Mr. Dean Setoguchi reports

KEYERA ANNOUNCES 2023 THIRD QUARTER RESULTS, INCREASES MARKETING SEGMENT GUIDANCE

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

"We continue to deliver on our strategy, leveraging the strength of our integrated value chain to create value for customers and generate strong returns for shareholders," said Dean Setoguchi, president and chief executive officer. "We continue to grow our fee-for-service business segments, which is improving the quality of our cash flow. KAPS has fully integrated our value chain, making us stronger and more competitive by increasing our ability to attract volumes and maximize value for all stakeholders."

Highlights:

• Strong quarterly results: Net earnings were $78-million (Q3 2022: $123-million); adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) were $288-million (Q3 2022: $247 million); and distributable cash flow (DCF) was $186-million (Q3 2022: $162 million). Quarterly results were driven by record contributions from the liquids infrastructure segment and continued strong performance from gathering and processing (G&P) and marketing.
• Solid performance from fee-for-service segments: The G&P segment delivered realized margin of $94-million (Q3 2022: $89-million). This contribution reflects strong volumes and includes a $3-million impact from the Alberta wildfires. The liquids infrastructure segment delivered another quarterly record with realized margin of $128-million (Q3 2022: $101-million). Results were driven by contributions from the KAPS pipeline system and Keyera's Fort Saskatchewan (KFS) complex.
• Pipestone expansion ahead of schedule: The Pipestone expansion is now expected to be operational by the end of 2023, adding 40 million cubic feet per day of capacity, increasing overall capacity from 220 million cubic feet per day to 260 million cubic feet per day. The project, supported by long-term take-or-pay agreements, is on track to be completed at the lower end of the original cost estimate range of $60-million to $70-million.
• 2023 marketing guidance increased: With continued strong performance from AEF, Keyera now expects full-year 2023 realized margin for the marketing segment to range between $420-million and $450-million (previously $380-million to $410-million). The increase reflects strong year-to-date realized margin (year to date 2023: $350-million) and current hedges in place and assumes current forward commodity pricing for unhedged volumes for the remainder of the year.
• Stronger financial position with credit upgrade: Reflecting the company's improved quality of cash flows and strong business outlook, Keyera received a credit upgrade to BBB stable from S&P in September. The company continues to maintain its strong financial position with net debt to adjusted EBITDA at 2.5 times, well within the target range of 2.5 to 3.0 times.

2023 capital and cash tax guidance:

• Keyera now expects growth capital expenditures to range between $200-million and $220-million (previously $200-million to $240-million). The decrease is mostly due to the Pipestone expansion project coming in at the low end of its budgeted cost estimate.
• Keyera reaffirms maintenance capital expenditures to range between $95-million and $105-million.
• Reaffirming cash tax expense is expected to be nil.

2024 guidance update:

• Keyera will be providing 2024 guidance, along with a general business update, in December, 2023.

Chief executive officer message to shareholders

Strategy driving success across business segments. With strategically positioned assets and a fully integrated value chain, Keyera continues to deliver strong results across all three business segments. Notably, assets such as Wapiti, Pipestone, KAPS, KFS and our condensate system are performing well. Volumes continue to trend upward in our Gathering & Processing and Liquids Infrastructure segments driving fee-for-service cash flow growth and providing opportunities in the Marketing segment to deliver more products throughout North America.

KAPS continues to deliver. We've seen KAPS outperform our expectations in the quarter with customers delivering higher than forecasted volumes as the pipeline continues to ramp-up. Our fully integrated platform now offers customers a much-needed competitive alternative from wellhead to end market, allowing Keyera to better compete for volumes and attract full value chain returns.

Improving cash flow quality with fee-for-service growth. At our March 2022 investor day, we said part of our strategy is to improve the quality of cash flows. Since the first quarter of 2022, realized margin from our fee-for-service business has grown more than 20% driven by growth from Wapiti, Pipestone, KAPS and KFS. Reflecting the company's improved cash flow stability and strong business outlook, S&P recently upgraded Keyera's corporate credit rating to BBB stable, our target rating.

Marketing continues to outperform. We are on track for a record year for realized margins from our Marketing business. This result comes from our ability to leverage our physical assets and logistics expertise to deliver products throughout North America. This distinct integrated advantage continues to produce strong cash flows that drive above average corporate returns. Marketing cash flows are reinvested into long life infrastructure projects such as KAPS and the Pipestone expansion, in turn driving growth in higher quality fee-for-service cash flows.

Clear capital allocation priorities. With successful strategic investments and strong business performance, Keyera is now delivering higher levels of discretionary cash flow. Last quarter we took an important step, returning to our long-history of sustainable dividend growth, supported by the strength of our fee-for-service business. Our capital allocation priorities remain grounded in Keyera's long history of prudent financial management. Our first priority is to maintain a strong balance sheet. From there, it will be a balance between disciplined growth capital investments that further enhance our integrated value chain in Western Canada and increasing returns to shareholders.

Continued strong outlook. Keyera is well positioned for the long-term, with strategically integrated assets that stand to benefit from decades of volume growth in Western Canada. The basin continues to set new production records and Canada remains a preferred supplier of energy to the world. With LNG Canada and the Trans Mountain Pipeline Expansion project on the horizon, Keyera will continue to play an integral role in enabling this 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.

Third 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 third quarter of 2023 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Wednesday, November 8, 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 November 21, 2023 (12:00 AM Eastern Time on November 22, 2023), by dialing 888-390-0541 or 416-764-8677 and entering passcode 552456.

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 Wednesday, November 8, 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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