Keyera Corp.

Good morning. My name is Mark and I will be your conference operator today. At this time, I would like to welcome everyone to Kiera's 2023 third quarter conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press the star and then the number two. Thank you. I would now like to turn the call over to Calvin Locke, Manager of Investor Relations. You may begin.

Thank you and good morning. Joining me today will be Dean Setteguchi, President and CEO, Eileen Maricar, Senior Vice President and CFO, Jamie Urquhart, Senior Vice President and Chief Commercial Officer, and Jared Bastilny, Senior Vice President, Operations and Engineering. We will begin with some prepared remarks from Dean and I lead, after which we will open the call to questions. I would like to remind listeners that some of the comments and answers that we will give you today relate to future events. These forward-looking statements are given as of today's date and reflect events or outcomes that management currently expects. In addition, we will refer to some non-GAAP financial measures. For additional information on non-GAAP measures and forward-looking statements, please refer to Kiera's public filings available on CDAR Plus and on our website. With that, I'll turn the call over to Dean. Thanks, Calvin, and good morning, everyone.

Kiera delivered excellent third quarter results. Leveraging our integrated value chain, we continue to execute a strategy that is driving strong performance across our three business segments. By growing our fee-for-service business, we're improving the quality of our cash flows, which supports sustainable dividend growth. Sierra recently received a corporate credit upgrade to BBB Stable from S&P. This upgrade reflects the company's improved competitive position, quality of cash flows, and strong business outlook. Our GNP segment delivered its second highest quarter ever with 94 million in realized margin. And our liquid infrastructure segment delivered a third consecutive record quarter with a contribution of 128 million, 27% higher than the same period last year. Over the last several years, we have invested significantly to create a fully integrated service offering from the Montney and Duvernay place through our core liquids infrastructure in Edmonton and Fort Saskatchewan. Assets like Wapiti, Pipestone, the KFS complex, and most recently CAPS have all contributed meaningful volume and cash flow growth. As a result, we remain on track to reach our targeted range of 6% to 7% annual EBITDA growth from our fee-for-service business out to 2025. TAPS continues to deliver ahead of our expectations with higher than forecasted volumes in the third quarter, as customers delivered above their contracted commitments. TAPS has fully integrated our value chain, making us stronger and more competitive. Customers are seeing the value of this much-needed alternative that can support our full suite of NGL services from wellhead to end market. The additional interest acquired at our KFS complex is also performing ahead of expectations with strong fractionation utilization and higher than forecasted demand for storage assets. Today, we announced that our Pipestone expansion project is now expected to be completed ahead of schedule and at the low end of our budgeted CapEx range of $60 to $70 million. This project adds 40 million per day of processing capacity, driving further fee-for-service growth starting in the fourth quarter of this year. Our customers are in a strong financial position and have multi-year growth plans that rely on our integrated service offering. This further reinforces the strong outlook for growth.