Keyera Announces 2025 First Quarter Results and Sanctions KFS Frac III Expansion
Canada NewsWire
CALGARY, AB, May 15, 2025
CALGARY, AB, May 15, 2025 /CNW/ - Keyera Corp. (TSX: KEY) ("Keyera") announced its first quarter 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's first quarter results underscore the strength and competitiveness of our integrated value chain," said Dean Setoguchi, President and CEO. "This morning's sanctioning announcement of KFS Frac III marks a significant step forward in expanding our core infrastructure. With construction of the Frac II Debottleneck set to begin this summer and commercial discussions for KAPS Zone 4 nearing completion, we are advancing our strategy to grow fee-for-service cash flow and create long-term value for shareholders."
First Quarter Highlights
-- Financial Results
-- Adjusted earnings before interest, taxes, depreciation, and
amortization,1 ("adjusted EBITDA") were $298 million (Q1 2024 --
$314 million). These results were driven by strong quarterly
contributions from the Gathering and Processing segment and
near-record contributions from the Liquids Infrastructure segment.
-- Distributable cash flow1 ("DCF") was $190 million or $0.83 per
share for the quarter (Q1 2024 -- $205 million or $0.90 per
share).
-- Net earnings were $130 million (Q1 2024 -- $71 million).
-- Continued Growth in High Quality, Fee-For-Service Realized Margin1
-- Fee-for-service realized margin1 was $262 million, up 9% from $241
million in the same period last year. This steady growth in stable,
fee-based cash flow continues to support sustainable dividend
increases.
-- The Gathering and Processing ("G&P") segment delivered realized
margin1 of $109 million in the first quarter (Q1 2024 -- $104
million), driven by continued strength in the North region gas
plants. Wapiti set a new quarterly throughput record, while
contracted volumes at Simonette continued to ramp up. The North
region accounted for 73% of the segment's realized margin1 and is
expected to support further growth in stable cash flow, benefiting
from a high proportion of long-term take-or-pay contracts with
strong counterparties.
-- The Liquids Infrastructure segment achieved a near-record
quarterly realized margin1 of $152 million (Q1 2024 -- $137
million), driven by the continued ramp-up of long-term contracted
volumes on KAPS, high utilization of fractionation services, and
the ongoing filling of available capacity on Keyera's
industry-leading condensate handling system.
-- Marketing Segment Results and AEF Update -- The Marketing segment
recorded quarterly realized margin1 of $78 million (Q1 2024 -- $114
million). The main contributors were sales of iso-octane and propane.
At Alberta EnviroFuels ("AEF"), the previously announced outage took approximately seven weeks to complete, compared to the original estimate of six weeks. The company now expects the outage to impact annual Marketing segment realized margin(1) by approximately $50 million, up from the prior estimate of $40 million. Start-up is complete, and the facility has returned to full operations.
-- Strong Financial Position -- The company ended the quarter 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
organic growth opportunities that will enhance shareholder value.
2025 Guidance Unchanged
-- Following the completion of the NGL contracting season, Marketing segment
2025 realized margin1 is expected to remain within the previous long-term
base guidance range of $310 to $350 million. The outlook includes the
estimated $50 million impact on the segment's annual realized margin1 due
to the seven-week maintenance outage at AEF. It also reflects the
benefits of Keyera's risk management program, which mitigates the impact
of commodity price volatility.
-- Growth capital expenditures are expected to range between $300 million
and $330 million. This includes capital investments to advance
the debottleneck of Keyera Fort Saskatchewan Fractionation Unit II ("KFS
Frac II Debottleneck"), the new build of Keyera Fort Saskatchewan
Fractionation Unit III ("KFS Frac III"), the extension of the existing
KAPS pipeline from Pipestone to Gordondale, Alberta ("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.
