Keyera Announces 2026 Second Quarter Results

CALGARY, AB, Aug. 6, 2026 /CNW/ -- Keyera Corp. (TSX: KEY) ("Keyera", the "company" or "our") today announced its results for the second quarter ended June 30, 2026. To view our Management's Discussion and Analysis (the "MD&A") and financial statements, visit either Keyera's website or its filings on SEDAR+ at www.sedarplus.ca.

"This was an important quarter for Keyera as we closed two transactions that significantly advanced our strategy to extend and invest in our integrated value chain," said Dean Setoguchi, President and CEO. "With the acquisition of Plains' Canadian NGL business, full ownership of KAPS and continued execution of our growth capital program, we have established a strong foundation for long-term growth. Our focus now shifts to integration, disciplined execution and realizing the full value of these investments. Together, these efforts will further enhance the services we provide to customers while driving durable fee-based cash flow growth that supports sustainable dividend growth and long-term value creation for shareholders."

Second Quarter Highlights

• Financial Results 
  • Adjusted earnings before interest, taxes, depreciation and amortization¹ ("adjusted EBITDA") were $267 million (Q2 2025 – $252 million). Excluding transaction costs related to the Plains acquisition, adjusted EBITDA¹ was $309 million. Results included contributions from the Plains Canadian NGL asset acquisition, which closed on May 12, 2026, and the acquisition of the remaining 50% interest in KAPS, which closed on June 17, 2026. These contributions helped offset lower Marketing segment results, which were primarily attributable to the Alberta EnviroFuels ("AEF") outage.
  • Distributable cash flow¹ ("DCF") was $65 million, or $0.25 per share (Q2 2025 – $159 million, or $0.69 per share). Excluding transaction costs related to the Plains acquisition, DCF¹ was $101 million, or $0.39 per share.
  • Net earnings were $308 million (Q2 2025 – $127 million).
• Fee-based Segment Realized Margin¹
  • Fee-based realized margin¹ was $350 million, up 37% from $255 million in the same period last year. The strong performance reflects Keyera's expanded asset base and ongoing demand for its services, supported by strong utilization and the continued growth of long-term contracted volumes.
  • The Gathering and Processing segment generated record realized margin¹ of $128 million (Q2 2025 – $111 million). Results reflected maintenance activity at the Wapiti gas plant, which was more than offset by strong performance across the remainder of the segment and $9 million of maintenance capital recoveries.
  • The Liquids Infrastructure segment generated record realized margin¹ of $222 million (Q2 2025 – $143 million). Results were supported by contributions from the Plains Canadian NGL business.
• Marketing Segment Update
  • The AEF facility resumed full operations in early June following a five-month outage during which Keyera completed required repairs and advanced turnaround work previously scheduled for the fall. Following the restart, inventory was rebuilt before product was shipped to market by rail, resulting in limited Iso-octane sales during the second quarter.
  • The Marketing segment recorded realized margin¹ of $36 million (Q2 2025 – $60 million), including contributions from Plains' Canadian NGL business from May 12 to June 30, 2026. Results were lower year-over-year primarily due to the AEF outage and also include timing impacts related to risk management activities. The risk management timing impacts are expected to be partly offset over the second half of 2026 as physical volumes are sold.
  • Accordingly, the company's 2026 Marketing realized margin guidance remains unchanged at $360 million to $390 million.
  • The company has locked in approximately 90% of expected 2026 frac spread margins at attractive levels through its structured hedging program. Approximately 65% of expected 2027 frac spread margins have also been secured at attractive levels providing strong visibility into Marketing segment cash flows and supporting balance sheet deleveraging.
• Strong Financial Position
  • The company ended the quarter with net debt to adjusted EBITDA² of 3.3 times, above its long-term target range of 2.5 to 3.0 times. The increase reflects higher net debt related to recent acquisitions and lower contributions from the Marketing segment in the first half of 2026. Keyera remains focused on deleveraging and returning to within its targeted range in 2028.
• Sustainable Dividend Growth
  • As previously disclosed, Keyera increased its quarterly dividend by 4.17%, or $0.5625 per share, reflecting its continued focus on sustainable dividend growth while preserving balance sheet strength and financial flexibility to invest in further fee-based growth.

