Mr. Dean Setoguchi reports

KEYERA CORP. ANNOUNCES 2023 FIRST QUARTER RESULTS

Keyera Corp. has released its 2023 first quarter financial results, the highlights of which are included in this news release. To view the management's discussion and analysis (MD&A) and financial statements, visit either Keyera's website or Keyera's filings on SEDAR.

"Keyera had a very strong start to the year, delivering record results in our fee-for-service business segments and reaching a major milestone with the first barrels shipped on our KAPS pipeline system," said Dean Setoguchi, president and chief executive officer. "Our proven business model has delivered reliable returns through all commodity cycles. With KAPS in service, we are a stronger and more competitive company, focused on leveraging the strength of our integrated value chain to maximize value for all stakeholders."

First quarter highlights:

• Strong quarterly results -- net earnings were $138-million (Q1 2022 -- $114-million), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $292-million for the quarter (Q1 2022 -- $257-million), and distributable cash flow (DCF) was $227-million (Q1 2022 -- $178-million). The year-over-year increases were driven by record quarterly contributions from the gathering and processing (G&P) and liquids infrastructure segments.
• KAPS in service and within latest cost estimate -- KAPS construction is complete, and costs are within the latest cost estimate of $1-billion net to Keyera. The condensate line is now in service with the first volumes shipped in April. Linefill activities are under way on the natural gas liquids line which is expected to be in service in June.
• Record fee-for-service contributions -- the gathering and processing segment delivered record quarterly realized margin of $100-million (Q1 2022 -- $77-million), driven by record volumes. This includes approximately $3-million related to the recovery of maintenance turnaround costs. The liquids infrastructure segment delivered record quarterly realized margin of $119-million (Q1 2022 -- $105-million), driven by contributions from newly acquired incremental capacity at the Keyera Fort Saskatchewan complex (KFS) combined with strong asset utilization.
• Marketing guidance increased -- 2023 realized margin for the marketing segment is now expected to range between $330-million and $370-million (previously $250-million to $280-million). The increase is due to lower butane feedstock costs and the continued strength of iso-octane premiums, which benefit the company's iso-octane business.
• Strong financial position -- the company continues to maintain its strong financial position with net debt to adjusted EBITDA at 2.6 times, well within the target range of 2.5 to three times.
• Capital allocation priorities -- the company's capital allocation priorities remain unchanged. They are, to first ensure the financial strength of the business, and then to balance increasing returns to shareholders with disciplined capital investment.
• New KAPS partner -- Keyera is pleased to welcome Stonepeak as its new 50-per-cent partner in KAPS following the closing of its acquisition in April. Keyera and Stonepeak look forward to working closely together to deliver a much-needed competitive liquids transportation alternative for Montney and Duvernay producers.

Reaffirming 2023 capital and cash tax guidance:

• Growth capital expenditures to range between $200-million and $240-million.
• Maintenance capital expenditures to range between $75-million and $85-million.
• Cash tax expense is expected to be nil.

Keyera responds to Alberta wildfires

Keyera has been responding to wildfires across central and Northern Alberta. The company's first priority is the safety of its people, the surrounding communities and emergency responders.

As a precaution, the company proceeded with the safe and orderly shut-in of six gas plants between Thursday, May 4, and Friday, May 5. These are the Brazeau River, Pembina North, Zeta Creek, Cynthia, Nordegg and Wapiti gas plants. All Keyera employees and their families in the affected areas are safe and accounted for.

At this time, the company does not believe the outages will have a material financial impact. Keyera is prepared to restart operations as soon as conditions allow. At the Wapiti plant, regulatory approval has been received to restart.

Keyera continues to support the efforts of emergency responders and thanks them for their efforts as they manage these events.

CEO's message to shareholders

"Strategy continues to deliver with strong first quarter. Keyera had an excellent start to the year. Our gathering and processing segment delivered record results driven by record volumes. Our G&P customers continue to be in a very strong financial position, allowing for continued volume growth while improving cash flow stability for the segment. Our liquids infrastructure segment delivered record results, benefiting from strong asset utilization and margin contribution from the newly acquired additional interest in KFS. The marketing segment had another strong quarter, contributing to Keyera ending the quarter in a strong financial position with net debt to adjusted EBITDA at 2.6 times, well within our target range of 2.5 to three times.

"KAPS is onstream, making us more competitive. We are pleased to announce that KAPS construction is complete, the condensate line is in service and costs are within our latest estimate of $1-billion, net to Keyera. In April, we successfully shipped our first volumes of condensate on KAPS, and we expect the natural gas liquids line to be in service and flowing in June. This highly strategic project offers a much-needed competitive alternative for liquids transportation for Montney and Duvernay producers, on a new pipeline. KAPS is the link that completes our value chain, fully integrating our business from wellhead to end market.

"High fractionation demand and available capacity provides advantage. Our acquisition of additional fractionation capacity at our core KFS complex positions us to benefit from high demand for fractionation services. With available fractionation capacity and KAPS in service we can attract volumes by offering customers a complete suite of services, including gas processing, liquids transportation, fractionation, storage and product marketing, to ensure their products reach the highest-value markets. By providing an alternate end-to-end solution for customers, we ensure our services remain in high demand for the long term. As a result, we are better equipped to maximize value from new and existing assets, driving higher overall returns for our shareholders.

"Reaching a cash flow inflection point. In the last five years we have invested significantly to strengthen our integrated value chain and establish a competitive footprint in the Montney. This strategic spend is now behind us. Projects like Wapiti, Pipestone, KAPS and our recent KFS acquisition support our annual adjusted EBITDA growth rate of 6 per cent to 7 per cent from our fee-for-service business from 2022 to 2025, and support growth beyond this time frame. Our capital allocation priorities remain unchanged. They are, to first ensure the financial strength of the business, and then to balance increasing returns to shareholders with disciplined capital investment.

"Marketing strength provides optionality with $330-million to $370-million expected in 2023. Over the past five years, the marketing segment has delivered, on average, more than $340-million per year, totalling $1.7-billion. This physical business generates margins by leveraging our integrated assets to purchase, upgrade, transport and sell natural gas liquids products throughout North America. The cash flow generated from this segment is reinvested in our fee-for-service infrastructure businesses, supporting further growth in stable and reliable cash flows.

"Proven track record and strategy for long-term value creation. Our basin continues to grow and set new records for both natural gas and crude oil production. LNG Canada and the Trans Mountain Expansion pipeline will unlock further growth. With KAPS in service, we enter our next chapter as an essential infrastructure service provider with an integral role in enabling basin growth.

"On behalf of Keyera's board of directors and management team I want to thank our employees, customers, shareholders, indigenous peoples and other stakeholders for their continued support."

Mr. Setoguchi

President and CEO

Keyera

First quarter 2023 results conference call and webcast

Keyera will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the financial results for the first quarter of 2023 at 8 a.m. Mountain Time (10 a.m. Eastern Time) on Tuesday, May 9, 2023. Callers may participate by dialling 888-664-6392 or 416-764-8659. A recording of the conference call will be available for replay until 10: p.m. Mountain Time on May 23, 2023 (12 a.m. Eastern Time on May 24, 2023), by dialling 888-390-0541 or 416-764-8677 and entering passcode 677308.

Internet users can listen to the call live on Keyera's website. Shortly after the call, an audio archive will be posted on the website for 90 days.

About Keyera Corp.

Keyera operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service-based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high-quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely, and in an environmentally and financially responsible manner.

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