Sanction of KFS Frac III and Other Commercial Progress
Keyera continues to progress toward its 7-8% fee-based adjusted EBITDA(1) CAGR target from 2024 to 2027. The company has been successful in securing several additional long-term integrated contracts for volumes across its value chain. These contracts contribute to meeting Keyera's growth target by underpinning capital-efficient investments and by filling available capacity.
Capital-efficient growth projects:
-- The company has sanctioned the 47,000 barrel per day KFS Frac III project,
a major expansion of Keyera's core fractionation hub in Fort
Saskatchewan. The project is expected to cost $500 million, including
investments to enhance egress capability at the plant, and enter service
in mid-2028. This project will further strengthen the strategic role of
the KFS complex within Keyera's integrated value chain. KFS Frac III,
combined with the previously sanctioned KFS Frac II Debottleneck project,
will increase Keyera's total fractionation capacity by about 60%,
including the Rimbey complex. This reinforces the company's ability to
meet the growing needs of the basin and attract incremental volumes
across its system.
-- As previously disclosed in February, the company formally sanctioned the
KFS Frac II Debottleneck project, which will add approximately 8,000
barrels per day of capacity for $85 million. Construction is scheduled to
begin this summer, with the additional capacity expected online in
mid-2026.
-- A large majority of fractionation capacity at KFS, including expansions,
is now contracted with an average term of approximately 8 years and a
high take-or-pay component.
-- Keyera continues to advance KAPS Zone 4 with commercial discussions
nearing completion.
-- The company continues to progress other potential opportunities which
include the expansion of North Region G&P capacity, expanding rail and
logistics capabilities as fractionation volumes grow, and further liquids
extraction projects.
Filling of available capacity:
-- The Wapiti gas plant is now expected to achieve utilization of effective
capacity in 2026, a year earlier than previously expected. This is due to
strong customer demand and successful contracting efforts. Several
optimization projects are advancing to increase plant capacity and
accommodate future growth.
-- Keyera's condensate handling systems continued to benefit from strong
customer demand, with new long-term contracts signed in the quarter. This
supported near-record shipped volumes and higher contracted utilization.
The Fort Saskatchewan Condensate System ("FSCS") is now nearing
contractual capacity, and Keyera is evaluating debottlenecking
opportunities that could expand capacity to accommodate further demand.
Summary of Key Measures Three months endedMarch 31,
(Thousands of Canadian dollars, except 2025 2024
where noted)
Net earnings 130,335 70,914
Per share ($/share) -- basic 0.57 0.31
Cash flow from operating activities 165,325 398,040
Funds from operations(1) 222,237 231,725
Distributable cash flow(1) 189,579 205,338
Per share ($/share)(1) 0.83 0.90
Dividends declared 119,160 114,577
Per share ($/share) 0.52 0.50
Payout ratio %(1) 63 % 56 %
Adjusted EBITDA(1) 298,430 314,304
Operating margin 351,590 283,031
Realized margin(1) 340,110 355,415
Gathering and Processing
Operating margin 112,140 103,767
Realized margin(1) 109,306 104,329
Gross processing throughput(3) (MMcf/d) 1,587 1,534
Net processing throughput(3) (MMcf/d) 1,435 1,331
Liquids Infrastructure
Operating margin 155,512 135,145
Realized margin(1) 152,447 136,563
Gross processing throughput(4) (Mbbl/d) 196 203
Net processing throughput(4) (Mbbl/d) 113 118
AEF iso-octane production volumes (Mbbl/d) 12 14
Marketing
Operating margin 84,009 44,056 Realized margin(1) 78,428 114,460 Inventory value 271,186 239,801 Sales volumes (Bbl/d) 220,800 192,400 Acquisitions -- -- Growth capital expenditures 13,416 19,106 Maintenance capital expenditures 16,039 12,891 Total capital expenditures 29,455 31,997 Weighted average number of shares outstanding -- basic and diluted 229,153 229,153 As at March 31, 2025 2024 Long-term debt(5) 3,379,853 3,682,294 Credit facility -- -- Working capital surplus (current assets less current liabilities) (6,855) (72,882) Net debt 3,372,998 3,609,412 Common shares outstanding -- end of period 229,153 229,153
CEO's Message to Shareholders
Continued Strong Execution of Our Strategy. In December 2024, we outlined a plan to grow fee-based adjusted EBITDA by 7 to 8% annually through 2027. Five months later, we are making strong progress. This morning, we announced the sanctioning of KFS Frac III, a major expansion of our core fractionation complex in Fort Saskatchewan. When combined with the Frac II Debottleneck, it will increase our total fractionation capacity by about 60%. These investments position us to meet the growing needs of the basin and attract volumes across our integrated value chain. At the same time, we continue to fill available capacity at core assets such as Wapiti, KAPS, and our condensate system, contributing to steady growth in high-quality, fee-for-service cash flow. We are also advancing KAPS Zone 4, with commercial discussions nearing completion. These initiatives strengthen our platform and support our long-term growth strategy.
