Keyera Announces 2024 Year End Results

CALGARY, AB, Feb. 13, 2025 /CNW/ - Keyera Corp. (TSX: KEY) ("Keyera") announced its fourth quarter and year-end 2024 financial results today, the highlights of which are included in this news release. To view Management's Discussion and Analysis (the "MD&A") and financial statements, visit either Keyera's website or its filings on SEDAR+ at www.sedarplus.ca.

Keyera Announces 2024 Year End Results (CNW Group/Keyera Corp.)

"Keyera had an outstanding 2024, achieving record results across all three business segments" said Dean Setoguchi, President and CEO. "We continued to execute our strategy and deliver value to our customers by leveraging the strength of our integrated value chain. Looking ahead, we have a clear pathway to continued margin growth by filling available capacity and advancing capital-efficient growth projects. Our financial strength positions us well to allocate capital to the highest-value opportunities."

Fourth Quarter and Year-End Highlights

• Financial Results
  • Adjusted earnings before interest, taxes, depreciation, and amortization¹ ("adjusted EBITDA") were $313 million for the quarter (Q4 2023 – $339 million) and a record $1.28 billion for the full year (2023 – $1.21 billion). These strong results were driven by record quarterly realized margin contributions from the Liquids Infrastructure segment and record annual realized margin contributions from all three business segments.
  • Distributable cash flow¹ ("DCF") was $168 million or $0.73 per share for the quarter (Q4 2023 – $234 million or $1.02 per share) and $771 million or $3.36 per share for the full year (2023 – $855 million or $3.73 per share). The decrease in both figures compared to the prior year periods is mostly due to higher cash taxes.
  • Net earnings were $89 million for the fourth quarter (Q4 2023 – $49 million) and a record $487 million for the full year (2023 – $424 million).
• Record Fee-for-Service Realized Margin¹ Driven by the Continued Filling of Available Capacity
  • Fee-for-service realized margin¹ hit a new annual record of $970 million (2023 – $891 million), achieving a year-over-year growth rate of 9%.
  • The Gathering and Processing ("G&P") segment delivered quarterly realized margin¹ of $107 million (Q4 2023 – $116 million), and an annual record of $413 million (2023 – $395 million). The annual increase is mostly due to the cost and downtime associated with the 2023 Alberta wildfires, and higher contributions from the Simonette gas plant. These results also include record annual throughput at the Wapiti and Pipestone gas plants even with a planned turnaround at the Wapiti gas plant.
  • The Liquids Infrastructure segment achieved record quarterly realized margin¹ of $153 million (Q4 2023 – $130 million), and an annual record of $558 million (2023 – $496 million). The main contributors of this performance were the continued steady ramp up of KAPS, record quarterly and annual margin contributions from fractionation and storage services at KFS, and record quarterly and annual deliveries from Keyera's industry leading condensate system.
• Marketing Segment Delivers Record Year – The Marketing segment delivered quarterly realized margin¹ of $99 million (Q4 2023 – $129 million) and a record annual realized margin¹ of $485 million (2023 – $479 million), above the previously guided range of $450 million to $480 million. These results were largely driven by strong contributions from iso-octane sales and propane exports off the west coast of Canada.
• Strong Financial Position – The company ended the year with net debt to adjusted EBITDA² of 2.0 times, below the targeted range of 2.5 to 3.0 times. The company remains well positioned to pursue and equity self-fund growth opportunities that will enhance shareholder value.

2024 Guidance Results

• Marketing segment realized margin¹ delivered an annual record of $485 million, above the latest guidance range of $450 million to $480 million.
• Annual growth capital spending excluding capitalized interest was $116 million, above the latest guidance range of $80 million to $100 million. The additional capital includes optimization work at the Brazeau River gas plant and tie-ins to support new customer volumes at the Wapiti gas plant.
• Maintenance capital spending was $136 million, within the latest guidance range of $120 million to $140 million.
• Cash taxes were $105 million, slightly above the latest guidance of $90 million to $100 million, due to stronger financial performance.

