Keyera Provides Strategy and Business Update - Over the 2022 to 2025 period, Keyera expects adjusted EBITDA1 to grow at a compound average annual rate of 6 to 7% allowing for continued dividend growth and the ability to bring net debt to adjusted EBITDA1 within the company's previously identified targeted range of 2.5 to 3.0 times by the end 2023.
- The company has a rich inventory of high-quality, near and long-term investment opportunities that enable the continued compounding of returns to drive growth in DCF per share1 and growth in dividends per share1. Keyera's rigorous investment criteria ensures investments are on strategy, generate strong returns, are weighted toward projects with highly contracted long-term cash flows and take ESG priorities into account.
- With the construction of the KAPS project now 65% complete, and with good visibility to project completion, capital costs for the project are expected to increase, yet still be within 10% of the latest estimate of $800 million net to Keyera. The project remains on schedule to be in-service in early 2023.
- KAPS commercial negotiations continue to advance, with the company having secured further commitments on the initial Zones 1-3, and the yet to be sanctioned Zone 4. The company expects to soon have contracted the majority of the volumes required to sanction Zone 4. A sanction decision is expected later this year.
- 2022 realized margin1 guidance for the Marketing segment is between $250 million and $280 million. Annual base guidance for the 2023 to 2025 period has been increased to between $250 million and $280 million replacing the previous annual base guidance of $180 million to $220 million.
- Keyera is uniquely positioned to leverage its existing lands, infrastructure, and expertise to build a strong energy transition business. The new Keyera Low-Carbon Hub Strategy focuses on offering industry-wide low carbon solutions for customers in the industrial corridor between Edmonton and Fort Saskatchewan. The strategy will enable Keyera to decarbonize its Alberta Envirofuels (AEF) and Keyera Fort Saskatchewan (KFS) sites, when it makes economic sense to do so, and offer a range of value-added services to third parties. Services could include low-carbon feedstocks, hydrogen transportation and storage and connectivity to carbon transportation and storage hubs.
CALGARY, AB, March 29, 2022 /CNW/ - Today, Keyera Corp. (TSX: KEY) ("Keyera") will host its 2022 Investor Day which will be presented by members of Keyera's senior management team. The event will be webcast at www.keyera.com beginning at 8am MDT (10am EDT, 4pm GMT).