CALGARY,
AB, Feb. 15, 2023 /CNW/ - Keyera Corp. (TSX:
KEY) ("Keyera") announced its 2022 year-end financial results
today, the highlights of which are included in this news release.
To view the MD&A and financial statements, visit either
Keyera's website or Keyera's filings on SEDAR at www.sedar.com.
"Keyera delivered more than $1
billion in annual adjusted EBITDA for the first time in the
company's history," said Dean
Setoguchi, President and CEO, "As we continue to execute on
our strategy, some notable strategic achievements include
sanctioning a capacity expansion at our Pipestone gas plant, acquiring incremental
capacity at our Keyera Fort Saskatchewan complex, and continuing to
progress KAPS towards completion. With KAPS now in the
line-fill phase we are excited to integrate our North region
Gathering and Processing assets with the heart of our integrated
value chain at Fort Saskatchewan,
unlocking opportunities for future growth."
Fourth Quarter and Year-End Highlights
- Strong Annual Results
-
- Adjusted earnings before interest, taxes, depreciation, and
amortization1 ("adjusted EBITDA") were $212 million for the quarter (Q4 2021 –
$294 million) and a record
$1.03 billion for the full year (2021
– $956 million). The year-over-year
increase was driven by record contributions from the Gathering and
Processing and Marketing segments.
- Distributable cash flow1 ("DCF") was $104 million for the quarter (Q4 2021 –
$207 million) and $654 million for the full year (2021 –
$669 million). The decrease was due
to higher maintenance capital spending.
- Net loss of $82 million for the
fourth quarter (Q4 2021 – net earnings of $90 million) and net earnings of $328 million for the full year 2022 (2021 –
$324 million). The fourth quarter
results were impacted by a non-cash impairment charge of
$180 million that was primarily
related to the Simonette gas plant.
- Return on invested capital1 for the year was 16%
(2021 – 14%).
- KAPS 99% Complete as Line-Fill Begins – Construction of
the KAPS pipeline is substantially complete and commissioning and
line-fill activities are underway. The final cost estimate remains
unchanged at $1.0 billion net to
Keyera.
- Acquired Additional Core Infrastructure – The company
has acquired an additional 21% working interest in the Keyera Fort
Saskatchewan ("KFS") complex, adding significant and immediate
capacity that offers meaningful synergies with Keyera's integrated
platform.
- Pipestone Gas Plant Expansion Sanctioned – In January,
the company sanctioned a 40 million cubic feet per day ("MMcf/d")
capacity expansion at its Pipestone gas plant, which will increase
overall capacity from 220 MMcf/d to 260 MMcf/d, subject to final
regulatory approval anticipated to be forthcoming in March 2023. The project, supported by long-term
take-or-pay agreements, is expected to cost between $60 million and $70
million and be completed in the first quarter of 2024.
- Filling Available Capacity for Record Results – The
Gathering and Processing ("G&P") segment delivered record
realized margin1,3 of $93
million in the quarter (Q4 2021 – $81
million), and an annual record of $347 million (2021 – $323
million), with volumes increasing by 8% quarter-over-quarter
and year-over-year.
- Marketing Segment Delivers Record Year – The Marketing
segment delivered record annual realized margin1,3 of
$397 million (2021 – $323 million), within the previously announced
2022 guidance range of $380 million
and $410 million. This result
included the impact of a successful six-week planned turnaround at
the Alberta EnviroFuels facility ("AEF"), completed in the fourth
quarter.
- Strong Financial Position – The company ended the year
with net debt to adjusted EBITDA2 at 2.5 times, at the
low end of our target range of 2.5 to 3.0 times.
- Managing Long-Term Risk Through Sustainability Efforts –
The company published its latest ESG Report in September, detailing
progress towards its ESG priorities, which include meaningful
emissions reductions and the creation of a new Governance &
Sustainability Committee of the Board.
2022 Guidance Update
- Growth capital spending excluding capitalized interest was
$746 million, below the latest
guidance range of $770 million to
$800 million. The decrease was
primarily driven by KAPS spending that shifted from 2022 to
2023.
- Maintenance capital spending was $110
million, within the original guidance range of $100 million to $120
million.
- Cash taxes were $60 million,
within the latest guidance range of $55
million to $65 million.
2023 Guidance Update
- Growth capital expenditures are expected to range between
$200 million and $240 million excluding capitalized interest. This
is up from the previous range of between $140 million to $180
million and is primarily related to KAPS spending deferred
from 2022 to 2023.
