Keyera Buys Stonepeak's 50% KAPS Stake for C$1.215 Billion, Taking Full Control of Alberta's Montney NGL Corridor

Keyera Corp. completed its acquisition of the remaining 50% interest in the Key Access Pipeline System (KAPS) from Stonepeak Partners on June 17, 2026, paying C$1.215 billion for full ownership of the NGL corridor linking Alberta's Montney and Duvernay plays to downstream markets.

KAPS is a 350,000-barrel-per-day NGL pipeline connecting condensate and liquids-rich natural gas output from the Montney and Duvernay formations to Keyera's Fort Saskatchewan fractionation and storage complex east of Edmonton. Since 2025, the company has secured over 120,000 bpd of new throughput commitments across Zones 1 through 4 of the pipeline. Zone 4 construction remains on schedule and on budget, with an expected mid-2027 in-service date and approximately C$100 million of incremental 2026 growth capital.

Stonepeak Partners, a New York-based infrastructure private equity firm, had co-developed KAPS alongside Keyera as a 50/50 partner from the project's inception. The acquisition retires that joint-venture structure. Keyera said the deal is expected to be low-single-digit accretive to distributable cash flow per share over the next several years.

EBITDA Math: C$221 Million from Full Ownership by 2029

Keyera priced the transaction at approximately 11 times 2029 EBITDA based on contracted volumes. At that multiple, C$1.215 billion for a 50% stake implies roughly C$110 million in annual EBITDA from the acquired interest by 2029. Extrapolated to 100% ownership, the full KAPS system is on track to generate approximately C$221 million in fee-based annual EBITDA by 2029.

The company raised its targeted fee-based Adjusted EBITDA per share compound annual growth rate for 2025 through 2027 from 15-17% to 16-18% as a direct result of the acquisition. The 7-8% CAGR guidance for 2027 through 2029 was unchanged. Keyera reports in Canadian dollars; C$1.215 billion is equivalent to approximately US$861 million at current exchange rates.

Montney NGL Growth Drives KAPS Expansion

KAPS serves the Montney and Duvernay formations in northwest Alberta and northeast British Columbia, two of Canada's densest NGL-producing resource plays. Condensate, ethane, propane, and butane extracted from these plays flow by pipeline to Fort Saskatchewan, where Keyera fractionates and markets them to petrochemical and export customers. New commitments exceeding 120,000 bpd since 2025 reflect continued drilling activity in both plays despite the broader pullback in oil prices.

The Montney also supplies the crude and condensate filling Trans Mountain's expanded line to its capacity limits this month. Oil Authority reported that Trans Mountain hit its first apportionment event since the 2024 expansion, driven by Hormuz-disrupted Asian buyers increasing Canadian crude nominations. Growing Montney output is the common feedstock underpinning both TMX nominations and KAPS Zone 4 demand. Keyera's full ownership positions it to capture fee income from that growth without sharing revenue with a financial partner.