Image1

PRINT  Text Size: S M L  Share

Home / News and Events / News Releases / Keyera Corp. Announces Year End 2012 Results

Keyera Corp. Announces Year End 2012 Results

CALGARY, Feb. 14, 2013 /CNW/ - Keyera Corp. (TSX:KEY)(TSX:KEY.DB.A), announced their 2012 year end results today, the highlights of which are included in this press release. The entire press release can be viewed by visiting Keyera's website at www.keyera.com or, to view the MD&A and financial statements, visit either Keyera's website or the System for Electronic Document Analysis and Retrieval at www.sedar.com.

HIGHLIGHTS

  • Keyera delivered solid results in 2012 from all segments of its business and kicked off a number of exciting new growth initiatives.
  • Earnings before interest, taxes, depreciation and amortization1,2 ("EBITDA") were $326.8 million in 2012, 28% higher than the $255.1 million posted in 2011.
  • Net earnings in 2012 were $130.6 million ($1.71 per share), compared to $135.2 million ($1.91 per share) in 2011.
  • Distributable cash flow1,2 for 2012 was $199.9 million ($2.62 per share) compared to $202.2 million ($2.85 per share) in 2011, largely due to weaker propane margins and higher maintenance capital costs in 2012.
  • Keyera's Gathering and Processing business delivered operating margin3 of $150.9 million in 2012 compared to $152.7 million in 2011. In the NGL Infrastructure segment, operating margin1 of $112.5 million was $43.6 million, or 63% higher than the prior year. Marketing operating margin3 was $92.0 million in 2012 compared to $76.5 million in 2011.
  • In the fourth quarter, Keyera announced plans to enhance recoveries of ethane and other NGLs at its Rimbey gas plant through the addition of a 400 million cubic feet per day turbo expander unit.
  • Keyera also has a number of projects underway in its NGL Infrastructure segment. At its Fort Saskatchewan facility, construction began on a 30,000 barrel per day de-ethanizer, as well as additional underground NGL storage capacity and development of a new brine pond. To support deliveries of NGLs and crude oil to customers by rail, Keyera is developing rail terminals at South Cheecham, south of Fort McMurray, and at Hull, Texas.
  • In December, Keyera added iso-octane rail loading capabilities at its Edmonton Terminal and loaded the first rail cars for delivery to customers on the Gulf Coast. Keyera expects to increase rail deliveries of iso-octane produced at Alberta EnviroFuels in 2013.
  • Keyera increased the size of its unsecured revolving credit facility from $500 million to $750 million, with the potential to increase it to $1 billion, subject to certain conditions. In addition, the term has been extended to December 13, 2016.
  • Total growth capital investment was $446 million in 2012, of which $281 million was acquisitions.  Keyera expects its 2013 growth capital investment, excluding acquisitions, to be between $250 million and $300 million.4

1 See "Non-GAAP Financial Measures" on page 47 of the MD&A.
2 See page 35 and 36 of the MD&A for a reconciliation of distributable cash flow to cash flow from operating activities and EBITDA to net earnings.
3 See Note 30 to the Financial Statements.
4 See "Capital Expenditures and Acquisitions" on page 32 of the MD&A for further discussion of Keyera's capital investment program.

         
  Three months ended
December 31,
Twelve months ended
December 31,
Summary of Key Measures
(Thousands of Canadian dollars, except where noted)
2012 2011 2012 2011
Net earnings 56,651 (21,188) 130,601 135,218
  Per share ($/share) - basic 0.73 (0.30) 1.71 1.91
Cash flow from operating activities 26,053 50,792 237,979 178,215
         
Distributable cash flow1 74,396 51,207 199,873 202,187
  Per share ($/share) 0.96 0.72 2.62 2.85
Dividends declared 41,104 35,760 157,095 136,175
  Per share ($/share) 0.53 0.50 2.06 1.92
  Payout ratio %1 55% 70% 79% 67%
EBITDA2 109,195 26,810 326,843 255,091
Gathering and Processing:        
Gross processing throughput (MMcf/d) 1,205 1,189 1,202 1,159
Net processing throughput (MMcf/d) 982 911 964 883
NGL Infrastructure:        
Gross processing throughput (Mbbl/d) 116 102 92 89
Net processing throughput (Mbbl/d) 39 36 35 29
Marketing:        
Inventory value 183,165 136,827 183,165 136,827
Sales volumes (bbl/d) 114,700 89,400 93,100 76,600
         
Capital expenditures 56,655 70,676 446,349 170,780
         
Long-term debt     619,666 478,364
Credit facilities     135,000 241,000
Working capital surplus3     (160,839) (186,507)
Net debt     593,827 532,857
Convertible debentures     11,083 15,519
Net debt (including debentures)     604,910 548,376
         
Common shares outstanding - end of period     77,663 71,601
Weighted average number of shares outstanding - basic     76,186 70,844
Weighted average number of shares outstanding - diluted     76,884 72,025
Notes:
1  Payout ratio is defined as dividends declared to shareholders divided by distributable cash flow.  Payout ratio and distributable cash flow are not standard measures under GAAP. See page 35 for a reconciliation of distributable cash flow to its most closely related GAAP measure.
2  EBITDA is defined as earnings (including unrealized gains/losses from financial contracts relating to the Liquids Business Unit) before interest, taxes, depreciation, amortization, accretion, impairment expenses and any other non-cash items such as gains/losses on the disposal of property, plant and equipment.  EBITDA is not a standard measure under GAAP.  See section titled "EBITDA" on page 36 of the MD&A for a reconciliation of EBITDA to its most closely related GAAP measure.
3  Working capital is defined as current assets less current liabilities.


Message to Shareholders

Continued demand for services in all business segments underpinned Keyera's solid results in 2012. Keyera benefitted from the acquisition of the Alberta EnviroFuels facility in January, and from contribution from several growth projects we have been developing over the past year or two. We were successful in securing a number of new growth projects in 2012 that are now under development and are expected to provide value added services to our customers in the future. These projects, together with other new business opportunities currently under evaluation, are anticipated to provide our shareholders with continued value growth in the future.

EBITDA in 2012 was $326.8 million, 28% higher than in 2011. Net earnings were $130.6 million ($1.71 per share), compared to $135.2 million ($1.91 per share) the previous year. Distributable cash flow was $199.9 million ($2.62 per share) in 2012, compared to $202.2 million ($2.85 per share) in 2011. Distributable cash flow in 2012 was affected by higher maintenance capital costs, primarily due to the extensive turnaround comp

about Keyera, please visit our website at www.keyera.com or contact:

John Cobb, Vice President, Investor Relations and Information Technology or
Julie Puddell, Manager, Investor Relations

E-mail: ir@keyera.com, Telephone: (403) 205-7670 / Toll Free: (888) 699-4853, Facsimile: (403) 205-8425.