Mr. Dean Setoguchi reports

KEYERA ANNOUNCES 2023 SECOND QUARTER RESULTS, INCREASES MARKETING SEGMENT GUIDANCE

Keyera Corp. has released its 2023 second quarter financial results, the highlights of which are included in this news release. To view Management's Discussion and Analysis (the "MD&A") and financial statements, visit either Keyera's website or its filings on SEDAR+ at www.sedarplus.ca.

"Keyera continues to execute its strategy, delivering yet another strong quarter which was supported by the strength of all three business segments. This consistent performance enables us to return to our long history of sustainable dividend growth," said Dean Setoguchi, President and CEO. "In addition, KAPS has now fully integrated our value chain, making us more competitive, enhancing our ability to attract volumes and maximizing value for all stakeholders."

Highlights

• Strong Quarterly Results - Net earnings were $159 million (Q2 2022 - $173 million), adjusted earnings before interest, taxes, depreciation, and amortization1 ("adjusted EBITDA") were $293 million (Q2 2022 - $316 million), and distributable cash flow1 ("DCF") was $207 million (Q2 2022 - $209 million). Quarterly results were driven by record contribution from the Liquids Infrastructure segment and third highest ever contribution from the Marketing segment.
• Return to Sustainable Dividend Growth - As announced yesterday, Keyera's Board approved a 4.2% increase in the quarterly dividend. The 2023 third quarter dividend will be $0.50 per common share and will be payable on September 29, 2023. Dividend growth is supported by growth in stable long-term cash flows from Keyera's fee-for-service business.
• KAPS Fully In-Service - The natural gas liquids line which is the second of two pipelines within the KAPS pipeline system, is now in service, having shipped its first volumes in June.
• Marketing Segment Guidance Increased - Keyera now expects full year 2023 realized margin1,3 for the Marketing segment to range between $380 million and $410 million 4 (previously $330 million to $370 million). The increase takes into account strong year-to-date realized margin1,3 (1H 2023 - $251 million), current hedges in place and assumes current forward commodity pricing for unhedged volumes for the remainder of the year.
• Solid Performance from Fee-For-Service Segments - The Gathering and Processing ("G&P") segment delivered realized margin1,3 of $84 million (Q2 2022 - $88 million). This contribution reflects a $13 million impact from the Alberta wildfires. The Liquids Infrastructure segment delivered another quarterly record with realized margin1,3 of $119 million (Q2 2022 - $98 million), representing year-over-year growth of 22%. This growth is driven by initial contributions from the KAPS pipeline system, strong incremental demand for storage and the acquisition of an additional 21% working interest in Keyera's Fort Saskatchewan complex last year.
• Strong Financial Position - The company continues to maintain its strong financial position with net debt to adjusted EBITDA2 at 2.6 times, well within the target range of 2.5 to 3.0 times.

2023 Capital and Cash Tax Guidance

• Keyera reaffirms growth capital expenditures to range between $200 million and $240 million.
• Maintenance capital expenditures are now expected to range between $95 million and $105 million versus the previous range of $75 million to $85 million. About half of the increase is due to the completion of work that was prepaid. The remainder is due to additional maintenance costs at the Pipestone Gas Plant which are expected to be recovered through increased future realized margin.
• Reaffirming cash tax expense is expected to be $nil.

CEO's Message to Shareholders

Our strategy continues to deliver. Keyera has strategically positioned its assets to benefit from volume growth in key areas of the Western Canada basin. Over the last five years, we have invested significantly to create a G&P footprint in the growing Montney and Duvernay fairway and integrate these assets to our core liquids infrastructure in Edmonton and Fort Saskatchewan via KAPS. These investments continue to deliver volume and cash flow growth. We've seen continued strong growth in our Gathering and Processing volumes and the Liquids Infrastructure segment delivered over 20% realized margin growth this quarter compared to the same period a year ago, setting a new realized margin record for the segment.

Returning to dividend growth. We are pleased to return to Keyera's long history of sustainable dividend growth with the Board approval of a 4.2% increase in the quarterly dividend. Dividend growth is supported by the continued growth of Keyera's fee-for-service business.

KAPS is fully in-service. KAPS integrates our value chain, makes us more competitive and enhances our ability to attract new volumes. Our platform offers customers a much-needed competitive alternative from wellhead to end market.

Cash flow inflection point and capital allocation priorities. The major strategic growth investments of the last five years are now complete and are contributing to cash flow growth. Going forward, our annual growth capital program is expected to be lower, which means we will have more discretionary cash flow. Our capital allocation priorities are unchanged. They are first to ensure financial strength, and then to balance between increasing shareholder returns and disciplined capital investment. In keeping with these priorities, our debt leverage metrics are firmly within our targeted range, and we've now increased the dividend.

Disciplined capital investment. Our 2022 to 2025 target of 6-7% annual adjusted EBITDA growth from our fee-for-service business is on track, mostly driven by previously invested capital. This includes the continued filling of available capacity in our G&P segment, the acquisition of an additional 21% interest in KFS, the expansion of the Pipestone Gas Plant and the ramp-up of KAPS.

Inventory of future investment opportunities. Our future growth investments will focus on projects that leverage and enhance our existing core asset position in Western Canada. These opportunities include a capital efficient de-bottleneck of existing fractionation capacity, a new fractionation expansion and the potential for a KAPS Zone 4 expansion. Any decision to proceed on incremental investments will need to be underpinned by long-term contracts and strong returns.

Strong outlook for future growth. Canada's energy resources are essential in meeting the world's growing energy demand. 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 are expected to unlock further growth. As an essential infrastructure service provider, Keyera will continue to play an integral role in enabling basin growth.

On behalf of Keyera's board of directors and management team I want to thank our teams, customers, shareholders, Indigenous rights holders, neighboring communities, and other stakeholders for their continued support.

Dean Setoguchi

President and CEO

Keyera Corp.

Second 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 second quarter of 2023 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, August 10, 2023. Callers may participate by dialing 888-664-6392 or 416-764-8659. A recording of the conference call will be available for replay until 10:00 PM Mountain Time on August 23, 2023 (12:00 AM Eastern Time on August 24, 2023), by dialing 888-390-0541 or 416-764-8677 and entering passcode 520970.

To join the conference call without operator assistance, you may register and enter your phone number here to receive an instant automated call back. This link will be active on Thursday, August 10, 2023, at 7:00 AM Mountain Time (9:00 AM Eastern Time).

A live webcast of the conference call can be accessed here or through Keyera's website at http://www.keyera.com/news/events. Shortly after the call, an audio archive will be posted on the website for 90 days.

About Keyera Corp.

Keyera Corp. (TSX:KEY) 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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