- Maintenance capital expenditures are expected to remain
unchanged at between $75 million and
$85 million.
- Consistent with prior years, Marketing segment realized
margin1 guidance will be provided with the first quarter
results in early May, after the conclusion of the NGL contracting
season.
- Cash tax expense is expected to be $nil (previously
$10 million to $25 million).
__________________________
|
1 Keyera uses certain
non-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
and return on invested capital. Since these measures are not
standard measures under GAAP, they may not be comparable to similar
measures reported by other entities. 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 realized margin guidance for the Marketing
segment, refer to the section titled "Segmented Results of
Operations: Marketing" of Management's Discussion and
Analysis.
|
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 Realized margin is not a
standard measure under GAAP and excludes the effect of $27 million
in non-cash gains from commodity-related risk
management contracts (Marketing segment - $18 million, Liquids
Infrastructure segment - $8 million, Gathering and Processing
segment - $1 million). See the section of this news release titled
"Non-GAAP and Other Financial Measures".
|
Summary of Key Measures
|
Three months ended
December 31,
|
Twelve months ended
December 31,
|
(Thousands of
Canadian dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
Net (loss)
earnings
|
(81,895)
|
89,986
|
328,294
|
324,206
|
Per share
($/share) – basic
|
(0.37)
|
0.41
|
1.48
|
1.47
|
Cash flow from
operating activities
|
134,408
|
96,963
|
925,327
|
583,839
|
Funds from
operations1
|
156,849
|
234,699
|
818,847
|
765,872
|
Distributable cash
flow1
|
104,172
|
206,652
|
653,523
|
668,595
|
Per share
($/share)1
|
0.47
|
0.93
|
2.95
|
3.03
|
Dividends
declared
|
107,392
|
106,091
|
425,665
|
424,364
|
Per share
($/share)
|
0.48
|
0.48
|
1.92
|
1.92
|
Payout
ratio %1
|
103 %
|
51 %
|
65 %
|
63 %
|
Adjusted
EBITDA1
|
212,490
|
293,739
|
1,032,473
|
955,848
|
Operating
margin
|
227,809
|
344,075
|
1,175,781
|
1,045,300
|
Realized
margin1
|
243,278
|
315,531
|
1,149,134
|
1,053,534
|
Gathering and Processing
|
|
|
|
|
Operating
margin
|
93,017
|
81,775
|
347,900
|
323,131
|
Realized
margin1
|
92,837
|
81,349
|
346,772
|
322,743
|
Gross processing
throughput2 (MMcf/d)
|
1,638
|
1,517
|
1,572
|
1,460
|
Net processing
throughput2 (MMcf/d)
|
1,405
|
1,281
|
1,349
|
1,235
|
Liquids Infrastructure
|
|
|
|
|
Operating
margin
|
106,542
|
110,089
|
413,879
|
409,371
|
Realized
margin1
|
101,753
|
110,171
|
405,912
|
409,187
|
Gross processing
throughput3 (Mbbl/d)
|
191
|
162
|
181
|
143
|
Net processing
throughput3 (Mbbl/d)
|
90
|
81
|
85
|
78
|
AEF iso-octane
production volumes (Mbbl/d)
|
11
|
13
|
13
|
14
|
Marketing
|
|
|
|
|
Operating
margin
|
28,293
|
152,188
|
414,973
|
314,140
|
Realized
margin1
|
48,731
|
123,988
|
397,421
|
322,946
|
Inventory
value
|
300,883
|
280,736
|
300,883
|
280,736
|
Sales volumes
(Bbl/d)
|
198,500
|
200,500
|
179,100
|
167,200
|
Acquisitions
|
—
|
—
|
—
|
11,165
|
Growth capital
expenditures
|
166,303
|
190,892
|
786,206
|
455,359
|
Maintenance capital
expenditures
|
41,207
|
16,227
|
109,723
|
50,109
|
Total capital expenditures
|
207,510
|
207,119
|
895,929
|
516,633
|
Weighted average number
of shares outstanding – basic and diluted
|
222,083
|
221,023
|
221,290
|
221,023
|
As at December 31,
|
|
|
2022
|
2021
|
Long-term
debt4
|
|
|
3,622,745
|
3,224,485
|
Credit
facility
|
|
|
40,000
|
230,000
|
Working capital
surplus (current assets less current liabilities)
|
(108,133)
|
(186,169)
|
Net debt
|
|
|
3,554,612
|
3,268,316
|
Common shares
outstanding – end of period
|
|
|
229,153
|
221,023
|
Notes:
|
1
|
Not a standard measure
under Generally Accepted Accounting Principles ("GAAP") and
therefore, may not be comparable to similar measures reported by
other entities. For additional details regarding the composition of
the measure, how management utilizes it, and for a reconciliation
of the measure to the most directly comparable GAAP measure, refer
to the section of this news release titled "Non-GAAP and Other
Financial Measures".
