Delivering Value, Today and Tomorrow KEYERA 33 M Y X

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Delivering Value, Today and Tomorrow KEYERA 33 M Y X

Investing today for long-term value growth. Z C M YY 70 Fund Information X 70 2008 Growth Initiatives:

1 Purchased the Alberta DiluentTerminal (ADT). X

The terminal enables Keyera to import and offload Z BOARD OF DIRECTORS OFFICERS HEAD OFFICE INVESTOR RELATIONS

condensate for use as diluent in the oil sands sector. C M Y E. Peter Lougheed 1,3 Jim V. Bertram Suite 600, John Cobb 3 Caribou 2 Acquired additional 40% interest in the Brazeau Counsel, Bennett Jones LLP President and Chief Executive Officer Sun Life Plaza West Tower Director, Investor Relations B River gas plant to own 92%. Also acquired over Calgary, Alberta 144 – 4th Avenue S.W.

David G. Smith Bradley White C 350 kilometres of gathering pipelines and four Jim V. Bertram Executive Vice President, Calgary, Alberta T2P 3N4 Investor Relations Advisor ALBERTA compressor stations. President and Chief Executive Officer Liquids Business Unit M Toll Free: 1-888-699-4853 Keyera Energy Management Ltd. and Corporate Secretary STOCK EXCHANGE LISTING 3 Initiated a 40 million cubic foot per day Y Calgary, Alberta Direct: 403-205-7670 Graham Balzun The Toronto Stock Exchange

expansion at the Caribou gas plant in Email: [email protected] X northeastern British Columbia to meet industry Robert B. Catell Vice President, Engineering Trading Symbols Executive Director and and Corporate Responsibility KEY.UN; KEY.DB; KEY.DB.A Z needs. When completed, Caribou’s capacity will be WEBSITE

Deputy Chairman C M Y Marzio Isotti 105 MMcf/d. National Grid plc www.keyera.com Dow Fort Saskatchewan CORPORATETRUSTEE AND 4 Vice President, B 70 Paddle River New York, New York 4 TRANSFER AGENT Keyera Fort Saskatchewan Drilled the well for the first of four Foothills Region 12 additional underground storage caverns at Michael B.C. Davies 2 STABILITY RATING 9 Steven B. Kroeker Computershare Trust slurM Fort Saskatchewan Pipeline Principal, Davies & Co. Standard & Poor’s SR-3 Fort Saskatchewan. When completed in mid-2010, Vice President, Company of Canada Banff, Alberta 8 the cavern will have a capacity of about 750,000 Corporate Development Calgary, Alberta Judy Creek Pipeline Nancy M. Laird 3,4 2008 TRADING SUMMARY X 1 barrels available to store condensate for oil sands Bradley W. Lock Corporate Director customers. Vice President, AUDITORS Units Outstanding: Z 5 Bigoray Edmonton Calgary, Alberta Terminal North Central Region Deloitte & Touche LLP 62.9 million (December 31) C M Y Pembina North 5 Acquired the Wolf Creek pipeline, a 24-kilometre Donald J. Nelson 4 Calgary, Alberta David A. Sentes Average Daily Trading Volume: gathering pipeline northwest of our Pembina North President B Vice President 134,068 units Brazeau North gas plant, and began delivering raw gas to the Fairway Resources Inc. 9 and Comptroller LEGAL COUNSEL C West Pembina Bonnie Glen Pipeline plant for processing in late 2008. Calgary, Alberta Trading Prices:

C. Dean Setoguchi Stikeman Elliott LLP High: $23.79 M 7 H. Neil Nichols 2,3 6 Proceeded with the ethane extraction project Vice President and Calgary, Alberta Low: $14.05

Management Consultant Y Rimbey Pipe Line at the Rimbey gas plant. When completed Chief Financial Officer Close: $17.81 (December 31) Smiths Cove, Nova Scotia 2 Brazeau River in mid-2009, the project will produce up to ANNUAL MEETING X William R. Stedman 3,4 OF UNITHOLDERS Nordegg River 5,000 barrels per day of ethane under a 6 Chairman and Z long-term sales contract for use in the May 5, 2009, 2:00 p.m. Chief Executive Officer C M

