Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") was prepared as of May 14, 2026 and is a review of the results of operations and the liquidity and capital resources of Keyera Corp. and its subsidiaries (collectively "Keyera"). The MD&A should be read in conjunction with the accompanying unaudited condensed interim consolidated financial statements ("accompanying financial statements") of Keyera Corp. for the three months ended March 31, 2026 and the notes thereto, as well as the audited consolidated financial statements of Keyera Corp. for the year ended December 31, 2025 and the related MD&A. The accompanying financial statements have been prepared in accordance with the IFRS® Accounting Standards issued by the International Accounting Standards Board ("IASB"), which are generally accepted accounting principles ("GAAP") in Canada, and are stated in Canadian dollars. Additional information related to Keyera, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca or on Keyera's website at www.keyera.com.

This MD&A contains non-GAAP and other financial measures and forward-looking statements. Readers are cautioned that the MD&A should be read in conjunction with Keyera's disclosure under "NON-GAAP AND OTHER FINANCIAL MEASURES" and "FORWARD-LOOKING STATEMENTS" included at the end of this MD&A.

Keyera's Business

Keyera operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy infrastructure solutions. Keyera operates assets in the oil and gas industry between the upstream sector, which includes oil and gas exploration and production, and the downstream sector, which includes the refining and marketing of finished products. Keyera is organized into three highly integrated operating segments:

Gathering and Processing - Keyera owns and operates raw gas gathering pipelines and processing plants, which collect and process raw natural gas, remove waste products and separate the economic components, primarily natural gas liquids ("NGLs"), before the sales gas is delivered into long-distance pipeline systems for transportation to end-use markets. Keyera also provides condensate handling services through its condensate gathering pipelines and stabilization facilities.
Liquids Infrastructure - Keyera owns and operates a network of facilities for the gathering, processing, storage and transportation of the by-products of natural gas processing, including NGLs in mix form and specification NGLs such as ethane, propane, butane and condensate. In addition, this segment includes Keyera's iso-octane facilities at Alberta EnviroFuels ("AEF"), its liquids blending facilities, its 50% interest in the crude oil storage facility at the Base Line Terminal and its 50% interest in the South Cheecham Rail and Truck Terminal (which includes sulphur handling, forming and storage).
Marketing - Keyera markets a range of products associated with its two infrastructure business lines, primarily propane, butane, condensate and iso-octane, and also engages in liquids blending.

The Gathering and Processing and Liquids Infrastructure segments provide energy infrastructure solutions to customers on a fee-for-service basis. Keyera also has a Corporate business segment that is not considered a material part of the business.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Overview

Keyera had a solid start to 2026, with first quarter results reflecting continued strength from its fee-for-service segments.

Financial Results

Net loss of $122 million (Q1 2025 – net earnings of $130 million), realized margin¹ of $272 million (Q1 2025 – $340 million), adjusted earnings before finance costs, taxes, depreciation and amortization¹ (adjusted for acquisition-related items) of $232 million (Q1 2025 – $298 million) and distributable cash flow¹ (adjusted for acquisition-related items) of $133 million (Q1 2025 – $190 million). Included in these results was record contribution from the Gathering and Processing segment, which was more than offset by lower contribution from the Marketing segment that was impacted by the maintenance outage at the Alberta Envirofuels facility (“AEF”).

Segment Performance

The Gathering and Processing segment had an outstanding start to the year as the business generated record realized margin¹ that was 8% higher than the same period in the prior year. These results were supported by incremental volumes from the newly acquired Simonette East gas plants and record throughput at the Wapiti gas plant. The North region facilities continue to account for over 70% of the segment’s overall margin.
The Liquids Infrastructure segment had a busy start to the year, with record throughput on Keyera’s condensate system and full utilization of the segment’s fractionation units.
The Marketing segment’s financial results were lower in Q1 2026 as iso-octane contribution was negatively impacted from AEF being offline since the beginning of January. Escalating global supply disruptions stemming from the Middle East conflict contributed to materially higher energy prices in March, increasing realized hedging losses on Keyera’s butane inventory intended for the production of iso-octane. The impact of the hedging losses is expected to be largely offset as inventory is consumed and iso-octane volumes are sold during the remainder of the year.

AEF Outage

Following the previously announced outage at the Alberta EnviroFuels (“AEF”) facility, the required repairs have been completed. Keyera is also completing a six-week turnaround that had been previously planned for fall 2026, eliminating the need for a separate shutdown later in the year. The facility is expected to return to full operating capacity by the end of May.

¹ Realized margin, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA and distributable cash flow are not standard measures under GAAP, and therefore may not be comparable to similar measures reported by other entities. For additional information, refer to the section titled “Non-GAAP and Other Financial Measures”.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Plains Acquisition Update

Keyera has successfully closed its acquisition of Plains' Canadian NGL business. The transaction materially expands Keyera's integrated NGL platform, enhancing connectivity across the basin and providing customers with improved access to markets, greater flexibility and increased reliability. Keyera is now focused on integration activities and capturing identified operational and commercial synergies.

The Commissioner of Competition has filed an application in relation to this transaction and the matter will proceed before the Competition Tribunal. Keyera remains confident in the strength of its case and in the long-term strategic rationale for the transaction.

2026 Keyera Standalone Guidance Update (excluding the Plains Acquisition)

Following the completion of the NGL contracting season, 2026 realized margin¹ for the Marketing segment is expected to range between $210 million and $250 million, excluding the additional Marketing margin expected from the Plains acquisition. This range is below the segment's base margin guidance, reflecting the financial impact of the extended AEF outage on the Marketing business.
Growth capital expenditures are expected to range between $400 million and $475 million, with the majority directed toward sanctioned growth projects, including the KFS Frac II debottleneck, the KFS Frac III expansion and KAPS Zone 4.
Maintenance capital expenditures are expected to range between $140 million and $160 million.
Cash taxes are expected to range between $60 million and $70 million.

Readers are referred to the section of the MD&A titled, "Forward-Looking Statements" for a further discussion of the assumptions and risks that could affect future performance and plans.

¹ Realized margin is not a standard measure under GAAP, and therefore may not be comparable to similar measures reported by other entities. For additional information, refer to the section titled "Non-GAAP and Other Financial Measures". For the assumptions associated with the base and 2026 realized margin guidance for the Marketing segment, refer to the sections titled "Segmented Results of Operations: Marketing", "Non-GAAP and Other Financial Measures" and "Forward-Looking Statements".

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

CONSOLIDATED FINANCIAL RESULTS

The following table highlights some of the key consolidated financial results for the three months ended March 31, 2026 and 2025:

(Thousands of Canadian dollars, except per share and ratio data)	Three months ended March 31,
	2026	2025
Net (loss) earnings	(121,970)	130,335
Net (loss) earnings per share (basic)	(0.53)	0.57
Operating margin	99,937	351,590
Realized margin^{1}	272,061	340,110
Adjusted EBITDA^{2}	202,904	298,430
Adjusted EBITDA^{2}(adjusted for acquisition-related items)	231,563	298,430
Cash flow from operating activities	322,022	165,325
Funds from operations^{3}	143,211	222,237
Distributable cash flow^{3}	101,164	189,579
Distributable cash flow per share^{3}(basic)	0.44	0.83
Distributable cash flow^{3}(adjusted for acquisition-related items)	133,328	189,579
Distributable cash flow per share^{3}(basic) (adjusted for acquisition-related items)	0.58	0.83
Dividends declared	123,818	119,160
Dividends declared per share	0.54	0.52
Payout ratio^{4}	122%	63%
Payout ratio^{4}(adjusted for acquisition-related items)	93%	63%

Notes:
Keyera utilizes the following measures which are not standard measures under GAAP and therefore, may not be comparable to similar measures reported by other entities. See the section titled "Non-GAAP and Other Financial Measures".
1. Realized margin is defined as operating margin excluding unrealized gains and losses on commodity-related risk management contracts. See the section titled "Segmented Results of Operations" for a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin.
2. EBITDA is defined as earnings before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before costs associated with non-cash items, including unrealized gains and losses on commodity-related contracts, net foreign currency gains and losses on U.S. debt and other, impairment expenses and any other non-cash items such as gains and losses on the disposal of property, plant and equipment. See the section titled "EBITDA and Adjusted EBITDA" for a reconciliation of EBITDA and adjusted EBITDA to the most directly comparable GAAP measure, net earnings.
3. Funds from operations is defined as cash flow from operating activities adjusted for changes in non-cash working capital. Distributable cash flow is defined as cash flow from operating activities adjusted for changes in non-cash working capital, inventory write-downs, maintenance capital expenditures and lease payments, including the periodic costs related to prepaid leases. Distributable cash flow per share is defined as distributable cash flow divided by weighted average number of shares – basic. See the section titled “Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio” for a reconciliation of funds from operations and distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities.
4. Payout ratio is defined as dividends declared to shareholders divided by distributable cash flow. See the section titled "Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Net Earnings

For the three months ended March 31, 2026, Keyera recorded a net loss of $122 million, compared to net earnings of $130 million for the same period of the prior year. This reduction was due to the factors shown in the table below:

See the section below for more information related to operating margin. For all other charges mentioned above, please see the section of the MD&A titled, "Corporate and Other".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Operating Margin and Realized Margin

For the three months ended March 31, 2026, operating margin was $100 million, $252 million lower than the prior year primarily due to: i) the inclusion of a $163 million unrealized non-cash loss associated with risk management contracts from the Marketing segment in the first quarter of 2026, compared to a non-cash gain of $6 million in the prior year, and ii) $68 million of lower realized margin as described in more detail below.

In the first quarter of 2026, realized margin¹ (excludes the effect of unrealized gains and losses from commodity-related risk management contracts) was $272 million, $68 million lower than 2025 and includes the following changes in contribution by segment:

See the section titled "Segmented Results of Operations" for additional information on operating results by segment.

¹ Realized margin is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. See the section titled "Non-GAAP and Other Financial Measures". For a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin, see the section titled "Segmented Results of Operations".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Cash Flow Metrics

Cash flow from operating activities for the first quarter of 2026 was $322 million, $157 million higher than the prior year primarily due to a lower net cash requirement to fund operating working capital associated with accounts receivable and accounts payable, which was partially offset by lower realized margin from the Marketing segment.

Distributable cash flow¹ adjusted for acquisition-related items for the three months ended March 31, 2026 was $133 million, $56 million lower than 2025 due to the factors shown in the table below:

For more information related to the charges above, please see the section of this MD&A titled, "Corporate and Other".

¹ Distributable cash flow is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. See the section titled "Non-GAAP and Other Financial Measures". For a reconciliation of distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities, see the section titled "Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

SEGMENTED RESULTS OF OPERATIONS

The discussion of the results of operations for each of the operating segments focuses on operating margin and realized margin. Operating margin refers to operating revenues less operating expenses and does not include the elimination of inter-segment transactions. Management believes operating margin provides an accurate portrayal of operating profitability by segment. Keyera's Gathering and Processing and Liquids Infrastructure segments charge Keyera's Marketing segment for the use of facilities at market rates. These segment measures of profitability for the three months ended March 31, 2026 and 2025 are reported in note 15, Segment Information, of the accompanying financial statements. A complete description of Keyera's businesses by segment can be found in Keyera's Annual Information Form, which is available on SEDAR+ at www.sedarplus.ca.

Realized margin is defined as operating margin excluding unrealized gains and losses on commodity-related risk management contracts. Management believes that this supplemental measure facilitates the understanding of the financial results for the operating segments in the period without the effect of mark-to-market changes from risk management contracts related to future periods. Realized margin is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. Refer to the section of this MD&A titled "Non-GAAP and Other Financial Measures".

