Keyera Announces 2025 Second Quarter Results and Raises Dividend

Aug 07 2025 11:00 BST

CALGARY, AB , Aug. 7, 2025 /CNW/ - Keyera Corp. (TSX: KEY) ("Keyera") announced its second 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.

"Keyera delivered strong results this quarter, reflecting the strength of our integrated value chain and continued growing customer demand," said Dean Setoguchi, President and CEO. "We advanced our strategy with the sanctioning of KFS Frac III and KAPS Zone 4 along with strong commercial momentum across our asset base. This growth in stable, fee-for-service cash flow allows us to sustainably increase the dividend. We also announced the transformational acquisition of Plains' Canadian NGL assets, which will further expand our scale, enhance service offerings, and create lasting value for customers and shareholders."

Second Quarter Highlights

Financial Results
- Adjusted earnings before interest, taxes, depreciation, and amortization,¹("adjusted EBITDA") were $252 million (Q2 2024 – $326 million), including $12 million in transaction costs related to the Plains acquisition. These results also 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 $159 million or $0.69 per share for the quarter (Q2 2024 – $202 million or $0.88 per share).
- Net earnings were $127 million (Q2 2024 – $142 million).
Sustainable Dividend Growth
- Keyera has increased its dividend by 4%, supported by the continued growth in its fee-for-service business and a payout ratio¹ that remains within the company's target range. This increase reflects the company's confidence in the quality, stability and continued growth of its cash flows.
Continued Growth in High Quality, Fee-For-Service Realized Margin¹
- Fee-for-service realized margin¹ was $255 million, up 8.4% from $235 million in the same period last year, driven by strong performance in both Gathering and Processing and Liquids Infrastructure segments.
- The Gathering and Processing ("G&P") segment generated realized margin¹ of $111 million (Q2 2024 – $102 million), reflecting continued strong performance from the North region gas plants. The North region accounted for over 70% of the segment's realized margin¹.
- The Liquids Infrastructure segment achieved quarterly realized margin¹ of $143 million (Q2 2024 – $133 million), driven by the continued growth in long-term contracted volumes on KAPS, high fractionation utilization, and near-record quarterly shipments on Keyera's condensate system.
Marketing Segment Results – The Marketing segment recorded quarterly realized margin¹ of $60 million (Q2 2024 – $136 million). The year-over-year decline is mainly due to lower overall commodity prices.
Strong Financial Position – The company ended the quarter with net debt to adjusted EBITDA² of 2.0 times, below the targeted range of 2.5 to 3.0 times, excluding acquisition related costs. Keyera's strong balance sheet provided the flexibility to pursue the recently announced transformative acquisition of Plains' Canadian NGL business, a transaction that will strengthen the company's value chain, offer a broader and more efficient service for customers and be highly accretive to shareholders.

2025 Guidance Update

Marketing segment 2025 realized margin¹ is expected to remain within the previous guidance range of $310 million to $350 million, which is inclusive of the estimated $50 million impact of the AEF outage.
Growth capital expenditures are now expected to range between $275 million and $300 million (previously between $300 million and $330 million). This adjustment reflects a shift in timing of certain expenditures which are now scheduled for 2026.
Maintenance capital expenditures are unchanged and expected to range between $70 million and $90 million.
Cash taxes are unchanged and expected to range between $100 million and $110 million.

Strong Contracting Momentum Supporting Capital-Efficient Growth

On a stand-alone basis, Keyera remains on track to achieve its 7–8% fee-based adjusted EBITDA¹ compound annual growth rate target from 2024 to 2027. During the quarter, the company secured several additional long-term integrated contracts across its value chain, supporting the sanctioning of both the KFS Frac III expansion and KAPS Zone 4. These projects will support continued growth well beyond 2027. Over the past several months, Keyera added more than 100,000 barrels per day of new long-term contracted volumes on KAPS Zones 1 through 4, up from 75,000 barrels per day disclosed in early June. At the same time, the KFS complex, including the Frac II de-bottleneck and Frac III expansion, is now substantially all contracted, further strengthening utilization and returns across the system.

KFS Frac II Debottleneck – Sanctioned in February, this 8,000 barrel per day project is expected to cost $85 million. Fabrication of major equipment is underway and on-site construction is progressing well. The additional capacity is expected to be in service in mid-2026.
KFS Frac III Expansion – Sanctioned in May, this 47,000 barrel per day expansion is expected to cost $500 million, including investments to enhance egress capability at the site. Detailed design is underway and early works construction activities have kicked off at site, with the facility targeted to enter service in mid-2028.
KAPS Zone 4 – Sanctioned in June for an estimated cost of $220 million (net to Keyera), this 85-kilometre extension from Pipestone to Gordondale, including new pump stations, will enhance connectivity to growing Montney production in Northeast BC and Northwest Alberta. Engineering is underway and long lead items have been ordered. The project is expected to be in service in mid-2027.

