Keyera Announces 2025 Third Quarter Results

Press Release

CALGARY, AB, Nov. 14, 2025  – Keyera Corp. (TSX: KEY) (“Keyera”) announced its third quarter financial results today, the highlights of which are included in this news release. To view 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.

“Our year-over-year growth reflects the consistent strength and competitiveness of our integrated platform as we continue to contract and fill available capacity across our system,” said Dean Setoguchi, President and CEO. “Looking ahead, we are continuing to execute our strategy to extend and strengthen our value chain by advancing our growth projects and completing the transformative acquisition of Plains’ Canadian NGL business, resulting in greater value for our customers and shareholders.”

Third Quarter Highlights

• Financial Results
  • Adjusted earnings before interest, taxes, depreciation, and amortization¹ (“adjusted EBITDA”) were $281 million (Q3 2024 – $322 million). Excluding transaction costs related to the Plains acquisition, adjusted EBITDA would have been $286 million. These results reflect increased year-over-year contributions from the Gathering and Processing and Liquids Infrastructure segments which were more than offset by lower Marketing segment contributions.
  • Distributable cash flow¹ (“DCF”) was $181 million or $0.79 per share (Q3 2024 – $195 million or $0.85 per share). Excluding transaction costs, DCF would have been $186 million or $0.81 per share.
  • Net earnings were $85 million (Q3 2024 – $185 million).
• Continued Growth in High Quality, Fee-For-Service Realized Margin¹
  • Fee-for-service realized margin¹ increased by over 10% compared to the same period last year, reflecting the consistent filling of available capacity across Keyera’s integrated system. This includes North Region Gathering & Processing, KAPS, fractionation, storage, and Keyera’s condensate system. Strong growth in fee-for-service margins continue to support Keyera’s sustainable dividend growth.
  • The Gathering and Processing segment generated realized margin¹ of $112 million (Q3 2024 – $99 million), reflecting higher throughput and growing contributions from the Wapiti and Simonette gas plants as contracted volumes continued to ramp up.
  • The Liquids Infrastructure segment achieved quarterly realized margin¹ of $147 million (Q3 2024 – $135 million), with growth driven by higher storage and pipeline utilization in Keyera’s condensate system and the steady ramp-up of KAPS volumes.
• Marketing Segment Results and Outlook
  • The Marketing segment recorded realized margin¹ of $73 million for the quarter (Q3 2024 – $135 million). The year-over-year decrease primarily reflects lower liquids blending contributions, reduced condensate import volumes, and weaker iso-octane premiums. The reduction in condensate imports was driven by growth in domestic condensate production, which displaced U.S. imports. While this benefits Keyera’s fee-for-service business, it reduces Marketing segment opportunities. This shift is not expected to have a material effect on the company’s long-term Marketing outlook.
  • For 2025, Marketing segment realized margin¹ is now expected to range between $280 million and $300 million (previously $310 million to $350 million). The revision reflects the continuation of the same liquids blending and condensate import dynamics that affected third-quarter performance. The revised range also continues to include the approximate $50 million impact of the Alberta EnviroFuels (“AEF”) facility outage earlier in the year, which was incorporated into the prior guidance.
  • Keyera maintains confidence in its long-term base annual Marketing realized margin¹ guidance of $310 million to $350 million, which reflects normalized commodity price assumptions and typical operating conditions. The base guidance assumes a crude oil price between US$65 and US$75 per barrel, butane feedstock costs comparable to the 10-year average, and AEF operating at nameplate capacity.
• Strong Financial Position – During the quarter, Keyera issued $2.3 billion of senior notes and $500 million of hybrid notes to finalize financing for the Plains acquisition. The company ended the quarter with net debt to adjusted EBITDA² of 1.7 times, which reflects the temporary benefit of the hybrid issuance proceeds. This is below the company’s long-term target range of 2.5 to 3.0 times.
• Progressing the Plains Acquisition – All required regulatory reviews and approval processes are advancing as expected, and the transaction is expected to close in the first quarter of 2026, subject to final approvals.
• Emissions Reduction Milestone Achieved Ahead of Schedule – Keyera has successfully met its near-term 2025 GHG emissions intensity reduction target of 25% (Scope 1 and 2, equity share basis, from a 2019 baseline) in 2024, one year ahead of schedule, through disciplined investments that meet the company’s return thresholds. The company has also published its 2024 Sustainability Performance Summary, available on Keyera’s website.