The following is a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin. For operating margin and realized margin by segment, refer to the Gathering and Processing, Liquids Infrastructure and Marketing sections below.

| Operating Margin and Realized Margin
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Revenue | 1,300,667 | 1,760,407 |
| Operating expenses | (1,200,730) | (1,408,817) |
| Operating margin | 99,937 | 351,590 |
| Unrealized loss (gain) on risk management contracts | 172,124 | (11,480) |
| Realized margin | 272,061 | 340,110 |

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Gathering and Processing

Keyera currently has interests in 11 active gas plants $^{1,2}$, all of which are located in Alberta. The Gathering and Processing segment includes raw gas gathering systems and processing plants strategically located in the natural gas production areas on the western side of the Western Canada Sedimentary Basin ("WCSB"). Several of the gas plants are interconnected by raw gas gathering pipelines, allowing raw gas to be directed to the gas plant best suited to process the gas. Most of Keyera's facilities are also equipped with condensate handling capabilities. Keyera's facilities and gathering systems collectively constitute a network that is well positioned to serve drilling and production activity in the WCSB.

Keyera's Wapiti, Pipestone, Simonette and Simonette East $^{2}$ gas plants are referred to as its "Northern" or "North" gas plants due to their geographic location and proximity to one another. Gas plants in the North are generally dedicated to processing gas and handling condensate from the Montney and Duvernay formations. All of Keyera's other Gathering and Processing plants are located in the Alberta Deep Basin and are referred to as Keyera's "Southern" or "South" gas plants.

Operating margin and realized margin for the Gathering and Processing segment were:

| Operating Margin, Realized Margin and Throughput Information
(Thousands of Canadian dollars, except for processing throughput information) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Revenue^{3} | 198,359 | 183,243 |
| Operating expenses^{3} | (85,443) | (71,103) |
| Operating margin | 112,916 | 112,140 |
| Unrealized loss (gain) on risk management contracts | 4,995 | (2,834) |
| Realized margin^{4} | 117,911 | 109,306 |
| Gross processing throughput^{5} – (MMcf/d) | 1,752 | 1,587 |
| Net processing throughput^{5,6} – (MMcf/d) | 1,545 | 1,435 |

Excludes gas plants where Keyera has suspended operations.
In December 2025, Keyera completed the acquisition of a 50.1% working interest in two gas plants and associated infrastructure in the Simonette area. These gas plants and their associated infrastructure are collectively referred to as Simonette East.
Includes inter-segment transactions.
Realized margin is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. Refer to the section titled "Non-GAAP and Other Financial Measures".
Includes gas volumes and the conversion of liquids volumes handled through the processing facilities to a gas volume equivalent.
Net processing throughput refers to Keyera's share of raw gas processed at its processing facilities.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

First Quarter Operating Margin and Revenue
Operating Margin	$1 million vs Q1 2025	• The increase reflects incremental margin from the Simonette East gas plants acquired in December 2025, which were largely offset by unrealized losses on risk management contracts.
Revenue	$15 million vs Q1 2025	• Increase in revenue was mainly due to incremental revenues from the recently acquired Simonette East gas plants.

Gathering and Processing Activity

The Gathering and Processing segment had an outstanding start to the year as the business generated record realized margin in the first quarter that was 8% higher than the same period in the prior year. The record results reflected strong performance from the North region gas plants which account for over 70% of the segment's overall margin.

In the North region, quarterly gross processing throughput reached an all-time high, due to incremental volumes from the newly acquired Simonette East gas plants and record throughput at the Wapiti gas plant. During this period, the Wapiti complex maintained strong operational performance supporting the receipt of incremental production volumes. Producer activity levels in the North continue to remain strong due to economics that are largely tied to NGL pricing, condensate in particular. The connection of the Wapiti, Pipestone and Simonette gas plants to the KAPS pipeline system and Keyera's core infrastructure in Fort Saskatchewan, provides these North region gas plants with a competitive advantage in providing customers integrated gas processing, NGL and condensate services.

In the South region, gross processing throughput increased by 4% compared to the same period in the prior year as new production volumes resulted in higher processing throughput at the Brazeau River, Alder Flats and Rimbey gas plants. As the liquids-rich Duvernay play continues to expand, Keyera is well positioned to grow operating margin from its South region gas plants by delivering competitive and integrated service solutions to producers active in the region.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Liquids Infrastructure

The Liquids Infrastructure segment provides fractionation, storage, transportation, liquids blending and terminalling services for NGLs and crude oil, and produces iso-octane. These services are provided to customers through an extensive network of facilities, including the following assets:

NGL and condensate pipelines
Pipeline, rail and truck terminals
Underground NGL storage caverns
Liquids blending facilities
Above ground storage tanks
the AEF facility
NGL fractionation and de-ethanization facilities

The AEF facility has an effective production capacity of approximately 14,000 barrels per day of iso-octane. Iso-octane is a low vapour pressure, high-octane gasoline blending component that contains virtually no sulphur, aromatics or benzene, making this product a clean burning gasoline additive. AEF uses butane as the primary feedstock to produce iso-octane. As a result, AEF's business creates positive synergies with Keyera's Marketing business, which purchases, handles, stores and sells large volumes of butane.

Most of Keyera's Liquids Infrastructure assets are located in, or connected to, the Edmonton/Fort Saskatchewan area of Alberta. A portion of the NGL production from Alberta raw gas processing plants is delivered into the Edmonton/Fort Saskatchewan area via multiple NGL gathering systems and the KAPS pipeline system for fractionation into specification products and delivery to market. Keyera's underground storage caverns at Fort Saskatchewan are used to store NGL mix and specification products. For example, propane can be stored in the summer months to meet winter demand; condensate can be stored to meet the diluent supply needs of the oil sands sector; and butane can be stored to meet blending and iso-octane feedstock requirements.

Keyera operates an industry-leading condensate hub in Western Canada that includes connections to: i) all major condensate receipt points, including the KAPS pipeline system, the Southern Lights pipeline and CRW pool, Fort Saskatchewan area fractionators, the Cochin pipeline and Canadian Diluent Hub; and ii) all major condensate delivery points, including the Polaris and Cold Lake pipelines, the Norlite pipeline, CRW pool, and the Access pipeline system.

Keyera's Liquids Infrastructure assets are integrated with its Marketing segment, providing the ability to source, transport, process, store and deliver products across North America. A portion of the revenues earned by this segment relate to services provided to Keyera's Marketing segment. All of the revenues in this segment that are associated with the AEF facility, the Oklahoma Liquids Terminal and Galena Park infrastructure relate to services provided to the Marketing segment.

Operating margin and realized margin for the Liquids Infrastructure segment were:

| Operating Margin and Realized Margin
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Revenue^{1} | 218,286 | 235,825 |
| Operating expenses^{1} | (81,441) | (80,313) |
| Operating margin | 136,845 | 155,512 |
| Unrealized loss (gain) on risk management contracts | 4,299 | (3,065) |
| Realized margin^{2} | 141,144 | 152,447 |

Notes:
1 Includes inter-segment transactions.
2 Realized margin is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. Refer to the section titled "Non-GAAP and Other Financial Measures".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

First Quarter Operating Margin and Revenue

| Operating Margin | $19 million vs Q1 2025 | Decrease was primarily due to:
• lower contribution from the AEF facility as a result of its maintenance outage; and
• $4 million in unrealized non-cash losses from risk management contracts in Q1 2026 compared to $3 million in unrealized non-cash gains in Q1 2025. |
| --- | --- | --- |
| Revenue | $18 million vs Q1 2025 | • Decrease was mainly due to lower processing revenue from the AEF facility due to its maintenance outage. |

Liquids Infrastructure Activity

Keyera's Liquids Infrastructure segment had a busy start to the year in 2026, meeting customer demand through strong utilization of its strategic assets while advancing growth projects and progressing AEF maintenance activities.

Continued strength in oil sands production underpinned solid condensate demand during the first quarter of 2026. Higher contracted volumes and strong operational performance resulted in record quarterly throughput on Keyera's condensate system that was 5% higher compared to the same period in the prior year. While these volumes supported operating margin, the incremental impact was not significant, reflecting the stability provided by long-term take-or-pay agreements Keyera has with several major oil sands producers. Under these agreements, Keyera provides a variety of services including diluent transportation, storage and rail offload services in the Edmonton/Fort Saskatchewan area. The growth in oil sands production and demand for condensate drives the activity levels of producers drilling in the Montney and Duvernay, and ultimately benefits Keyera's core infrastructure, including the KAPS pipeline system. With the Fort Saskatchewan Condensate System ("FSCS") nearing contractual capacity, Keyera is evaluating debottlenecking opportunities that would expand capacity to accommodate further demand.

Fractionation capacity in Alberta continues to be in high demand. As a result, Keyera's two fractionation units at the KFS complex were fully utilized in the first quarter of 2026 and are anticipated to operate at full capacity for the remainder of the year. Keyera's existing and planned fractionation capacity, including the KFS Frac II debottleneck and KFS Frac III expansion, are substantially contracted. The current average contract life of 7 years is expected to extend to 11 years by 2028, while average take-or-pay commitments are anticipated to increase from 70% to 80%.

Demand for services from Keyera's Fort Saskatchewan storage assets is expected to remain consistent over the long term. These assets provide operational flexibility and value to customers in a dynamic commodity price environment.

The AEF facility, which is operated by the Liquids Infrastructure segment, provides iso-octane processing services to the Marketing segment on a fee-for-service basis. In early January, the facility was taken offline to

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

investigate reduced plant performance, with the subsequent inspection identifying a failure in long-life equipment replaced approximately three years ago. The required repairs are now complete and maintenance turnaround activities are in their final stages. The facility is expected to return to full operating capacity by the end of May. The outage is expected to reduce annual realized margin in the Liquids Infrastructure segment by approximately $15 million. Readers are referred to the "Overview" section of the MD&A for additional details regarding the outage.

In January, Keyera closed on the sale transaction of its non-core Wildhorse Terminal in Oklahoma for $65 million USD ($88 million CAD). The sale is consistent with Keyera's focus on optimizing its asset base and recycling capital into higher-return opportunities.

Keyera has successfully closed its acquisition of Plains' Canadian NGL business. The transaction materially expands Keyera's integrated NGL platform, enhancing connectivity across the basin and providing customers with improved access to markets, greater flexibility and increased reliability. Keyera is now focused on integration activities and capturing identified operational and commercial synergies.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Keyera continues to focus on enhancing its infrastructure to meet the needs of its customers. The table below is a status update of major projects in the Liquids Infrastructure segment:

Liquids Infrastructure – Capital Projects Status Update

Facility/Area	Project Description	Project Status Update
KFS	KFS Fractionation Unit II Debottleneck	Site construction activities are near completion.
	The debottleneck of KFS Fractionation Unit II (“KFS Frac II”) will add approximately 8,000 barrels per day of processing capacity.	The debottleneck project is expected to be complete by the end of June 2026.

Estimated total cost to complete:
• gross cost and Keyera’s net share of costs is now estimated to be approximately $75 million (previously $85 million), reflecting a $10 million reduction from the prior forecast

Total net costs to March 31, 2026:
• $9 million for the first quarter of 2026
• $51 million since inception |
| KFS | KFS Fractionation Unit III Expansion | Detailed engineering and procurement activities continue to advance. |
| | KFS Fractionation Unit III (“KFS Frac III”) will have processing capacity of approximately 47,000 barrels per day. This project includes investments to enhance egress capability at the plant. | KFS Frac III is expected to enter service in mid-2028.