Sun Life Plaza Conference Centre Y 11 Rimbey petrochemical sector in Alberta. ENTx Capital Corporation 144 – 4th Avenue S.W. C 70 Calgary, Alberta 7 Purchased a 35.6% interest in the West Calgary, Alberta Pembina gas plant, a 145 MMcf/d sour gas plant Wesley R.Twiss 2 M Y

Gilby C M Nevis strategically located in west central Alberta. Corporate Director Calgary, Alberta Y Medicine River 10 8 Added a fourth NGL pipeline between the X Edmonton Terminal and the Fort Saskatchewan Z facility to enable propane, butane, condensate 1 Chairman C M Y Strachan Red Deer and NGL mix to move bi-directionally between 2 Member of the Audit Committee

the two facilities. B 3 Member of the Compensation

9 Acquired a 50% interest in the Bonnie Glen and Governance Committee C

crude oil and condensate pipeline system and 4 Member of the Health, Safety M an additional 50.3% interest in the Judy Creek and Environment Committee Y NGL pipeline system. X 10 Purchased 100% of the Nevis gas plant near Stettler, Alberta, including over 280 kilometres Z C M

of gathering pipelines and associated Y

compression facilities. M 70

11 Acquired an additional 10.5% interest slurY in the Rimbey gas plant to own 96.9%. TABLE OF CONTENTS As part of the transaction, various long-term gas processing agreements were also secured. X 1 2008 Report Card 23 Financial Management 12 Completed an expansion of the truck rack Z

2 Chairman’s Message 29 Keyera Board of Directors C M

at Fort Saskatchewan to enhance logistics Y 3 President’s Message 30 Keyera ManagementTeam 25%

handling. Also made modifications to the rail rack B 6 Business Lines 32 Glossary at the Edmonton Terminal to allow propane and C 19 Corporate Responsibility 33 Fund Information butane to be delivered by rail to our facilities. Prinect 6GS99iFormat 102/105 Dipco 3.0e (pdf) © 2007 Heidelberger Druckmaschinen AG X Z C M Y 0slurB B 70 X Z C M Y B C M Y X Z C M Y 0C C 70 M C Y X Z C M Y B C COVER BACK: CMYK PMS 8300 158 M Y X Z C M Y M 70 slurC X Z C M Y B C M Y X Z C M YY 70 X 70 X Z C M Y B C M Y X Z

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Today, m g focused on visio in people – i in icant depre a h innova a Keyera slowdown our great this enviro continue p econo a addit nd Tomorrow statemen t today signif of ts into rs n r as growt vision, a consider is s tory the spirit, e that it develo decade, Today a for t X time are well curre yera’s growing role within the Canadian energy industry. clear for all citizens... It is a time for confidence in the longer-term future of Canada. Let’s suppo a e ed to be a high yield equity investment, and Keyera’s results over the past five years regula With Z d and as g e that Keyera’s business – with stable cash flows driven by fee-for-service revenues – past it we e great confidence in the long-term sustainability of the Western Canada Sedimentary what Unitholde the r factors. ive to the current global situation by closing with sentiments I first expressed in 1982 – v ce and knowledge of the oil and gas upstream and midstream sectors. infrastructure assets to provide stable and growing distributions to unitholders over the ourselv marked with such an exceptionally strong and committed group of individuals to represent your e opportunities available to us over the next several years, we intend to further invest in v CMY m. n suppor dge, experience and sound judgement to the Board’s stewardship role, and I am honoured ct r h e unities e reneurial k r Lougheed e Canada, in the future of this great nation.”I believe that these sentiments hold true today and to ng, to rebuild the confidence and trust of investors – of the private sector – both inside and sts. e t t the i ry 24, 2009 Board ring Value, d durin bution increases in five years. tives e talk 0slurB B 70 experie is well su clearly to wor inter taxation, We belie given t economy anyth knowl makers an not long-lif oppor long te Over Despi distri Your fiscal and othe perspe also Basin and K On behalf of the directors, E. Pete Chairman Februa Delive Keyera business. A outsi and I ha Canada. entrep grow initia X Z CM Y B C M cal management – ady monthly income s en distribution es in five years. e benefits of a clear a focused strategy and e v KEYERA s h Y , X and se increa 2 Chairman’s Message E. Peter Lougheed Chairman of the Board Unitholders continue to reap t vision sound fi with st Z CMY 0C C 70 M CY X a Z we in a CM Y and t B maint to C M consisten BEYOND ment t Y X commi remained Z 2009 AND ility within our capital structure to has our CMY – iteria, ensuring that we add value on n ctober 2009 om existing assets initiatives to enhance marketing margins uisition opportunities r existing facilities, building new gathering r modify plants to generate incremental rastructure or benefit from the application ditional strategic infrastructure to support perational flexibility and strengthen cr by t f he use of the ADT facility as it becomes acquisitions that meet our strategic and to increase our ownership in key facilities ditional condensate into Alberta to meet o and adding compression to the needs of our customers by M 70 o g ive Foothills and West Central regions ion in the Edmonton/Fort Saskatchewan emand a maintain a competitive cost of capital redirect gas, currently being processed facilities, to a Keyera plant ad nal in 2009 it basis acquire assets that will complement our t n s e perational expertise graphic franchise areas processed at d hub plants o have all natural gas produced within ct n ed oil sands development o sit r enhance our presence in the geologically o r y e directio e slurC ic Refinance $90 million of unsecuredmature notes in that O will Maintain flexib pursue acq Work to pipeline Strive t our geo Keyera Work to at other Increase t operatio Import ad diluent d Respon expandin Optimize cash flow f Enhance our po energ Implemen Furth prospe of Alber Continu Look t existing in of our Focus o economic a per u Acquire futur ancho • • OBJECTIVES • • • • • • • • • • • • • • is X strateg , Z CMY below focused B our shown C 2 in numerous by utilizing gy, through access M of 76% for 2008 e decade, Page a Y

