Business
Keyera Announces Acquisition of Remaining 50% Interest in KAPS
Keyera Announces Acquisition of Remaining 50% Interest in
About this update from Keyera Corp.
On strategy transaction generates strong free cash flow1 and is accretive to distributable cash flow per share1Accelerates fee-based adjusted EBITDA per share1 growth outlookEnhances quality and durability of growing cash flow well into the next decadePreserves strength and flexibility of balance sheetCALGARY, 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 HighlightsGreater 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 tra...