Major Growth Projects Update

• During the quarter, Keyera brought the KFS Frac II debottleneck project into service in early June, more than one month ahead of schedule and 20%, or $17 million, under its original budget of $85 million.
• In May, Keyera announced that it sanctioned the Alberta Corridor Energy ("ACE") rail terminal project, located in Strathcona County in Alberta's Industrial Heartland. The project combines Keyera's ACE rail terminal with CN's rail network and AltaGas' West Coast export platform to create a highly efficient logistics solution, offering customers improved netbacks to high value international markets.
• Keyera's core growth projects continue to progress well, with the KFS North debottleneck, ACE Terminal, KAPS Zone 4, and KFS Frac III all on schedule and on budget.

Acquisitions Progressing Keyera's Strategy

• On May 12, 2026, Keyera closed its transformative acquisition of Plains' Canadian NGL business and is now focused on progressing integration and realizing synergies. Keyera continues to expect $120 million to $140 million of run-rate synergies to be realized in the first twelve months following close. Upon closing, the company had already achieved $90 million of those synergies. As previously communicated, the company expects to identify significant additional value capture opportunities that will be updated at a later date.
• On June 17, 2026, Keyera announced and closed the acquisition of the remaining 50% interest in KAPS, bringing its total ownership stake to 100%. The acquisition enhances customer connectivity from the Montney and Duvernay to high-value downstream markets, is accretive to distributable cash flow per share¹ and increases Keyera's previously disclosed 2025–2027 fee-based adjusted EBITDA per share¹ CAGR target to 16%–18%.

Published 2025 Sustainability Report

• Keyera remains committed to long-term business sustainability and integrates sustainability into its decision-making process and core operations to ensure long-term value creation. The 2025 Sustainability Report can be found on Keyera's website.
• Keyera exceeded its 2025 emissions intensity target, achieving a 34.5% reduction in scope 1 and scope 2 equity-based emissions intensity from 2019 levels, outperforming our 25% reduction target through economically driven emissions reductions that enhance both environmental performance and operational efficiency.

Reaffirming 2026 Guidance

Fee-Based Adjusted EBITDA per Share^1 CAGR 2025-2027	16%-18%
Fee-Based Adjusted EBITDA per Share^1 CAGR 2027–2029	7%-8%
Marketing Realized Margin^1	$360 million to $390 million
Growth Capital Expenditures	$650 million to $725 million
Maintenance Capital Expenditures	$240 million to $260 million
Cash Taxes	$70 million to $90 million