strat (up 19% from 2007) by acquiring a condensate by expanding our h X PM over Z rating from Standard and Poor’s by increasing our unsecured For experienced higher activity growt gross throughput was 3% CMYY 70 e. r 10:02 by issuing $80 million of 5 year

nd Tomorrow phased - structu X 70 Today a igher traffic at our truck and rail terminals three 3/11/09 the Edmonton/Fort Saskatchewan energy hub ucture Keyera built or acquired in 2008 e systems g a plant expansion at Caribou capital ail and truck terminals in the Edmonton/ chewan energy hub

NGL infrastructure to access new sources of by completing plant modifications to enhance credit facility from $150 million to $300 million and compression) and increasing our ownership X y facilities terminal and expanding our storage, pipelines and 1 acilities, including the fractionation and logistics by acquiring interests in the Judy Creek and Bonnie cture at the Nevis gas plant ue to build on this successful strategy for decades to come. Our r activity levels adjacent to several of our plants ns, constructing new raw gas gathering pipelines ive projects to generate incremental cash flow han 2007, driven by new facilities and strong ible debentures a clear vision for our business: to deliver steady value growth built around sustainable, competitive energy round storage capacity, adding pipelines and ss in at trades onTheToronto Stock Exchange under the symbolsTSX:KEY.UN; KEY.DB; KEY.DB.A , largely due to increased utilization of NGL storage ed from increased access to NGLs from the new e Z RESULTS a ties. CMY i to new f terminals in Expanded our NGL gathering capabilitiesAlberta in west central Glen pipelin Strengthened our Marketing advantage Expanded our Gathering and Processingby presence acquiring two gas plantspipelines (with associated gathering in two ke Advanced our oil sands strategy delivery underg modifying r Fort Saskat Created incremental marketing cash flow expanded NGL supply Supported the growth of our Gatheringbusine and Processing operatio and initiatin Advanced our oil sands strategy NGL Infrastructure facilities levels Higher Marketing sales volumes Gathering and Processing higher t produce result NGL infrastr Maintained a conservative payout ratio Reinvested excess distributable cash flow Maintained an SR-3 stability Strengthened liquidity Enhanced our credit facility capacity and h growth revolving convert infrastru Delivering Value, facil conserv will cont Keyer • • • • • • • • • • • • • • 2008 • We hav B C M ve on ti ti ons e on and c on Y i ti unities Foldout.qxp:Layout si ti se t ty X