Estimated total cost to complete:
• gross cost is estimated to be approximately $500 million
• Keyera’s net share of costs is approximately $490 million

Total net costs to March 31, 2026:
• $32 million for the first quarter of 2026
• $99 million since inception |

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Liquids Infrastructure – Capital Projects Status Update
Facility/Area	Project Description	Project Status Update
KAPS
(50/50 joint venture with Stonepeak)	KAPS Zone 4
KAPS Zone 4 is an 85-kilometre extension of the existing KAPS pipeline, connecting Pipestone to Gordondale, Alberta. This project includes investments in additional pumping capacity on KAPS Zones 1 to 3.	Detailed engineering and early field activities continue to progress.
KAPS Zone 4 is expected to be in service in mid-2027.

Estimated total cost to complete:
• gross cost is estimated to be approximately $440 million
• Keyera’s net share of costs is approximately $220 million

Total net costs to March 31, 2026:
• $11 million for the first quarter of 2026
• $44 million since inception |

A portion of the costs incurred for the projects above are based on estimates. Final costs may differ when actual invoices are received or contracts are settled. Costs for the projects described above exclude carrying charges (i.e., capitalized interest). The section of this MD&A titled, “Forward-Looking Statements”, provides more information on factors that could affect the development of these projects.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Marketing

The Marketing segment is focused on the purchase and sale of products associated with Keyera and other third-party facilities, including NGLs, crude oil and iso-octane. Keyera markets products acquired through processing arrangements, term supply agreements and other purchase transactions. Most NGL volumes are purchased under one-year supply contracts typically with terms beginning in April of each year. In addition, Keyera has long-term supply arrangements with several producers for a portion of its NGL supply. Keyera may also source additional condensate or butane, including from the U.S., when market conditions and associated sales contracts are favourable.

Keyera negotiates sales contracts with customers in Canada and the U.S. based on the volumes it has contracted to purchase. In the case of condensate sales, the majority of the product is sold to customers in Alberta shortly after it is purchased. Butane is used as the primary feedstock in the production of iso-octane at Keyera's AEF facility and therefore a significant portion of the contracted butane supply is retained for Keyera's own use.

Propane markets are seasonal and geographically diverse. Keyera sells propane in various North American markets, often where the only option for delivery is via railcar or truck. With the seasonal nature of propane demand in North America, Keyera can utilize its NGL storage facilities to build an inventory of propane during the summer months when prices are typically lower, to fulfill winter term-sales commitments. Complementing its North American sales, Keyera also benefits from commercial access to a west coast export terminal, allowing propane sales into Asia, further diversifying end-market exposure. Keyera is well positioned to serve these geographically diverse markets due to its extensive infrastructure and rail logistics expertise.

Keyera manages its NGL supply and sales portfolio by monitoring its inventory position and purchase and sale commitments. Nevertheless, the Marketing business is exposed to commodity price fluctuations arising between the time contracted volumes are purchased and the time they are sold, as well as pricing differentials between different geographic markets. These risks are managed by purchasing and selling product at prices based on the same or similar indices or benchmarks, and through physical and financial contracts that include energy-related forward contracts, price swaps, forward currency contracts and other hedging instruments. A more detailed description of the risks associated with the Marketing segment is available in Keyera's Annual Information Form, which is available on SEDAR+ at www.sedarplus.ca.

Keyera's primary markets for iso-octane are in the Gulf Coast, Midwestern United States, and Western Canada. Demand for octanes is seasonal, with higher demand in the spring and summer, typically resulting in higher sales prices during these months. There can be significant variability in iso-octane margins. As with Keyera's other marketing activities, various strategies are utilized to mitigate the risks associated with the commodity price exposure, including the use of financial contracts. The section of this MD&A titled "Risk Management" provides more information on the risks associated with the sale of iso-octane and Keyera's related hedging strategy.

Keyera also engages in liquids blending, where it operates facilities at various locations, allowing it to transport, process and blend various product streams. Margins are earned by blending products of lower value into higher value products. As a result, these transactions are exposed to variability in price and quality differentials between various product streams. Keyera manages this risk by balancing its purchases and sales and employing risk management strategies.

Overall, the integration of Keyera's business lines means that its Marketing segment can draw on the resources available to it through its two fee-for-service, facilities-based operating segments (Liquids Infrastructure and

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Gathering and Processing), including access to NGL supply and key fractionation, storage and transportation infrastructure and logistics expertise.

In a typical year, Keyera expects the Marketing business to contribute on average, a base realized margin of between $310 million and $350 million. This guidance assumes: i) a crude oil price of between US$65 and US$75 per barrel; ii) butane feedstock costs comparable to the 10-year average; and iii) AEF utilization at nameplate capacity.

There are numerous variables that can affect the results from Keyera's Marketing segment. For a detailed discussion of risk factors that affect Keyera, see Keyera's Annual Information Form which is available on SEDAR+ at www.sedarplus.ca.

Operating margin and realized margin for the Marketing segment were:

| Operating Margin and Realized Margin
(Thousands of Canadian dollars, except for sales volume information) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Revenue¹ | 1,007,040 | 1,475,330 |
| Operating expenses¹ | (1,156,843) | (1,391,321) |
| Operating margin | (149,803) | 84,009 |
| Unrealized loss (gain) on risk management contracts | 162,830 | (5,581) |
| Realized margin² | 13,027 | 78,428 |
| Sales volumes (Bbl/d) | 214,800 | 220,800 |

| Composition of Marketing Revenue
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Physical sales | 1,235,113 | 1,480,083 |
| Realized loss on financial contracts¹ | (65,243) | (10,334) |
| Unrealized (loss) gain due to reversal of financial contracts existing at end of prior period | (47,056) | 6,667 |
| Unrealized loss due to fair value of financial contracts existing at end of current period | (115,172) | (796) |
| Unrealized loss from fixed price physical contracts² | (602) | (290) |
| Total unrealized (loss) gain on risk management contracts | (162,830) | 5,581 |
| Total loss on risk management contracts | (228,073) | (4,753) |
| Total Marketing revenue | 1,007,040 | 1,475,330 |

Notes:
1 Realized gains and losses represent actual cash settlements or receipts under the respective contracts.
2 Unrealized gains and losses represent the change in fair value of fixed price physical contracts that meet the GAAP definition of a derivative instrument.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

First Quarter Operating Margin, Realized Margin and Revenue

| Operating Margin | ↓
$234 million
vs
Q1 2025 | • Decrease was primarily due to $163 million in unrealized non-cash losses from risk management contracts in Q1 2026 compared to $6 million in unrealized non-cash gains in Q1 2025 and $65 million in lower realized margin as described in more detail below. |
| --- | --- | --- |
| Realized Margin^{1} | ↓
$65 million
vs
Q1 2025 | Decrease was mainly due to $74 million in lower contribution from:
• decreased iso-octane sales volumes resulting from the outage at the AEF facility; and
• greater realized hedging losses on butane inventory related to iso-octane production. These losses will be largely offset through physical sales of iso-octane during the remainder of 2026.

The above factors were partly offset by higher propane margins, supported by strong North American market fundamentals and robust export levels. |
| Revenue | ↓
$468 million
vs
Q1 2025 | Decrease was primarily due to:
• lower iso-octane sales as described above;
• reduced liquids blending and crude sales volumes from the disposition of the Wildhorse Terminal; and
• lower average sales prices for most products that were reflective of weaker pricing during the first two months of Q1 2026, compared to the same period in the prior year. |

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Market Commentary

With Keyera's disciplined risk management program and current commodity price outlook, Keyera expects its Marketing segment to contribute realized margin of between $210 million and $250 million in 2026, excluding the additional Marketing margin expected from the Plains acquisition. This range is below the segment's base margin guidance, reflecting the financial impact of the extended AEF outage on the Marketing business, which is estimated to be approximately $110 million. The 2026 guidance range assumes i) the AEF facility operates at capacity after completion of the maintenance outage and for the remainder of the year; ii) there are no significant logistics or transportation curtailments; and iii) current forward commodity pricing for unhedged volumes for the remainder of the year.

During the first quarter of 2026, iso-octane contribution was negatively impacted by reduced sales volumes resulting from AEF being offline since the beginning of January. At the same time, escalating global supply disruptions stemming from the Middle East conflict contributed to materially higher energy prices in March, increasing realized hedging losses on Keyera's butane inventory intended for the production of iso-octane. The impact of the hedging losses will be largely offset as inventory is consumed and iso-octane volumes are sold during the remainder of the year upon AEF resuming normal operations. With AEF maintenance activities nearing completion, Keyera is positioned to benefit from the upcoming summer driving season, a period that typically supports stronger gasoline pricing and iso-octane premiums, which are expected to be further enhanced by ongoing global supply constraints. Keyera continues to remain confident that the long-term market fundamentals for iso-octane will be strong as the requirement for higher octane gasoline for new internal combustion engine vehicles continues to grow. Iso-octane is a unique product that encompasses three key characteristics: i) low RVP; ii) low sulphur; and iii) 99.5 octane rating. These characteristics allow Keyera to continue to access premium markets for this product and generate strong margins.

As butane is the primary feedstock to produce iso-octane, butane costs directly affect iso-octane margins. The majority of Keyera's butane supply is purchased on a one-year term basis. For the annual term supply contracts that began on April 1, 2026, the price for butane as a percentage of crude oil was below the historical average of the previous 10 years.

Keyera's condensate and liquids blending business generated solid margins in the first quarter, supported by stronger crude oil prices in March. These business activities continue to be a meaningful contributor to the Marketing segment results.

Propane margin was robust in the first quarter of 2026 as colder weather patterns and high export levels out of North America helped maintain a strong pricing environment. Keyera expects sustained strong propane demand from Asia through 2026 that will result in continued high export levels out of the west coast of Canada. Access to Keyera's cavern storage, rail terminals, as well as west coast export facilities provides the Marketing segment with a competitive advantage as it can store and transport product to the highest value domestic or export markets throughout the year.

KEYERA CORP.

Management's Discussion and Analysis

When possible, Keyera uses hedging strategies to mitigate risk in its Marketing business, including foreign currency exchange risk associated with the purchase and sale of NGLs and iso-octane. Keyera's hedging objective for iso-octane is to secure attractive margins and mitigate the effect of iso-octane price fluctuations on its future operating margins. Iso-octane is generally priced at a premium to the price of RBOB. RBOB is the highest volume refined product sold in the U.S. and has the most liquid forward financial contracts. Accordingly, Keyera expects to continue to utilize RBOB-based financial contracts to hedge a portion of its iso-octane sales.

To protect the value of its NGL inventory from fluctuations in commodity prices, Keyera typically uses physical and financial forward contracts. For propane inventory, contracts are generally put in place as inventory builds and may either: i) settle when products are expected to be withdrawn from inventory and sold; or ii) settle and reset on a month-to-month basis. Within these strategies, there may be differences in timing between when the contracts are settled and when the product is sold. In general, the increase or decrease in the fair value of the contracts is intended to mitigate fluctuations in the value of the inventories and protect operating margin. Keyera typically uses propane physical and financial forward contracts to hedge its propane inventory.

Keyera may hold butane inventory to meet the feedstock requirements of the AEF facility. For condensate, most of the product purchased is sold within one month. The supply and sales prices for both butane and condensate are typically priced as a percentage of West Texas Intermediate (“WTI”) crude oil and in certain cases the supply cost may be based on a hub posted or index price. To align the pricing terms of physical supply with the terms of contracted sales and to protect the value of butane and condensate inventory, the following hedging strategies may be utilized:

Keyera may enter into financial contracts to lock in the supply price at a specified percentage of WTI, as the sales contracts for butane and condensate are also generally priced in relation to WTI. When butane or condensate is physically purchased, the financial contract is settled and a realized gain or loss is recorded in income.
Once the product is in inventory, WTI financial forward contracts are generally used to protect the value of the inventory.

Within these hedging strategies, there may be differences in timing between when the financial contracts are settled and when the products are purchased and sold. There may also be basis risk between the prices of crude oil and the NGL products, and therefore the financial contracts may not fully offset future butane and condensate price movements.

