Keyera Corp. has acquired the remaining 50 percent non-operating interest in the KAPS Pipeline from infrastructure investor Stonepeak for $1.215 billion, giving the Calgary-based midstream company full ownership of one of western Canada's key natural gas liquids transportation systems. The acquisition was made under a definitive agreement dated June 17, 2026, and closed concurrently with its announcement that day.
Keyera now owns and will continue to operate 100 percent of the KAPS Pipeline, a natural gas liquids system that connects growing condensate and NGL production from the Montney and Duvernay resource plays to high-value downstream markets. Since 2025, Keyera has added more than 120,000 barrels per day of new commitments across KAPS Zones 1 to 4. Construction of KAPS Zone 4 remains on time and on budget, with an expected mid-2027 in-service date.
The company framed the deal as accretive to distributable cash flow per share and as a step that strengthens the durability of its cash flows, which it said are underpinned by contracts with an average remaining term of approximately 12 years and 75 percent take-or-pay contributions. Including the remaining capital required to complete Zone 4, the transaction implies an acquisition multiple of roughly 11 times 2029 EBITDA based on currently contracted volumes. The acquisition lifts Keyera's targeted fee-based adjusted EBITDA per share compound annual growth rate to a range of 16 to 18 percent between 2025 and 2027, up from a prior target of 15 to 17 percent.
"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," Keyera president and CEO Dean Setoguchi said in a press release. "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."
The financing plan was structured to preserve Keyera's balance sheet and investment-grade credit profile, with net debt to adjusted EBITDA expected to remain within the company's target range of 2.5 to 3.0 times in 2028. As part of the plan, Keyera has agreed to issue $525 million of common equity through a bought deal offering, announced separately, with the purchase price initially funded through borrowings under existing Keyera Partnership credit facilities.
On the legal side, Norton Rose Fulbright Canada LLP and McCarthy Tétrault LLP acted as legal counsel to Keyera, with RBC Capital Markets serving as financial advisor. Sidley Austin LLP, Stikeman Elliott LLP, and Goodmans LLP acted as legal counsel to Stonepeak, with Scotia Capital Inc. serving as its financial advisor.
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