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Bertram February 24, 2009 Any closing thoughts? When Keyera became an independent midstreamthat business seemed in at 1998, the we time had to asay be vision that almost beyond we and reach. did a Ten years better goal later, than I merely am achieve enormously our pleasedA original to large goal; part of we our exceeded success, it past byskilled and a future, is large individuals due margin. to the who exceptional teamconsiderably work of longer experienced, highly at than Keyera Keyera, has owned many2008, them. we of And welcomed as whom we the have have menbringing grown, our been and so numbers has women working to our of more on team. than the In 500. West the PembinaAt assets Keyera, and we foster Nevis a culture plants that encourages to anteamwork entrepreneurial Keyera, and approach to place business. We a value premium oncommunities the in health and which safety we of live our andthat employees, work. our contractors As and 10-year we the anniversary pause is tosuccessful simply reflect journey on a for our milestone Keyera success, and in wecontinue its the recognize to employees, early seek communities, part solutions customers, of for and what ourconfident investors. that customers will We we and be are set a well challenging prepared long goals to and for achieve ourselves, them. and I am Delivering Value, Do you see any brightDownturns spots in in the 2009? economy often resultconnect in their producers natural needing gas our quickly services sobreak-through more it than in can ever start horizontal – delivering to drillingchanging cash the flow and way to producers multi-stage them. are The evaluating technological fracturingAlso, tight there gas is reserves will very in be the excitingproducers opportunities areas who for around for see us our us surface facilities. assets as to as acquire it non-strategic and additional is aAt pipeline Keyera, source we of base and our capital. plant decisions on facilities athe long-term from view. future. 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CMY Keyera AR Pages 3-32.qxp:Layout 1 3/11/09 Page 5 PM 10:57 B C M Y X Z CMY B 70 slurM X Z CMY B C M Y X Z CM Y C 70 MY CM Y X Z CMY B C M Y X Z CMY M 70 slurY X Z CM Y B C Prinect 6GS99iFormat102/105Dipco3.0e(pdf)©2007HeidelbergerDruckmaschinenAG

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t B d u ly cause demand for heating fuel is higher in winter months, we utilize Keyera’s midstream operations use Keyera facilities, including crude oil batteries and r when e o aid in transportation of bitumen by pipeline from the oil sands to upgrading se associ sure to price fluctuations. However, we do store NGLs for short periods of time and, in the case u lines and one that has grown over the past several years. il me sat ck for the production of octane-enhancing additives for winter gasoline blending. lined o PM a.The majority of the products we market are purchased and sold in the same month, minimizing round storage caverns to build propane inventories over the spring and summer ane, for several months during the summer and fall to meet winter heating demand. To minimize C e MANAGEMENT p o c i p ct g i e c r o ag risk test k r s e i PRODUCTS i M l p d n m ring Value, f 10:57 RISK A our expo o the a the U business w man Conden Alberta t facilities. A local supp increased Crude o terminals, produ feedst North Ame areas). B under to meet Butane is Y • • Delive FOUR Product and customer diversity helps lessen the variability of• our marketing results. • X Z 3/11/09 CMY 1 M 70 slurC tunities. titive advantage. X pe arly evaluate the ry and third party to manage risk and l Z oppor a ng activities is a on of capacity between i i CMY es to support our i 3-32.qxp:Layout B volumes capture We regu allocat propriet market clear com Our ability to use Keyera’s facilit C Pages M AR

