Initial $100 million near-term synergy target substantially realized and target increased
Expanded Marketing segment is a strategic competitive advantage; providing 2026 Marketing segment realized margin1 guidance
Capital allocation priorities unchanged; updating 2026 guidance
CALGARY, AB, June 15, 2026 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera" or the "company") today announced a pro forma business update and multi-year growth outlook following the completion of its transformative acquisition of Plains' Canadian NGL assets.
"This combination strengthened Keyera's position as a fully integrated midstream company with greater efficiency and flexibility, enabling us to deliver more value to our customers," said Dean Setoguchi, President and Chief Executive Officer. "With enhanced connectivity and identified synergies, we are positioned to drive industry-leading growth while maintaining the disciplined capital allocation that is expected to create long-term value for shareholders."
Delivering Industry Leading Fee-Based Adjusted EBITDA Per Share1 Growth to 2029
Keyera is establishing pro-forma fee-based adjusted EBITDA per share1 growth targets to 2029. This growth is highly visible, and supported by sanctioned projects, identified synergies and capital-efficient growth initiatives that are already underway and aligned with the company's strategy.
The outlook is further supported by strong basin fundamentals. Oil, natural gas and NGL production across the Western Canadian Sedimentary Basin are expected to continue growing as export market access expands and global demand for Canadian energy products increases.
From 2025 to 2027, Keyera expects fee-based adjusted EBITDA per share1 to increase by approximately 35% or an approximate 16% Compound Annual Growth Rate (CAGR), mainly reflecting the contributions from the Plains acquisition, realization of near-term synergies, 2026 fractionation capacity expansions, and continued filling of available capacity across the integrated system.
Following this step change, Keyera is targeting a 7-8% fee-based adjusted EBITDA per share1 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.
Beyond 2029, the company has identified several strategic growth opportunities that will further enhance its integrated value-chain and continue to grow fee-based adjusted EBITDA per share1.
Further detail on the initiatives supporting this outlook is provided in the corporate presentation which will be released and discussed during the company's webcast later this morning.
Initial $100 Million Near-Term Synergy Target Substantially Realized and Target Increased
Keyera has substantially realized its initial $100 million annual run-rate near-term synergy target, with approximately $90 million in corporate cost savings already captured since the transaction was announced in June 2025.
Based on progress achieved to date, Keyera now expects total near-term annual run-rate synergies to range from $120 million to $140 million, with these synergies expected to be realized within the first twelve months after closing. The integration of the combined platform is also expected to enhance customer value through improved connectivity, expanded market access and more efficient service offerings.
Beyond these near-term synergies, the company expects to identify significant additional opportunities driven primarily by operating efficiencies, supply chain optimization, maintenance capital improvements and new capital-efficient growth projects across the combined platform. These opportunities are not fully reflected in the company's updated growth targets.
As integration progresses and the company spends more time with the assets and teams, Keyera expects to further identify, categorize and define these opportunities and will provide updates to the market once they are more clearly established.
Expanded Marketing Segment Is a Strategic Competitive Advantage
Keyera's Marketing segment remains a key differentiator, driving outsized value creation. The company's logistics capabilities and market expertise help attract additional volumes across the integrated system by providing customers with access to higher-value markets and stronger netbacks.
The segment consistently allows the company to generate strong corporate Returns on Invested Capital1 ("ROIC") while incremental cash flow is redeployed to strengthen the balance sheet and support the acceleration of investment to continue to grow fee-based adjusted EBITDA1.
With the addition of Plains Marketing business, Keyera's platform now includes frac-spread exposure, which represents another important source of liquids supply for the company's integrated system. These liquids can be marketed across North America and internationally, where demand for NGL products are expected to continue to grow.
The expanded Marketing portfolio will be managed under the same disciplined risk management framework that has underpinned Keyera's historical Marketing performance.
2026 Marketing Segment Guidance
For 2026, Keyera expects Marketing realized margin1 to be between $360 to $390 million. Guidance incorporates the impact of a five-month outage at AEF, maintenance activities at the Empress straddle facilities and planned outages associated with fractionation expansion projects at KFS II and KFS North (previously named PFS). The guidance is underpinned by disciplined risk management activities, conservative assumptions and is designed to be achievable with a high degree of confidence.
The outlook reflects more typical isooctane premium assumptions for the balance of the year, providing room for potential upside should supportive market fundamentals persist.
The company has locked in approximately 90% of expected 2026 frac spread margins at attractive levels through its structured hedging program. These positions include legacy hedges previously established by Plains covering the next 12 months commencing in June, together with opportunistic hedges executed under Keyera's risk management program following closing. In addition, the company has locked in approximately 50% of expected 2027 frac spread exposure at forward levels that ...
