Keyera Corp. announced a definitive agreement to acquire substantially all of Plains All American Pipeline’s Canadian natural gas liquids (NGL) business, along with select U.S. assets, for a total cash consideration of C$5.15 billion (US$3.76 billion). The landmark acquisition—expected to close in the first quarter of 2026—will significantly expand Keyera’s national infrastructure footprint and strengthen its position as one of Canada’s leading midstream energy providers.
“This is a transformational deal for Keyera, by far the largest we’ve ever done,” said Dean Setoguchi, President and CEO of Keyera Corp. “It is an excellent strategic fit, strongly aligned with our long-term growth strategy. The assets we’re acquiring are high-quality, synergistic, and significantly enhance our scale, market access, and customer offering.”
Building a Cross-Canada NGL Corridor
The deal includes a comprehensive set of assets—NGL extraction, fractionation, pipeline infrastructure, storage, and rail and truck terminals—located across Alberta, Saskatchewan, Manitoba, and Ontario, with some U.S. logistics components. The transaction effectively establishes a fully connected NGL corridor stretching from Western Canada to Eastern Canada, with export connectivity via liquefied petroleum gas (LPG) terminals on the West Coast.
Setoguchi emphasized that the acquisition helps "repatriate important Canadian energy infrastructure," keeping energy cash flows within the country and bolstering Canada’s energy independence and economic resilience. “The world, especially in our industry, needs size and scale, which really drives efficiencies. This transaction helps us achieve that,” he added.
Key Highlights of the Transaction
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Enterprise value uplift: The acquisition is expected to increase Keyera’s total enterprise value by approximately 40%, to C$19 billion.
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Earnings growth: Fee-based adjusted EBITDA is projected to grow by ~50% in the first full year, including C$100 million in near-term synergies from operational efficiencies and cost savings.
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Financial stability: The deal will be financed via a fully committed acquisition credit facility led by RBC and a C$1.8 billion bought-deal equity offering, ensuring no compromise to Keyera’s financial strength.
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Dividend growth: The company reaffirmed its long-term dividend payout target of 50%–70% of discounted free cash flow.
A Nationwide Midstream Platform
The acquired asset base positions Keyera as a fully integrated NGL service provider with enhanced reach and operational flexibility. The platform includes:
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Fractionation capacity: ~193,000 barrels/day (post-Fort Saskatchewan expansion), including field, hub, and straddle facilities
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Straddle gas processing: 5.7 billion cubic feet/day at Empress
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Storage: ~23 million barrels across multiple strategic locations
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Pipelines: Over 1,500 miles, with throughput capacity >575,000 barrels/day
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Logistics: Rail and truck terminals across Canada and parts of the U.S.
Strategic Rationale: Enhancing Integration and Market Access
The acquisition strengthens Keyera’s vertically integrated, fee-for-service NGL platform and aligns with its disciplined growth model. By adding Plains’ Canadian assets, Keyera will:
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Combine NGL gathering, processing, storage, and marketing infrastructure
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Increase exposure to high-demand North American markets, including Eastern Canada and the U.S.
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Unlock scale-based efficiencies and commercial optimization opportunities
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Diversify its asset base and enhance service offerings across ethane, propane, butane, condensate, and iso-octane
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Reinforce long-term earnings stability, with ~70% of pro forma margin backed by long-term contracts
Operational & ESG Commitments
Keyera emphasized that its environmental, social and governance (ESG) commitments will remain central to the integration. “We’re committed to reducing emissions intensity and embedding sustainability into all aspects of our operations,” said Setoguchi.
The company also noted that the enlarged asset base will allow it to better serve customers with cost-effective, reliable, and flexible energy solutions, supporting broader industry efforts to decarbonize and modernize supply chains.
Regulatory Approvals and Closing Timeline
The transaction has been unanimously approved by Keyera’s Board of Directors and is expected to close in Q1 2026, pending regulatory approvals, including under Canada’s Competition Act.
About Keyera Corp.
Keyera Corp. (TSX: KEY) is a leading Canadian-based energy infrastructure company headquartered in Calgary, Alberta. Operating an integrated network of natural gas processing, NGL transportation, storage, and marketing assets, Keyera provides essential midstream services across the energy value chain.
Keyera’s operations include:
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Natural gas gathering and processing
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NGL fractionation, storage, and marketing
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Industry-leading iso-octane production
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A comprehensive condensate system in the Edmonton/Fort Saskatchewan area
The company primarily operates under a fee-for-service model and is committed to responsible growth through strong environmental stewardship, safety, and community engagement.