|
2
|
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.
|
3
|
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.
|
4
|
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.
|
CEO's Message to Shareholders
Keyera delivered outstanding results in 2022, achieving record
annual adjusted EBITDA, driven by best-ever Gathering &
Processing and Marketing contributions. We are well positioned to
continue to earn strong returns for shareholders by executing our
strategy and leveraging our integrated assets within a supportive
macro-economic backdrop of growing energy demand and continued
growth in the Western Canada Sedimentary Basin.
Delivering on the strategy. About a year ago, at our
March 2022 Investor Day, we shared
the four pillars of our strategy. They are – demonstrate ESG
leadership; maintain financial discipline; increase the
competitiveness of our assets; and to enhance and extend our
integrated value chain. We've successfully advanced all four
pillars in 2022 and this has led to the strong results we're
reporting today. For the first time in our history, Keyera has
delivered more than $1 billion in
annual adjusted EBITDA. The company also delivered another
strong annual return on invested capital of 16% for 2022. We
achieved these results while maintaining our strong financial
position, exiting the year with net debt to adjusted EBITDA at 2.5
times, at the low end of our target range of 2.5 to 3.0 times.
Solid operational performance led to strong financial
results. Our Gathering and Processing business grew
volumes by 8% year-over-year, leading to record annual realized
margin of $347 million for this
segment. Our AEF team delivered record consecutive run-time before
taking the facility offline in the fall to complete a six-week
planned turnaround. AEF's strong run-time helped drive a record
Marketing year and the successful turnaround will support continued
strong performance from this facility in 2023.
We acquired capacity at KFS, increasing our
competitiveness. In the fourth quarter we announced an
agreement to acquire an additional 21% ownership at our KFS complex
adding significant and immediate fractionation, de-ethanization,
storage and pipeline capacity, while eliminating new build risk in
a high inflation environment. This immediate addition of
fractionation capacity in a high demand fractionation market
strengthens Keyera's ability to add incremental volumes and
long-term contracts across our entire value chain, including the
soon to be in-service KAPS pipeline.
Highly strategic growth investment in KAPS integrates our
value chain. With KAPS in service, Keyera can provide
Montney producers a complete, and
much-needed, competitive alternative for gas processing, liquids
transportation on a newer pipeline, fractionation, storage, and
product marketing. Our fully integrated value chain allows us to
better compete for volumes and provides more opportunity to earn
returns at each step of the way. KAPS has been years in the making,
and it's the platform that propels us forward and lets us focus on
what we do best – delivering value for customers and
shareholders.
Fee-for-service cash flow growth and lower spending. In
the last five years we have invested significantly in strengthening
our value chain with the Wapiti and Pipestone gas plants, our KAPS pipeline and
additional capacity at KFS. These investments support our annual
adjusted EBITDA growth rate of 6% to 7% from our fee-for-service
business out to 2025, laying the groundwork for sustainable
dividend growth. Consistent with our investor day outlook last
March, our go forward capital allocation priorities are to ensure
continued financial strength and to balance increasing returns to
shareholders with lower capital spending relative to the last five
years.
Keyera benefits from basin volume growth. Our basin set
new records for both natural gas and crude oil production in
2022. Looking further ahead, we see energy security, demand
growth and energy transition as catalysts supporting long-term
natural gas and natural gas liquids demand. Keyera infrastructure
will continue to play an important role enabling basin growth.
On behalf of Keyera's board of directors and management team I
want to thank our employees, customers, shareholders,
Indigenous peoples, and other stakeholders for their continued
support.
Dean Setoguchi
President and CEO
Keyera Corp.
Fourth Quarter and Year End 2022 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 2022
at 8:00 a.m. Mountain Time
(10:00 a.m. Eastern Time) on
Wednesday, February 15, 2023. Callers
may participate by dialing 888-664-6392 or 416-764-8659. A
recording of the call will be available for replay until
10:00 p.m. Mountain Time
(12:00 a.m. Eastern Time) on
March 1, 2023 by dialing 888-390-0541
or 416-764-8677 and entering pass code 517367.