Advancing Capital-Efficient Growth Projects

• The company has formally sanctioned the debottleneck of KFS Fractionation Unit II ("KFS Frac II"), which will add approximately 8,000 barrels per day of capacity for about $85 million. The project is expected to generate strong returns on a standalone basis. The additional capacity is now anticipated to come online earlier than originally planned, with an expected in-service date of mid-2026 (previously late 2026).
• The 47,000 barrel per day KFS Fractionation Unit III project ("KFS Frac III") continues to receive strong contractual support from customers. A formal sanction decision is expected later this year, and the project is expected to be in service in 2028. Combined, the KFS Frac II debottleneck and the KFS Frac III project will increase Keyera's total fractionation capacity by about 60%.
• The company has completed front-end engineering and design for KAPS Zone 4 and continues to progress toward securing sufficient contractual backing.
• The company continues to progress other potential opportunities which include the expansion of North Region G&P capacity, expanding rail and logistics capabilities as fractionation volumes continue to grow, and further liquids extraction projects.

Long-Term Propane Export and Fractionation Agreements with AltaGas

As previously announced, Keyera has secured long-term propane sales agreements with AltaGas' Canadian west coast terminals. These agreements enhance Keyera and customer access to international pricing, diversifying sales opportunities. Additionally, AltaGas has committed to moving incremental NGL mix volumes, which includes volumes produced from AltaGas' Pipestone II plant (currently under construction), through Keyera's integrated system, further supporting ongoing fractionation expansions and future rail and logistics projects.

AEF Outage

AEF will be taken offline for approximately 6 weeks in the spring of 2025 to conduct maintenance activities addressing an unexpected operational issue. These activities are required to ensure continued safe and reliable operations. The outage is expected to reduce 2025 realized margin¹ for the Marketing segment by approximately $40 million, with no increase to maintenance capital. The company still expects to be within its stated base Marketing realized margin¹ guidance of $310 million to $350 million for 2025. Consistent with prior years, Marketing segment realized margin¹ guidance will be provided with first quarter results in mid-May, after the conclusion of the NGL contracting season.

2025 Guidance Unchanged

• This past December, the company announced a new 7-8% annual growth target for fee-based adjusted EBITDA¹ over the 2024-2027 period.
• Base Marketing realized margin¹ guidance remains between $310 million to $350 million. Consistent with prior years, Marketing segment realized margin¹ guidance will be provided with first quarter results in mid-May, after the conclusion of the NGL contracting season.
• Growth capital expenditures are expected to range between $300 million and $330 million. This includes capital investments to advance the KFS Frac II debottleneck, KFS Frac III, KAPS Zone 4, enhancements at AEF, and optimization work across the portfolio.
• Maintenance capital expenditures are expected to range between $70 million and $90 million.
• Cash taxes are expected to range between $100 million and $110 million.

Summary of Key Measures	Three months ended December 31,		Twelve months ended December 31,
(Thousands of Canadian dollars, except where noted)	2024	2023	2024	2023
Net earnings	88,906	49,192	486,628	424,032
Per share ($/share) – basic	0.39	0.21	2.12	1.85
Cash flow from operating activities	316,431	230,739	1,265,788	975,486
Funds from operations^1	227,274	290,643	962,438	1,027,493
Distributable cash flow^1	168,301	233,563	770,914	854,622
Per share ($/share)^1	0.73	1.02	3.36	3.73
Dividends declared	119,160	114,577	467,473	449,141
Per share ($/share)	0.52	0.50	2.04	1.96
Payout ratio %^1	71 %	49 %	61 %	53 %
Adjusted EBITDA^1	312,732	339,244	1,275,275	1,211,774
Operating margin	307,295	445,786	1,385,601	1,432,938
Realized margin^1	359,189	374,701	1,454,867	1,369,401
Gathering and Processing
Operating margin	107,834	114,851	412,600	392,430
Realized margin^1	107,303	115,983	412,718	394,530
Gross processing throughput^3 (MMcf/d)	1,532	1,625	1,492	1,588
Net processing throughput^3 (MMcf/d)	1,380	1,393	1,324	1,358
Liquids Infrastructure
Operating margin	154,295	128,133	557,021	486,467
Realized margin^1	152,576	130,170	557,590	496,114
Gross processing throughput^4 (Mbbl/d)	187	206	176	185
Net processing throughput^4 (Mbbl/d)	102	116	97	101
AEF iso-octane production volumes (Mbbl/d)	15	15	13	15
Marketing
Operating margin	45,264	202,851	416,129	554,251
Realized margin^1	99,408	128,597	484,708	478,967
Inventory value	270,225	225,790	270,225	225,790
Sales volumes (Bbl/d)	243,500	253,900	207,500	200,700
Acquisitions	—	—	—	366,537
Growth capital expenditures	48,580	34,121	115,985	216,177
Maintenance capital expenditures	44,435	40,221	136,340	119,973
Total capital expenditures	93,015	74,342	252,325	702,687
Weighted average number of shares outstanding – basic and diluted	229,153	229,153	229,153	229,153
As at December 31,			2024	2023
Long-term debt^5			3,379,498	3,426,994
Credit facility			—	470,000
Working capital deficit (surplus) (current assets less current liabilities)			60,930	(272,793)
Net debt			3,440,428	3,624,201
Common shares outstanding – end of period			229,153	229,153

