Mr. Dean Setoguchi reports

KEYERA ANNOUNCES ACQUISITION OF REMAINING 50% INTEREST IN KAPS

Keyera Corp. has closed the acquisition of the remaining 50-per-cent non-operating interest in the KAPS pipeline from Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, for $1,215-million, 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 per cent of the KAPS pipeline, a highly strategic natural gas liquids pipeline system connecting growing condensate and natural gas liquids 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 flow 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 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 flow, 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 earnings before interest, taxes, depreciation and amortization 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 share compound annual growth rate from 15 per cent to 17 per cent to 16 per cent to 18 per cent between 2025 and 2027. Keyera's targeted 7-per-cent to 8-per-cent fee-based adjusted EBITDA per share 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-based 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-per-cent 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 EBITDA expected to be within the company's target range of 2.5 times to 3.0 times 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 adviser to Keyera on the transaction. Norton Rose Fulbright Canada LLP and McCarthy Tetrault LLP are acting as legal adviser to Keyera.

Scotia Capital Inc. acted as financial adviser to Stonepeak on the transaction. Sidley Austin LLP, Stikeman Elliott LLP and Goodmans LLP are acting as legal adviser 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 overallotment option, which is being announced separately.

The purchase price was financed 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.

About Keyera Corp.

Keyera 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.

We seek Safe Harbor.