Summary of Key Measures	Three months ended    June 30,		Six months ended    June 30,
(Thousands of Canadian dollars, except where noted)	2026	2025	2026	2025
Net earnings	307,861	126,518	185,891	256,853
Per share ($/share) – basic	1.19	0.55	0.76	1.12
Cash flow (used in) from operating activities	(308,650)	145,822	13,372	311,147
Funds from operations^1	184,954	187,124	328,165	409,361
Distributable cash flow^1	64,500	158,752	165,664	348,331
Per share ($/share)^1	0.25	0.69	0.68	1.52
Distributable cash flow^1 (adjusted for acquisition-related items)	101,388	158,752	234,716	348,331
Per share ($/share)^1	0.39	0.69	0.96	1.52
Dividends declared	152,370	119,160	276,188	238,320
Per share ($/share)	0.54	0.52	1.08	1.04
Payout ratio %^1	236 %	75 %	167 %	68 %
Payout ratio %^1(adjusted for acquisition-related items)	150 %	75 %	118 %	68 %
Adjusted EBITDA^1	266,890	251,543	469,794	549,973
Adjusted EBITDA^1 (adjusted for acquisition-related items)	308,872	251,543	540,435	549,973
Operating margin	647,185	365,609	747,122	717,199
Realized margin^1	385,691	314,593	657,752	654,703
Gathering and Processing
Operating margin	130,005	109,464	242,921	221,604
Realized margin^1	128,132	111,498	246,043	220,804
Gross processing throughput^3 (MMcf/d)	1,615	1,543	1,683	1,565
Net processing throughput^3 (MMcf/d)	1,406	1,400	1,475	1,417
Liquids Infrastructure
Operating margin	226,131	140,599	362,976	296,111
Realized margin^1	221,950	143,162	363,094	295,609
Gross processing throughput^4 (Mbbl/d)	153	163	169	179
Net processing throughput^4 (Mbbl/d)	78	94	91	104
AEF iso-octane production volumes (Mbbl/d)	4	8	3	10
Marketing
Operating margin	291,152	115,614	141,349	199,623
Realized margin^1	35,712	60,001	48,739	138,429
Inventory value	616,966	257,497	616,966	257,497
Sales volumes (Bbl/d)	303,200	199,400	259,300	210,000
Acquisitions	6,543,463	12,567	6,543,463	12,567
Growth capital expenditures	147,948	35,696	240,335	49,112
Maintenance capital expenditures	87,658	13,680	115,986	29,719
Total capital expenditures	6,779,069	61,943	6,899,784	91,398
Weighted average number of shares outstanding – basic and diluted	259,459	229,153	244,456	229,153
As at June 30,			2026	2025
Long-term debt^5			6,913,575	3,338,787
Credit facility			1,040,000	--
Working capital surplus (current assets less current liabilities)			(473,056)	(2,040)
Net debt			7,480,519	3,336,747
Common shares outstanding – end of period			293,441	229,153

CEO's Message to Shareholders 

Keyera has assembled a strong foundation for its next phase of disciplined growth and long-term value creation. Through strategic capital investments and acquisitions, we have expanded our integrated value chain and delivered a step change in Keyera's long-term growth profile. Our focus now turns to integrating these investments, executing our growth projects and delivering greater value for customers and shareholders.

We believe Canada is entering a new phase of infrastructure-enabled growth, creating an even stronger long-term outlook for Keyera. Global energy markets continue to reinforce the importance of secure, reliable and responsibly produced energy supplies, highlighting Canada's strategic role in meeting growing demand. We are encouraged by the growing momentum across industry and both federal and provincial governments to expand the infrastructure needed to diversify market access and unlock Canada's full energy potential and economic prosperity. This represents a meaningful shift in the environment for long-term investment, with increasing recognition of the critical role energy infrastructure plays in strengthening Canada's competitiveness as a global energy supplier.

As additional export capacity comes online, increasing oil sands production will drive demand for condensate, while the additional Montney and Duvernay development required to supply that condensate will also increase production of other natural gas liquids. Increasing natural gas development to meet rising LNG and data center demand will also increase production of natural gas. Together, these trends create significant additional opportunities across our integrated system.

Against this backdrop, our recent acquisitions have strengthened our platform, enhancing our ability to deliver increasingly competitive solutions to our customers. The acquisition of Plains' Canadian NGL business significantly expanded the scale and connectivity of our business. It enhanced our ability to efficiently provide gathering, processing, fractionation, storage, transportation and marketing solutions across every major NGL product, providing customers with greater market access and supporting higher netbacks.

The acquisition of the remaining interest in KAPS increased our commercial and operating flexibility, while enhancing our ability to efficiently support growing Montney and Duvernay production. Together, these investments have strengthened our integrated value chain and positioned Keyera to capture the opportunities created by long-term basin growth.