CEO's Message to Shareholders 

Another year of solid strategy execution. I am very proud of the Keyera team for delivering value for our customers and record financial results in 2024. For the second consecutive year, we had a Lost Time Incident Frequency (LTIF) of zero, underscoring our continued commitment to safety. We set numerous new volume records across our integrated system. We achieved record realized margins across all three business units, leading to record annual EBITDA and ended the year in a very strong financial position. I am confident in our team's ability to keep this momentum going as we continue to grow.

Constructive long-term volume growth outlook for Western Canada. The growth outlook for the Western Canadian Sedimentary Basin remains strong. Western Canada has one of the largest, most cost-competitive hydrocarbon resources in the world. Years of low commodity prices and constrained egress options have made Canadian producers very cost-efficient and resilient. These producers have proven they can continue to grow through changing market conditions. With expanded export capabilities, producers can now access high-value overseas markets to support their growth plans. Additionally, demand within the basin is increasing, driven by a growing petrochemical industry, and rising power needs. Keyera's assets are strategically positioned to benefit from and enable this growth.

Clear pathway to continued growth of high-quality, fee-based cash flow. We have set a target to reach a 7-8% CAGR for fee-based adjusted EBITDA from 2024 to 2027. Most of this growth will come from the continued filling of available capacity which exists in the Gathering and Processing (G&P) segment, KAPS, and our condensate handling systems, all of which contributed to numerous new throughput records this quarter. Capital-efficient growth projects like the KFS Frac II debottleneck and KAPS Zone 4 will also drive growth over this timeframe, while KFS Frac III is expected to be in service in 2028.

Marketing segment cash flow accelerates fee-based growth. Our Marketing segment delivered record realized margin this year, driven by increased volumes flowing through Keyera's integrated system and continued strong iso-octane sales. By leveraging our physical assets and logistics expertise, we connect customers to the highest value markets. Cash flow from this segment is re-invested into growing stable, fee-based cash flows, further enhancing our value, and giving Keyera a distinct competitive advantage.

Allocating capital to maximize value for shareholders. Our strong balance sheet provides us with the flexibility to allocate capital to the highest value option. In 2024, we increased our dividend once again, supported by the continued growth in our fee-based business. In November, we implemented our inaugural Normal Course Issuer Bid (NCIB). The use of the NCIB will be weighed carefully against other capital allocation opportunities. We have a rich inventory of organic growth investments and see many other potential opportunities given the expected growth in the basin. Keyera will continue to leverage our asset base and exercise financial discipline to deliver on our strategy and create value for our customers and shareholders.

On behalf of Keyera's board of directors and management team I want to thank our employees, customers, shareholders, Indigenous rights holders, and other stakeholders for their continued support.

Dean Setoguchi
President and CEO
Keyera Corp.