For the quarter ended March 31, 2026, the total unrealized loss on risk management contracts was $163 million. Further details are provided in the “Composition of Marketing Revenue” table above.

The fair value of outstanding financial and physical risk management contracts as at March 31, 2026 resulted in a liability of $116 million. These fair values will vary as these contracts are marked-to-market at the end of each period. A summary of the financial contracts existing at March 31, 2026, and the sensitivity to earnings resulting from changes in commodity prices, can be found in note 11, Financial Instruments and Risk Management, of the accompanying financial statements.

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

CORPORATE AND OTHER

| Non-Operating Expenses and Other
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| General and administrative expenses¹ | (37,105) | (36,488) |
| Acquisition and integration costs | (28,659) | — |
| Finance costs | (79,261) | (51,826) |
| Depreciation and amortization expenses | (94,457) | (91,087) |
| Net foreign currency (loss) gain on U.S. debt and other | (1,403) | 1,941 |
| Long-term incentive plan expense | (3,393) | (5,192) |
| Loss on disposal of property, plant and equipment | (9,317) | — |
| Income tax recovery (expense) | 31,688 | (38,603) |

Note:
1 Net of overhead recoveries on operated facilities.

General and Administrative Expenses

General and administrative (“G&A”) expenses for the three months ended March 31, 2026 were $37 million, $1 million higher when compared to the same period of the prior year.

Acquisition and Integration Costs

For the three months ended March 31, 2026, $29 million of acquisition and integration costs associated with the Plains acquisition have been expensed to the condensed interim consolidated statement of net earnings and comprehensive income. For additional information related to the Plains acquisition, refer to the section of this MD&A titled “Liquidity and Capital Resources: Subscription Receipt Offering” and note 5, Plains Acquisition and Subscription Receipt Offering, of the accompanying financial statements.

Finance Costs

Finance costs for the three months ended March 31, 2026 were $79 million, $27 million higher when compared to the same period of 2025, primarily as a result of: i) a net finance expense of $16 million recorded during the first quarter in relation to the Dividend Equivalent Payments that were paid to subscription receipt holders that were partly offset by interest income earned on the subscription receipts proceeds held in escrow; and ii) a net finance charge of $13 million related to the long-term debt issued to partially fund the Plains acquisition purchase price. Additional information can be found in note 13, Finance Costs, of the accompanying financial statements.

Depreciation and Amortization Expenses

Depreciation and amortization expenses for the three months ended March 31, 2026 were $94 million, $3 million higher than the same period of 2025, primarily due to an increase in Keyera’s overall asset base.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Net Foreign Currency Gain (Loss) on U.S. Debt and Other

| Net Foreign Currency Gain (Loss) on U.S. Debt and Other
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Translation of long-term debt and interest payable | (1,599) | 547 |
| Change in fair value of cross-currency swaps – principal and interest | 1,613 | 1,164 |
| Foreign exchange re-measurement of lease liabilities and other | (1,417) | 230 |
| Net foreign currency (loss) gain on U.S. debt and other | (1,403) | 1,941 |

To manage the foreign currency exposure on U.S. dollar denominated debt, Keyera has entered into cross-currency agreements with a syndicate of banks to swap the U.S. dollar principal and future interest payments into Canadian dollars. The cross-currency agreements are accounted for as derivative instruments and are marked-to-market at the end of each period. The fair value of the cross-currency swap agreements will fluctuate between periods due to changes in the forward curve for foreign exchange rates, as well as an adjustment to reflect credit risk. Additional information on the swap agreements can be found in note 11, Financial Instruments and Risk Management, of the accompanying financial statements.

Long-Term Incentive Plan Expense

For the three months ended March 31, 2026, the Long-Term Incentive Plan ("LTIP") expense was $3 million, $2 million lower than the same period of the previous year.

Net Impairment Expense

Keyera reviews its assets for indicators of impairment on a quarterly basis. Also, if an asset has been impaired and subsequently recovers in value, GAAP requires the previous impairment to be reversed, resulting in an increase in the carrying amount of the asset. Impairment expenses are non-cash charges and do not affect operating margin, funds from operations, distributable cash flow, or adjusted EBITDA.

During the three months ended March 31, 2026 and 2025, Keyera did not record any impairment expenses or impairment reversals for previously recorded impairment expenses.

Disposal of Property, Plant and Equipment

On January 16, 2026, Keyera completed the disposition of its ownership interest in the non-core Wildhorse Terminal in Oklahoma. Total gross proceeds from the transaction were $88 million (US$65 million), resulting in the recognition of a loss of $9 million during the first quarter. The transaction is subject to customary post-closing adjustments and includes the assumption of a $5 million decommissioning obligation by the purchaser.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Taxes

In general, as earnings before taxes increase, total tax expense (current and deferred taxes) will also be higher. If sufficient tax pools exist, current income taxes will be reduced and deferred income taxes will increase as these tax pools are utilized. Other factors that affect the calculation of deferred income taxes include future income tax rate changes and permanent differences, which include accounting income or expenses that will never be taxed or deductible for income tax purposes.

Current Income Taxes

A current income tax recovery of $1 million was recorded for the three months ended March 31, 2026, compared to a current income tax expense of $29 million for the same period of 2025. Current taxes have decreased in 2026 due to lower net earnings.

For 2026, it is estimated that current income tax expense will range between $60 million and $70 million on a stand-alone basis prior to the Plains acquisition. This current income tax estimate assumes that Keyera's business performs as planned.

Deferred Income Taxes

A deferred income tax recovery of $31 million was recorded for the three months ended March 31, 2026, compared to a deferred income tax expense of $10 million in the same period of the prior year.

Keyera estimates its total tax pools at March 31, 2026 were approximately $3.0 billion.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

CRITICAL ACCOUNTING ESTIMATES

In preparing Keyera's accompanying financial statements in accordance with GAAP, management is required to make estimates and assumptions that are not readily apparent from other sources, and are subject to change based on revised circumstances and the availability of new information. Actual results may differ from the estimates, which could materially affect Keyera's consolidated financial statements. Management has made appropriate decisions with respect to the formulation of estimates and assumptions that affect the recorded amounts of certain assets, liabilities, revenues and expenses. Keyera has hired qualified individuals who have the skills required to make such estimates. These estimates and assumptions are reviewed and compared to actual results as well as to budgets in order to make more informed decisions on future estimates. The methodologies and assumptions used in developing these estimates have not significantly changed since December 31, 2025. A description of the accounting estimates and the methodologies and assumptions underlying the estimates are described in the 2025 annual MD&A and note 4 of the audited consolidated financial statements for the year ended December 31, 2025, which are available on SEDAR+ at www.sedarplus.ca.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

LIQUIDITY AND CAPITAL RESOURCES

The following is a comparison of cash inflows (outflows) from operating, investing and financing activities for the three months ended March 31, 2026 and 2025:

| Cash inflows (outflows)
(Thousands of Canadian dollars) | | | | |
| --- | --- | --- | --- | --- |
| | Three months ended March 31, | | Increase
(decrease) | Explanation |
| | 2026 | 2025 | | |
| Operating | 322,022 | 165,325 | 156,697 | Cash generated from operating activities was higher during the first quarter of 2026, primarily due to a lower net cash requirement to fund operating working capital associated with accounts receivable and accounts payable, which are merely timing differences associated with the collection and settlement of these balances. This was partially offset by lower realized margin from the Marketing segment. |
| Investing | (27,599) | (44,467) | 16,868 | During the first quarter of 2026, Keyera disposed of its ownership interest in the Wildhorse Terminal for gross proceeds of $88 million. This increase in cash was partly offset by the net cash requirements to fund ongoing capital requirements and projects.

Significant capital investment projects are described in more detail in the “Segmented Results of Operations” section of this MD&A. |
| Financing | (138,286) | (133,674) | (4,612) | During the third quarter of 2025, Keyera increased the dividend by 4% from $0.52 to $0.54 per common share. |

Refer to the condensed interim consolidated statements of cash flows of the accompanying financial statements for more detailed information.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Working capital requirements are strongly influenced by the amounts of inventory held in storage and their related commodity prices. Product inventories are required to meet seasonal demand patterns and will vary depending on the time of year. Typically, Keyera's inventory levels for propane are at their lowest after the winter season and reach their peak in the third quarter to meet the demand for propane in the winter season.

Butane inventory is maintained for the production of iso-octane. When market conditions enable Keyera to source additional butane at favourable prices, butane may be held in storage for use in future periods. Inventory levels for iso-octane may fluctuate depending on market conditions. Demand for iso-octane is typically stronger in the second and third quarters, associated with the higher gasoline demand in the summer months.

A working capital surplus (current assets less current liabilities) of $2.1 billion existed at March 31, 2026. This is compared to a surplus of $2.3 billion at December 31, 2025. To meet its current obligations and growth capital program, Keyera has access to a credit facility in the amount of $1.5 billion, of which no amounts were drawn as at March 31, 2026. Refer to the section of this MD&A titled "Long-term Debt", for more information related to Keyera's unsecured revolving credit facility ("Credit Facility").

Corporate Credit Ratings

Keyera has been assigned the following ratings by S&P Global ("S&P") and Morningstar DBRS Limited ("DBRS"). Both credit agencies currently treat the subordinated hybrid notes as 50% equity.

	S&P	DBRS
Corporate credit rating	“BBB/stable”	“BBB” with a “stable” trend
Issuer rating on senior unsecured debt	“BBB”	“BBB” with a “stable” trend
Issuer rating on subordinated notes	“BB+”	“BB (high)”

Credit ratings are intended to provide investors with an independent measure of credit quality of an issue of securities. Credit ratings are not recommendations to purchase, hold or sell securities and do not address the market price or suitability of a specific security for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant.

Rating agencies will regularly evaluate Keyera, including its financial strength. In addition, factors not entirely within Keyera's control may also be considered, including conditions affecting the industry in which it operates. A credit rating downgrade could impair Keyera's ability to enter into arrangements with suppliers or counterparties and could limit its access to private and public credit markets in the future and increase the costs of borrowing.

Subscription Receipt Offering

On June 17, 2025, Keyera entered into a definitive agreement to acquire substantially all of Plains' Canadian natural gas liquids business, plus select U.S. assets (the "Acquisition"). The total cash consideration for the transaction was $5.3 billion, including preliminary post-closing adjustments. The Acquisition closed in the second quarter of 2026.

At the time of announcement, Keyera obtained fully committed financing to fund the entire purchase price through an acquisition credit facility in place with the Royal Bank of Canada and a syndicate of other lenders,

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

and a bought deal equity offering of subscription receipts, as described in more detail below. The remainder of the purchase price was funded through the issuance of debt securities and cash on hand.

As described in the section titled, "Long-term Debt: 2025 Debt Issuances", on September 29, 2025, Keyera issued the aggregate principal amounts of $2.3 billion of senior unsecured notes and $500 million of fixed-to-fixed rate subordinated notes. The acquisition credit facility that was secured for interim financing of the Acquisition was cancelled on September 29, 2025, upon being replaced by the issuance of these notes.

On June 20, 2025, Keyera completed a bought deal offering in Canada of subscription receipts (the "Subscription Receipt Offering" or "Offering"), whereby Keyera issued 52,874,700 subscription receipts (including 6,896,700 subscription receipts pursuant to the exercise in full by the underwriters for the Subscription Receipt Offering of the over-allotment that was granted). The subscription receipts were issued at a price of $39.15 per subscription receipt, for total gross proceeds of approximately $2.07 billion. The net proceeds of the Offering (gross proceeds from the sale of the subscription receipts, less underwriters' fees, together with any interest and other income received or credited thereon) were used to finance a portion of the purchase price of the Acquisition.