With the foundational elements of our long-term strategy now in place, our focus shifts to disciplined execution and realizing the full value of these investments. Our teams have made excellent progress integrating the Plains business, and we remain confident in achieving our updated near-term synergy targets. Just as importantly, our integration efforts continue to identify additional opportunities to enhance competitiveness, improve efficiency, expand connectivity and create incremental value across the combined business. We look forward to sharing these opportunities as they become more clearly defined.

Equally important, we remain focused on operational excellence across our business, including improving reliability at AEF to support more consistent long-term performance. At the same time, execution across our growth capital program continues to demonstrate our ability to deliver. The successful completion of the KFS Frac II debottleneck project ahead of schedule and under budget reflects that disciplined approach, while construction of our other major projects continue to progress as planned. These investments position Keyera to meet growing customer demand while generating attractive long-term returns for shareholders.

On behalf of our Board of Directors and management team, thank you to our employees, customers, Indigenous rights holders, shareholders and all our stakeholders for your continued trust and support.

Dean Setoguchi
President and Chief Executive Officer
Keyera Corp. 

Notes:
1	Keyera uses certain non-Generally Accepted Accounting Principles ("GAAP") and other financial measures such as EBITDA, adjusted EBITDA, fee-based adjusted EBITDA, fee-based adjusted EBITDA per share, funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin, fee-based realized margin and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA per share. Since these measures are not standard measures under GAAP, they may not be comparable to similar measures reported by other entities. For additional information, and where applicable, for a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measure, refer to the section of this news release titled "Non-GAAP and Other Financial Measures". For the assumptions associated with the base and 2026 realized margin guidance for the Marketing segment, refer to the sections titled "Segmented Results of Operations: Marketing", "Non-GAAP and Other Financial Measures" and "Forward-Looking Statements" of Management's Discussion and Analysis for the period ended June 30, 2026.
2	Ratio is calculated in accordance with the covenant test calculations related to the company's credit facility and senior note agreements and excludes hybrid notes.
3	Includes gas volumes and the conversion of liquids volumes handled through the processing facilities to a gas volume equivalent. Net processing throughput refers to Keyera's share of raw gas processed at its processing facilities.
4	Fractionation throughput in the Liquids Infrastructure segment is the aggregation of volumes processed through the fractionators and the de-ethanizers at the Keyera and Dow Fort Saskatchewan facilities.
5	Long-term debt includes the total value of Keyera's hybrid notes which receive 50% equity treatment by Keyera's rating agencies. The hybrid notes are also excluded from Keyera's covenant test calculations related to the company's credit facility and senior note agreements.

Second Quarter 2026 Results Conference Call and Webcast

Keyera will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the financial results for the second quarter of 2026 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, August 6, 2026. Callers may participate by dialing 1-888-510-2154 or 1-437-900-0527. A recording of the conference call will be available for replay until 10:00 PM Mountain Time on August 20, 2026 (12:00 AM Eastern Time on August 21, 2026), by dialing 1-888-660-6345 or 1-289-819-1450 and entering passcode 98707.

To join the conference call without operator assistance, you may register and enter your phone number here to receive an instant automated call back. This link will be active on Thursday, August 6, 2026, at 7:00 AM Mountain Time (9:00 AM Eastern Time).

A live webcast of the conference call can be accessed here or through Keyera's website at Events & Presentations - Keyera. Shortly after the call, an audio archive will be posted on the website for 90 days.

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: [email protected]
Telephone: [phone]
Toll free: 888-699-4853

For media inquiries, please contact:
Amanda Condie, Manager, Corporate Communications
Email: [email protected]
Telephone: [phone]

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.