Internet users can listen to the call live on Keyera's website
at 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, 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
For media inquiries, please contact:
Kirsten Bell, Director,
Stakeholder Communications
Terry Cunha, Advisor, Media
Relations
Email: media@keyera.com
Telephone: 587.496.8092
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") 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
below and to Management's Discussion and Analysis available on
SEDAR at www.sedar.com and Keyera's website at www.keyera.com.
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 – 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
|
For the three months
ended
December 31,
|
For the twelve months
ended
December 31,
|
(Thousands of
Canadian dollars)
|
2022
|
2021
|
2022
|
2021
|
Cash flow from operating
activities
|
134,408
|
96,963
|
925,327
|
583,839
|
Add
(deduct):
|
|
|
|
|
Changes in
non-cash working capital
|
22,441
|
137,736
|
(106,480)
|
182,033
|
Funds from operations
|
156,849
|
234,699
|
818,847
|
765,872
|
Maintenance
capital
|
(41,207)
|
(16,227)
|
(109,723)
|
(50,109)
|
Leases
|
(10,875)
|
(11,190)
|
(43,566)
|
(44,645)
|
Prepaid lease
asset
|
(595)
|
(630)
|
(2,440)
|
(2,523)
|
Inventory
write-down
|
—
|
—
|
(9,595)
|
—
|
Distributable cash flow
|
104,172
|
206,652
|
653,523
|
668,595
|
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
|
For the three months
ended
December 31,
|
For the twelve months
ended
December 31,
|
(Thousands of
Canadian dollars, except %)
|
2022
|
2021
|
2022
|
2021
|
Distributable cash
flow1
|
104,172
|
206,652
|
653,523
|
668,595
|
Dividends declared to
shareholders
|
107,392
|
106,091
|
425,665
|
424,364
|
Payout ratio
|
103 %
|
51 %
|
65 %
|
63 %
|
1 Non-GAAP
measure as defined above.
|
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/losses on commodity-related contracts, net foreign
currency gains/losses on U.S. debt and other, impairment expenses
and any other non-cash items such as gains/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
|
For the three months
ended
December 31,
|
For the twelve months
ended
December 31,
|
(Thousands of
Canadian dollars)
|
2022
|
2021
|
2022
|
2021
|
Net (loss) earnings
|
(81,895)
|
89,986
|
328,294
|
324,206
|
Add
(deduct):
|
|
|
|
|
Finance
costs
|
41,084
|
43,750
|
165,351
|
169,309
|
Depreciation,
depletion and amortization expenses
|
85,630
|
56,517
|
258,264
|
257,638
|
Income tax
(recovery) expense
|
(23,310)
|
32,356
|
104,906
|
102,055
|
EBITDA
|
(21,509)
|
222,609
|
856,815
|
853,208
|
Unrealized loss (gain)
on commodity contracts
|
15,469
|
(28,544)
|
(26,647)
|
8,234
|
Net foreign currency
(gain) loss on U.S. debt and other
|
(4,765)
|
1,584
|
21,551
|
(568)
|
Impairment
expense
|
180,277
|
98,090
|
180,277
|
115,771
|
Loss (gain) on disposal
of property, plant and equipment
|
—
|
—
|
477
|
(20,797)
|
Adjusted EBITDA
|
212,490
|
293,739
|
1,032,473
|
955,848
|
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.
