CALGARY,
AB, Feb. 13, 2023 /CNW/ - Keyera Corp. (TSX:
KEY) ("Keyera" or the "Corporation") today confirms the closing of
the previously announced acquisition of a 21% working interest in
the Keyera Fort Saskatchewan ("KFS") complex from Plains Midstream
Canada, bringing its total ownership in KFS to 98%. Total cash
consideration including adjustments was $366.5 million.
The transaction offers many benefits to Keyera including:
- Meaningful synergies with Keyera's integrated platform
- Accretive to Distributable Cash Flow per share1
- Increased fractionation capacity in a high-demand market, while
eliminating new-build project execution risk in an inflationary
environment
- Additional capital efficient growth options including the
potential for future fractionation debottlenecks
The acquisition includes capacity additions of about 14,000
barrels per day of fractionation, 6,000 barrels per day of
de-ethanization, 3.7 million barrels of storage and 79,200 barrels
per day of capacity in four pipelines that transport NGLs between
Edmonton and Fort Saskatchewan.
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:
Investor Inquiries
Dan
Cuthbertson, Director, Investor Relations
Calvin Locke, Manager, Investor
Relations
Rahul Pandey, Senior Advisor,
Investor Relations
Email: ir@keyera.com Telephone: 403.205.7670
Toll free: 888.699.4853
Media Inquiries
Kirsten
Bell, Director, Stakeholder Communications
Terry Cunha, Advisor, Media
Relations
Email: media@keyera.com
Telephone: 587.496.8092
Notes:
|
1
|
Distributable cash flow
per share is not a standard measure under GAAP. See the section of
this news release titled "Non-GAAP and Other Financial Measures"
for additional information.
|
Non-GAAP and Other Financial
Measures
This news release refers to certain financial and other measures
that include forward-looking information. These measures 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. Since these measures do not
have any standardized meaning under GAAP, they should not be
considered in isolation, or used in substitution for measures of
performance prepared in accordance with GAAP.
Specifically, references to distributable cash flow per share
have been included. For additional information regarding the
composition of this measure, how management utilizes it, and the
equivalent historical non-GAAP financial measure, refer to
"Management's Discussion and Analysis" (MD&A) for the year
ended December 31, 2021, which is
available on SEDAR at www.sedar.com and Keyera's website at
www.keyera.com. Specifically, the sections of the MD&A titled,
"Dividends: Funds from Operations and Distributable Cash Flow", and
"Non-GAAP and Other Financial Measures" include information that
has been incorporated by reference. References to adjusted EBITDA
in this news release are in relation to net debt to adjusted EBITDA
which is calculated in accordance with the covenant test
calculations related to the Corporation's credit facility and
senior note agreements and excludes hybrid notes. For further
information regarding the covenant test calculations, refer to the
section of the MD&A for the period ended December 31, 2021 titled, "Liquidity and Capital
Resources".
Forward-Looking
Information
Certain statements contained herein, including future-oriented
financial information or financial outlooks, within the meaning of
applicable securities laws, are forward-looking (collectively,
"forward-looking statements"). The forward-looking statements
contained herein are intended to provide readers with information
regarding Keyera, including its assessment of future plans,
operations and financial performance related to its acquisition of
additional working interest in the Keyera Fort Saskatchewan
facility and the Offering, and may not be appropriate for other
purposes. These forward-looking statements relate to future events
or Keyera's future performance. Such statements are predictions
only and actual events or results may differ materially.
Forward-looking statements are typically identified by words such
as "anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "plan", "intend", "believe", and similar
expressions, including the negatives thereof. All statements other
than statements of historical fact contained in this document are
forward-looking statements.
The forward-looking statements reflect management's current
beliefs and assumptions with respect to such things as the outlook
for general economic trends, industry trends, commodity prices,
capital markets, and the governmental, regulatory, and legal
environment. In some instances, forward-looking statements
contained herein may be attributed to third party sources.
Management believes that its assumptions herein are reasonable and
that the expectations reflected in the forward-looking statements
contained herein are also reasonable based on the information
available on the date such statements were made, and the process
used to prepare the information. However, Keyera cannot assure
readers that these expectations will prove to be correct.
All forward-looking statements involve 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 statements. For
information about the risk factors that could cause actual results
to differ materially from forward-looking statements, as well as
other assumptions used to develop the forward looking statements,
please refer to Keyera's filings made with Canadian provincial
securities commissions, including Keyera's Management Discussion
& Analysis for the year ended December
31, 2021 dated February 16, 2022 and Keyera's
Annual Information Form for the year ended December 31, 2021 dated February 16, 2022,
which can be viewed on SEDAR at www.sedar.com and on the
Keyera website at www.keyera.com. In addition, the
effects, risks and impacts related to widespread epidemic or
pandemic outbreaks, including the coronavirus disease
(COVID-19), on Keyera's business, the global economy and markets
continue to be unknown at this time and could cause Keyera's actual
results to differ materially from the forward-looking statements
contained in this news release.
Readers are cautioned that the foregoing is not exhaustive, that
they should not unduly rely on these forward-looking statements and
that the forward-looking statements in this news release speak only
as of the date hereof. Unless required by law, Keyera does not
intend and does not assume any obligation to update its
forward-looking statements. All forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
Further information about the factors affecting forward-looking
statements and management's assumptions and analysis thereof, is
available in filings made by Keyera with Canadian provincial
securities commissions, which can be viewed on SEDAR
at www.sedar.com.
SOURCE Keyera Corp.