Capital-Efficient Projects Strengthening Fee-Based Cash Flow Quality

• Keyera’s capital-efficient growth projects will continue to strengthen its integrated value chain and enhance the quality of its fee-based cash flow. Each project is underpinned by long-term, take-or-pay arrangements that provide visibility to strong, stable cash flow well into the next decade.
  • Keyera’s existing and planned fractionation capacity, including the KFS Frac II debottleneck and KFS Frac III expansion, is now substantially all contracted. The current average contract life of 7 years is expected to extend to 11 years in 2028, while average take-or-pay commitments are anticipated to increase from 70% to 80%.
  • KAPS Zone 4 is also backed by long-term customer commitments, including significant contracted volumes announced earlier this year. Across KAPS Zones 1 through 4, total contracted volumes now carry a weighted average duration of over 12 years, with approximately 75% take-or-pay commitments that ramp up steadily through the end of the decade.
• KFS Frac II Debottleneck – Detailed engineering and construction activities continued through the third quarter, with fabrication of major equipment and piping well underway. The 8,000 barrel per day project remains on track to be completed by mid-2026 and is expected to be delivered on time and on budget, consistent with prior cost guidance of approximately $85 million.
• KFS Frac III Expansion – Detailed engineering and early works construction progressed during the quarter, and long-lead procurement orders were placed. The 47,000-barrel-per-day project, which includes additional egress investments at the KFS complex, remains on schedule for in-service in mid-2028 and on budget with an estimated cost of approximately $500 million.
• KAPS Zone 4 – Detailed engineering was advanced and early field activities began in the third quarter, with pipe fabrication now complete. The 85-kilometre pipeline extension from Pipestone to Gordondale remains on track for in-service in mid-2027 and on budget, with a net cost to Keyera of approximately $220 million.

“Our year-over-year growth reflects the consistent strength and competitiveness of our integrated platform as we continue to contract and fill available capacity across our system,” said Dean Setoguchi, President and CEO. “Looking ahead, we are continuing to execute our strategy to extend and strengthen our value chain by advancing our growth projects and completing the transformative acquisition of Plains’ Canadian NGL business, resulting in greater value for our customers and shareholders.”

Third Quarter Highlights

• Financial Results
  • Adjusted earnings before interest, taxes, depreciation, and amortization¹ (“adjusted EBITDA”) were $281 million (Q3 2024 – $322 million). Excluding transaction costs related to the Plains acquisition, adjusted EBITDA would have been $286 million. These results reflect increased year-over-year contributions from the Gathering and Processing and Liquids Infrastructure segments which were more than offset by lower Marketing segment contributions.
  • Distributable cash flow¹ (“DCF”) was $181 million or $0.79 per share (Q3 2024 – $195 million or $0.85 per share). Excluding transaction costs, DCF would have been $186 million or $0.81 per share.
  • Net earnings were $85 million (Q3 2024 – $185 million).
• Continued Growth in High Quality, Fee-For-Service Realized Margin¹
  • Fee-for-service realized margin¹ increased by over 10% compared to the same period last year, reflecting the consistent filling of available capacity across Keyera’s integrated system. This includes North Region Gathering & Processing, KAPS, fractionation, storage, and Keyera’s condensate system. Strong growth in fee-for-service margins continue to support Keyera’s sustainable dividend growth.
  • The Gathering and Processing segment generated realized margin¹ of $112 million (Q3 2024 – $99 million), reflecting higher throughput and growing contributions from the Wapiti and Simonette gas plants as contracted volumes continued to ramp up.
  • The Liquids Infrastructure segment achieved quarterly realized margin¹ of $147 million (Q3 2024 – $135 million), with growth driven by higher storage and pipeline utilization in Keyera’s condensate system and the steady ramp-up of KAPS volumes.
• Marketing Segment Results and Outlook
  • The Marketing segment recorded realized margin¹ of $73 million for the quarter (Q3 2024 – $135 million). The year-over-year decrease primarily reflects lower liquids blending contributions, reduced condensate import volumes, and weaker iso-octane premiums. The reduction in condensate imports was driven by growth in domestic condensate production, which displaced U.S. imports. While this benefits Keyera’s fee-for-service business, it reduces Marketing segment opportunities. This shift is not expected to have a material effect on the company’s long-term Marketing outlook.
  • For 2025, Marketing segment realized margin¹ is now expected to range between $280 million and $300 million (previously $310 million to $350 million). The revision reflects the continuation of the same liquids blending and condensate import dynamics that affected third-quarter performance. The revised range also continues to include the approximate $50 million impact of the Alberta EnviroFuels (“AEF”) facility outage earlier in the year, which was incorporated into the prior guidance.
  • Keyera maintains confidence in its long-term base annual Marketing realized margin¹ guidance of $310 million to $350 million, which reflects normalized commodity price assumptions and typical operating conditions. The base guidance assumes a crude oil price between US$65 and US$75 per barrel, butane feedstock costs comparable to the 10-year average, and AEF operating at nameplate capacity.
• Strong Financial Position – During the quarter, Keyera issued $2.3 billion of senior notes and $500 million of hybrid notes to finalize financing for the Plains acquisition. The company ended the quarter with net debt to adjusted EBITDA² of 1.7 times, which reflects the temporary benefit of the hybrid issuance proceeds. This is below the company’s long-term target range of 2.5 to 3.0 times.
• Progressing the Plains Acquisition – All required regulatory reviews and approval processes are advancing as expected, and the transaction is expected to close in the first quarter of 2026, subject to final approvals.
• Emissions Reduction Milestone Achieved Ahead of Schedule – Keyera has successfully met its near-term 2025 GHG emissions intensity reduction target of 25% (Scope 1 and 2, equity share basis, from a 2019 baseline) in 2024, one year ahead of schedule, through disciplined investments that meet the company’s return thresholds. The company has also published its 2024 Sustainability Performance Summary, available on Keyera’s website.