Notes:
1	Keyera uses certain non-Generally Accepted Accounting Principles ("GAAP") and other financial measures such as EBITDA, adjusted EBITDA, funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin, fee-for-service realized margin, return on invested capital ("ROIC") and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA. Since these measures are not standard measures under GAAP, they may not be comparable to similar measures reported by other entities. For additional information, and where applicable, for a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measure, refer to the section of this news release titled "Non-GAAP and Other Financial Measures". For the assumptions associated with the base realized margin guidance for the Marketing segment, refer to the sections titled "Segmented Results of Operations: Marketing" and "Forward-Looking Statements" of Management's Discussion and Analysis for the period ended December 31, 2024.
2	Ratio is calculated in accordance with the covenant test calculations related to the company's credit facility and senior note agreements and excludes hybrid notes.
3	Includes gas volumes and the conversion of liquids volumes handled through the processing facilities to a gas volume equivalent. Net processing throughput refers to Keyera's share of raw gas processed at its processing facilities.
4	Fractionation throughput in the Liquids Infrastructure segment is the aggregation of volumes processed through the fractionators and the de-ethanizers at the Keyera and Dow Fort Saskatchewan facilities.
5	Long-term debt includes the total value of Keyera's hybrid notes which receive 50% equity treatment by Keyera's rating agencies. The hybrid notes are also excluded from Keyera's covenant test calculations related to the company's credit facility and senior note agreements.

Fourth Quarter and Year-End 2024 Results Conference Call and Webcast

Keyera will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the financial results for the fourth quarter and year-end of 2024 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, February 13, 2025. Callers may participate by dialing 1-888-510-2154 or 1-437-900-0527. A recording of the conference call will be available for replay until 10:00 PM Mountain Time on Thursday, February 27, 2025 (12:00 AM Eastern Time on Friday, February 28, 2025), by dialing 1-888-660-6345 or 1-289-819-1450 and entering passcode 08660.

To join the conference call without operator assistance, you may register and enter your phone number here to receive an instant automated call back. This link will be active on Thursday, February 13, 2025, at 7:00 AM Mountain Time (9:00 AM Eastern Time).

A live webcast of the conference call can be accessed here or through Keyera's website at http://www.keyera.com/news/events. Shortly after the call, an audio archive will be posted on the website for 90 days.

Additional Information

For more information about Keyera Corp., please visit our website at www.keyera.com or contact:

Dan Cuthbertson, General Manager, Investor Relations
Rahul Pandey, Senior Advisor, Investor Relations
Katie Shea, Senior Advisor, Investor Relations
Email: [email protected]
Telephone: [phone]
Toll free: 1-888-699-4853

For media inquiries, please contact:

Amanda Condie, Manager, Corporate Communications
Email: [email protected]
Telephone: [phone]

About Keyera Corp.

Keyera Corp. (TSX: KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage, and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.

Non-GAAP and Other Financial Measures

This news release refers to certain financial and other measures that are not determined in accordance with Generally Accepted Accounting Principles ("GAAP"). Measures such as funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin, fee-for-service realized margin, EBITDA, adjusted EBITDA, and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA are not standard measures under GAAP or are supplementary financial measures, and as a result, may not be comparable to similar measures reported by other entities. Management believes that these non-GAAP and other financial measures facilitate the understanding of Keyera's results of operations, leverage, liquidity and financial position. These measures do not have any standardized meaning under GAAP and therefore, should not be considered in isolation, or used in substitution for measures of performance prepared in accordance with GAAP. For additional information on these non-GAAP and other financial measures, including reconciliations to the most directly comparable GAAP measures for Keyera's historical non-GAAP financial measures, refer below and to Management's Discussion and Analysis ("MD&A") for the period ended December 31, 2024, which is available on SEDAR+ at www.sedarplus.ca and Keyera's website at www.keyera.com. Specifically, refer to the sections of the MD&A titled, "Non-GAAP and Other Financial Measures", "Forward-Looking Statements", "Segmented Results of Operations", "Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio", "EBITDA and Adjusted EBITDA" and "Adjusted Cash Flow from Operating Activities and Return on Invested Capital".

Funds from Operations and Distributable Cash Flow ("DCF")

Funds from operations is defined as cash flow from operating activities adjusted for changes in non-cash working capital. This measure is used to assess the level of cash flow generated from operating activities excluding the effect of changes in non-cash working capital, as they are primarily the result of seasonal fluctuations in product inventories or other temporary changes. Funds from operations is also a valuable measure that allows investors to compare Keyera with other infrastructure companies within the oil and gas industry.

