Keyera Corp. has completed the acquisition of the remaining 50% stake in the KAPS Pipeline from infrastructure investment firm Stonepeak for C$1.215 billion, consolidating ownership of one of Western Canada’s most important natural gas liquids transportation systems.
The Calgary-based midstream company said the transaction closed immediately upon signing and gives Keyera full ownership and operational control of the pipeline network, which transports condensate and NGLs from the rapidly expanding Montney and Duvernay shale plays to downstream markets.
The KAPS system has become increasingly important as producers in the Montney and Duvernay continue to boost liquids-rich natural gas production. Keyera said it has secured more than 120,000 barrels per day of additional commitments across KAPS Zones 1 through 4 since 2025, supporting long-term contracted revenue growth.
The acquisition comes as construction of KAPS Zone 4 remains on schedule and on budget, with the expansion expected to enter service in mid-2027. The project is designed to accommodate growing volumes from Western Canada’s most active unconventional resource basins.
Keyera expects the deal to be accretive to distributable cash flow per share over the next several years and said the pipeline should generate significant free cash flow through the end of the decade following completion of Zone 4. The company estimates the transaction represents an acquisition multiple of roughly 11 times projected 2029 EBITDA based on currently contracted volumes.
The company also raised its growth outlook, increasing its targeted fee-based adjusted EBITDA per share compound annual growth rate for 2025-2027 to 16%-18%, up from its previous guidance of 15%-17%. Its longer-term growth target of 7%-8% annually between 2027 and 2029 remains unchanged.
A key attraction of the asset is its stable, contracted revenue profile. Keyera said approximately 75% of KAPS cash flow is backed by take-or-pay agreements, while customer contracts have an average remaining term of around 12 years.
To finance the acquisition, Keyera announced a C$525 million bought-deal equity offering and initially funded the purchase through existing credit facilities. The company said it expects to remain within its target leverage range of 2.5x to 3.0x net debt-to-adjusted EBITDA by 2028, preserving its investment-grade balance sheet.
The deal underscores continued investment in Canadian energy infrastructure as producers expand liquids production from the Montney and Duvernay formations, two of North America’s most prolific unconventional hydrocarbon regions. Full ownership of KAPS also strengthens Keyera’s integrated midstream network, which includes gas processing, NGL transportation, storage and marketing assets across Western Canada.
