Keyera Corp.

Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the CAERS 2024 first quarter conference call. Note that 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. And if you would like to withdraw from the question queue, please press star followed by two. And I would 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 Setaguchi, President and CEO, Eileen Maricarp, Senior Vice President and CFO, Jamie Urquhart, Senior Vice President and Chief Commercial Officer, and Jared Bisvilny, Senior Vice President, Operations and Engineering. We will begin with some prepared remarks from Dean and Eileen, after which we will open the call to questions. I would like to remind listeners that some of the comments and answers we will be giving 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 Kiara's public filings available on CDAR and on our website. With that, I'll turn the call over to Dean. Thanks, Calvin, and good morning, everyone.

We've carried the positive momentum from last year to 2024, leveraging the strategic advantages of our integrated value chain to drive solid performance across all three business segments. We continue to see the growth in high-quality fee-for-service cash flows and remain on track to reach the upper end of our 6% to 7% EBITDA growth target out to 2025. Our liquids infrastructure segment delivered a fifth consecutive quarterly record for realized margin, reaching $137 million. Driving this performance was the continued ramp-up of long-term contracted volumes on caps and growing demand for our fractionation, storage, and condensate businesses. Our gathering processing segment delivered its second highest quarter ever, with $104 million in realized margin. This includes the first full quarter of contributions from the Pipestone gas plant expansion. This segment has undergone a significant transformation. In 2017, over 70% of our GMP realized margin came from our South Region gas plants. Today, more than 70% comes from our three north region gas plants. Over this time period, our GNP realized margin has grown by more than 40%. Producer economics in the north are driven by higher condensate content, making them less sensitive to natural gas pricing. Our north region also has longer contract durations with strong counterparties and a high degree of taker pay. The growth we're delivering in our fee-for-service business segments is driving high-quality cash flows, which supports sustainable dividend growth. Our marketing statement continues to perform well, generating $114 million in realized margin in the quarter. On a four-year basis, we now expect marketing to deliver between $430 and $470 million of realized margin. This includes the impact of a six-week outage at AEF, which is now complete. This significant increase is mostly due to the expected strength of our iso-octane business. Our marketing segment continues to provide Kiera with a distinct competitive advantage. Strong cash flows from this segment have enabled us to consistently deliver above average after-tax corporate returns. These cash flows are then reinvested into long life infrastructure projects, in turn driving growth and high quality fee for service cash flows. We expect to generate significant free cash flow in 2024 as we continue to benefit from investments made in prior years. Our capital allocation priorities have not changed and remain grounded in a long history of disciplined financial management. Our balance sheet is strong, allowing us to further create value through increasing returns to shareholders and investing in capital-efficient growth opportunities. These opportunities will leverage and enhance our existing core asset position in Western Canada. They include a Fracti bottleneck, a new factory expansion, and a CAPS Zone 4 extension. To move ahead, these projects will need to generate a strong return supported by long-term contracts. I'll now turn over to Eileen, who will provide an overview of our financial performance for the quarter and touch on our revised guidance for 2024.