Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to Keyera's 2025 third quarter conference call. All lines have been placed on m ute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star then the number one. If you would like to withdraw your question, please press star then the number two. Thank you. I would like to turn the call over to Mr. Dan Cuthbertson, General Manager of Investor Relations. You may begin.
Thank you, and good morning. Joining me today will be Dean Setoguchi, President and CEO; Eileen Marikar, Senior Vice President and CFO; Jamie Urquhart, Senior Vice President and Chief Commercial Officer; and Jarrod Beztilny, Senior Vice President, Operations and Engineering. We will begin with some prepared remarks from Dean and Eileen, after which we will open the call to questions. I'd like to remind listeners that some of the comments and answers that we will give today relate to future events. These forward-looking statements are given as of today's date and reflect events or outcomes that management currently expects. In addition, we will refer to some non-GAAP financial measures. For additional information on non-GAAP measures and forward-looking statements, please refer to Keyera's public filings available on SEDAR and on our website. With that, I'll turn the call over to Dean.
Thanks, Dan, and good morning, everyone. This quarter again demonstrated the strength of our fee-for-service business, where realized margin grew by more than 10% year over year. This continued increase in stable cash flow reflects higher utilization across our integrated system and supports ongoing dividend growth. 2025 has been a defining year for Keyera, built on several years of disciplined execution of our strategy to extend and strengthen our value chain. We've built a highly competitive integrated platform that continues to attract customer volumes and support long-term growth. This year alone, we've secured more than 100,000 barrels per day of new contracting on CAPS, and our existing and planned fractionation capacity is now substantially contracted. Those wins demonstrate the value customers place on our services. We're also making solid progress on our major growth projects.
The KFS Fract II debottleneck, Frac III expansion, and KAPS Zone 4 are each advancing on time and on budget. Together, they'll further strengthen our integrated system and provide stable long-term fee-for-service cash flow, supported with a significant portion of take-or-pay contracts. Pending acquisition of Plains' Canadian NGL business will build on that foundation. It adds meaningful scale, expands our reach to key demand hubs in the East, and allows us to offer customers more flexibility and connectivity across the value chain. The transaction remains on track, and we expect to close in the first quarter of 2026. Turning to the marketing segment, while the quarterly results and full-year outlook came in below expectations, the segment remains strategically important to our business. It provides strong cash flow and, in some years, delivers exceptional contributions.
That cash has helped us strengthen the balance sheet and accelerate growth in our fee-for-service business, further compounding value for shareholders. I want to briefly touch on our sustainability progress. We met our 2025 GHG Intensity Reduction Target of 25%, a full year ahead of schedule. This has been accomplished through economic investments that improve efficiency and meet our return thresholds. More importantly, our sustainability program focuses on managing long-term risks and positioning the company for lasting value creation. We've published our 2024 Sustainability Performance Summary on our website. Overall, 2025 has been a year of strong execution. We've continued to build a more efficient and competitive platform that creates meaningful value for customers and shareholders while positioning Keyera for long-term growth. With that, I'll turn the call over to Eileen to review our financial results and outlook.
Thanks, Dean, and good morning, everyone. Keyera's third-quarter results reflected stable performance and continued strength in our fee-for-service businesses. Not including deal and integration costs associated with the Plains acquisition, adjusted EBITDA was CAD 286 million. Distributable cash flow was CAD 186 million, or CAD 0.81 per share, and net earnings were CAD 85 million. As Dean mentioned, we continue to see strong year-over-year growth in our fee-for-service segments, driven by higher utilization across the value chain. In Gathering and Processing, realized margin was CAD 112 million, up from CAD 99 million last year. The increase reflects higher throughput and growing contributions from our Wapiti and Simonette plants as contracted volumes continue to grow. In Liquids Infrastructure, realized margin was CAD 147 million compared to CAD 135 million last year, supported by higher storage and utilization of our condensate system, as well as the steady ramp-up of KAPS volumes.