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29013937_Keyera Sheetwise 09-03-16 10:13:30 2 Back -- Sundog_PDF_BookhiresCyan Magenta Yellow Black PANTONE 158 C PANTONE 8300 C 19 X Z CM Y 0slurB B 70 KEYERA – We recognize X Z CM Y B C M Y X Z CMY 0C C 70 M CY X Z CMY Today and Tomorrow B C M Environmental protection is an integral partacquisition of and all ongoing business management activities of from our the reclamation assets of to facilities. the We decommissioning look and to investincrease in profitability new and processes efficiency and and technology have to projects undertaken with a recognized number environmental of benefits. innovative We recognize that addressing environmental issuescommitted is to a working shared with responsibility government, and industry are address and the public current interest challenges stakeholders and to preparehorizon. for This new approach regulatory contributes requirements to on economic, the socialimprovements and that environmental benefit all of our stakeholders. As important as financial and operatinghealth results and are, safety nothing of is our more people importanta and than safe the the and communities healthy where environment they lies live.employees in Part and proper of contractors; training, achieving we education are and an mentoring acknowledged of leaderWe in believe these in areas. being a goodour neighbour areas and of supporting operations the through communities education, surrounding community scholarships, initiatives. volunteer activities and other • • • • Y Integrity Management for Safe Communities and Safe Employees SAFETY – A KEY PRIORITY the importance ofenvironmental operating or our public facilities safetyspecialists safely incidents. provides and support Our to reliably team plant of touse operations of and quality our minimize integrity maintenance management assurance personnel. the system, Through we and establish effective potentialour maintenance quality and equipment. With inspection for programs control these for programs, we haveperiods been able to between minimize downtime and plant extendemployees, the the maintenance public and the turnarounds environment. to four years, while safeguarding our Corporate Responsibility How does Keyera balancecorporate good citizenship? business with responsible Keyera recognizes that environmental protection, social responsibility, andall economic essential growth to are the success of ourpractices business. We at have our a facilities long and history a of demonstrated maintainingfrom track safe record our operating of commitment being to a good conductingexpectations, neighbour.This our respects stems the business environment and in emphasizes a the health wayand and the that safety communities of balances our where diverse employees we stakeholder operate. Delivering Value, X Z CMY M 70 slurC X Z CMY B Graham Balzun VP,Engineering and Corporate Responsibility C M

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dTomorrow nd MAM Page year CMY benef 2004 J 0C C 70 J for A 24 S O M i invest ts N $prunit) per ($ D VE CY to J F the CAPITAL ing M X A M 2005 Marke in J Z J A our CMY S O STRUCTURE N t busine ing D B J F C group M A ss. M M 2006 J J , In A Y stren S 2008, O N X D g J thening Z F we M CMY A M invest J 2007 M 70 J A their S O ed slurC N D servi $320 J F MAM X c e millio 2008 J Z offer J A CMY S n O i ng. N on D B C M Y X Z CMYY 70 X 70 X Z CMY B C M Y X Z CMY B 70 slurM X Z CM Y B C M Y X Z CMY C 70 M Y CM Y X Z C MY B C M Y X Z CM Y M 70 slurY X slurB X Z 25 CMY 0% 0% 7.79 7.02 2.06 0.37 3.07 2.06 B FORM 4WT:CMYKPMS8300158 C KEYERA M At December 31, 2008 Y X Z CMY 0CM C 70 CY X Z CMY B C M Y X Z CMY 1 M 70 Today and Tomorrow slurC EBITDA to Interest Charges not less than 3.0 EBITDA to Interest Charges not less than 2.0 Debt to EBITDA not to exceed 3.5 Priority Debt to Total Assets not to exceed 15% Debt to EBITDA not to exceed 5.0 Priority Debt to Total Assets not to exceed 15% Debt to EBITDA not to exceedDebt 3.5 to Capitalization not to exceed 0.55 X These ratios are determined by Keyera’s lenders and the calculations are based on specific definitions contained in the loan agreements. Z Long-term senior unsecured notes – maturing in 2009, 2010 and 2013 Long-term senior unsecured notes – maturing in 2017 and 2022 1 RISK MANAGEMENT – A PRUDENT APPROACH TO BUSINESS Like most businesses, we are subject tocounterparties. the To risk mitigate of potential potential defaults from losses,processes customers to we and keep other have the amount established of business creditof to and accounts an receivable appropriate credit current. level In for review addition, each customer we regularly andand review collections make our efforts exposure to with ensure counterparties that counterparty insuccessful 2008, risk as we is any avoided material losses from properly our or financial counterparties. diversified. operational This approach was very In our Marketing business,purchase we NGLs until are the time exposed we sell to them. Inthe changes the spring, case summer in of and propane, fall product we to build meet prices inventory the throughout price winter from risk, heating our season the risk demand.To management manage committee time this meets inventory weekly we toin review and existing assess the contracts risks inherent and thenumber of effectiveness energy related of forward contracts, the swaps and risk forwardvalue currency management contracts to of protect strategies. the our We inventory. employ Thefinancial a effectiveness contracts of fully this offset programdecline the in was reduction commodity demonstrated in prices later inventory in in value 2008, the year. resulting when from the substantial Delivering Value, Keyera’s management team, lenders and others monitorratios our capital in structure the using accompanying the table. financial Theseof ratios other help companies to and compare against Keyera’s debt theratios levels level are with usually well those within expected the for usual midstream range businesses. for Keyera’s theFinancial types Measures of business it undertakes. Bank credit facilities CMY B C M Y X Z CMYY 70 0X X 70 We maintain liquidity with strong cash flows from operations, a low payout ratio, diverse funding sources and a conservative capital structure. David A. Sentes VP,Comptroller