Distributable cash flow is defined as cash flow from operating activities adjusted for changes in non-cash working capital, inventory write-downs, maintenance capital expenditures and lease payments, including the periodic costs related to prepaid leases. Distributable cash flow per share is defined as distributable cash flow divided by weighted average number of shares outstanding – basic. Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends.

The following is a reconciliation of funds from operations and distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities:

Funds from Operations and Distributable Cash Flow	Three months ended December 31,		Twelve months ended December 31,
(Thousands of Canadian dollars)	2024	2023	2024	2023
Cash flow from operating activities	316,431	230,739	1,265,788	975,486
Add (deduct):
Changes in non-cash working capital	(89,157)	59,904	(303,350)	52,007
Funds from operations	227,274	290,643	962,438	1,027,493
Maintenance capital	(44,435)	(40,221)	(136,340)	(119,973)
Leases	(13,943)	(13,007)	(52,804)	(47,261)
Prepaid lease asset	(595)	(595)	(2,380)	(2,380)
Inventory write-down	—	(3,257)	—	(3,257)
Distributable cash flow	168,301	233,563	770,914	854,622

Payout Ratio

Payout ratio is calculated as dividends declared to shareholders divided by distributable cash flow. This ratio is used to assess the sustainability of the company's dividend payment program.

Payout Ratio	Three months ended December 31,		Twelve months ended December 31,
(Thousands of Canadian dollars, except %)	2024	2023	2024	2023
Distributable cash flow^1	168,301	233,563	770,914	854,622
Dividends declared to shareholders	119,160	114,577	467,473	449,141
Payout ratio	71 %	49 %	61 %	53 %

1    Non-GAAP measure as defined above.

Realized Margin

Realized margin is defined as operating margin excluding unrealized gains and losses on commodity-related risk management contracts. Management believes that this supplemental measure facilitates the understanding of the financial results for the operating segments in the period without the effect of mark-to-market changes from risk management contracts related to future periods.

Fee-for-service realized margin includes realized margin for the Gathering and Processing and Liquids Infrastructure segments.

The following is a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin:

Operating Margin and Realized Margin Three months ended December 31, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	107,834	154,295	45,264	(98)	307,295
Unrealized (gain) loss on risk management contracts	(531)	(1,719)	54,144	—	51,894
Realized margin (loss)	107,303	152,576	99,408	(98)	359,189

Operating Margin and Realized Margin Three months ended December 31, 2023
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	114,851	128,133	202,851	(49)	445,786
Unrealized loss (gain) on risk management contracts	1,132	2,037	(74,254)	—	(71,085)
Realized margin (loss)	115,983	130,170	128,597	(49)	374,701

Operating Margin and Realized Margin Twelve months ended December 31, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	412,600	557,021	416,129	(149)	1,385,601
Unrealized loss on risk management contracts	118	569	68,579	—	69,266
Realized margin (loss)	412,718	557,590	484,708	(149)	1,454,867

Operating Margin and Realized Margin Twelve months ended December 31, 2023
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	392,430	486,467	554,251	(210)	1,432,938
Unrealized loss (gain) on risk management contracts	2,100	9,647	(75,284)	—	(63,537)
Realized margin (loss)	394,530	496,114	478,967	(210)	1,369,401

EBITDA and Adjusted EBITDA

EBITDA is a measure showing earnings before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-cash items, including unrealized gains and losses on commodity-related contracts, net foreign currency gains and losses on U.S. debt and other, impairment expenses and any other non-cash items such as gains and losses on the disposal of property, plant and equipment. Management believes that these supplemental measures facilitate the understanding of Keyera's results from operations. In particular these measures are used as an indication of earnings generated from operations after consideration of administrative and overhead costs.