Constructive Volume Growth Outlook for Western Canada. Even with recent volatility in commodity markets, the region remains resilient given its low cost-structure. Historically, constrained market access has limited the ability of Canadian producers to grow production. However, we are now seeing meaningful improvement in egress capacity across multiple products. For Canadian crude, the Trans Mountain Expansion is operational, enhancing access to tidewater which is enabling oil sands growth. Growth in natural gas volumes is supported by the imminent start-up of LNG Canada and other incremental west coast LNG export projects which are at various stages of development. Growing LPG export capacity and increased liquids takeaway options are also improving connectivity to international markets.
In parallel, intra-basin demand continues to grow. Oil sands producers are pursuing expansion and debottlenecking opportunities, increasing the need for condensate, natural gas, and solvents. Over time, natural gas may also play a larger role in meeting power demands from new sources such as data centers, creating the need for market solutions for associated natural gas liquids. Keyera's asset base is strategically positioned to serve this growing demand, and we will continue to invest where we see long-term, sustainable growth opportunities.
Advancing Canada's Energy Competitiveness. Despite these positive developments, Canada will need to do more to remain competitive over the long-term. Canada is endowed with one of the largest oil and gas reserves in the world, responsibly developed under stringent environmental and social standards. Recent trade actions, while ultimately not applied to most Canadian energy products, highlight the ongoing risk of tariffs and barriers that can limit market access. Now is the time to create a policy environment that enables responsible growth, attracts capital, and expands access to global markets for the benefit of all Canadians.
Disciplined Capital Allocation to Maximize Value for Shareholders. As always, we remain focused on disciplined capital allocation. Our strong balance sheet gives us the flexibility to accelerate growth, either organically or inorganically, and to return capital to shareholders. We will continue to evaluate opportunities through a long-term lens, ensuring we create value in a measured and prudent way.
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. Together, we will continue to drive Keyera's success and contribute positively to Canada's energy landscape.
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 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 and 2025 realized margin
guidance for the Marketing segment, refer to the sections
titled "Segmented Results of Operations: Marketing",
"Non-GAAP and Other Financial Measures" and "Forward-Looking
Statements" of Management's Discussion and Analysis
for the period ended March 31, 2025.
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.
First Quarter 2025 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 first quarter of 2024 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, May 15, 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, May 29, 2025 (12:00 AM Eastern Time on Friday, May 30, 2025), by dialing 1-888-660-6345 or 1-289-819-1450 and entering passcode 98533.
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, May 15, 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.
2025 Annual and Special Meeting of Shareholders
Keyera's Annual Meeting will be held in-person and virtually. The in-person meeting will take place at the Lumi Experience Studio located at Suite 1410, 225 6 Ave SW in Calgary, AB and shareholders wishing to attend virtually can do so via live audio webcast. The webcast link can be found here or on Keyera's website at https://www.keyera.com under Investors, Annual meeting.