Now turning to the Marketing segment, realized margin was CAD 73 million for the quarter compared to CAD 135 million last year. The lower results reflect reduced condensate import volumes as domestic production displaced U.S. imports. While this shift benefits our fee-for-service business, it reduced marketing opportunities. Liquids blending activity and isooctane premiums were also lower. For the full year, we now expect Marketing realized margin to range between CAD 280 million and CAD 300 million. Results would have been within our long-term base guidance range without the approximate CAD 50 million impact from the unplanned AEF outage earlier in the year. We are reaffirming our long-term annual base Marketing guidance of CAD 310 million-CAD 350 million. This is based on certain commodity price assumptions and AEF operating at main plate capacity.
During the quarter, we issued CAD 2.3 billion of senior notes and CAD 500 million of hybrid notes, which completed the financing requirements for the Plains acquisition. Now I'll touch on our capital outlook and guidance updates. For 2025, we've made a few adjustments. Growth capital is now expected to range between CAD 220 million and CAD 240 million, down from our previous estimate of CAD 275 million-CAD 300 million. The change reflects the deferral of some spending to 2026. This does not impact the expected in-service dates of our major projects. Maintenance capital is now expected to be CAD 60 million-CAD 70 million, slightly lower than before, again reflecting some timing shifts. Cash taxes are expected to come in between CAD 90 million and CAD 100 million, primarily due to lower marketing contributions. Looking ahead to 2026, we're providing standalone guidance until the Plains transaction closes.
We remain on track to deliver our 7%-8% compound annual growth rate in fee-based adjusted EBITDA from 2024 through 2027. Growth capital for 2026 is expected to range between CAD 400 million and CAD 475 million, mainly directed toward our sanctioned growth projects. Maintenance capital for 2026 is expected to range between CAD 130 million and CAD 150 million, which includes about CAD 60 million for the planned six-week turnaround at AEF starting in September. Following closing of the Plains acquisition, we'll provide pro forma guidance and a comprehensive business outlook for the combined platform, reflecting enhanced scale and long-term growth profile. With that, I'll turn it back to Dean for closing remarks.
Thanks, Eileen. 2025 has been a transformative year for Keyera. We've executed on our strategy, strengthened our value chain, and continued to build a competitive and efficient platform that creates value for customers and shareholders. With a fully financed plan and self-funded growth ahead, we're well positioned to support the continued growth of the basin and deliver strong fee-for-service margin growth for years to come. On behalf of our board and management team, I want to thank our employees, customers, shareholders, Indigenous rights holders, and other stakeholders for the continued support. With that, we'll open the line for questions. Operator, please go ahead.
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised, and should you wish to cancel your request, please press star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Robert Hope from Scotiabank. Please go ahead.
Good morning, everyone. So good to see the continued growth in Gathering and Processing cash flows, even with the weakness in AECO. As you look at your northern footprint and the increasing volumes there, how are you thinking about further optimizations or expansions?
Good morning, Rob. Yeah, thank you very much for the question. We see our northern footprint as being really in the most economic fairway of the Montney, the liquids-rich fairway of the Montney. We do see continued growth and demand for our services in that area. That is exactly why you are seeing continued volume growth, even with weak natural gas prices, because, again, the value is in the liquids. We think that we are going to have opportunities to continue to not only fill the remaining capacity that we have up there, but also to expand and build new capacity. It is something that we are extremely excited about. Again, a lot of that development is going to continue with the continued announcements of new LNG capacity off the West Coast to Canada. I will also turn it over to Jamie to add any other comments.
Yeah, Dean, thanks for the opportunity. Robert, I think the one thing I'd point out is that we have really strong gathering interconnectivity between the three facilities that we have in the north. As we look at the opportunity to debottleneck and expand, specifically Wapiti and Simonette, what we're finding is a demand by the customers in that area for both short-term and long-term processing solutions. We think we're going to be able to do some capital-efficient debottlenecks at those facilities to enable them both to continue to grow in the short term and then potentially have line of sight to be able to pursue a new facility in that area as well.
