Keyera's Proposed Acquisition of Plains' Canadian NGL Assets Should Create Some Value

Keyera's integrated business model is now finally benefiting from the Key Access Pipeline System, or KAPS. The pipeline will connect the firm’s northern plants to its Fort Saskatchewan liquids hubs and will consist of pipelines for condensate and natural gas liquids mix. We believe the firm has effectively captured growth opportunities through KAPS, and it has an attractive slate of new initiatives to pursue. Future growth other than KAPS can come from the Trans Mountain Expansion, LNG Canada, West Coast LPG exports, and higher condensate volumes from its North region gas plants serving the Montney and Duvernay basins. The physical marketing business will continue to serve as a way for Keyera to capture incremental margins off a highly integrated asset base to deliver product throughout North America.