Keyera (KEY) Status Update summary

2024 Performance Highlights and Strategic Context

• Achieved zero Lost Time Injury Frequency rate as of November 2024, reflecting strong safety performance and robust financial position with net debt to adjusted EBITDA at 1.9x in Q3 2024.

• On track for record realized margins and annual EBITDA from Fee-for-Service segments, with a new 7-8% fee-based adjusted EBITDA CAGR target from 2024 to 2027, excluding Marketing for peer comparability.

• Delivered a 4% dividend increase in August 2024 and received approval for a normal course issuer bid, supporting capital allocation flexibility.

• Maintained the lowest debt leverage among peers, providing capital allocation flexibility and supporting sustainable dividend growth.

• Sustained 8% DCF per share CAGR and 6% average annual dividend growth since 2008.

Market Outlook and Growth Drivers

• Western Canada’s hydrocarbon resources remain cost-competitive, with new egress capacity quickly filled and long-term volume growth underpinned by world-class, low-cost energy resources.

• Canadian producers are financially strong, with ample free cash flow and low debt, supporting production growth.

• NGL volumes expected to grow 6% annually, driven by Montney and Duvernay formations, with demand rising due to oil sands growth, West Coast LPG exports, and petrochemical demand.

• Keyera’s integrated asset base is positioned to capture NGL and condensate growth, especially from Montney and Duvernay plays.

• Wapiti and Simonette gas plants are expected to see increased throughput and new customer tie-ins, driving further margin growth.

Growth Projects, Asset Optimization, and Project Pipeline

• Advanced capital-efficient projects: KFS Frac II debottleneck, KFS Frac III (expected in service by 2028), and KAPS Zone 4 (targeted for mid-2027 service).

• KFS Frac II debottleneck to add 8,000 bpd by late 2026; KFS Frac III to add 47,000 bpd by 2028.

• Growth supported by filling available capacity and capital-efficient brownfield expansions, leveraging existing infrastructure.

• North G&P assets, Rimbey, Wapiti, and Simonette expected to drive volume and margin growth.

• Identified further growth opportunities beyond 2027, including North Region G&P expansion, rail/logistics, and a low-carbon services hub.