Additional Information
For more information about Keyera Corp., please visit our website at www.keyera.com or contact:
Dan Cuthbertson, General Manager, Investor Relations
Katie Shea, Senior Advisor, Investor Relations
Email: ir@keyera.com
Telephone: 1-403-205-7670
Toll free: 1-888-699-4853
For media inquiries, please contact:
Amanda Condie, Manager, Corporate Communications
Email: media@keyera.com
Telephone: 1-855-797-0036
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 March 31, 2025, 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", and "EBITDA and Adjusted EBITDA".
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 Three months endedMarch 31, Cash Flow (Thousands of Canadian dollars) 2025 2024 Cash flow from operating activities 165,325 398,040 Add (deduct): Changes in non-cash working capital 56,912 (166,315) Funds from operations 222,237 231,725 Maintenance capital (16,039) (12,891) Leases (14,484) (12,901) Prepaid lease asset $(595.SI)$ (595) Inventory write-down (1,540) -- Distributable cash flow 189,579 205,338
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 endedMarch 31, (Thousands of Canadian dollars, except 2025 2024 %) Distributable cash flow(1) 189,579 205,338 Dividends declared to shareholders 119,160 114,577 Payout ratio 63 % 56 % 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 MarginThree months ended March 31, 2025 (Thousands of Gathering & Liquids Marketing Corporateand Canadian Processing Infrastructure Other Total dollars) Operating margin (loss) 112,140 155,512 84,009 (71) 351,590 Unrealized gain on risk management contracts (2,834) (3,065) (5,581) -- (11,480) Realized margin (loss) 109,306 152,447 78,428 (71) 340,110 Operating Margin and Realized MarginThree months ended March 31, 2024 (Thousands of Gathering & Liquids Marketing Corporateand Canadian Processing Infrastructure Other Total dollars) Operating margin 103,767 135,145 44,056 63 283,031 Unrealized loss on risk management contracts 562 1,418 70,404 -- 72,384 Realized margin 104,329 136,563 114,460 63 355,415 Fee-for-Service Realized MarginThree months ended March 31, 2025 (Thousands of Gathering & Liquids Canadian dollars) Processing Infrastructure Fee-for-Service Operating margin 112,140 155,512 267,652 Unrealized gain on risk management contracts (2,834) (3,065) (5,899) Realized margin 109,306 152,447 261,753 Fee-for-Service Realized MarginThree months ended March 31, 2024 (Thousands of Gathering & Liquids Canadian dollars) Processing Infrastructure Fee-for-Service Operating margin 103,767 135,145 238,912 Unrealized loss on risk management contracts 562 1,418 1,980 Realized margin 104,329 136,563 240,892
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 endedMarch 31, (Thousands of Canadian dollars) 2025 2024 Net earnings 130,335 70,914 Add (deduct): Finance costs 51,826 56,484 Depreciation and amortization expenses 91,087 86,549 Income tax expense 38,603 21,480 EBITDA 311,851 235,427 Unrealized (gain) loss on commodity-related contracts (11,480) 72,384 Net foreign currency (gain) loss on U.S. debt and other (1,941) 2,400 Loss on disposal of property, plant and equipment -- 4,093 Adjusted EBITDA 298,430 314,304
Compound Annual Growth Rate ("CAGR") for Fee-Based Adjusted EBITDA
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 EBITDAFor 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
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;
-- the impact of the North region on Keyera's G&P segment and expected
growth in stable cash flow;
-- 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 KFS Frac III,
and the impact of these projects on Keyera's total fractionation
capacity;
-- plans around KAPS Zone 4, including timing for making a final investment
decision and anticipated growth capital expenditures.
-- plans for deployment of capital; the impact of current and future growth
projects on Keyera's growth targets;
-- plans around future dividends;
-- budgets, including future growth capital, operating and other
expenditures and projected costs;
-- timing and cost of anticipated maintenance activities during 2025 and the
impact of certain maintenance activities on 2025 realized margin;
-- 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.
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