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29013937_Keyera Work and Turn 09-03-16 10:13:30 4 Front -- Sundog_PDF_BookhiresBlack PANTONE 158 C PANTONE 8300 C Cyan Magenta Yellow eeaA ae -2qpLyu /10 10:57PMPage30 3/11/09 1 3-32.qxp:Layout Pages AR Keyera eeaMngmn Team Management Keyera 30 X KEYERA Z CM Y 0slurB B 70 X fBusiness. of School Ivey G. Richard from the MBA an and Calgary of University the from degree Commerce of Bachelor a holds He banking. investment focused energy in years 9 including industry, gas and the oil in experience of years 15 than more has Kroeker Steven Development Corporate President, Vice Kroeker B. Steven Calgary. of University the from degree Commerce of Bachelor a holds He operations. worldwide Canada’s Gulf for Marketing – President Vice was he Previously, 1998. in inception since Officer Executive Chief and the President been has He industry. and gas oil the in experience years of 25 over has Bertram Jim Alberta Calgary, Officer Executive Chief and President Bertram V. Jim Z CM Y eieigValue, Delivering B C M Y oa n Tomorrow and Today X Z B rmHradUniversity. Harvard from MBA an and Waterloo of University the from degree of Mathematics Bachelor a holds He Unit. Business Liquids President, Vice Executive appointed was he when 2008 November until 1998 in inception its from Officer Financial Chief Keyera’s was He gas experience. and oil of years 25 than more has Smith David Secretary Corporate and Unit Business Liquids President, Vice Executive Smith G. David nvriyo rts Columbia. British of University the from Engineering Chemical in degree Science Applied of Bachelor a holds He Company. Midstream Enerpro for Operations of President Vice was recently most and Resources Chevron Canada for roles of variety in a worked he 2004, in Keyera joining to Prior sector. and gas oil the in experience years of 21 over has Lock Brad Region Central North President, Vice Lock W. Bradley CMY 0C C 70 M CY X Z CMY B h nvriyo Calgary. of University the from Engineering Chemical in degree Science of Bachelor a holds He companies. gas and oil Canadian western several for role production and engineering operations an in worked 2001,he in Keyera joining to Prior sector. gas and oil upstream the in experience of industry years 20 over has Graham Responsibility Corporate and Engineering President, Vice Balzun Graham conati 1981. in Accountant Management Certified a became He Treasurer. and Finance President, Vice the as recently most company, marketing and production gas natural a Limited, Marketing Energy Direct with years 10 for worked he 2001, in Keyera joining to Prior experience. management financial of years 30 has Sentes Dave Comptroller President, Vice Sentes A. David C M Y X Z CMY M 70 fCalgary. of University the from MBA an and Ottawa in University Carleton from engineering in degrees graduate and undergraduate has He Canada. western in operating companies marketing and production exploration, several for worked he 2000, in Keyera joining to Prior sector. gas and oil upstream the in experience of industry years 25 over has Marzio Region Foothills President, Vice Isotti Marzio h nvriyo Lethbridge. of University the of graduate a and Chartered Accountant a is He Inc. Energy Cordero of Officer Financial Chief was he recently, Most 2008. November in Officer Financial Chief and President Vice became and Finance President, Vice as 2008 October in Keyera joined industry. He gas and oil the in experience management financial of years 18 over has Setoguchi Dean Officer Financial Chief and President Vice Setoguchi Dean C. slurC X Z CMY B C M Y X Z CMYY 70 X 70 X Z CMY B C M Y X Z CMY B 70 slurM X Z CM Y B C M Y X Z CMY C 70 M Y CM Y X Z C MY B C M Y X Z CM Y M 70 slurY X slurB X Z CMY B FORM 4WT:CMYKPMS8300158 C M Y X Z CMY 0CM C 70 CY X Z CMY B C M Y X Z CMY M 70 slurC X Z CMY B C M Y X Z CMYY 70 0X X 70 Z CMY B C M Y X Z CMY B 70 slurM X Z CMY B C M Y X Z CM Y C 70 MY CM Y X Z CMY B C M Y X Z CMY M 70 slurY X Z CM Y B C Prinect 6GS99iFormat102/105Dipco3.0e(pdf)©2007HeidelbergerDruckmaschinenAG

