Financial Framework and ESG Leadership
Non-GAAP and Other Financial Measures
This presentation 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 year ended December 31, 2023 which is 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", "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 from the Marketing segment, realized margin from the Gathering and Processing (G&P)
segment, realized margin from the Liquids Infrastructure segment, realized margin from the fee-for-
service business segments, adjusted EBITDA, compound annual growth rate (CAGR) for adjusted EBITDA
holding Marketing constant, distributable cash flow (DCF), DCF per share, payout ratio, and return on
invested capital (ROIC) are all non-GAAP or Other Financial Measures referenced in this presentation. The
most directly comparable GAAP measure to realized margin from the Marketing, G&P and Liquids
Infrastructure segments is operating margin from these same segments, respectively. The most directly
comparable GAAP measure to 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 presentation 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 from the Marketing Segment
The guidance for base realized margin from the Marketing segment (or Marketing realized margin) has
been increased to a range of $310 million to $350 million (previously was $250 million to $280 million). The
following includes the equivalent historical measures for this financial measure.
Marketing Realized Margin
(Thousands of Canadian dollars)
Operating margin - Marketing
Unrealized gain or risk management contracts
Realized margin - Marketing
For the year ended
December 31,
2022
414,973
(17,552)
2023
554,251
(75,284)
478,967
397,421
Realized Margin from the Fee-for-Service Business Segments
Realized margin from the fee-for-service business segments, or fee-for-service realized margin (defined as
realized margin from the Gathering and Processing 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 Realized Margin
(Thousands of Canadian dollars)
Operating margin - Fee-for-Service
Unrealized loss (gain) or risk management contracts
Realized margin - Fee-for-Service
For the year ended
December 31,
2023
878,897
2022
761,779
11,747
890,644
(9,095)
752,684
Compound Annual Growth Rate (CAGR) for Adjusted EBITDA holding Marketing constant (previously
disclosed as CAGR for Adjusted EBITDA from the Fee-for-Service Business)
CAGR is calculated as follows:
1
Number of Years
CAGR =
End of the period*
Beginning of the period*
-1
*Utilizes beginning and end of period adjusted EBITDA as defined below.
CAGR for adjusted EBITDA holding Marketing constant is intended to provide information on a forward-
looking basis. This calculation utilizes beginning and end of period adjusted EBITDA, which includes the
following components and assumptions: (i) forecasted realized margin for the G&P and Liquids
infrastructure segments, (ii) realized margin for the Marketing segment, which is held at a value within
the expected base realized margin between $310 million and $350 million (previously between $250
million and $280 million), and (iii) adjustments for total forecasted general and administrative, and long-
term incentive plan expenses. During the fourth quarter of 2023, Keyera revised the label of this metric to
"CAGR for Adjusted EBITDA holding Marking constant" (previously disclosed as CAGR for Adjusted EBITDA
from the Fee-for-Service Business). The reason for this change is to more accurately reflect the meaning
of the metric and the inclusion of Marketing cash flows which are not fee-for-service cash flows. This
revision did not impact the composition of the metric.
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