Keyera continues to advance additional growth opportunities, including potential expansions of North Region G&P capacity, enhanced rail and logistics capabilities to support growing fractionation volumes, and further liquids extraction projects.

Acquisition of Plains' Canadian NGL Business

On June 17, Keyera announced it had entered into a definitive agreement to acquire substantially all of Plains' Canadian NGL business, plus select U.S. assets, for $5.15 billion in cash. This transaction is expected to close in the first quarter of 2026, subject to regulatory approvals.

In connection with the acquisition, the company successfully closed a $2.07 billion bought-deal offering of subscription receipts during the quarter. Upon closing of the acquisition, each subscription receipt will be exchanged for one common share of the company, partially funding the purchase price.

The acquisition represents a natural extension of Keyera's integrated NGL value chain and will provide customers with more reliable, cost-effective, and flexible services across the country.

It brings key Canadian energy infrastructure under Canadian ownership, supports long-term energy security, and enhances Canada's economic resilience.

With assets across Alberta, Saskatchewan, Manitoba, and Ontario, and a strong presence in both western and eastern hubs, the combined platform will deliver more customer value through enhanced market access and operational efficiency.

The transaction is expected to be mid-teens accretive to DCF per share in its first full year, inclusive of approximately $100 million in highly achievable, near-term run-rate synergies, and will increase Keyera's fee-based adjusted EBITDA¹ by approximately 50% over the same period.

The transaction was structured to preserve Keyera's strong financial position and maintain investment grade credit ratings, with pro forma leverage expected to remain within the company's long-term target range.

Summary of Key Measures	Three months ended June 30,		Six months ended June 30,
*(Thousands of Canadian dollars, except where noted)*	2025	2024	2025	2024
Net earnings	126,518	142,177	256,853	213,091
Per share ($/share) – basic	0.55	0.62	1.12	0.93
Cash flow from operating activities	145,822	272,856	311,147	670,896
Funds from operations¹	187,124	243,201	409,361	474,926
Distributable cash flow¹	158,752	202,166	348,331	407,504
Per share ($/share)¹	0.69	0.88	1.52	1.78
Dividends declared	119,160	114,576	238,320	229,153
Per share ($/share)	0.52	0.50	1.04	1.00
Payout ratio %¹	75 %	57 %	68 %	56 %
Adjusted EBITDA¹	251,543	325,995	549,973	640,299
Operating margin	365,609	369,749	717,199	652,780
Realized margin¹	314,593	370,944	654,703	726,359
Gathering and Processing
Operating margin	109,464	101,885	221,604	205,652
Realized margin¹	111,498	101,934	220,804	206,263
Gross processing throughput³ (MMcf/d)	1,543	1,487	1,565	1,511
Net processing throughput³ (MMcf/d)	1,400	1,325	1,417	1,328
Liquids Infrastructure
Operating margin	140,599	131,904	296,111	267,049
Realized margin¹	143,162	133,077	295,609	269,640
Gross processing throughput⁴ (Mbbl/d)	163	164	179	183
Net processing throughput⁴ (Mbbl/d)	94	83	104	100
AEF iso-octane production volumes (Mbbl/d)	8	9	10	12
Marketing
Operating margin	115,614	136,010	199,623	180,066
Realized margin¹	60,001	135,983	138,429	250,443
Inventory value	257,497	282,121	257,497	282,121
Sales volumes (Bbl/d)	199,400	178,700	210,000	246,700
Acquisitions	12,567	—	12,567	—
Growth capital expenditures	35,696	18,079	49,112	37,185
Maintenance capital expenditures	13,680	27,347	29,719	40,238
Total capital expenditures	61,943	45,426	91,398	77,423
Weighted average number of shares outstanding – basic and diluted	229,153	229,153	229,153	229,153

As at June 30,			2025	2024
Long-term debt⁵			3,338,787	3,686,035
Credit facility			—	110,000
Working capital surplus (current assets less current liabilities)			(2,040)	(263,596)
Net debt			3,336,747	3,532,439
Common shares outstanding – end of period			229,153	229,153

CEO's Message to Shareholders

Executing on Our Strategy with Strong Momentum. We continue to see strong customer demand across our integrated system, reflecting the value of our service offering and our position as a competitive alternative in the basin. In 2025, we've sanctioned three capital-efficient growth projects—KFS Frac II debottleneck, KFS Frac III, and KAPS Zone 4—secured over 100,000 barrels per day of new long-term contracted volumes on KAPS, and expanded our LPG export capacity through our agreement with AltaGas. Our Fort Saskatchewan fractionation complex, including both expansions, is now substantially all contracted. With this momentum, we remain on track to deliver our 7–8% fee-based adjusted EBITDA growth target from 2024 to 2027, and are seeing continued demand growth beyond that timeframe. Together with our strong balance sheet, these achievements laid the foundation for the transformational acquisition of Plains' Canadian NGL business, a step that meaningfully expands our scale, enhances our service offerings, and creates lasting value for customers and shareholders.

