Keyera (KEY) Status Update summary

2024 Performance and Strategic Highlights

• Achieved zero Lost Time Injury Frequency rate through November 2024, reflecting strong safety performance.

• On track for record realized margins and adjusted EBITDA from Fee-for-Service segments.

• Maintained a robust financial position with net debt to adjusted EBITDA at 1.9x in Q3 2024 and the lowest debt leverage among peers.

• Delivered a 4% annual dividend increase in August 2024 and received approval for a normal course issuer bid.

• Sustained DCF per share CAGR of 8% since 2008, driving consistent dividend growth averaging 6% per year.

Growth Outlook and Project Pipeline

• Introduced a new fee-based adjusted EBITDA CAGR target of 7%-8% from 2024 to 2027, excluding Marketing for peer comparability.

• Growth underpinned by filling available capacity and capital-efficient projects like KFS Frac II debottleneck, KFS Frac III (in service by 2028), and KAPS Zone 4.

• North G&P, Rimbey, Wapiti, and Simonette assets expected to drive volume and margin growth, with new customer tie-ins.

• Identified further growth opportunities beyond 2027, including North Region gas processing expansion, rail/logistics, and low-carbon projects.

• On pace to achieve a 25% emissions intensity reduction from 2019 levels by 2025.

Capital Allocation and Financial Discipline

• 2025 growth capital guidance set at $300–$330 million, with maintenance capital at $70–$90 million and cash taxes at $100–$110 million.

• Growth capital for 2026–2027 expected to average $350–$450 million.

• Dividend payout ratio maintained at 50%-70% of DCF, with a focus on sustainable dividend increases and opportunistic share buybacks.

• Project-level returns targeted at 10%-15% before tax, aiming for the high end.

• Maintains a conservative financial framework to preserve investment grade credit rating and financial flexibility.