All right, that's helpful. Maybe more broadly on the liquids contracting strategy, you were quite active securing contracts, we'll call them the first half of the year, less so with this update. Has the pending acquisition of Plains added some complexity to the contracting strategy, just given you're going to have more optionality? I guess another question there would be, how would the addition of Plains impact the contracting strategy moving forward?
Yeah, no, that's a great question. I mean, first of all, the Plains acquisition is proceeding, and we certainly believe that we'll be closing sometime in Q1. Right now, we're operating Keyera as a totally separate entity. As you would have seen in our week, we don't provide every quarter an update on what we've contracted. I can tell you that there's continued momentum to the contracting on our asset base beyond what we've announced previously this year. It just tells you how competitive our services are and the demand there is very strong. We're going to continue to do that. I think with the combination of Keyera, or, sorry, with Plains, we're going to be able to provide an even more diversified service in terms of market access.
Also with the size and scale and the synergies between our asset bases, we're going to be able to provide a more competitive service for our customers. That's going to obviously lead to more contracting on the combined platform. Jamie, anything else you want to add?
No, I think you hit it perfectly, Dean.
All right, that's great. Thank you.
Yeah, thanks very much. Have a good day.
Thank you. Your next question comes from the line of Aaron MacNeil from TD Cowen. Please go ahead.
Hey, morning all. Thanks for taking my questions. I fully appreciate that this may be front-running some of the disclosures you plan to provide post-Plains. As we think about a refreshed three-year guide with 2025 as the base year, should we think about 2028 as a consequential year for growth for Keyera on a standalone basis, just given the timing of contracts associated with KAPS Zone 4 and KFS Frac III ? Can you give us a sense of the potential magnitude, all other things being equal?
Yeah, you are front-running us, but I think it's a very good question. I mean, we've guided out to 2027, and that's the 7%-8% fee-for-service-based growth. Again, a lot of that is investments that we've already made, and we're just filling that capacity. I'd say on top of that, obviously, as we've announced, the KAPS Zone 4 and our two Frac projects are highly contracted with high take-or-pays. You are going to see a lot of cash flow growth in 2027 and beyond as those projects come into service and volumes ramp up. Yes, that's going to be very good for our fee-for-service business. We haven't provided guidance on that yet, but that'll come in the future. On the Plains side, we've announced that our plan is to deliver, I'll say, at least CAD 100 million of synergies.
We have a clear line of sight to that. Based on where we are, and we've put some positions, we have an arrangement in place where we have very good certainty on the frac spread for the first year of acquisition when we close with Plains. We are very confident on our mid-teens DCF accretion. Beyond that, like I say, we see a lot of opportunity to create further synergies beyond the CAD 100 million. When you add all that up, what it boils down to is that I think it's going to be very exciting for Keyera with both our internal projects, but also the combination of Plains and creating a more efficient platform that's going to translate to better service and more profitability for our shareholders. I'm not trying to doubt your question.
I think at the end of the day, we will be providing more guidance in the future. We have to get, obviously, the closing with Plains first before we can disclose that type of information.
Okay, fair enough. I had to try. You reiterated the long-term base marketing guide. How does the planned turnaround at AEF fit into that next year?
Thanks, Aaron. It's Eileen here. Thanks for the question. Just maybe stepping back, looking at this year, historically, our isooctane margins have made up more than 50% of the marketing. Based on fundamentals that we see for isooctane, we expect it to remain strong. If not for the seven-week unplanned outage at AEF, the impact of CAD 50 million, we would have been well within our base guide, if not near the top end of it. All that to say, we feel very confident in that long-term base guidance. You're right. When we look at the assumptions that underpin that, one of the key assumptions is that AEF operates near capacity and certain other commodity price type of assumptions, especially around WTI. Next year, you're absolutely right that there is a six-week planned turnaround that would certainly play into that guidance.
Next year, we will provide guidance as we normally would as we close out our supply season.