Capital-Efficient Projects Strengthening Fee-Based Cash Flow Quality

• Keyera’s capital-efficient growth projects will continue to strengthen its integrated value chain and enhance the quality of its fee-based cash flow. Each project is underpinned by long-term, take-or-pay arrangements that provide visibility to strong, stable cash flow well into the next decade.
  • Keyera’s existing and planned fractionation capacity, including the KFS Frac II debottleneck and KFS Frac III expansion, is now substantially all contracted. The current average contract life of 7 years is expected to extend to 11 years in 2028, while average take-or-pay commitments are anticipated to increase from 70% to 80%.
  • KAPS Zone 4 is also backed by long-term customer commitments, including significant contracted volumes announced earlier this year. Across KAPS Zones 1 through 4, total contracted volumes now carry a weighted average duration of over 12 years, with approximately 75% take-or-pay commitments that ramp up steadily through the end of the decade.
• KFS Frac II Debottleneck – Detailed engineering and construction activities continued through the third quarter, with fabrication of major equipment and piping well underway. The 8,000 barrel per day project remains on track to be completed by mid-2026 and is expected to be delivered on time and on budget, consistent with prior cost guidance of approximately $85 million.
• KFS Frac III Expansion – Detailed engineering and early works construction progressed during the quarter, and long-lead procurement orders were placed. The 47,000-barrel-per-day project, which includes additional egress investments at the KFS complex, remains on schedule for in-service in mid-2028 and on budget with an estimated cost of approximately $500 million.
• KAPS Zone 4 – Detailed engineering was advanced and early field activities began in the third quarter, with pipe fabrication now complete. The 85-kilometre pipeline extension from Pipestone to Gordondale remains on track for in-service in mid-2027 and on budget, with a net cost to Keyera of approximately $220 million.

2025 Guidance Update

• As referenced above, Marketing segment realized margin¹ for 2025 is now expected to range between $280 million and $300 million ($310 million to $350 million previously).
• Growth capital expenditures are now expected to range between $220 million and $240 million (previously $275 million to $300 million). The revision primarily reflects the deferral of certain expenditures to 2026. This shift in growth capital spend timing does not impact the expected in-service dates of Keyera’s major projects.
• Maintenance capital expenditures are now expected to be between $60 million to $70 million (previously $70 million to $90 million), reflecting the deferral of some spending to 2026.
• Cash taxes are now expected to be $90 million to $100 million (previously $100 million to $110 million) largely due to lower-than-expected Marketing segment contributions.

2026 Stand-alone Guidance (Pre-Plains Closing)

Keyera is providing the following 2026 guidance on a stand-alone basis until the closing of the Plains acquisition.

• On a stand-alone basis, Keyera remains on track to deliver its 7%–8% fee-based adjusted EBITDA¹ compound annual growth rate target from 2024 to 2027.
• 2026 growth capital expenditures are expected to range between $400 million and $475 million, primarily directed toward the KFS Frac II debottleneck, KFS Frac III, and KAPS Zone 4 projects. A portion of this spend reflects capital originally planned for 2025 that has shifted into 2026. This timing adjustment does not affect major project in-service dates.
• Maintenance capital expenditures are expected to range between $130 million and $150 million, which includes approximately $60 million related to the planned six-week turnaround at the AEF facility starting in September.

Following the closing of the Plains acquisition, Keyera will provide updated pro-forma 2026 guidance and a comprehensive business outlook reflecting the combined platform’s enhanced scale, capital program, and longer-term growth profile.

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