Keyera Provides Business Update and 2029 Growth Outlook Following Completion of Plains' NGL Acquisition

Executive Summary

• Keyera provided a pro forma business update and multi-year growth outlook following the completion of its acquisition of Plains' Canadian NGL assets, establishing new fee-based adjusted EBITDA per share growth targets through 2029.
• The company substantially realized its initial $100 million near-term synergy target and increased the total near-term annual run-rate synergy target to $120 million–$140 million.
• Updated 2026 guidance includes $360 million–$390 million in Marketing realized margin, $550 million–$625 million in growth capital spending, and $240 million–$260 million in maintenance capital.

Key Details

• Acquisition Completion: Finalized the transformative acquisition of Plains' Canadian NGL assets, integrating them into Keyera's fully integrated midstream platform.
• Synergy Targets: Initial $100M annual run-rate target substantially realized (~$90M captured since June 2025); new total near-term annual run-rate synergy target increased to $120M–$140M, expected within 12 months of closing.
• 2025–2027 Growth Outlook: Fee-based adjusted EBITDA per share expected to increase ~35% (approx. 16% CAGR), driven by Plains acquisition contributions, near-term synergy realization, 2026 fractionation capacity expansions, and system capacity filling.
• 2027–2029 Growth Outlook: Targeting a 7–8% fee-based adjusted EBITDA per share CAGR, supported by continued capacity filling, completion of major growth projects, and platform optimization.
• 2026 Marketing Segment Guidance: Realized margin expected between $360M and $390M; incorporates a 5-month outage at AEF, maintenance at Empress straddle facilities, and planned outages for KFS II and KFS North fractionation expansions.
• Marketing Hedging: ~90% of expected 2026 frac spread margins locked in; ~50% of expected 2027 frac spread exposure locked in at attractive forward levels.
• 2026 Capital Spending: Growth capital spending of $550M–$625M (directed to fractionation expansions, ACE Rail Terminal, KAPS Zone 4); Maintenance capital of $240M–$260M (includes Empress plant turnarounds).
• Capital Allocation & Leverage: Net debt to adjusted EBITDA target of 2.5x–3.0x, expected to return to range by end of 2027; stand-alone ROIC target of 10%–15% for new investments; dividend payout ratio maintained at 50%–70% of distributable cash flow per share.
• Historical Fee-Based Adjusted EBITDA Per Share: 2025: $3.75; 2024: $3.45; 2023: $3.20; 2022: $2.88.

Notable Quotes

• Dean Setoguchi, President and Chief Executive Officer: "This combination strengthened Keyera's position as a fully integrated midstream company with greater efficiency and flexibility, enabling us to deliver more value to our customers. With enhanced connectivity and identified synergies, we are positioned to drive industry-leading growth while maintaining the disciplined capital allocation that is expected to create long-term value for shareholders."