Non-GAAP and Other Financial Measures

This news release refers to certain financial and other measures that are not determined in accordance with Generally Accepted Accounting Principles ("GAAP"). Measures such as funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin, fee-based realized margin, EBITDA, adjusted EBITDA and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA per share are not standard measures under GAAP or are supplementary financial measures, and as a result, may not be comparable to similar measures reported by other entities. Management believes that these non-GAAP and other financial measures facilitate the understanding of Keyera's results of operations, leverage, liquidity and financial position. These measures do not have any standardized meaning under GAAP and therefore, should not be considered in isolation, or used in substitution for measures of performance prepared in accordance with GAAP. For additional information on these non-GAAP and other financial measures, including reconciliations to the most directly comparable GAAP measures for Keyera's historical non-GAAP financial measures, refer below and to Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2026, which is available on SEDAR+ at www.sedarplus.ca and Keyera's website at www.keyera.com. Specifically, refer to the sections of the MD&A titled, "Non-GAAP and Other Financial Measures", "Forward-Looking Statements", "Segmented Results of Operations", "Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio", and "EBITDA and Adjusted EBITDA".

Funds from Operations and Distributable Cash Flow ("DCF")

Funds from operations is defined as cash flow from operating activities adjusted for changes in non-cash working capital. This measure is used to assess the level of cash flow generated from operating activities excluding the effect of changes in non-cash working capital, as they are primarily the result of seasonal fluctuations in product inventories or other temporary changes. Funds from operations is also a valuable measure that allows investors to compare Keyera with other infrastructure companies within the oil and gas industry.

Distributable cash flow is defined as cash flow from operating activities adjusted for changes in non-cash working capital, inventory write-downs, maintenance capital expenditures, lease payments, including the periodic costs related to prepaid leases, and common shares issued from treasury to settle LTIP expense. Distributable cash flow per share is defined as distributable cash flow divided by the weighted average number of shares outstanding – basic. Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends. Distributable cash flow, adjusted for acquisition-related items (net of tax), has also been included.

The following is a reconciliation of funds from operations and distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities:

Funds from Operations and Distributable Cash Flow		Three months ended June 30,		Six months ended June 30,
(Thousands of Canadian dollars)	2026		2025	2026	2025
Cash flow from operating activities	(308,650)		145,822	13,372	311,147
Add (deduct):
Changes in non-cash working capital	493,604		41,302	314,793	98,214
Funds from operations	184,954		187,124	328,165	409,361
Maintenance capital	(87,658)		(13,680)	(115,986)	(29,719)
Leases	(20,875)		(14,097)	(34,479)	(28,581)
Prepaid lease asset	(595)		(595)	(1,190)	(1,190)
Inventory write-down	(11,326)		--	(11,326)	(1,540)
LTIP expense – common shares issued	--		--	480	--
Distributable cash flow	64,500		158,752	165,664	348,331
Acquisition and integration costs, net of tax	32,327		--	54,394	--
Net financing adjustments for incremental debt, net of tax	4,561		--	14,658	--
Distributable cash flow    (adjusted for acquisition-related items)	101,388		158,752	234,716	348,331

Payout Ratio

Payout ratio is calculated as dividends declared to shareholders divided by distributable cash flow. This ratio is used to assess the sustainability of the company's dividend payment program. Payout ratio, adjusted for the acquisition and integration costs recognized for the Plains acquisition, is calculated as dividends declared to shareholders divided by distributable cash flow (adjusted for acquisition-related items).

Payout Ratio	Three months ended June 30,		Six months ended June 30,
(Thousands of Canadian dollars, except %)	2026	2025	2026	2025
Distributable cash flow^1	64,500	158,752	165,664	348,331
Distributable cash flow^1     (adjusted for acquisition-related items)	101,388	158,752	234,716	348,331
Dividends declared to shareholders	152,370	119,160	276,188	238,320
Payout ratio	236 %	75 %	167 %	68 %
Payout ratio (adjusted for acquisition-related items)	150 %	75 %	118 %	68 %

1       Non-GAAP measure as defined above.

Realized Margin

Realized margin is defined as operating margin excluding unrealized gains and losses on commodity-related risk management contracts. Management believes that this supplemental measure facilitates the understanding of the financial results for the operating segments in the period without the effect of mark-to-market changes from risk management contracts related to future periods.