Constructive Outlook for Western Canadian Volume Growth. The outlook for volume growth in the Western Canadian Sedimentary Basin remains strong. Low-cost, long-life resources in the Montney and Duvernay, combined with improved market access, are supporting increased gas production leading to higher NGL volumes. Key demand drivers include increasing LNG exports, petrochemical development, oil sands growth, and emerging sectors such as AI and data centres. As volumes grow, producers are seeking efficient, flexible infrastructure with strong market connectivity to maximize netbacks for their NGLs. With our integrated platform and commercial strength, Keyera is well positioned to support the next phase of basin development.

Transformational Acquisition Strengthens Platform and National Infrastructure. The acquisition of Plains' Canadian NGL business marks a defining moment for Keyera and a step change in our platform. It significantly expands the scale, reach, and resilience of our operations, creating a fully integrated NGL corridor that stretches from the liquids-rich producing regions of Western Canada to key demand hubs in Asia, the Prairies, Ontario, and the U.S. These highly complementary assets enhance our ability to offer customers more reliable, cost-effective, and flexible service by improving market access, optimizing product flows, and helping maximize netbacks. This is a compelling Canadian success story which also brings critical infrastructure under Canadian ownership and strengthens national energy security, while ensuring that reinvestment, value creation, and decision-making remain in Canada. For shareholders, it maintains the stability of our cash flow and the strength of our balance sheet, enhances our ability to grow the dividend sustainably, and provides a scalable platform for long-term value creation on a per share basis.

Disciplined Capital Allocation to Maximize Long-Term Value. As we execute on this next phase of growth, our commitment to financial discipline remains unchanged. We continue to prioritize investments that are capital-efficient, supported by long-term contracts, and aligned with our strategy to grow fee-for-service cash flow. The Plains acquisition was structured to preserve our investment-grade credit ratings and leverage targets, reinforcing our commitment to maintaining a strong balance sheet. We will continue to assess future opportunities with the same disciplined approach, ensuring each decision supports our long-term strategy and delivers sustainable value for shareholders.

On behalf of Keyera's board of directors and management team, I want to thank our employees, customers, shareholders, Indigenous rights holders, and other stakeholders for their continued support. Together, we will continue to drive Keyera's success and contribute positively to Canada's energy landscape.

Dean Setoguchi
President and CEO
Keyera Corp.

Notes:

1	Keyera uses certain non-Generally Accepted Accounting Principles ("GAAP") and other financial measures such as EBITDA, adjusted EBITDA, funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin, fee-for-service realized margin and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA. 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 2025 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, 2025.

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 2025 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 2025 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, August 7, 2025. 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 Thursday, August 21, 2025 (12:00 AM Eastern Time on Friday, August 22, 2025), by dialing 1-888-660-6345 or 1-289-819-1450 and entering passcode 75904.

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 7, 2025, 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 http://www.keyera.com/news/events. 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
Katie Shea, Senior Advisor, Investor Relations
Tyler Monzingo, Senior Specialist, Investor Relations
Email: ir@keyera.com
Telephone: 1-403-205-7670
Toll free: 1-888-699-4853

For media inquiries, please contact:

Amanda Condie, Manager, Corporate Communications
Email: media@keyera.com
Telephone: 1-855-797-0036

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-for-service realized margin, EBITDA, adjusted EBITDA and compound annual growth rate ("CAGR") for fee-based adjusted EBITDA 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, 2025, 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 and lease payments, including the periodic costs related to prepaid leases. Distributable cash flow per share is defined as distributable cash flow divided by 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.

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)	2025	2024	2025	2024
Cash flow from operating activities	145,822	272,856	311,147	670,896
Add (deduct):
Changes in non-cash working capital	41,302	(29,655)	98,214	(195,970)
Funds from operations	187,124	243,201	409,361	474,926
Maintenance capital	(13,680)	(27,347)	(29,719)	(40,238)
Leases	(14,097)	(13,093)	(28,581)	(25,994)
Prepaid lease asset	(595)	(595)	(1,190)	(1,190)
Inventory write-down	—	—	(1,540)	—
Distributable cash flow	158,752	202,166	348,331	407,504

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	Three months ended June 30,		Six months ended June 30,
(Thousands of Canadian dollars, except %)	2025	2024	2025	2024
Distributable cash flow¹	158,752	202,166	348,331	407,504
Dividends declared to shareholders	119,160	114,576	238,320	229,153
Payout ratio	75 %	57 %	68 %	56 %