While the subscription receipts were outstanding, the holders received cash payments equal to the dividends declared for each common share, net of any applicable withholding taxes ("Dividend Equivalent Payments"). The Dividend Equivalent Payments had the same record date and payment date as the related common share dividends and were first paid out of any interest on the escrowed funds, and then out of the escrowed funds. Upon the Acquisition close, each subscription receipt converted to one common share of Keyera.

For the three months ended March 31, 2026, interest income of $13 million was recognized on the escrowed Funds and Dividend Equivalent Payments of $29 million were made to the subscription receipt holders. These amounts have been recognized in finance costs of the accompanying condensed interim consolidated statement of net earnings and comprehensive income.

As the subscription receipts did not qualify as issuable shares until the Acquisition closed and the subscription receipts were converted to common shares, they have not been included in the calculation of earnings per share for the three months ended March 31, 2026.

Additional details regarding the subscription receipts and the Acquisition arrangement can be found in note 5 of the accompanying financial statements.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Long-term Debt (including Credit Facilities)

Below is a summary of Keyera's long-term debt obligations as at March 31, 2026:

| As at March 31, 2026
(Thousands of Canadian dollars) | Total | 2026 | 2027 | 2028 | 2029 | 2030 | After 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Credit facilities | — | — | — | — | — | — | — |
| Total credit facilities | — | — | — | — | — | — | — |
| Canadian dollar denominated debt: | | | | | | | |
| Senior unsecured notes | 3,205,000 | 230,000 | 400,000 | 200,000 | 75,000 | 500,000 | 1,800,000 |
| Senior unsecured medium-term notes | 1,450,000 | — | — | 400,000 | — | 400,000 | 650,000 |
| Subordinated hybrid notes | 1,450,000 | — | — | — | — | — | 1,450,000 |
| | 6,105,000 | 230,000 | 400,000 | 600,000 | 75,000 | 900,000 | 3,900,000 |
| U.S. dollar denominated debt: | | | | | | | |
| Senior unsecured U.S. dollar denominated notes | 90,710 | — | — | 90,710 | — | — | — |
| Total debt | 6,195,710 | 230,000 | 400,000 | 690,710 | 75,000 | 900,000 | 3,900,000 |
| Less: current portion of long-term debt | (230,000) | (230,000) | — | — | — | — | — |
| Total long-term debt | 5,965,710 | — | 400,000 | 690,710 | 75,000 | 900,000 | 3,900,000 |

Credit Facilities

As at March 31, 2026, Keyera's Credit Facility was with a syndicate of six lenders under which it could borrow up to $1.5 billion, with the potential to increase that limit to $2.0 billion subject to certain conditions. No amounts were drawn under this facility as at March 31, 2026 (December 31, 2025 – $nil). The Credit Facility matures on December 6, 2030 and management expects to extend the facility prior to maturity. In the event of reaching maturity, management expects an adequate replacement will be established.

Keyera also has two unsecured revolving demand facilities, one with the Toronto Dominion Bank in the amount of $50 million and the other with the Royal Bank of Canada in the amount of $150 million. Depending on the type of borrowing, these facilities bear interest based on the lenders' rates for Canadian prime commercial loans, U.S. base rate loans, Canadian Overnight Repo Rate Average ("CORRA") loans, Secured Overnight Financing Rate ("SOFR") loans or letters of credit.

Arranged Sources of Financing Related to the Plains Acquisition

In December 2025, Keyera executed the following arrangements which became effective on the closing date of the Plains acquisition. These arrangements are subject to compliance with covenants that are similar to the main facility. The proceeds of the arrangements were used to finance a portion of the Plains acquisition and related transaction costs.

Revolving Credit Facility Amendment – Keyera amended its revolving Credit Facility, increasing the amount it can borrow from $1.5 billion to $2.0 billion, with the potential to increase that limit to $2.5 billion. The amendment also increased the syndicate from six to seven lenders. The facility's other terms and covenants remain substantially unchanged.
Term Loan Credit Facility – Keyera entered into a non-revolving term loan facility with the same syndicate of seven lenders as the revolving credit facility amendment, which allows for committed financing of up to $850 million as a one-time drawn amount. The term of the facility is three years and

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

commences on the day it is funded. The amount drawn on the facility is repayable at any time; however, once repaid, the facility cannot be re-drawn. Similar to the main facility, borrowings are available in Canadian or U.S. dollar prime commercial loans, U.S. base rate loans, CORRA loans or SOFR loans.

Long-term Debt

Keyera's long-term debt structure consists of a number of senior unsecured notes, medium-term notes and subordinated hybrid notes.

As at March 31, 2026, Keyera had $6.1 billion and US$65 million of long-term debt. To manage the foreign currency exposure on the U.S. dollar denominated debt, Keyera has entered into cross-currency agreements with a syndicate of banks to swap the U.S. dollar principal and future interest payments into Canadian dollars at foreign exchange rates of $1.03 per U.S. dollar for the principal payments and $1.14 per U.S. dollar for the future interest payments. The cross-currency agreements are accounted for as derivative instruments and are measured at fair value at the end of each quarter. The section of this MD&A titled, "Net Foreign Currency Gain (Loss) on U.S. Debt and Other", provides more information.

2025 Debt Issuances

On September 29, 2025, Keyera issued the aggregate principal amounts of $2.3 billion of senior unsecured notes (the "Senior Notes") and $500 million of fixed-to-fixed rate subordinated notes (the "Hybrid Notes" and together with the Senior Notes, the "Notes"), with the following terms:

	Principal	Interest Rate^{1}	Maturity Date
Senior unsecured notes – Series 5	$500 million	3.702%	October 15, 2030
Senior unsecured notes – Series 6	$600 million	4.204%	April 15, 2033
Senior unsecured notes – Series 7	$500 million	4.569%	October 15, 2035
Senior unsecured notes – Series 8	$700 million	5.309%	October 15, 2055
Fixed-to-fixed rate subordinated notes	$500 million	6.000%	October 15, 2055

Note:
1 Interest is payable semi-annually.

The net proceeds from the issuance of the Notes, together with the proceeds from the subscription receipt offering, were used to fund a portion of the purchase price of the Plains acquisition.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Compliance with Covenants

The Credit Facility is subject to two major financial covenants: "Net Debt to Adjusted EBITDA" and "Adjusted EBITDA to Interest Charges" ratios. The senior unsecured notes are subject to three major financial covenants: "Net Debt to Adjusted EBITDA", "Adjusted EBITDA to Interest Charges" and "Priority Debt to Total Assets". The medium-term notes are subject to one major financial covenant: "Funded Debt to Total Capitalization". The calculations for each of these ratios i) are based on specific definitions in the agreements governing the Credit Facility and relevant notes, as applicable, ii) are not in accordance with GAAP, and iii) cannot be easily calculated by referring to the company's financial statements. Failure to adhere to these covenants may impair Keyera's ability to pay dividends and such a circumstance could affect the company's ability to execute future growth plans. Management expects that upon maturity of the company's credit facilities and other debt arrangements, adequate replacements will be established.

The primary covenant for Keyera's private senior unsecured notes and its Credit Facility is a Net Debt to Adjusted EBITDA ratio. In the calculation of debt for the purpose of calculating this covenant, Keyera is required to: i) include senior debt; ii) deduct working capital surpluses or add working capital deficits; and iii) utilize the cross-currency swap rates in the calculation of debt rather than the spot rate as at each statement of financial position date. The covenant test calculation also excludes 100% of Keyera's $1.45 billion subordinated hybrid notes. Keyera is required to maintain a Net Debt to Adjusted EBITDA ratio of less than 4.0; however, the company has the flexibility to increase this ratio from 4.0 to 4.5 for periods of up to four consecutive fiscal quarters.

As at March 31, 2026, Keyera was in compliance with all covenants under its Credit Facility and outstanding notes. As a long-term target, Keyera's objective is to maintain a Net Debt to Adjusted EBITDA ratio for covenant test purposes of between 2.5x to 3.0x. This range results in a leverage profile that supports Keyera's investment grade credit ratings. As at March 31, 2026, Keyera's Net Debt to Adjusted EBITDA ratio was 2.2x for covenant test purposes (December 31, 2025 - 1.8x), reflecting the temporary benefit of cash proceeds from the $500 million of hybrid notes issued during the third quarter of 2025 and the credit that Keyera receives for the associated cash balance.

For additional information regarding these financial covenants, refer to the Credit Facility and the Note Agreements which are available on SEDAR+ at www.sedarplus.ca.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Capital Expenditures

| Capital Expenditures
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Growth capital expenditures | 92,387 | 13,416 |
| Maintenance capital expenditures | 28,328 | 16,039 |
| Total capital expenditures | 120,715 | 29,455 |

Refer to the section titled "Segmented Results of Operations" for information related to the various growth capital projects in the Gathering and Process and Liquids Infrastructure segments, including estimated costs to complete, costs incurred in 2026 and since inception of the projects, and estimated completion timeframes.

Keyera has comprehensive inspection, monitoring and maintenance programs in place. The objectives of these programs are to keep Keyera's facilities in good working order and to maintain their ability to operate reliably for many years.

Dividends

Funds from Operations, Distributable Cash Flow and Payout Ratio

Funds from operations, distributable cash flow and payout ratio are not standard measures under GAAP and therefore, may not be comparable to similar measures reported by other entities. Refer to the section of this MD&A titled "Non-GAAP and Other Financial Measures".

Funds from operations is defined as cash flow from operating activities adjusted for changes in non-cash working capital. This measure is used to assess the level of cash flow generated from operating activities excluding the effect of changes in non-cash working capital, as they are primarily the result of seasonal fluctuations in product inventories or other temporary changes. Funds from operations is also a valuable measure that allows investors to compare Keyera with other infrastructure companies within the oil and gas industry.

Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends. Cash flow from operating activities is adjusted for changes in non-cash working capital, inventory write-downs, maintenance capital expenditures and lease payments, including the periodic costs related to prepaid leases.

Commencing with the 2025 LTIP expense settlement, shares delivered to employees under the LTIP are being issued from treasury instead of being acquired in the marketplace. As a result, the calculation of DCF includes an adjustment for the value of these shares as they do not require an exchange of cash.

Payout ratio is calculated as dividends declared to shareholders divided by distributable cash flow. This ratio is used to assess the sustainability of Keyera's dividend payment program.

Distributable cash flow and payout ratio, adjusted for acquisition-related items (net of tax), have also been presented. The acquisition-related adjustments include the following in relation to the Plains acquisition: i) acquisition and integration costs recorded, and ii) net financing adjustments related to the long-term debt issued to partially fund the acquisition purchase price, including incremental interest expense and interest income earned.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

The following is a reconciliation of funds from operations and distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities:

| Funds from Operations and Distributable Cash Flow
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Cash flow from operating activities | 322,022 | 165,325 |
| Add (deduct): | | |
| Changes in non-cash working capital | (178,811) | 56,912 |
| Funds from operations | 143,211 | 222,237 |
| Maintenance capital | (28,328) | (16,039) |
| Leases | (13,604) | (14,484) |
| Prepaid lease asset | (595) | (595) |
| Inventory write-down | — | (1,540) |
| LTIP expense – common shares issued | 480 | — |
| Distributable cash flow | 101,164 | 189,579 |
| Acquisition and integration costs, net of tax | 22,067 | — |
| Net financing adjustments for incremental debt, net of tax | 10,097 | — |
| Distributable cash flow (adjusted for acquisition-related items) | 133,328 | 189,579 |
| Dividends declared to shareholders | 123,818 | 119,160 |
| Payout ratio | 122% | 63% |
| Payout ratio (adjusted for acquisition-related items) | 93% | 63% |

Dividend Policy

One of Keyera's priorities is to maintain and grow the dividend while preserving a low dividend payout ratio and strong financial position. In determining the level of cash dividends to shareholders, Keyera's board of directors considers current and expected future levels of distributable cash flow, capital expenditures, borrowings and debt repayments, changes in working capital requirements and other factors.