The following is a reconciliation of EBITDA and adjusted EBITDA to the most directly comparable GAAP measure, net earnings:

EBITDA and Adjusted EBITDA	Three months ended December 31,		Twelve months ended December 31,
(Thousands of Canadian dollars)	2024	2023	2024	2023
Net earnings	88,906	49,192	486,628	424,032
Add (deduct):
Finance costs	52,929	57,235	217,521	204,084
Depreciation, depletion and amortization expenses	89,862	89,568	352,392	322,514
Income tax expense	28,992	10,359	148,490	122,645
EBITDA	260,689	206,354	1,205,031	1,073,275
Unrealized loss (gain) on commodity-related contracts	51,894	(71,085)	69,266	(63,537)
Net foreign currency loss (gain) on U.S. debt and other	10,949	(6,192)	9,258	(11,472)
Impairment expense	706	210,167	3,397	213,508
Net gain on disposal of property, plant and equipment	(11,506)	—	(11,677)	—
Adjusted EBITDA	312,732	339,244	1,275,275	1,211,774

Compound Annual Growth Rate ("CAGR") for Fee-Based Adjusted EBITDA
(previously CAGR for adjusted EBITDA holding Marketing constant)

CAGR is calculated as follows:

1

Number of Years

CAGR

=

End of the period*

-1

Beginning of the period*

* Utilizes beginning and end of period fee-based adjusted EBITDA as defined below.

CAGR for fee-based adjusted EBITDA is intended to provide information on a forward-looking basis (initiating a 7% to 8% fee-based adjusted EBITDA CAGR target from 2024 to 2027). This calculation utilizes beginning and end of period fee-based adjusted EBITDA, which includes the following components and assumptions: i) forecasted fee-for-service realized margin (realized margin for the Gathering and Processing and Liquids Infrastructure segments), and ii) adjustments for total forecasted general and administrative, and long-term incentive plan expense.

The following includes the equivalent historical measure for fee-based adjusted EBITDA, which is the non-GAAP measure component of the related forward-looking CAGR calculation.

Fee-Based Adjusted EBITDA For the Year Ended December 31,
(Thousands of Canadian dollars)	2024	2023	2022	2021
Realized Margin – Fee-for-Service	970,308	890,644	752,684	731,930
Less:
General and administrative expenses	(117,142)	(106,494)	(82,843)	(80,697)
Long-term incentive plan expense	(62,450)	(50,909)	(33,284)	(27,029)
Fee-Based Adjusted EBITDA	790,716	733,241	636,557	624,204

This measure replaces CAGR for adjusted EBITDA holding Marketing constant. In addition to the components of CAGR for fee-based adjusted EBITDA, CAGR for adjusted EBITDA holding Marketing constant included realized margin for the Marketing segment, which was held at a value within the expected base realized margin (between $310 million and $350 million). Keyera expects to reach the upper end of its CAGR target for adjusted EBITDA holding marketing constant of 6% to 7% over the 2022 to 2025 timeframe.

By adjusting the composition of the measure to exclude the Marketing segment entirely, Keyera believes the revised fee-based adjusted EBITDA CAGR calculation improves clarity and enhances peer comparability.

Forward-Looking Statements

In order to provide readers with information regarding Keyera, including its assessment of future plans and operations, its financial outlook and future prospects overall, this news release contains certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "can", "project", "should", "would", "plan", "intend", "believe", "plan", "target", "outlook", "scheduled", "positioned", and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this document are forward-looking information, including, without limitation, statements regarding:

• industry, market and economic conditions and any anticipated effects on Keyera;
• Keyera's future financial position and operational performance and future financial contributions and margins from its business segments including, but not limited to, Keyera's Marketing guidance for 2025 annual base realized margin of between $310 million and $350 million;
• estimates for 2025 regarding Keyera's growth capital expenditures, maintenance capital expenditures and cash taxes;
• the expectation that demand for Keyera's liquid infrastructure service offerings, including fractionation capacity and storage capacity, will remain strong;
• projected volume growth in the basin and expectations around filling available capacity across Keyera's integrated system;
• plans around the expansion of Keyera's fractionation capacity, including the cost and timing for the KFS Frac II debottleneck and sanction and timing for the construction of KFS Frac III;
• plans for deployment of capital, including with respect to use of the NCIB versus other capital allocation opportunities;
• the impact of current and future growth projects on Keyera's CAGR;
• plans around future dividends;
• business strategy, anticipated growth and plans of management including, but not limited, to KAPS Zone 4, expansion of North Region G&P capacity, expansion of rail and logistics capabilities, and liquid extraction projects;
• budgets, including future growth capital, operating and other expenditures and projected costs;
• timing of anticipated maintenance activities during 2025 and the impact on 2025 realized margin;
• the impact of certain long-term propane sale agreements on access to international pricing and diversified sales opportunities; 
• anticipated timing for future revenue streams and optimization plans; and
• expectations regarding Keyera's ability to maintain its competitive position, raise capital and add to its assets through acquisitions or internal growth opportunities, and the ability to equity self-fund future growth opportunities when ready for sanction.

