Resuming Coverage: Premium Metrics For a Foundational Asset Acquired at Cost

Research evidence excerpt

Resuming Coverage: Premium Metrics For a Foundational Asset Acquired at Cost

TD Cowen Keyera Corp.

Global Research June 22, 2026

Transaction & Asset Details

▪ Keyera announced it is acquiring the remaining 50% non-operating interest in the

Key Access Pipeline System (KAPS) from Stonepeak for total cash consideration of

$1.215 billion, resulting in 100% ownership of the system; the transaction was

completed concurrently with the announcement.

▪ The acquisition was financed through a $525 million bought-deal equity offering

(9.8 million common shares at $53.55/share for gross proceeds of approximately

$525 million), and a $1 billion issuance of senior unsecured notes. The net

proceeds will be used to repay debt drawn on a short-term facility used to fund

the transaction.

▪ An additional over-allotment option of 15% (1.47 million shares) has been fully

exercised as of the close of the bought deal, resulting in an incremental ~$78.8

million in gross proceeds to the company.

Asset Details: KAPS is an NGL pipeline system that connects condensate and NGL

production from the Montney and Duvernay to downstream markets including

Keyera's Fort Saskatchewan fractionation facilities. The system underpins stable,

long-term fee-based cash flows, supported by contracted volumes, with Keyera

adding over 120,000 bbl/d of new commitments across Zones 1 through 4 since

2025. KAPS is currently being expanded through the Zone 4 project, an 85km pipeline

project connecting Pipestone to Gordondale, AB, enabling a deeper reach into the

Montney. The project remains on-time and on-budget, with an expected mid-2027

ISD; Keyera is inheriting the remaining Stonepeak share of capital spend. Following

this expansion and ramp-up, the asset is expected to generate significant free cash