Calgary, July 4, 2006 – Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) (“Keyera”) announced today that a subsidiary has acquired three U.S. propane terminals from Texon L.P. (“Texon”), along with the associated wholesale propane business, for approximately $US12 million. The transaction closed on June 30, 2006.
The propane terminals are located in Vancouver, Washington, Albuquerque, New Mexico and Lordstown, Ohio. In addition to the three terminals, Keyera is also acquiring propane inventory, a propane storage contract at a third party storage facility and Texon’s propane marketing supply and sales contracts.
The terminals have rail off-loading and truck loading facilities as well as on-site storage capability. All of the terminals are located near major interstate highways in close proximity to customers, are served by class one railroads and operate twenty four hours a day, seven days a week, utilizing fully automated, card-operated loading systems. The Washington and New Mexico facilities have undeveloped land for future storage and rail siding expansions. The terminals are supplied from a number of sources, including Keyera, and the propane is marketed to over thirty wholesale customers.
“We are pleased to be able to expand our NGL marketing business in the United States, which is a key propane end market for us, through the acquisition of these terminals” said Jim Bertram, President and CEO of Keyera. “Acquiring these assets allows us to vertically integrate our business, expand our wholesale customer base and diversify the geographic markets we serve. This is a business we know well and, with our NGL supply, sales and logistics expertise and our large existing rail car fleet, we expect to create incremental value from these assets.”
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) 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.
Keyera's gas processing plants and associated facilities are strategically located in the west central and foothills natural gas production areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil infrastructure includes pipelines, terminals and processing and storage facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets propane, butane and condensate to customers in Canada and the United States.
This document contains forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond Keyera’s control. The forward-looking statements are based on management’s current expectations and assumptions relating to Keyera’s business and the environment in which it operates. As the results or events predicted or implied in these forward-looking statements depend upon future events, actual results or events may differ materially from those predicted. Factors which could cause actual results or events to differ materially include the ability of Keyera to successfully implement strategic initiatives, whether such initiatives yield the expected benefits, operating and other costs, future operating results and the components of those results, fluctuations in the demand for natural gas, NGLs and crude oil, the activities of producers, competitors and others, the weather, overall economic conditions and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera. For additional information on these and other factors, see Keyera’s public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
For further information about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact:
John Cobb, Director, Investor Relations or Avery Reiter, Investor Relations Advisor.
E-mail: ir@keyera.com
Telephone: (403) 205-7670
Toll Free: (888) 699-4853
Facsimile: (403) 205-8303.
