Keyera Announces Acquisition of Remaining 50% Interest in KAPS

Press releases
  • On strategy transaction generates strong free cash flow1 and is accretive to distributable cash flow per share1
  • Accelerates fee-based adjusted EBITDA per share1 growth outlook
  • Enhances quality and durability of growing cash flow well into the next decade
  • Preserves strength and flexibility of balance sheet

CALGARY, AB, June 17, 2026 /CNW/ – Keyera Corp. (TSX: KEY) (“Keyera” or the “company”) today announced closing of the acquisition of the remaining 50% non-operating interest in the KAPS Pipeline from Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, for $1.215 billion, pursuant to the terms of a definitive agreement dated June 17, 2026. The transaction was closed concurrent with the announcement.

Keyera now owns and will continue to operate 100% of the KAPS Pipeline, a highly strategic natural gas liquids (“NGL”) pipeline system connecting growing condensate and NGL production from the Montney and Duvernay resource plays to high-value downstream markets. Since 2025, Keyera has added over 120,000 barrels per day of new commitments across KAPS Zones 1 to 4 from high quality counterparties supporting stable, long-term fee-based cash flow1 growth. KAPS Zone 4 construction continues to be on time and on budget with an expected mid-2027 in-service date.

“This transaction is directly aligned with our strategy to enhance and extend our integrated value chain and deliver competitive services that help our customers maximize value for their products,” said Dean Setoguchi, President and Chief Executive Officer of Keyera. “Full ownership of KAPS provides greater flexibility and efficiency for our customers while enhancing Keyera’s exposure to long-term growth and highly contracted cash flows.”

Transaction Highlights

  • Greater flexibility and efficiency for customers: Full ownership of KAPS allows customers to more efficiently connect growing Montney and Duvernay production to high-value downstream markets.
  • Accretive to distributable cash flow (“DCF”) per share: The acquisition is expected to be low-single digit accretive to distributable cash flow per share over the next several years. Following the completion and ramp-up of Zone 4 through 2030, KAPS is expected to generate significant free cash flow1, supported by contracted volume growth, minimal maintenance capital requirements and tax efficiencies achieved through the transaction. Including the remaining capital required to complete Zone 4, the transaction implies an acquisition multiple of approximately 11 times 2029 EBITDA1 based on currently contracted volumes, and does not reflect upside from future contracting opportunities.
  • Improved growth outlook: The transaction increases Keyera’s targeted fee-based adjusted EBITDA per share1 CAGR from 15% to 17% to 16% to 18% between 2025 and 2027. Keyera’s targeted 7% to 8% fee-based adjusted EBITDA per share1 CAGR from 2027 to 2029 remains unchanged and is supported by an even stronger foundation for growth.
  • Enhanced quality and durability of Keyera cash flows: KAPS is supported by long-term contracts and stable fee-based1 cash flows, further improving the quality, visibility, and durability of Keyera’s overall cash flow profile. Fee-based cash flows are underpinned by contracts with an average remaining term of approximately 12 years and 75% take-or-pay contributions.
  • Preserves Keyera’s financial strength: The financing plan is structured to preserve Keyera’s strong balance sheet and investment grade credit profile, with net debt to adjusted EBITDA1 expected to be within the company’s target range of 2.5x to 3.0x in 2028. Following closing, Keyera expects approximately $100 million of incremental 2026 growth capital, relative to its previously disclosed 2026 growth capital guidance of $550 million to $625 million, related to funding Keyera’s increased share of the remaining capital to complete Zone 4.

RBC Capital Markets acted as financial advisor to Keyera on the transaction. Norton Rose Fulbright Canada LLP and McCarthy Tétrault LLP are acting as legal advisor to Keyera.

Scotia Capital Inc. acted as financial advisor to Stonepeak on the transaction. Sidley Austin LLP, Stikeman Elliott LLP, and Goodmans LLP are acting as legal advisor to Stonepeak.

Acquisition Financing

The acquisition financing plan is designed to preserve balance sheet strength and financial flexibility.

As part of the financing plan, Keyera has entered into an agreement to issue $525 million of common equity through a bought deal offering, before the exercise of any over-allotment option, which is being announced separately (the “Equity Financing”).

The purchase price was funded through borrowings made under certain existing credit facilities of Keyera Partnership. All or a portion of the outstanding borrowings under such existing credit facility are expected to be repaid with proceeds of the Equity Financing and through a future debt financing.

Notes:

  1. Non-GAAP financial measure. Refer to the section of this news release titled “Non-GAAP and Other Financial Measures Advisory”.

About Keyera Corp.
Keyera Corp. (TSX: KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage, and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.

About Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $88 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital and committed partnership to grow investments in its target sectors, which include digital infrastructure, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, Washington, D.C., London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, Abu Dhabi, and Riyadh. For more information, please visit www.stonepeak.com.

Additional Information

For more information about Keyera Corp., please visit our website at www.keyera.com or contact:

Dan Cuthbertson, General Manager, Investor Relations
Tyler Monzingo, Senior Specialist, Investor Relations

Email: ir@keyera.com
Telephone: 1-403-205-7670
Toll free: 1-888-699-4853

For Stonepeak, please contact:

Kate Beers / Maya Brounstein
corporatecomms@stonepeak.com
+1 (646) 540-5225