort Saskatchewan Condensate System 12

13 Adding De-ethanization at KFS Adding a 30 Mbbls/d 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 ~$155 million, including pipeline connections and conversion of cavern to C2+ raw feed storage Expected on-stream in 2 nd half

14 Evaluating C3+ Fractionation Expansion at Fort Saskatchewan Liquids-rich drilling is increasing demand for fractionation in Alberta Alberta fractionators, including Keyera s, are operating near capacity Producers increasingly looking for NGL fractionation and marketing services in addition to natural gas processing Keyera is seeking interest from producers to support an expansion at Fort Saskatchewan Meeting the Needs of Alberta s NGL Producers 14

15 Strong History of Shareholder Growth (TSX:KEY) Disciplined approach to value creation Fee-for-service focus Strategically positioned assets Proven operational expertise 22% 8.1% $900MM Compound annual TSR 1 CAGR 2 in dividends per share Estimated Growth Capital for 2013/ From 05/30/03 to 09/30/13 2 From 07/15/2003 to 09/30/13 3 Assuming timely receipt of approvals and no construction delays Exciting Growth Opportunities Supporting the Producer Community 15

16 For Further Information Contact: John Cobb Vice-President, Investor Relations or Julie Puddell Manager, Investor Relations Keyera Corp. 600, Avenue SW Calgary, Alberta T2P 3N4