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B 2 PM C M ore, the Nevis and West Pembina throughputs reflect the average volumes from their closing dates. f 2 ring Value, 10:57 Y There Keyera sold its interest in theKeyera North closed Star the Nevis andTomahawk and gas West plants Pembina effective gas January plant 1, acquisitions 2008 on and December August 1, 1, 2008 2008, and respectively. May 1, 2008, respectively. Fort Saskatchewan Fort Saskatchewan Alberta Diluent Terminal Gilby Gas Plant Fort Saskatchewan Fort Saskatchewan NGL Pipelines Fort Saskatchewan Rimbey Pipeline Bonnie Glen Pipeline Judy Creek Pipeline NGL Storage Facilities Worsley Total 1 2 NGL Processing andTransportation Facilities NGL Processing Facilities Rimbey Gas Plant Fort Saskatchewan Nevis Gas Plant Chinchaga West Pembina Bigoray Paddle River Nordegg River Gilby Caribou Medicine River Brazeau North Pembina North Greenstreet Natural Gas Processing Facilities Rimbey Strachan Brazeau River Nevis Delive X Z 3/11/09 CMY 1 M 70 slurC X Z CMY 3-32.qxp:Layout B Keyera Facility Capacities and Utilization Rates C Pages M AR

X Keyera

Z CMYY 70 X 70 X Z CMY B C M Y X Z CMY B 70 slurM X Z CM Y B C M Y X Z CMY C 70 M Y CM Y X Z C MY B C M Y X Z CM Y M 70 slurY X slurB X Z CMY B FORM 4WT:CMYKPMS8300158 C M Y X Z CMY 0CM C 70 CY X Z CMY B C M Y X Z CMY M 70 slurC X Z CMY B C M Y X Z CMYY 70 0X X 70 Z CMY B C M Y X Z CMY B 70 slurM . 8 H 3 X Z CMY B C M Y X Z CM resists motion because its molecular makeup gives it a eet per day. makeup results in very little friction when it is in motion. n of sand, bitumen, mineral-rich clays and water. f eral extracted from sour gas. ntaining methane plus all or some of the following: ethane, le for sale. y Y ch of the rock is sedimentary (as opposed to igneous ave been separated from the raw gas but have not yet that has been treated in a natural gas processing facility liquids, consisting of any one or a combination of propane, that contains less than 1% hydrogen sulphide when produced. phic) and is therefore likely to contain hydrocarbons. f hydrocarbons, similar to crude oil, derived by upgrading the gas found naturally in the ground prior to processing. ry basin considered sour. About 30% of Canada’s natural gas production ith a relatively high concentration of sulphur compounds, such st of it found in Alberta and northeast British Columbia. crude oil lar co o hydrogen (hydroprocessing). ab he solution mining process C 70 GLs d condensate. ance to flow or “stickiness” of a fluid. In general, a fluid with s rom oil sands. gas liquid (NGL) with the molecular formula C t is w min ground NGL storage cavern that has been developed in a salt is as as mu of hydrogen to carbon, either by removing carbon (coking) or f c cavern s a gen sulphide. All natural gas containing more than 1% hydrogen r s g N ernal friction. A fluid with low viscosity flows easily because , butane, pentanes, condensates, nitrogen, carbon dioxide, s aphical area, such as the Western Canada Sedimentary Basin, mo ocessed into propane, butane or condensate. ing cess of converting bitumen into synthetic crude oil by increasing e an t r s al r d r en sulphide, helium, hydrogen, water vapour and minor impurities. io o sist d n g MY CM raw ga A mixture propane hydro MMcf/d Million cubic Raw gas NGL or Natural gas sales ga Natural g butane and is suit sedimenta A geog NGL mix NGLs that h been p in which oil san A compositio or metamor sour ga Raw gas as hydro propa A natur sulphide is sour, storage An unde dome by sulphu A yellow sweet g Natural g syntheti A mixture bitumen The pr upgra the rat by addin viscosity The re high viscosit lot of in its molecu Y X 32 Z CMY Page nd Tomorrow

