Measures" and "Forward-Looking Information" of this 
    news release for additional information 
2  Net debt to adjusted EBITDA calculation for covenant 
    test purposes excludes 100% of the company's subordinated 
    hybrid notes. 
 

BUSINESS UPDATE AND 2025 GUIDANCE WEBCAST AND CONFERENCE CALL DETAILS

Date: December 10, 2024

Time: 8:00 a.m. MT (10:00 ET or 15:00 GMT)

A live webcast of the conference call with accompanying presentation, can be accessed here or through Keyera's website at http://www.keyera.com/news/events. Shortly after the call, a webcast archive will be posted on Keyera's website.

The audio-only conference call dial-in number is 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 Monday, December 23, 2024 (12:00 AM Eastern Time on Tuesday, December 24, 2024), by dialing 1-888-660-6345 or 1-289-819-1450 and entering passcode 24194.

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 Tuesday, December 10, 2024, at 7:00 AM Mountain Time (9:00 AM Eastern Time).

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.

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: ir@keyera.com

Telephone: 1-403-205-7670

Toll free: 1-888-699-4853

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) and as a result, may not be comparable to similar measures reported by other entities. Management believes that these supplemental 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 to Management's Discussion and Analysis (MD&A) for the periods ended September 30, 2024 and December 31, 2023, which are available on SEDAR+ at www.sedarplus.ca and Keyera's website at www.keyera.com. Specifically, the sections of the MD&A titled "Non-GAAP and Other Financial Measures", "Forward-Looking Statements", "Segmented Results of Operations", "EBITDA and Adjusted EBITDA", "Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio", and "Adjusted Cash Flow from Operating Activities and Return on Invested Capital" include information that has been incorporated by reference for these non-GAAP and other financial measures.

Realized margin for the Marketing segment, fee-for-service realized margin (includes realized margin for the Gathering and Processing (G&P) and Liquids Infrastructure segments), EBITDA, adjusted EBITDA, distributable cash flow $(DCF)$, DCF per share, payout ratio, return on invested capital $(ROIC)$, compound annual growth rate (CAGR) for fee-based adjusted EBITDA, CAGR for DCF per share and CAGR for dividends per share are all non-GAAP or Other Financial Measures referenced in this news release. The most directly comparable GAAP measure to realized margin for the Marketing, G&P and Liquids Infrastructure segments is operating margin for these same segments, respectively. The most directly comparable GAAP measure to EBITDA and adjusted EBITDA is net earnings. The most directly comparable GAAP measure to DCF is cash flow from operating activities. DCF per share and payout ratio are non-GAAP ratios that use DCF as a component of the ratio. ROIC is only prepared on an annual basis; therefore, refer to the MD&A for the year ended December 31, 2023 for additional details related to this financial measure.

This news release includes certain non-GAAP and other financial measures that include forward-looking information or cannot be incorporated by reference to the MD&A. Refer below for additional information related to these measures.

Realized Margin for the Marketing Segment

The guidance for long-term base realized margin for the Marketing segment remains unchanged at $310 million to $350 million. The following includes the equivalent historical non-GAAP measure for this forward-looking financial measure.

 
Marketing        Three months              Nine months              Twelve 
Realized Margin  endedSeptember 30,        endedSeptember 30,       months 
                                                                    endedDecember 
                                                                    31, 
(Thousands of     2024      2023           2024     2023            2023 
Canadian 
dollars) 
Operating margin 
 -- Marketing      190,799         69,387  370,865         351,400        554,251 
Unrealized 
 (gain) loss on 
 riskmanagement 
 contracts        (55,942)         30,327   14,435         (1,030)       (75,284) 
Realized margin 
 -- Marketing      134,857         99,714  385,300         350,370        478,967 
 

Realized Margin for the Fee-for-Service Business Segments

Realized margin for the fee-for-service business segments, or fee-for-service realized margin (defined as realized margin for the G&P and Liquids Infrastructure segments), is a non-GAAP financial measure that is utilized in this presentation; however, is not included in the MD&A.

Fee-for-service realized margin is used to assess the financial performance of Keyera's ongoing operations in its G&P and Liquids Infrastructure segments without the effect of unrealized gains and losses on commodity-related risk management contracts related to future periods. The following is a reconciliation of fee-for-service realized margin to the most directly comparable GAAP measure, operating margin for the G&P and Liquids Infrastructure segments.

 
Fee-for-Service   Three months              Nine months          Twelve 
Realized Margin   endedSeptember 30,        endedSeptember 30,   months 
                                                                 endedDecember 
                                                                 31, 
(Thousands of      2024     2023            2024     2023        2023 
Canadian dollars) 
Operating margin 
 -- G&P             99,114          90,950  304,766     277,579        392,430 
Unrealized loss 
 on 
 riskmanagement 
 contracts              38           2,861      649         968          2,100 
Realized margin 
 -- G&P             99,152          93,811  305,415     278,547        394,530 
 
Operating margin 
 -- Liquids 
 Infrastructure    135,677         123,623  402,726     358,334        486,467 
Unrealized (gain) 
 loss on 
 riskmanagement 
 contracts           (303)           4,428    2,288       7,610          9,647 
Realized margin 
 -- Liquids 
 Infrastructure    135,374         128,051  405,014     365,944        496,114 
 
Realized margin 
 -- 
 Fee-for-Service   234,526         221,862  710,429     644,491        890,644 
 

Compound Annual Growth Rate (CAGR) for Fee-Based Adjusted EBITDA

(will replace 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* 
 

*Fee-Based adjusted EBITDA

CAGR for fee-based adjusted EBITDA is intended to provide information on a forward-looking basis (initiating a 7-8% 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 G&P and Liquids Infrastructure segments), and (ii) adjustments for total forecasted general and administrative, and long-term incentive plan expenses.

(MORE TO FOLLOW) Dow Jones Newswires

December 10, 2024 06:00 ET (11:00 GMT)