Fee-based realized margin includes realized margin for the Gathering and Processing and Liquids Infrastructure segments.

The following is a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin: 

Operating Margin and Realized Margin
Three months ended June 30, 2026

(Thousands of Canadian dollars)		Gathering & Processing	Liquids Infrastructure	Fee-Based Realized Margin	Marketing	Corporate and Other	Total
Operating margin (loss)		130,005	226,131	356,136	291,152	(103)	647,185
Unrealized gain on risk management contracts		(1,873)	(4,181)	(6,054)	(255,440)	--	(261,494)
Realized margin (loss)		128,132	221,950	350,082	35,712	(103)	385,691

Operating Margin and Realized Margin
Three months ended June 30, 2025

(Thousands of Canadian dollars)		Gathering & Processing	Liquids Infrastructure	Fee-Based Realized Margin	Marketing	Corporate and Other	Total
Operating margin (loss)		109,464	140,599	250,063	115,614	(68)	365,609
Unrealized loss (gain) on risk management contracts		2,034	2,563	4,597	(55,613)	--	(51,016)
Realized margin (loss)		111,498	143,162	254,660	60,001	(68)	314,593

Operating Margin and Realized Margin
Six months ended June 30, 2026

(Thousands of Canadian dollars)		Gathering & Processing	Liquids Infrastructure	Fee-Based Realized Margin	Marketing	Corporate and Other	Total
Operating margin (loss)		242,921	362,976	605,897	141,349	(124)	747,122
Unrealized loss (gain) on risk management contracts		3,122	118	3,240	(92,610)	--	(89,370)
Realized margin (loss)		246,043	363,094	609,137	48,739	(124)	657,752

Operating Margin and Realized Margin
Six months ended June 30, 2025

(Thousands of Canadian dollars)		Gathering & Processing	Liquids Infrastructure	Fee-Based Realized Margin	Marketing	Corporate and Other	Total
Operating margin (loss)		221,604	296,111	517,715	199,623	(139)	717,199
Unrealized gain on risk management contracts		(800)	(502)	(1,302)	(61,194)	--	(62,496)
Realized margin (loss)		220,804	295,609	516,413	138,429	(139)	654,703

EBITDA and Adjusted EBITDA

EBITDA is a measure showing earnings before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-cash items, including unrealized gains and losses on commodity-related contracts, net foreign currency gains and losses on U.S. debt and other, impairment expenses and any other non-cash items such as gains and losses on the disposal of property, plant and equipment. Management believes that these supplemental measures facilitate the understanding of Keyera's results from operations. In particular, these measures are used as an indication of earnings generated from operations after consideration of administrative and overhead costs. Adjusted EBITDA, adjusted for the acquisition and integration costs associated with the Plains acquisition, has also been presented.

The following is a reconciliation of EBITDA and adjusted EBITDA to the most directly comparable GAAP measure, net earnings:

EBITDA and Adjusted EBITDA	Three months ended June 30,		Six months ended June 30,
(Thousands of Canadian dollars)	2026	2025	2026	2025
Net earnings	307,861	126,518	185,891	256,853
Add (deduct):
Finance costs	76,003	51,700	155,264	103,526
Depreciation and amortization expenses	117,797	91,767	212,254	182,854
Income tax expense	80,293	41,602	48,605	80,205
EBITDA	581,954	311,587	602,014	623,438
Unrealized gain on commodity-related contracts	(261,494)	(51,016)	(89,370)	(62,496)
Net foreign currency loss (gain) on U.S. debt and other	6,907	(9,028)	8,310	(10,969)
Loss on disposal of property, plant and equipment	--	--	9,317	--
Gain on remeasurement of previously held interest	(60,477)	--	(60,477)	--
Adjusted EBITDA	266,890	251,543	469,794	549,973
Acquisition and integration costs	41,982	--	70,641	--
Adjusted EBITDA (adjusted for acquisition-related items)	308,872	251,543	540,435	549,973

Compound Annual Growth Rate ("CAGR") for Fee-Based Adjusted EBITDA

CAGR is calculated as follows:

1

Number of Years

CAGR

=

End of the period*

-1

Beginning of the period*

* Utilizes beginning and end of period fee-based adjusted EBITDA as defined below.