Keyera expects to pay dividends from distributable cash flow; however, credit facilities may be used to stabilize dividends from time to time. Growth capital expenditures will be funded from cash, retained operating cash flow, and additional debt or equity, as required. Although Keyera intends to continue to make regular cash dividends to its shareholders, these dividends are not guaranteed. For a more detailed discussion of the risks that could affect the level of cash dividends, refer to Keyera's Annual Information Form available on SEDAR+ at www.sedarplus.ca.

2025 Dividend Increase

During the third quarter of 2025, Keyera's board of directors approved a 4% increase to the quarterly dividend, revising the dividend to $0.54 per share or $2.16 per share on an annualized basis (previously $0.52 and $2.08 per share, respectively).

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

EBITDA AND ADJUSTED EBITDA

EBITDA and adjusted EBITDA are not standard measures under GAAP and therefore, may not be comparable to similar measures reported by other entities. EBITDA is a measure showing earnings before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-cash items, including unrealized gains and losses on commodity-related contracts, net foreign currency gains and losses on U.S. debt and other, impairment expenses and any other non-cash items such as gains and losses on the disposal of property, plant and equipment. Management believes that these supplemental measures facilitate the understanding of Keyera's results from operations. In particular, these measures are used as an indication of earnings generated from operations after consideration of administrative and overhead costs. Adjusted EBITDA, adjusted for the acquisition and integration costs associated with the Plains acquisition, has also been presented. Refer to the section of this MD&A titled "Non-GAAP and Other Financial Measures".

The following is a reconciliation of EBITDA and adjusted EBITDA to the most directly comparable GAAP measure, net earnings:

| EBITDA and Adjusted EBITDA
(Thousands of Canadian dollars) | Three months ended
March 31, | |
| --- | --- | --- |
| | 2026 | 2025 |
| Net (loss) earnings | (121,970) | 130,335 |
| Add: | | |
| Finance costs | 79,261 | 51,826 |
| Depreciation and amortization expenses | 94,457 | 91,087 |
| Income tax (recovery) expense | (31,688) | 38,603 |
| EBITDA | 20,060 | 311,851 |
| Unrealized loss (gain) on commodity-related contracts | 172,124 | (11,480) |
| Net foreign currency loss (gain) on U.S. debt and other | 1,403 | (1,941) |
| Loss on disposal of property, plant and equipment | 9,317 | — |
| Adjusted EBITDA | 202,904 | 298,430 |
| Acquisition and integration costs | 28,659 | — |
| Adjusted EBITDA (adjusted for acquisition-related items) | 231,563 | 298,430 |

CONTRACTUAL OBLIGATIONS

Keyera has assumed various contractual obligations in the normal course of its operations. There were no material changes in contractual obligations since December 31, 2025.

RELATED PARTY TRANSACTIONS

Keyera has provided compensation to key management personnel who are comprised of its directors and executive officers. There have been no other material related party transactions or significant changes to the annual compensation amounts disclosed in the December 31, 2025 annual audited financial statements.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

RISK FACTORS

For a detailed discussion of the risks and trends that could affect the financial performance of Keyera and the steps that Keyera takes to mitigate these risks, see the December 31, 2025 MD&A and Keyera's Annual Information Form, which are available on SEDAR+ at www.sedarplus.ca.

Risks Associated with Tariff Uncertainty

Keyera owns assets in Canada and the United States ("U.S.") and earns revenues from natural gas gathering and processing; transportation, storage and marketing of natural gas liquids ("NGLs") and iso-octane in the U.S.; the production of iso-octane; and liquids blending in Canada and the U.S. Accordingly, the introduction of new trade policies, including the enforcement of additional tariffs, surtaxes and duties, and any retaliatory countermeasures, may create trade restrictions or barriers on energy products imported or exported between Canada and the U.S. The significant uncertainty surrounding recent trade relations between Canada and the U.S. has the potential to create considerable market and economic volatility. Among other factors, this includes: i) cost and commodity price volatility, including widening differentials, ii) reduced demand for Keyera's products or services, iii) restrictions or barriers to market access outside of Canada, iv) disruptions or restrictions to global supply chains, and v) foreign exchange impacts as a result of a weakening Canadian dollar. This volatility can result in adverse impacts on Keyera's business operations, results of operations and financial condition; however, the significant uncertainty around any finalized trade policies means that the resulting outcomes and impacts are unknown and can range from scenarios that have an insignificant and/or limited impact to Keyera, to scenarios that have a material and more widespread impact. Keyera continues to monitor the developments in Canada/U.S. trade policies and relations; however, at this time, cannot reasonably predict the full extent of any outcomes and associated impacts that evolving trade disputes and future changes to trade policies may have on Keyera's business operations, results of operations and financial condition.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

ENVIRONMENTAL REGULATION AND CLIMATE CHANGE

Keyera is subject to a range of operational laws, regulations and requirements imposed by various levels of government and regulatory bodies in the jurisdictions in which it operates. While these legal controls and regulations affect numerous aspects of Keyera's activities, including but not limited to, emissions, the operation of wells, pipelines and facilities, construction activities, transportation of dangerous goods, emergency response, operational safety and environmental matters, Keyera does not believe that they impact its operations in a manner materially different from other comparable businesses operating in the same jurisdictions.

The midstream industry in Alberta is subject to provincial and federal environmental legislation and regulations. Among other things, the environmental regulatory regime restricts or prohibits releases or emissions of various substances produced in association with certain oil and natural gas industry operations. Environmental regulation affects the operation of facilities and pipelines and limits the extent to which facility expansion is permitted. In addition, legislation requires that facility sites and pipelines be abandoned and reclaimed to the satisfaction of provincial authorities and local landowners. A breach of such legislation may result in notices of non-compliance, the imposition of fines, the issuance of clean-up orders or the shutting down of facilities and pipelines or the suspension of operations (either temporarily or permanently).

Greenhouse gases, mainly carbon dioxide and methane, are components of the raw natural gas processed and handled at Keyera's facilities. Keyera's facilities also require the combustion of fossil fuels in engines, turbines, heaters and boilers, as well as the use of electricity, all of which release carbon dioxide, methane and other minor greenhouse gases. As such, Keyera is subject to various greenhouse gas reporting requirements and emission intensity and reduction requirements. Keyera uses engineering consulting firms and internal resources to compile inventories of greenhouse gas emissions and reports these inventories in accordance with federal and provincial programs. Third party audits or verifications of inventories are conducted for facilities that are required to meet regulatory targets.

The regulatory framework in respect of greenhouse gases and other emissions is evolving rapidly. An increasing area of risk relates to the ongoing development, change and costs associated with federal and provincial emissions-related regulation, including emissions management and direct costs related to compliance and monitoring.

Keyera's management and the Board continue to advance the integration of climate-related risks and opportunities into corporate strategy, risk management processes, and capital investment frameworks. These advancements support Keyera's energy transition strategy, founded on a parallel path approach designed to lower both emissions intensity and operating costs from Keyera's base operations, while at the same time pursuing strategic, lower-carbon commercial opportunities arising from the energy transition. Keyera intends to continue to work to reduce emissions intensity from base operations by pursuing operational efficiency, optimizing the utilization of our assets, investing in technology, supporting renewable energy development, and exploring the use of carbon capture, utilization, and storage in operations. With regards to pursuing energy transition opportunities, Keyera is exploring lower-carbon services that leverage Keyera's existing asset base, core competencies, and strong customer relationships.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

SUMMARY OF QUARTERLY RESULTS

The following table presents selected financial information for Keyera:

	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024
Revenue1
Gathering and Processing	198,359	190,936	178,075	189,638	183,243	192,405	174,234	178,702
Liquids Infrastructure	218,286	236,186	228,182	232,848	235,825	228,701	216,369	222,175
Marketing	1,007,040	1,407,272	1,511,294	1,319,965	1,475,330	1,645,556	1,694,319	1,444,656
Other	11	9	13	7	17	10	13	30
Operating margin (loss)
Gathering and Processing	112,916	100,691	111,795	109,464	112,140	107,834	99,114	101,885
Liquids Infrastructure	136,845	147,980	148,264	140,599	155,512	154,295	135,677	131,904
Marketing	(149,803)	97,308	57,983	115,614	84,009	45,264	190,799	136,010
Other	(21)	(66)	(43)	(68)	(71)	(98)	(64)	(50)
Operating margin	99,937	345,913	317,999	365,609	351,590	307,295	425,526	369,749
Realized margin (loss)2
Gathering and Processing	117,911	106,280	112,293	111,498	109,306	107,303	99,152	101,934
Liquids Infrastructure	141,144	150,338	147,348	143,162	152,447	152,576	135,374	133,077
Marketing	13,027	88,765	73,234	60,001	78,428	99,408	134,857	135,983
Other	(21)	(66)	(43)	(68)	(71)	(98)	(64)	(50)
Realized margin2	272,061	345,317	332,832	314,593	340,110	359,189	369,319	370,944
Net (loss) earnings	(121,970)	90,266	85,216	126,518	130,335	88,906	184,631	142,177
Net (loss) earnings per share ($/share)
Basic	(0.53)	0.39	0.37	0.55	0.57	0.39	0.81	0.62
Diluted	(0.53)	0.39	0.37	0.55	0.57	0.39	0.81	0.62
Weighted average number of shares (basic)	229,287	229,283	229,229	229,153	229,153	229,153	229,153	229,153
Weighted average number of shares (diluted)	229,287	229,283	229,229	229,153	229,153	229,153	229,153	229,153
Dividends declared to shareholders	123,818	123,813	123,812	119,160	119,160	119,160	119,160	114,576

Notes:
1 Keyera's Gathering and Processing and Liquids Infrastructure segments charge Keyera's Marketing segment for the use of facilities at market rates. Revenue before inter-segment eliminations reflects these transactions. Inter-segment transactions are eliminated on consolidation in order to arrive at operating revenues in accordance with GAAP.
2 Realized margin is not a standard measure under GAAP and therefore, may not be comparable to similar measures reported by other entities. See the section of this MD&A titled "Non-GAAP and Other Financial Measures" for additional details.

For the periods in the table above, Keyera's results were affected by the following factors and trends:

iso-octane contribution negatively impacted by AEF being offline during the first quarter of 2026, affecting financial results from the Marketing segment;
strong commodity prices and energy demand that resulted in periods of record operating margin for the Gathering and Processing and Liquids Infrastructure segments and strong contribution from the Marketing segment;
growth in demand for diluent handling services in the Liquids Infrastructure segment backed by long-term, take-or-pay contracts with credit worthy counterparties;
incremental margin from the KAPS pipeline system due to higher contracted volumes;

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

record gross processing throughput levels for the Wapiti and Pipestone gas plants in the Gathering and Processing segment that contributed to higher operating margin;
periods marked by exceptionally strong motor gasoline pricing and iso-octane premiums;
the recognition of expenses and income in net earnings related to the Plains acquisition, including acquisition and integration costs, Dividend Equivalent Payments and interest income earned on the escrowed funds; and
a prudent and effective risk management program.

See the section of this MD&A, "Segmented Results of Operations", for more information on the financial results of Keyera's operating segments for the three months ended March 31, 2026.

ADOPTION OF NEW STANDARDS

During the first quarter of 2026, Keyera adopted amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures issued by the IASB that are effective for annual periods beginning on or after January 1, 2026. The amendments include clarification of the derecognition date of financial liabilities, introducing a new accounting policy exemption for financial liabilities that are settled through an electronic payment system. Retrospective application of the amendments is required, with earlier adoption permitted. The initial adoption of these amendments did not have a material impact on the interim consolidated financial statements.