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-for-service 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, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	109,464	140,599	115,614	(68)	365,609
Unrealized loss (gain) on risk management contracts	2,034	2,563	(55,613)	—	(51,016)
Realized margin (loss)	111,498	143,162	60,001	(68)	314,593

Operating Margin and Realized Margin Three months ended June 30, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	101,885	131,904	136,010	(50)	369,749
Unrealized loss (gain) on risk management contracts	49	1,173	(27)	—	1,195
Realized margin (loss)	101,934	133,077	135,983	(50)	370,944

Operating Margin and Realized Margin Six months ended June 30, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin (loss)	221,604	296,111	199,623	(139)	717,199
Unrealized gain on risk management contracts	(800)	(502)	(61,194)	—	(62,496)
Realized margin (loss)	220,804	295,609	138,429	(139)	654,703

Operating Margin and Realized Margin Six months ended June 30, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Marketing	Corporate and Other	Total
Operating margin	205,652	267,049	180,066	13	652,780
Unrealized loss on risk management contracts	611	2,591	70,377	—	73,579
Realized margin	206,263	269,640	250,443	13	726,359

Fee-for-Service Realized Margin Three months ended June 30, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
Operating margin	109,464	140,599	250,063
Unrealized loss on risk management contracts	2,034	2,563	4,597
Realized margin	111,498	143,162	254,660

Fee-for-Service Realized Margin Three months ended June 30, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
Operating margin	101,885	131,904	233,789
Unrealized loss on risk management contracts	49	1,173	1,222
Realized margin	101,934	133,077	235,011

Fee-for-Service Realized Margin Six months ended June 30, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
Operating margin	221,604	296,111	517,715
Unrealized gain on risk management contracts	(800)	(502)	(1,302)
Realized margin	220,804	295,609	516,413

Fee-for-Service Realized Margin Six months ended June 30, 2024
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
Operating margin	205,652	267,049	472,701
Unrealized loss on risk management contracts	611	2,591	3,202
Realized margin	206,263	269,640	475,903

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.

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)	2025	2024	2025	2024
Net earnings	126,518	142,177	256,853	213,091
Add (deduct):
Finance costs	51,700	54,118	103,526	110,602
Depreciation and amortization expenses	91,767	88,250	182,854	174,799
Income tax expense	41,602	43,283	80,205	64,763
EBITDA	311,587	327,828	623,438	563,255
Unrealized (gain) loss on commodity-related contracts	(51,016)	1,195	(62,496)	73,579
Net foreign currency (gain) loss on U.S. debt and other	(9,028)	1,236	(10,969)	3,636
Net gain on disposal of property, plant and equipment	—	(4,264)	—	(171)
Adjusted EBITDA	251,543	325,995	549,973	640,299

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

CAGR is calculated as follows:

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-for-service realized margin (realized margin for the Gathering and Processing and Liquids Infrastructure segments), and ii) adjustments for total forecasted general and administrative, and long-term incentive plan expense.

The following includes the equivalent historical measure for fee-based adjusted EBITDA, 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)	2024	2023	2022	2021
Realized Margin – Fee-for-Service	970,308	890,644	752,684	731,930
Less:
General and administrative expenses	(117,142)	(106,494)	(82,843)	(80,697)
Long-term incentive plan expense	(62,450)	(50,909)	(33,284)	(27,029)
Fee-Based Adjusted EBITDA	790,716	733,241	636,557	624,204

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 "anticipate", "continue", "estimate", "expect", "may", "will", "can", "project", "should", "would", "plan", "intend", "believe", "plan", "target", "outlook", "scheduled", "positioned", 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;
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 2025 annual base realized margin of between $310 million and $350 million;
estimates for 2025 regarding Keyera's growth capital expenditures, maintenance capital expenditures and cash taxes;
plans around the expansion of Keyera's fractionation capacity, including the cost and timing for the KFS Frac II Debottleneck and KFS Frac III, and the impact of these projects on Keyera's total fractionation capacity;
the KAPS Zone 4 project, including cost and timing of the same;
plans for deployment of capital and additional growth opportunities, and the impact of current and future growth projects on Keyera's growth targets;
approvals and anticipated timing of closing of the acquisition of Plains' Canadian NGL business, the benefits of the acquisition, and Keyera's dividend growth and financial position post-closing of the acquisition;
the expectation that demand across Keyera's integrated system will remain strong;
strong outlook for volume growth in the Western Canadian Sedimentary Basin;
plans around future dividends; and
budgets, including future growth capital, operating and other expenditures and projected costs.

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 ability to successfully complete the acquisition of Plains' Canadian NGL business and obtain the anticipated benefits therefrom, including impacts on growth and accretion in various financial metrics;
Keyera's ability to integrate the assets acquired pursuant to the Plains acquisition into Keyera's operations;
activities of customers, producers and other facility owners;
operational hazards and performance;
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;
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 Management's Discussion and Analysis for the year ended December 31, 2024 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.