B PM C . Today a . 10 6 H M H 4 2 10:57 Y X ring Value, Z Delive 3/11/09 CMY 1 M 70 slurY X Z s (such as the burning of fossil fuels). generated as a by-product of the gas sweetening process. CM ie 3-32.qxp:Layout roleum products like gasoline, diesel or jet fuel without loped by the American Petroleum Institute for measuring ly Y rap heat near the Earth’s surface. These include carbon dioxide, t ls/d e t he impact of heavy industry. dustry. occurring, viscous (like molasses) mixture of hydrocarbons t te Condensate is the most commonly used diluent in the nitrous oxide and water vapour. These gases occur through uids. d barrels per day. e to a refinery. gas liquid (NGL) with the molecular formula C gas liquid (NGL) consisting primarily of pentanes and gas liquid (NGL) with the molecular formula C m injection es, facilitates and plans industrial development while troleum product such as condensate. Condensate is added to B ity , Bb g upgraded to synthetic crude oil. avity of less than 10° API. Bitumen cannot be refined into that occur between the upstream (exploration, development and rocesses (such as ocean currents, cloud cover, volcanoes) and n sulphide or carbon dioxide or a combination thereof. These gases na, and Sturgeon counties and the City of Fort Saskatchewan) s Industrial Heartland dustrial development by the four municipal partners (Lamont, KEYERA troleum product used to dilute bitumen so it can flow through cooperative regime of municipal plans and policies that r sa s. v ion) and downstream (refining, distribution and marketing) sectors. sity or gravity of oil; the higher the number, the lighter the oil. n cessing, storage and transportation sectors within the oil and gas men to reduce viscosity and make a fluid that can be transported an quare kilometre area northeast of Edmonton designated for ouse gases p lin e al ally al al in y ag e ting their release to the atmosphere. or diluted bitumen, typically 50% bitumen diluted with 50% of t in ection of acid gases into a suitable underground geological formation s n a o u h j f

ct n C t Pages

uman activit AR Gases that methane green diluen Light p a light pe the bit by pipe heavier liq dilbi Short conden A natur Alberta’ A 470- heavy Strathco acid gas The in preve acid gas Hydrog are common Glossary 32 with a g Barrels bitume A natur A scale dev the de Bbl and under encour mitigating API gra pipeline oil sands in butane A natur common pe first be produ midstrea The pr industr natural h ethane A natur Prinect 6GS99iFormat102/105Dipco3.0e(pdf)©2007HeidelbergerDruckmaschinenAG Keyera

Delivering Value, Today and Tomorrow KEYERA 33 M Y X

Investing today for long-term value growth. Z C M YY 70 Fund Information X 70 2008 Growth Initiatives:

1 Purchased the Alberta DiluentTerminal (ADT). X

The terminal enables Keyera to import and offload Z BOARD OF DIRECTORS OFFICERS HEAD OFFICE INVESTOR RELATIONS

C. Dean Setoguchi Stikeman Elliott LLP High: $23.79 M 7 H. Neil Nichols 2,3 6 Proceeded with the ethane extraction project Vice President and Calgary, Alberta Low: $14.05

the two facilities. B 3 Member of the Compensation

9 Acquired a 50% interest in the Bonnie Glen and Governance Committee C

of gathering pipelines and associated Y

compression facilities. M 70

2 Chairman’s Message 29 Keyera Board of Directors C M

at Fort Saskatchewan to enhance logistics Y 3 President’s Message 30 Keyera ManagementTeam 25%

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