FUTURE ACCOUNTING PRONOUNCEMENTS

In 2024, the Canadian Accounting Standards Board endorsed IFRS 18, Presentation and Disclosure in Financial Statements, which was issued by the IASB. IFRS 18 introduces: i) defined categories for income and expenses and certain defined subtotals in the statement of net earnings, including operating profit, ii) required disclosures of certain management-defined performance measures, and iii) aggregation and disaggregation principles for the grouping of information in the consolidated financial statements. IFRS 18 will replace IAS 1, Presentation of Financial Statements, and is effective for annual periods beginning on or after January 1, 2027. The standard requires retrospective application with early adoption permitted. Keyera is currently assessing the impact of adopting IFRS 18 on the consolidated financial statements.

CONTROL ENVIRONMENT

Disclosure Controls and Procedures and Internal Control over Financial Reporting

Keyera's disclosure controls and procedures ("DC&P"), as defined in National Instrument 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings ("NI 52-109"), are designed to provide reasonable assurance that material information relating to Keyera and its consolidated subsidiaries has been brought to the attention of the President and Chief Executive Officer ("CEO") and the Senior Vice-President and Chief Financial Officer ("CFO"), and that information required to be disclosed pursuant to applicable securities legislation has been recorded, processed, summarized and reported in an appropriate and timely manner.

Keyera also maintains internal control over financial reporting ("ICFR"), as defined in NI 52-109, which is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.

The CEO and CFO evaluated the design and effectiveness of the DC&P and ICFR as at December 31, 2025 and concluded that both were effective.

While the CEO and CFO have determined that Keyera's DC&P and ICFR are effective and provide a reasonable level of assurance with respect to financial statement preparation and presentation, both have inherent

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

limitations. Therefore, it is not intended that Keyera's DC&P and ICFR will prevent all errors or fraud, nor will they provide absolute assurance that a misstatement of Keyera's financial statements will be prevented or detected.

Changes in Internal Control over Financial Reporting

No changes were made for the period beginning January 1, 2026 and ending March 31, 2026 that have materially affected, or are reasonably likely to materially affect Keyera's ICFR.

COMMON SHARES

The total common shares outstanding at March 31, 2026 was 229,292,074.

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

NON-GAAP AND OTHER FINANCIAL MEASURES

This discussion and analysis may refer to certain financial measures that are not determined in accordance with GAAP. Measures such as funds from operations, distributable cash flow ("DCF"), distributable cash flow per share, payout ratio, realized margin, EBITDA, adjusted EBITDA, adjusted cash flow from operating activities, return on invested capital ("ROIC") and compound annual growth rate ("CAGR") calculations are not standard measures under GAAP or are supplementary financial measures, and as a result, may not be comparable to similar measures reported by other entities. Management believes these non-GAAP and other financial measures facilitate the understanding of Keyera's results of operations, leverage, liquidity and financial position. Investors are cautioned, however, that these measures should not be construed as an alternative to net earnings or other measures determined in accordance with GAAP as an indication of Keyera's performance.

Funds from Operations
Definition	Funds from Operations: Cash flow from operating activities adjusted for changes in non-cash working capital.
Utilization	Funds from operations is used to assess the level of cash flow generated from operating activities excluding the effect of changes in non-cash working capital, as they are primarily the result of seasonal fluctuations in product inventories or other temporary changes. Funds from operations is also a valuable measure that allows investors to compare Keyera with other companies within the midstream oil and gas industry.

Funds from Operations

Definition

Funds from Operations: Cash flow from operating activities adjusted for changes in non-cash working capital.

Utilization

Funds from operations is used to assess the level of cash flow generated from operating activities excluding the effect of changes in non-cash working capital, as they are primarily the result of seasonal fluctuations in product inventories or other temporary changes. Funds from operations is also a valuable measure that allows investors to compare Keyera with other companies within the midstream oil and gas industry.

For a reconciliation of funds from operations to the most directly comparable GAAP measure, cash flow from operating activities, refer to the section titled, “Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio”. |
| Distributable Cash Flow (“DCF”) / DCF per Share | |
| Definition | DCF: Cash flow from operating activities adjusted for changes in non-cash working capital, inventory write-downs, maintenance capital expenditures and lease payments, including the periodic costs related to prepaid leases.

Commencing with the 2025 LTIP expense settlement, shares delivered to employees under the LTIP are being issued from treasury instead of being acquired in the marketplace. As a result, the calculation of DCF will now include an adjustment for the value of these shares as they do not require an exchange of cash.

DCF per Share: Distributable cash flow divided by weighted average number of shares – basic.

DCF (adjusted for acquisition-related items): Acquisition and integration costs associated with the Plains acquisition and net financing adjustments related to the long-term debt issued to partially fund the Plains acquisition purchase price (including incremental interest expense and interest income earned) have been added back to the calculation of DCF. These adjustments have been calculated net of tax.

DCF per Share (adjusted for acquisition-related items): DCF (adjusted for acquisition-related items) divided by weighted average number of shares – basic. |
| Utilization | Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends.

For a reconciliation of distributable cash flow to the most directly comparable GAAP measure, cash flow from operating activities, refer to the section titled, “Dividends: Funds from Operations, Distributable Cash Flow and Payout Ratio”. |

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Payout Ratio
Definition	Payout Ratio: Dividends declared to shareholders divided by distributable cash flow.
	Payout Ratio (adjusted for acquisition-related items): Dividends declared to shareholders divided by distributable cash flow (adjusted for acquisition-related items).
Utilization	Payout ratio is used to assess the sustainability of Keyera's dividend payment program.
Realized Margin
Definition	Realized Margin: Operating margin excluding unrealized gains and losses on commodity-related risk management contracts.
	Fee-for-Service Realized Margin: Includes realized margin for the Gathering and Processing and Liquids Infrastructure segments. Fee-for-service realized margin is utilized as an input for the compound annual growth rate calculation for fee-based adjusted EBITDA, which is described in more detail below.
Utilization	Realized margin is used to assess the financial performance of Keyera's ongoing operations without the effect of unrealized gains and losses on commodity-related risk management contracts related to future periods.
	For a reconciliation of realized margin to the most directly comparable GAAP measure, operating margin, refer to the section titled, "Segmented Results of Operations".
	For fee-for-service realized margin, the following is the reconciliation to the most directly comparable GAAP measure, operating margin for the Gathering and Processing and Liquids Infrastructure segments:
	Fee-for-Service Realized Margin
For the three months ended March 31, 2026
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
	Operating margin	112,916	136,845	249,761
	Unrealized loss on risk management contracts	4,995	4,299	9,294
	Realized margin	117,911	141,144	259,055
	Fee-for-Service Realized Margin
For the three months ended March 31, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
	Operating margin	112,140	155,512	267,652
	Unrealized gain on risk management contracts	(2,834)	(3,065)	(5,899)
	Realized margin	109,306	152,447	261,753
	Fee-for-Service Realized Margin
For the year ended December 31, 2025
(Thousands of Canadian dollars)	Gathering & Processing	Liquids Infrastructure	Fee-for-Service
	Operating margin	434,090	592,355	1,026,445
	Unrealized loss on risk management contracts	5,287	940	6,227
	Realized margin	439,377	593,295	1,032,672

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Realized Margin
Related Guidance Measures (Forward-Looking Information)	Annual Base Realized Margin for the Marketing Segment ($310 million to $350 million) This measure represents Keyera's expectation of what the Marketing segment will contribute on average in a typical year. Material factors and assumptions associated with the annual base realized margin guidance for the Marketing segment can be found in the sections titled, "Segmented Results of Operations: Marketing" and "Forward-Looking Statements".
	2026 Realized Margin for the Marketing Segment (excluding the additional Marketing margin expected from the Plains Acquisition) ($210 million to $250 million) This measure represents Keyera's expectation of what the Marketing segment will generate in 2026. It is intended to be an annual-specific update to the base realized margin guidance for the Marketing segment and takes into consideration: i) year-to-date performance of the Marketing segment, and ii) the annual negotiation process for the natural gas liquids ("NGLs") supply agreements that became effective on April 1st.
	Following the completion of the NGL contracting season, 2026 realized margin for the Marketing segment is expected to range between $210 million and $250 million, excluding the additional Marketing margin expected from the Plains acquisition. This range is below the segment's base margin guidance, reflecting the financial impact of the extended AEF outage on the Marketing business, which is estimated to be approximately $110 million. The 2026 guidance range assumes i) the AEF facility operates at capacity after completion of the maintenance outage and for the remainder of the year; ii) there are no significant logistics or transportation curtailments; and iii) current forward commodity pricing for unhedged volumes for the remainder of the year.
	Additional information for the 2026 realized margin guidance for the Marketing segment can be found in the sections titled, "Segmented Results of Operations: Marketing – Market Commentary" and "Forward-Looking Statements".
EBITDA / Adjusted EBITDA
Definition	EBITDA: Earnings before finance costs, taxes, depreciation, and amortization.
	Adjusted EBITDA: EBITDA before costs associated with non-cash items, including unrealized gains and losses on commodity-related contracts, net foreign currency gains and losses on U.S. debt and other, impairment expenses and any other non-cash items such as gains and losses on the disposal of property, plant and equipment.
	Adjusted EBITDA (adjusted for acquisition-related items): Acquisition and integration costs associated with the Plains acquisition have been added back to the calculation of Adjusted EBITDA.
Utilization	EBITDA and adjusted EBITDA are measures used as an indication of earnings generated from operations after consideration of administrative and overhead costs.
	For a reconciliation of EBITDA and adjusted EBITDA to the most directly comparable GAAP measure, net earnings, refer to the section titled, "EBITDA and Adjusted EBITDA".

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Adjusted Cash Flow from Operating Activities
Definition	Adjusted Cash Flow from Operating Activities: Cash flow from operating activities before changes in non-cash working capital, decommissioning liability expenditures and finance costs.
Utilization	Adjusted cash flow from operating activities is used solely for purposes of calculating return on invested capital and is therefore not used by management on a stand-alone basis.
Since the return on invested capital measure is intended to be calculated on an annual basis, the reconciliation of adjusted cash flow from operating activities to the most directly comparable GAAP measure, cash flow from operating activities, can be found in the section titled, “Adjusted Cash Flow from Operating Activities and Return on Invested Capital” included in Keyera’s most recent annual MD&A.
Return on Invested Capital (“ROIC”)
Definition	ROIC: Adjusted cash flow from operating activities, divided by invested capital.
Invested capital includes property, plant and equipment, right-of-use assets, inventory, trade and other receivables, goodwill, intangible assets, less work-in-progress assets, and trade and other payables, and provisions.
Utilization	Return on invested capital is used to reflect the profitability of Keyera’s in-service capital assets.

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

Compound Annual Growth Rate ("CAGR") Calculations

Definition	CAGR is calculated as follows:
	CAGR = $\left[\frac{\text{End of the period}^}{\text{Beginning of the period}^}\right]$		-1
	* Beginning and end of period values for the CAGR calculations are defined below.

CAGR for Fee-Based Adjusted EBITDA
(replaces CAGR for adjusted EBITDA holding Marketing constant)
CAGR for fee-based adjusted EBITDA is intended to provide information on a forward-looking basis (initiating a 7% to 8% fee-based adjusted EBITDA CAGR target from 2024 to 2027). This calculation utilizes beginning and end of period fee-based adjusted EBITDA, which includes the following components and assumptions: i) forecasted fee-for-service realized margin (realized margin for the Gathering and Processing and Liquids Infrastructure segments as explained in more detail above), and ii) adjustments for total forecasted general and administrative, and long-term incentive plan expense. | | | | |
| Definition | The following includes the equivalent historical measure for fee-based adjusted EBITDA, which is the non-GAAP measure component of the related forward-looking CAGR calculation.

