Keyera Announces 2025 Fourth Quarter and Year-End Results

Executive Summary

• Keyera Corp. reported its fourth quarter and full-year 2025 financial results, highlighting record annual fee-based segment margin contributions despite lower Marketing segment performance.
• The company announced significant strategic moves, including the acquisition of a 50.1% working interest in the Simonette area gas plants for ~$200 million and the sale of the non-core Wildhorse Terminal for ~$65 million USD.
• Keyera provided 2026 stand-alone guidance, noting an expected ~$110 million impact from an unplanned outage at the Alberta Envirofuels Facility (AEF), while reaffirming growth capital expenditure ranges and adjusting maintenance capex and tax guidance.

Key Details

• Financial Performance (Q4 2025 vs Q4 2024 / Full Year 2025 vs 2024):
  • Adjusted EBITDA: $301 million (Q4) and $1.13 billion (Full Year). Excluding transaction costs, these figures would have been $313 million and $1.16 billion, respectively.
  • Distributable Cash Flow (DCF): $206 million ($0.90/share) for Q4 and $735 million ($3.21/share) for the full year. Excluding transaction costs, DCF would have been $224 million ($0.98/share) for Q4 and $767 million ($3.35/share) for the full year.
  • Net Earnings: $90 million (Q4) and $432 million (Full Year).
  • Dividends Declared: $123.8 million ($0.54/share) for Q4 and $485.9 million ($2.12/share) for the full year.
  • Payout Ratio: 60% for Q4 and 66% for the full year (adjusted for acquisition items: 55% Q4, 63% Full Year).
• Segment Results:
  • Gathering and Processing: Record annual realized margin of $439 million (Q4: $106 million). Driven by increased throughput at Wapiti and Simonette gas plants.
  • Liquids Infrastructure: Record annual realized margin of $593 million (Q4: $150 million). Driven by higher contracted volumes through the condensate system and KAPS pipeline.
  • Marketing: Realized margin of $89 million (Q4) and $300 million (Full Year). Results reflected lower iso-octane prices, weaker commodity prices, and reduced blending contributions.
• Strategic Transactions:
  • Simonette Acquisition: Completed acquisition of a 50.1% working interest in two gas plants and associated infrastructure for approximately $200 million in cash.
  • Wildhorse Terminal Sale: Sold interest in the non-core Wildhorse Terminal in Oklahoma to a subsidiary of Plains All American Pipeline, L.P. for approximately USD $65 million. Proceeds will be reflected through closing price adjustments for the Plains acquisition.
  • Plains Acquisition: Regulatory reviews advancing; expected to close around the end of Q1 2026.
• Growth Projects Status:
  • KFS Frac II Debottleneck: 8,000 bbl/d project, expected in-service mid-2026, net cost ~$85 million.
  • KFS Frac III Expansion: 47,000 bbl/d project, expected in-service mid-2028, net cost ~$490 million.
  • KAPS Zone 4: 85-km pipeline extension, expected in-service mid-2027, net cost ~$220 million.
• 2026 Stand-Alone Guidance (Pre-Plains Closing):
  • Marketing Margin: Guidance to be provided in mid-May; includes ~$110 million impact from AEF outage.
  • Growth CapEx: Reaffirmed range of $400 million – $475 million.
  • Maintenance CapEx: Increased range to $140 million – $160 million (prior: $130M–$150M).
  • Cash Taxes: Expected to decrease by ~$30 million due to AEF outage; range $60 million – $70 million.
• Operational Update:
  • AEF Outage: Extended unplanned outage at Alberta Envirofuels Facility due to component failure; expected return to service in May 2026. Major turnaround scheduled during this period.
• Leadership Changes:
  • Brad Slessor appointed Senior Vice President, G&P & NGL Pipelines Business Unit.
  • Jamie Urquhart appointed Senior Vice President, Liquids Business Unit.
  • Jarrod Beztilny departed as Senior Vice President, Operations and Engineering.
  • Changes effective February 2, 2026.

Notable Quotes

• "2025 was a transformational year for Keyera as we meaningfully advanced our strategy to strengthen and extend our integrated NGL value chain... We achieved this through the sanctioning of three major growth projects, a strategic tuck-in acquisition in Gathering and Processing, and the transformational acquisition of Plains' Canadian NGL business, all while delivering record annual fee-based segment margin contributions." — Dean Setoguchi, President and CEO
• "This organizational structure strengthens our ability to compete and execute as we continue to grow and integrate the business." — Dean Setoguchi, President and CEO