Q2 was a pivotal quarter for Keyera, as it closed the CAD$4.6 billion purchase of Plains’ Canadian NGLs business, and the CAD$1.2 billion purchase of the other 50% of KAPS from Stonepeak. Keyera noted on its August 6 earnings call that it has already achieved CAD$90 million of synergies from the Plains acquisition, leaving the impression that Keyera is on its way to meeting or beating its guidance for annualized synergies of CAD$120-$140 million.
Operationally, Q2 net processing throughput in the Gathering and Processing segment was roughly flat year-over-year at 1.406 Bcf/d, but its realized margin was up 15% to CAD$128 million, aided by strong frac spreads. Keyera’s Liquids Infrastructure segment's realized margin was up 55% year-over-year to CAD$222 million, with CAD$78 million coming from Plains assets, which came in the door on May 12. The Alberta Enviro-Fuels (AEF) iso-octane facility resumed full operations in early June, but sales volumes were limited as inventories were first replenished, driving a 40%year-over-year drop in realized margins for Keyera’s Marketing segment. The maintenance and growth capital budget for 2026 remained unchanged.
The 8 Mb/d Keyera Fort Saskatchewan Fractionator II (KFS Frac II) debottleneck project started up in early June, ahead of schedule and 20% under budget. The company’s other major growth projects, including the recently sanctioned 45 Mb/d ACE Rail Terminal, remain on schedule and on budget (see table below).