All forward-looking information reflects Keyera's beliefs and assumptions based on information available at the time the applicable forward-looking information is made and in light of Keyera's current expectations with respect to such things as the outlook for general economic trends, industry trends, commodity prices, oil and gas industry exploration and development activity levels and the geographic region of such activity, Keyera's access to the capital markets and the cost of raising capital, the integrity and reliability of Keyera's assets, the governmental, regulatory and legal environment, general compliance with Keyera's plans, strategies, programs, and goals across its reporting and monitoring systems among employees, stakeholders and service providers. Keyera's expectation as to the "base realized margin" to be contributed by its Marketing segment assumes: i) a crude oil price of between US$65 and US$75 per barrel; ii) butane feedstock costs comparable to the 10-year average; and iii) AEF utilization at nameplate capacity. In some instances, this press release may also contain forward-looking information attributed to third parties. Forward-looking information does not guarantee future performance. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

All forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, events, levels of activity and achievements to differ materially from those anticipated in the forward-looking information. Such risks, uncertainties and other factors include, without limitation, the following:

• Keyera's ability to implement its strategic priorities and business plan and achieve the expected benefits;
• general industry, market and economic conditions;
• activities of customers, producers and other facility owners;
• operational hazards and performance;
• the effectiveness of Keyera's risk management programs;
• competition;
• changes in commodity composition and prices, inventory levels, supply/demand trends and other market conditions and factors;
• disruptions to global supply chains and labour shortages;
• trade restrictions, trade barriers, or the imposition of tariffs or other changes to international trade arrangements;
• processing and marketing margins;
• climate change risks, including the effects of unusual weather and natural catastrophes;
• climate change effects and regulatory and market compliance and other costs associated with climate change;
• variables associated with capital projects, including the potential for increased costs, including inflationary pressures, timing, delays, cooperation of partners, and access to capital on favourable terms;
• fluctuations in interest, tax and foreign currency exchange rates;
• hedging strategy risks;
• counterparty performance and credit risk;
• changes in operating and capital costs;
• cost and availability of financing;
• ability to expand, update and adapt infrastructure on a timely and effective basis;
• decommissioning, abandonment and reclamation costs;
• reliance on key personnel and third parties;
• actions by joint venture partners or other partners which hold interests in certain of Keyera's assets;
• relationships with external stakeholders, including Indigenous stakeholders;
• technology, security and cybersecurity risks;
• potential litigation and disputes;
• uninsured and underinsured losses;
• ability to service debt and pay dividends;
• changes in credit ratings;
• reputational risks;
• risks related to a breach of confidentiality;
• changes in environmental and other laws and regulations;
• the ability to obtain regulatory, stakeholder and third-party approvals;
• actions by governmental authorities;
• global health crisis, such as pandemics and epidemics and the unexpected impacts related thereto;
• the effectiveness of Keyera's existing and planned ESG and risk management programs; and
• the ability of Keyera to achieve specific targets that are part of its ESG initiatives, including those relating to emissions intensity reduction targets, as well as other climate-change related initiatives;

and other risks, uncertainties and other factors, many of which are beyond the control of Keyera. Further information about the factors affecting forward-looking information and management's assumptions and analysis thereof, is available in Keyera's Management's Discussion and Analysis for the year ended December 31, 2024 and in Keyera's Annual Information Form available on Keyera's profile on SEDAR+ at www.sedarplus.ca. 

Readers are cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking information included in this press release. Further, readers are cautioned that the forward-looking information contained herein is made as of the date of this press release. Unless required by law, Keyera does not intend and does not assume any obligation to update any forward-looking information. All forward-looking information contained in this press release is expressly qualified by this cautionary statement.

SOURCE Keyera Corp.