The following is a reconciliation of realized margin to the most
directly comparable GAAP measure, operating margin:
Operating Margin and Realized
Margin
For the three months
ended December 31, 2022
|
(Thousands of
Canadian dollars)
|
Gathering &
Processing
|
Liquids
Infrastructure
|
Marketing
|
Corporate
and Other
|
Total
|
Operating margin
(loss)
|
93,017
|
106,542
|
28,293
|
(43)
|
227,809
|
Unrealized (gain) loss
on risk management contracts
|
(180)
|
(4,789)
|
20,438
|
—
|
15,469
|
Realized margin
(loss)
|
92,837
|
101,753
|
48,731
|
(43)
|
243,278
|
Operating Margin and Realized
Margin
For the three months
ended December 31, 2021
|
(Thousands of
Canadian dollars)
|
Gathering &
Processing
|
Liquids
Infrastructure
|
Marketing
|
Corporate
and Other
|
Total
|
Operating margin
(loss)
|
81,775
|
110,089
|
152,188
|
23
|
344,075
|
Unrealized (gain) loss
on risk management contracts
|
(426)
|
82
|
(28,200)
|
—
|
(28,544)
|
Realized margin
(loss)
|
81,349
|
110,171
|
123,988
|
23
|
315,531
|
Operating Margin and Realized
Margin
For the twelve
months ended December 31, 2022
|
(Thousands of
Canadian dollars)
|
Gathering &
Processing
|
Liquids
Infrastructure
|
Marketing
|
Corporate
and Other
|
Total
|
Operating margin
(loss)
|
347,900
|
413,879
|
414,973
|
(971)
|
1,175,781
|
Unrealized gain on risk
management contracts
|
(1,128)
|
(7,967)
|
(17,552)
|
—
|
(26,647)
|
Realized margin
(loss)
|
346,772
|
405,912
|
397,421
|
(971)
|
1,149,134
|
Operating Margin and Realized
Margin
For the twelve
months ended December 31, 2021
|
(Thousands of
Canadian dollars)
|
Gathering &
Processing
|
Liquids
Infrastructure
|
Marketing
|
Corporate
and Other
|
Total
|
Operating margin
(loss)
|
323,131
|
409,371
|
314,140
|
(1,342)
|
1,045,300
|
Unrealized (gain) loss
on risk management contracts
|
(388)
|
(184)
|
8,806
|
—
|
8,234
|
Realized margin
(loss)
|
322,743
|
409,187
|
322,946
|
(1,342)
|
1,053,534
|
Adjusted Cash Flow from Operating Activities and Return on Invested
Capital ("ROIC")
Adjusted cash flow from operating
activities is defined as cash flow provided by operating activities
before changes in non-cash working capital, decommissioning
liability expenditures and finance costs. Adjusted cash flow from
operating activities is used solely for the purpose of calculating
ROIC and therefore, management does not use this measure on a
stand-alone basis.
The following is a reconciliation of adjusted cash flow from
operating activities to the most directly comparable GAAP measure,
cash flow from operating activities:
Adjusted Cash Flow from Operating
Activities
|
|
For the twelve months
ended
December 31,
|
(Thousands of
Canadian dollars)
|
|
|
2022
|
2021
|
Cash flow from operating
activities
|
|
|
925,327
|
583,839
|
Add:
|
|
|
|
|
Changes in
non-cash working capital
|
|
|
(106,480)
|
182,033
|
Decommissioning
liability expenditures
|
|
|
17,455
|
13,192
|
Finance
costs
|
|
|
165,351
|
169,309
|
Adjusted cash flow from operating
activities
|
|
|
1,001,653
|
948,373
|
Return on invested capital is defined as adjusted cash flow from
operating activities divided by invested capital as defined below.
ROIC is used to reflect the profitability of Keyera's in-service
capital assets.
Return on Invested Capital
|
|
For the twelve months
ended
December 31,
|
(Thousands of
Canadian dollars, except %)
|
|
|
2022
|
2021
|
Adjusted cash flow from operating
activities1
|
|
|
1,001,653
|
948,373
|
Invested capital2
|
|
|
6,315,348
|
6,715,451
|
Return on invested capital
|
|
|
16 %
|
14 %
|
1 Non-GAAP
measure as defined above.
|
2 Includes
property, plant and equipment, right-of-use assets, inventory,
trade and other receivables, goodwill, intangible assets, less
work-in-progress assets and trade and other payables, and
provisions.
|
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 press 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",
"project", "should", "plan", "intend", "believe", 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:
- target payout and net debt to adjusted EBITDA ratios;
- future capital expenditures and cash taxes, including the
anticipated costs of the KAPS pipeline system and the Pipestone gas plant expansion;
- industry, market and economic conditions, including but not
limited to commodity prices, 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 expectation that
between the years 2023 and 2025, its Marketing business will
contribute on average, a "base realized margin" of between
$250 million and $280 million annually;
- estimated maintenance and turnaround costs and estimated
decommissioning expenses;
- expected costs, in-service dates and schedules for KAPS, the
Pipestone gas plant expansion and
other capital projects (including projects under
construction/development and proposed projects) and sources of
funding for such projects;
- Keyera's financial priorities and ESG initiatives.
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. 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.
Readers are cautioned that 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.
Further information about the assumptions, risks, uncertainties
and other factors affecting the forward-looking information
contained in this press release is available in filings made by
Keyera with Canadian provincial securities commissions, including
under "Forward-Looking Statements" in Keyera's management's
discussion and analysis for the year ended December 31, 2022 and in Keyera's Annual
Information Form for the year ended December
31, 2022, each of which is available on the company's SEDAR
profile at www.sedar.com.
SOURCE Keyera Corp.