Best Smidcap Ideas: Ingredients In Place For Sector-Leading Growth

Research evidence excerpt

Best Smidcap Ideas: Ingredients In Place For Sector-Leading Growth

TD Cowen Energy Infrastructure

Global Research

Keyera Corp.

TD SECURITIES INC. - CANADA BEST SMIDCAP IDEAS 2026

Price: C$57.32 (06/8/2026) Best Smidcap Ideas: Ingredients In Place For

Price Target: C$68.00 Sector-Leading Growth

BUY (1)

ESG SCORE: 65/100

Aaron MacNeil, CA^ THE TD COWEN INSIGHT

403 292 1222

Keyera is our top Canadian midstream Smidcap idea, underpinned by visible, fee-based

aaron.macneil@tdsecurities.com

growth and improving fundamentals post-Plains. We expect the June 15 investor update

Mark Newson, CFA^ to outline a multi-year EBITDA CAGR, reaffirm synergy capture (>$100mm) and highlight

403 299 3207 incremental optimization/debottlenecking, supporting a sustained sector-leading growth

mark.newson@tdsecurities.com

profile with catalysts near term.

Ben Fullarton^

416 308 8209 Summary of Our Thesis

ben.fullarton@tdsecurities.com

Keyera is positioned to benefit from rising throughput across its integrated gas processing and

Key Data liquids value chain, including gas processing, NGL pipeline, fractionation, storage, and diluent

Symbol TSX: KEY-T

logistics. As more liquids are extracted and moved through the KAPS pipeline and its Fort

12-Month Div (Est.): C$2.22 Saskatchewan complex, the system will require incremental debottlenecking and optimization

Beta: 0.83 opportunities, supporting an extension of its industry-leading growth rate.

12-Month Total

22.5%

Return: What Is Underappreciated Or Misunderstood?

52-Week Range: C$59.00-C$40.49

■Keyera's Industry-Leading Growth Rate: Our base case assumes a ~9.6% fee-for-service

Market Cap: C$16.2B

growth rate, before any deal accretion or synergies beyond the $100mm target and

Net Debt (MM): C$1,804.5

excluding PFS ownership impacts.