CALGARY, April 9, 2020 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") today announced that it continues to make progress on its gathering and processing optimization plan and plans to suspend operations at four of its gas plants located in west central Alberta.
Keyera expects to suspend operations at its Minnehik Buck Lake and West Pembina gas plants in the second half of 2020, followed by the Ricinus and Nordegg River gas plants in 2021. Keyera will utilize its interconnected network of gathering systems to transfer volumes from these facilities to other Keyera gas plants in the area, to the extent it is commercially and operationally possible.
The optimization plan is intended to enhance Keyera's long term competitive positioning by increasing utilization at its existing facilities, reducing per unit operating costs, and providing higher netbacks for producer customers. This optimization plan also aligns with Keyera's environmental efforts by reducing its overall greenhouse gas emissions. Keyera will continue to advance the plan over the coming months and will provide more information in the second half of this year.
"It was a difficult decision to suspend operations at these four gas plants, which have been part of Keyera's portfolio for many years. However, these optimization efforts will strengthen our gathering and processing business for the long term as they align with our customers' needs and the current industry environment," said David Smith, Keyera's CEO. "In the coming weeks we will begin planning a safe and orderly suspension of the gas plants. Our priority is to ensure the health and safety of our employees and support our customers through the process."
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.
To provide readers with information regarding Keyera, including its assessment of future plans, and operations, this news release contains certain forward-looking information and statements under applicable securities laws. These statements relate to future events, developments and/or Keyera's future performance and are based on Keyera's current expectations, estimates, projections and assumptions, including in light of its experience and its perception of historical trends.
Such statements are therefore 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", "to be", "believe", and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding:
industry, market and economic conditions and any anticipated effects on Keyera;
Keyera's future financial position and operational performance and future financial contributions and margins from its business segments;
business strategy, future plans, anticipated growth and plans of management;
budgets, including future capital, operating or other expenditures, and the manner of funding such expenditures;
the operation and effectiveness of risk management programs; and
expectations regarding Keyera's ability to enhance or maintain its competitive position, raise capital and add to its assets through acquisitions or internal growth opportunities.
These forward-looking statements reflect Keyera's beliefs, projections and assumptions with respect to such things as the outlook for general economic trends, industry trends, commodity prices, capital markets, the integrity and reliability of Keyera's assets, relationships with partners and stakeholders, and the governmental, regulatory and legal environment. Management believes that its assumptions and analysis contained herein (and in the documents incorporated by reference) are reasonable and that the expectations reflected in these forward-looking statements are also reasonable based on the information available on the date such statements are made and the process used to prepare the information. However, it 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 dated February 26, 2020 and Keyera's Annual Information Form dated February 26, 2020, 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), adverse general economic and/or market conditions in Canada, North America or worldwide, including changes or prolonged weaknesses, as applicable in commodity prices, interest rates, foreign currency exchange rates, supply/demand trends and overall industry activity levels, changes in credit ratings or counterparty credit risk on Keyera's activities, business plans, financial position or results and/or strategic objectives are 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 list of important factors is not exhaustive and they should not unduly rely on the forward-looking statements included herein. Further, readers are cautioned that the forward-looking statements contained herein are made as of the date of this news release. Unless required by law, Keyera does not intend and does not assume any obligation to publicly update or revise 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 available on SEDAR at www.sedar.com.
For further information about Keyera, please visit our website at www.keyera.com or contact:
Keyera Corp. operates one of the largest natural gas midstream businesses in Canada. Its business consists of natural gas gathering and processing as well as the processing, transportation, storage and marketing of natural gas liquids (NGLs) and crude oil midstream...