Fee-Based Adjusted EBITDA
For the years ended December 31,
(Thousands of Canadian dollars) | | | | |
| | Realized Margin – Fee-for-Service | 1,032,672 | 970,308 | 890,644 | 752,684 |
| | Less: | | | | |
| | General and administrative expenses | (128,612) | (117,142) | (106,494) | (82,843) |
| | Long-term incentive plan expense | (43,796) | (62,450) | (50,909) | (33,284) |
| | Fee-Based Adjusted EBITDA | 860,264 | 790,716 | 733,241 | 636,557 |
| | This measure replaces CAGR for adjusted EBITDA holding Marketing constant. In addition to the components of CAGR for fee-based adjusted EBITDA, CAGR for adjusted EBITDA holding Marketing constant included realized margin for the Marketing segment, which was held at a value within the expected base realized margin (between $310 million and $350 million). Over the 2022 to 2025 timeframe, Keyera achieved a CAGR for adjusted EBITDA holding marketing constant of 7% (the upper end of its 6% to 7% target).

By adjusting the composition of the measure to exclude the Marketing segment entirely, Keyera believes the revised fee-based adjusted EBITDA CAGR calculation improves clarity and enhances peer comparability.

CAGR for DCF per Share
Calculation utilizes beginning and end of period DCF per share, which is a non-GAAP ratio as defined above.

CAGR for Dividends per Share
Calculation utilizes beginning and end of period dividends per share, which is a supplementary financial measure. | | | | |

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY
2026 First Quarter Report May 14, 2026

Compound Annual Growth Rate ("CAGR") Calculations
Utilization	CAGR for fee-based adjusted EBITDA represents the expected earnings growth attributable to the fee-for-service business. Margin and EBITDA growth reinforces Keyera's ability to sustainably return capital to shareholders over the long term.

For DCF per share and dividends per share, the CAGR calculations provide the related growth rates over historical periods. |

KEYERA CORP.
Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

FORWARD-LOOKING STATEMENTS

In order to provide readers with information regarding Keyera, including its assessment of future plans and operations, its financial outlook and future prospects overall, this MD&A contains certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is typically identified by words such as "anticipate", "continue", "estimate", "expect", "maintain", "remain", "grow", "may", "will", "can", "should", "would", "could", "plan", "forecast", "focus", "intend", "believe", "target", "outlook", "positioned", and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this document are forward-looking information, including, without limitation, statements regarding:

industry, market and economic conditions and any anticipated effects on Keyera;
Keyera's future financial position and operational performance and future financial contributions and margins from its business segments, including, but not limited to, Keyera's Marketing guidance for 2026 annual realized margin of between $210 million and $250 million;
Keyera's expectations on Marketing base realized margin in a typical year of between $310 million and $350 million;
estimates for 2026 regarding Keyera's growth capital expenditures, maintenance capital expenditures and cash tax expense;
the 2026 financial impact of the AEF outage including on realized margin, cash taxes and maintenance capital;
expectations regarding the timing of the AEF facility's return to full operating capacity
expectations on demand for Keyera's liquid infrastructure service offerings, including fractionation capacity and storage capacity, and expected increases in take-or-pay commitments;
plans around the expansion of Keyera's fractionation capacity, including the cost and timing for the KFS Frac II Debottleneck, and KFS Frac III, and the impact of these projects on Keyera's total fractionation capacity;
the KAPS Zone 4 project, including cost and timing thereof;
2026 and future years financial and operational guidance (on a stand-alone basis);
plans for deployment of capital and additional growth opportunities, and the impact of current and future growth projects on Keyera's growth targets;
the benefits of the acquisition of Plains' Canadian NGL business, and Keyera's dividend growth and financial position post-closing of the acquisition;
expected proceedings before the Competition Tribunal in connection with the acquisition of Plains' Canadian NGL business and Keyera's belief as to the merits of its position;
integration activities following the closing of the acquisition of Plains' Canadian NGL business;
the impact of acquisitions completed during 2026, including on follow-on growth opportunities;
expectations around long-term demand for iso-octane;
expectations around 2026 butane supply;
expectations around future propane demand from Asia;
plans around future dividends;
current estimated income tax expenses for 2026 and tax pools at March 31, 2026;
Keyera's long-term objective of maintaining a Net Debt to Adjusted EBITDA ratio for covenant test purposes of between 2.5x to 3.0x;
business strategy, anticipated growth and plans of management;

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

budgets, including future growth capital, operating and other expenditures and projected costs;
the operation and effectiveness of risk management programs and Keyera's expectation to continue to utilize RBOB-based financial contracts to hedge iso-octane sales;
expectations around replacement of Keyera's credit facilities and other debt arrangements upon maturity;
expectations regarding Keyera's ability to maintain its competitive position, raise capital and add to its assets through acquisitions or internal growth opportunities, and the ability to self-fund future growth opportunities when ready for sanction;
expectations as to the financial impact of Keyera's compliance with future environmental and carbon tax regulation;
plans, targets, and strategies with respect to reducing greenhouse gas emissions and anticipated reductions in emissions levels; and
Keyera's ESG, climate change and risk management initiatives and their implementation generally.

All forward-looking information reflects Keyera's beliefs and assumptions based on information available at the time the applicable forward-looking information is made and in light of Keyera's current expectations with respect to such things as the outlook for general economic trends, industry trends, commodity prices, oil and gas industry exploration and development activity levels and the geographic region of such activity, Keyera's access to the capital markets and the cost of raising capital, the integrity and reliability of Keyera's assets, the governmental, regulatory and legal environment, general compliance with Keyera's plans, strategies, programs, and goals across its reporting and monitoring systems among employees, stakeholders and service providers. Keyera's expectation as to the "base realized margin" to be contributed by its Marketing segment assumes: i) a crude oil price of between US$65 and US$75 per barrel; ii) butane feedstock costs comparable to the 10-year average; and iii) AEF utilization at nameplate capacity. In some instances, this MD&A may also contain forward-looking information attributed to third parties. Forward-looking information does not guarantee future performance. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

All forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, events, levels of activity and achievements to differ materially from those anticipated in the forward-looking information. Such risks, uncertainties and other factors include, without limitation, the following:

Keyera's ability to implement its strategic priorities and business plan and achieve the expected benefits;
general industry, market and economic conditions;
the acquisition of Plains' Canadian NGL business and the ability to obtain the anticipated benefits therefrom, including impacts on growth and accretion in various financial metrics;
the outcome of proceedings before the Competition Tribunal related to the acquisition of Plains' Canadian NGL business;
Keyera's ability to integrate the assets acquired pursuant to the Plains acquisition into Keyera's operations;
activities of customers, producers and other facility owners;

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

operational hazards and performance and reliability of both Keyera and third-party assets and infrastructure;
the effectiveness of Keyera's risk management programs;
competition;
changes in commodity composition and prices, inventory levels, supply/demand trends and other market conditions and factors;
disruptions to global supply chains and labour shortages;
trade restrictions, trade barriers, or the imposition of other changes to international trade arrangements;
processing and marketing margins;
climate change risks, including the effects of unusual weather and natural catastrophes;
climate change effects and regulatory and market compliance and other costs associated with climate change;
variables associated with capital projects, including the potential for increased costs, including inflationary pressures, timing, delays, cooperation of partners, and access to capital on favourable terms;
fluctuations in interest, tax and foreign currency exchange rates;
hedging strategy risks;
counterparty performance and credit risk;
changes in operating and capital costs;
cost and availability of financing;
ability to expand, update and adapt infrastructure on a timely and effective basis;
decommissioning, abandonment and reclamation costs;
reliance on key personnel and third parties;
actions by joint venture partners or other partners which hold interests in certain of Keyera's assets;
relationships with external stakeholders, including Indigenous stakeholders;
technology, security and cybersecurity risks;
potential litigation and disputes;
uninsured and underinsured losses;
ability to service debt and pay dividends;
changes in credit ratings;
reputational risks;
risks related to a breach of confidentiality;
changes in environmental and other laws and regulations;
the ability to obtain regulatory, stakeholder and third-party approvals;
actions by governmental authorities;
geopolitical instability and armed conflicts, including global supply disruptions stemming from international conflicts;
the enforcement of tariffs, surtaxes and duties and any retaliatory countermeasures;
global health crisis, such as pandemics and epidemics and the unexpected impacts related thereto;
the effectiveness of Keyera's existing and planned risk management programs; and
the ability of Keyera to achieve specific targets that are part of its ESG initiatives, including those relating to emissions intensity reduction targets, as well as other climate-change related initiatives;

KEYERA CORP.

Management's Discussion and Analysis

Keyera Corp. TSX: KEY

2026 First Quarter Report May 14, 2026

and other risks, uncertainties and other factors, many of which are beyond the control of Keyera. Further information about the factors affecting forward-looking information and management's assumptions and analysis thereof is available in Keyera's Annual Information Form available on Keyera's profile on SEDAR+ at www.sedarplus.ca.

Readers are cautioned that the foregoing list of important factors is not exhaustive and they should not unduly rely on the forward-looking information included in this MD&A. Further, readers are cautioned that the forward-looking information contained herein is made as of the date of this MD&A. Unless required by law, Keyera does not intend and does not assume any obligation to update any forward-looking information. All forward-looking information contained in this MD&A is expressly qualified by this cautionary statement.

KEYERA CORP.

Management's Discussion and Analysis

AI assistant

Keyera Corp. — Interim / Quarterly Report 2026

46714_rns_2026-05-14_76c8bae2-9f31-474f-b687-cb059ac73183.pdf

Management's Discussion and Analysis

Keyera's Business

Overview

Financial Results

Segment Performance

AEF Outage

Plains Acquisition Update

2026 Keyera Standalone Guidance Update (excluding the Plains Acquisition)

CONSOLIDATED FINANCIAL RESULTS

Net Earnings

Operating Margin and Realized Margin

Cash Flow Metrics

SEGMENTED RESULTS OF OPERATIONS

Gathering and Processing

Gathering and Processing Activity

Liquids Infrastructure

First Quarter Operating Margin and Revenue

Liquids Infrastructure Activity

Marketing

First Quarter Operating Margin, Realized Margin and Revenue

Market Commentary

CORPORATE AND OTHER

General and Administrative Expenses

Acquisition and Integration Costs

Finance Costs

Depreciation and Amortization Expenses

Long-Term Incentive Plan Expense

Net Impairment Expense

Disposal of Property, Plant and Equipment

Taxes

Current Income Taxes

Deferred Income Taxes

CRITICAL ACCOUNTING ESTIMATES

LIQUIDITY AND CAPITAL RESOURCES

Corporate Credit Ratings

Subscription Receipt Offering

Long-term Debt (including Credit Facilities)

Credit Facilities

Arranged Sources of Financing Related to the Plains Acquisition

Long-term Debt

2025 Debt Issuances

Compliance with Covenants

Capital Expenditures

Dividends

Funds from Operations, Distributable Cash Flow and Payout Ratio

Dividend Policy

2025 Dividend Increase

EBITDA AND ADJUSTED EBITDA

CONTRACTUAL OBLIGATIONS

RELATED PARTY TRANSACTIONS

RISK FACTORS

Risks Associated with Tariff Uncertainty

ENVIRONMENTAL REGULATION AND CLIMATE CHANGE

SUMMARY OF QUARTERLY RESULTS

ADOPTION OF NEW STANDARDS

FUTURE ACCOUNTING PRONOUNCEMENTS

CONTROL ENVIRONMENT

Disclosure Controls and Procedures and Internal Control over Financial Reporting

Changes in Internal Control over Financial Reporting

COMMON SHARES

NON-GAAP AND OTHER FINANCIAL MEASURES

FORWARD-LOOKING STATEMENTS

More from Keyera Corp.

Keyera Corp. Interim / Quarterly Report 2026