CAGR for fee-based adjusted EBITDA is intended to provide information on a forward-looking basis (initiating a 7% to 8% fee-based adjusted EBITDA CAGR target from 2024 to 2027). This calculation utilizes beginning and end of period fee-based adjusted EBITDA, which includes the following components and assumptions: i) forecasted fee-based realized margin (realized margin for the Gathering and Processing and Liquids Infrastructure segments as explained in more detail above), and ii) adjustments for total forecasted general and administrative, and long-term incentive plan expense.

From 2025 to 2027, Keyera expects the CAGR for fee-based adjusted EBITDA per share to increase to approximately 16%, mainly reflecting the contributions from the Plains acquisition, realization of near-term synergies, 2026 fractionation expansions, and continued filling of available capacity across the integrated system.

Following this step change, Keyera is targeting a 7% to 8% fee-based adjusted EBITDA per share CAGR from 2027 to 2029, supported by continued filling of available capacity, the completion of major growth projects currently underway and further optimization of the combined platform.

The following includes the equivalent historical measure for fee-based adjusted EBITDA and fee-based adjusted EBITDA per share, which is the non-GAAP measure component of the related forward-looking CAGR calculation.

Fee-Based Adjusted EBITDA For the year ended December 31,
(Thousands of Canadian dollars)	2025	2024	2023	2022
Realized Margin – Fee-Based	1,032,672	970,308	890,644	752,684
Less:
General and administrative expenses	(128,612)	(117,142)	(106,494)	(82,843)
Long-term incentive plan expense	(43,796)	(62,450)	(50,909)	(33,284)
Fee-Based Adjusted EBITDA	860,264	790,716	733,241	636,557
Weighted-average number of shares – basic	229,205	229,153	229,153	221,290
Fee-Based Adjusted EBITDA per share	$3.75	$3.45	$3.20	$2.88

Forward-Looking Statements

In order to provide readers with information regarding Keyera, including its assessment of future plans and operations, its financial outlook and future prospects overall, this news release contains certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is typically identified by words such as  "continue", "expect", "remain", "will",  "plan", "believe", "focus", "target", "outlook", "scheduled" and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this document are forward-looking information, including, without limitation, statements regarding:

• industry, market and economic conditions and any anticipated effects on Keyera;
• expected growth of fee-based adjusted EBITDA per share;
• Keyera's future financial position and operational performance and future financial contributions and margins from its business segments including, but not limited to, Keyera's Marketing guidance for 2026 annual realized margin of between $360 million and $390 million;
• estimates for 2026 regarding Keyera's growth capital expenditures, maintenance capital expenditures and cash taxes;
• the anticipated timing impacts associated with risk management activities and the expected effects of the AEF outage on Marketing segment results;
• expectations around Keyera's current growth capital projects, including the KFS South Frac III expansion, the KFS North debottleneck, KAPS Zone 4, and the ACE rail terminal, including anticipated benefits, cost, and timing thereof; plans for deployment of capital, including expectations regarding leverage, and returns on capital investments;
• additional growth opportunities, and the impact of current and future growth projects on Keyera's business and growth targets;
• the benefits of the acquisition of Plains' Canadian NGL business, the realization of run rate synergies, and the identification of additional value capture opportunities post-closing of the acquisition;
• the benefits of the acquisition of the remaining 50% interest in KAPS;
• integration activities following the closing of the acquisition of Plains' Canadian NGL business; and
• expectations around Keyera's maintenance strategy, including at AEF, and its impact on operations.

