Keyera will acquire most of Plains’ Canadian NGL business and select U.S. assets for $5.15 billion, enhancing its integrated energy platform across Canada. The transaction strengthens domestic infrastructure, improves market access, and is expected to boost Keyera’s growth, profitability, and dividend sustainability while maintaining financial discipline and investment-grade credit ratings.
Keyera Corp. has entered into a definitive agreement to acquire the majority of Plains' Canadian natural gas liquids (NGL) business along with selected U.S. assets for $5.15 billion in cash, subject to customary adjustments. This transaction significantly expands Keyera’s footprint, positioning it as a dominant player in Canada’s energy infrastructure sector. The acquisition creates a fully integrated NGL corridor from western to eastern Canada, enhancing domestic ownership and contributing to national energy resilience. With a solid infrastructure base in Alberta, the combined assets will grant Keyera strategic access to high-demand markets, including Liquefied Petroleum Gas export routes on the West Coast, as well as major consumption centers in eastern Canada and the U.S.
The acquired portfolio includes extraction, fractionation, storage, and logistics terminals across Alberta, Saskatchewan, Manitoba, and Ontario. According to Keyera President and CEO Dean Setoguchi, the acquisition is highly strategic, aligning well with Keyera’s operational strengths and future growth plans. It allows the company to serve customers more efficiently, improve operational performance, and drive sustainable long-term shareholder value. Keyera aims to strengthen its integrated, fee-for-service NGL platform by boosting scale, expanding market access, and enhancing flexibility in transporting and storing products like ethane, propane, butane, condensate, and iso-octane.
The acquisition is expected to generate around $100 million in annual cost savings and operational efficiencies during the first year. Approximately 70% of the anticipated realized margin will be backed by long-term contracts, helping ensure stable dividends. The transaction creates a platform for future growth, giving Keyera opportunities to further integrate and expand its network across Canada.
Financing for the acquisition is secured through a credit facility led by the Royal Bank of Canada and a $1.8 billion bought deal equity offering. The remainder of the funding will come from debt securities and bank facilities. Keyera expects to maintain its investment-grade credit ratings post-transaction. The company’s capital allocation strategy and financial discipline remain unchanged, targeting a leverage ratio between 2.5 and 3.0 times net debt to adjusted EBITDA and a dividend payout ratio of 50% to 70% of distributable cash flow.
The acquired assets include approximately 193,000 barrels per day of fractionation capacity, 23 million barrels of storage, 1,500 miles of pipelines with 575,000 barrels per day throughput, and 5.7 billion cubic feet per day of gas processing at the Empress facility. It also encompasses truck and rail terminals that improve market connectivity. The deal has received unanimous board approval and is expected to close in Q1 2026, pending regulatory approvals.