All forward-looking information reflects Keyera's beliefs and assumptions based on information available at the time the applicable forward-looking information is made and in light of Keyera's current expectations with respect to such things as the outlook for general economic trends, industry trends, commodity prices, oil and gas industry exploration and development activity levels and the geographic region of such activity, Keyera's access to the capital markets and the cost of raising capital, the integrity and reliability of Keyera's assets, the governmental, regulatory and legal environment, general compliance with Keyera's plans, strategies, programs, and goals across its reporting and monitoring systems among employees, stakeholders and service providers. In some instances, this press release may also contain forward-looking information attributed to third parties. Forward-looking information does not guarantee future performance. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

All forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, events, levels of activity and achievements to differ materially from those anticipated in the forward-looking information. Such risks, uncertainties and other factors include, without limitation, the following:

• Keyera's ability to implement its strategic priorities and business plan and achieve the expected benefits;
• general industry, market and economic conditions;
• the outcome of proceedings before the Competition Tribunal related to the acquisition of Plains' Canadian NGL business;
• Keyera's ability to obtain the anticipated benefits of recently completed acquisitions, including impacts on growth and accretion in various financial metrics;
• activities of customers, producers and other facility owners;
• operational hazards and performance;
• operational disruptions, apportionment, regulatory action and other events on third-party systems and infrastructure, which may prevent the full utilization of Keyera's facilities;
• the effectiveness of Keyera's risk management programs;
• competition;
• changes in commodity composition and prices, inventory levels, supply/demand trends and other market conditions and factors;
• disruptions to global supply chains and labour shortages;
• trade restrictions, trade barriers, or the imposition of tariffs or other changes to international trade arrangements;
• processing and marketing margins;
• climate change risks, including the effects of unusual weather and natural catastrophes;
• climate change effects and regulatory and market compliance and other costs associated with climate change;
• variables associated with capital projects, including the potential for increased costs, including inflationary pressures, timing, delays, cooperation of partners, and access to capital on favourable terms;
• fluctuations in interest, tax and foreign currency exchange rates;
• hedging strategy risks;
• counterparty performance and credit risk;
• changes in operating and capital costs;
• cost and availability of financing;
• ability to expand, update and adapt infrastructure on a timely and effective basis;
• decommissioning, abandonment and reclamation costs;
• reliance on key personnel and third parties;
• actions by joint venture partners or other partners which hold interests in certain of Keyera's assets;
• relationships with external stakeholders, including Indigenous stakeholders;
• technology, security and cybersecurity risks;
• potential litigation and disputes;
• uninsured and underinsured losses;
• ability to service debt and pay dividends;
• changes in credit ratings;
• reputational risks;
• risks related to a breach of confidentiality;
• changes in environmental and other laws and regulations;
• the ability to obtain regulatory, stakeholder and third-party approvals;
• actions by governmental authorities;
• geopolitical instability and armed conflicts, including global supply disruptions from international conflicts;
• the enforcement of tariffs, surtaxes and duties and retaliatory countermeasures;
• global health crisis, such as pandemics and epidemics and the unexpected impacts related thereto;
• the effectiveness of Keyera's existing and planned ESG and risk management programs; and
• the ability of Keyera to achieve specific targets that are part of its ESG initiatives, including those relating to emissions intensity reduction targets, as well as other climate-change related initiatives;

and other risks, uncertainties and other factors, many of which are beyond the control of Keyera. Further information about the factors affecting forward-looking information and management's assumptions and analysis thereof, is available in Keyera's MD&A for the year ended December 31, 2025 and in Keyera's Annual Information Form available on Keyera's profile on SEDAR+ at www.sedarplus.ca. 

Readers are cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking information included in this press release. Further, readers are cautioned that the forward-looking information contained herein is made as of the date of this press release. Unless required by law, Keyera does not intend and does not assume any obligation to update any forward-looking information. All forward-looking information contained in this press release is expressly qualified by this cautionary statement.

SOURCE Keyera Corp.