Yeah, and I just maybe add to that. I mean, when you look at the big picture, we feel pretty good about our marketing business. Again, it's a physical business. When you think about our frac expansions, what it means is that we're going to be touching and marketing more barrels and making margin off those incremental barrels. I think that's a bit of a tailwind. When you think about our isooctane business, we think that's pretty strong. Again, the demand for premium grades of gasoline is increasing. Certainly, with some of the policy changes in the United States, the demand for gasoline and the demand for our internal combustion engine vehicles is much higher than what anyone would have expected even a couple of years ago. I think that bodes pretty well there.
Thirdly, I think with the Plains acquisition, we're going to really enhance our market access, especially out to the east, which is really going to complement the markets that we can serve already in the west and also locally, especially with our condensate system, our isooctane business. Our propane access is going to be much stronger with the Plains business. Again, that's going to be another positive tailwind for our marketing business.
Okay. Thanks, everyone, for the answers. I'll turn it back.
Thank you.
Thank you. Your next question comes from the line of Robert Catellier from CIBC. Please go ahead.
Hey, good morning, everyone. I wanted to follow up on Rob Hope's first question and just the practical implications of timing on the Plains transaction. So my question is, what's the likelihood that the transaction closes in time for Keyera to go to market for the 2026 contracting year on a more integrated basis?
That is a good question. At the end of the day, we are certainly, the bureau process is that review is proceeding as we would have expected. This is a large acquisition. With any large acquisition, it takes time. That timing is not always certain. We believe that we are still on track to get through that process in the first quarter and close. It would be nice if we could have it closed before contracting season, but that still remains to be seen. That is obviously not 100% within our control.
Yeah, that'd be great for the customers as well. Just a bigger picture here, just looking at KAPS and we do not know the ultimate size of the pipeline, but my question is, given your view of base and growth, which is similar to ours and pretty strong, what is possible in terms of an expansion of KAPS in terms of the timeline? Is that possible without a Material Gathering and Processing expansion by Keyera?
I love the question. It was not just like two quarters ago you guys were asking us how we are going to fill KAPS. Now you are asking us how we are going to expand it. I mean, hey, with the contracts that we signed, yes, I mean, KAPS by the end of the decade is going to start to get pretty full, which is very exciting and tells how competitive our system is and the demand for that service. Maybe I will turn that question over to Jarrod.
Yeah, good morning, Robert. I think that's really been always part of the plan is to add particularly pump station capacity as the volumes warrant it. That's really what we're doing. There's some of that coming along with Zone 4. We expect that'll continue out through the end of the decade. We still have some runway there to do some very capital-efficient expansions through additional pumping before we'd have a step change in capital beyond that.
Okay. Last one for me, just on the bigger picture, Dean, what are you seeing in terms of how the basin is changing? We have had some more producer consolidation recently, but we are also seeing maybe a different approach towards LNG with the major projects office putting another project on there. Just when you look at those things together, how is the customer interaction and maybe the growth outlook changing?
Yeah, I mean, I feel a lot more optimistic today than I have in a long, long time. It is encouraging to hear some positive comments come from our Prime Minister and some actions in the right direction. I think it is great for Canada if we can continue to develop more LNG off the West Coast. Certainly, hey, we will benefit from that because we have critical infrastructure that helps enable that basin growth. I think there still needs to be some progress on key policies that would, again, just give everyone a lot of confidence that we can do this in a competitive manner. When you think about it, I think the basin is going to grow. I should also mention, too, it is exciting that Enbridge is finding ways to add more capacity on their system.
We know that TMX, Trans Mountain has the ability to also debottleneck too. I think this bodes well for industry and for Canada, which is great, and helps us boost our economy. When we think about consolidation, the way I think about it is that as an industry, we should be working together to create the most competitive, low-cost, and environmentally friendly energy to serve the world. Some of the consolidations that we're seeing, I think it's good because it creates more size and scale and efficiency to help accomplish that. For Keyera as a midstream service provider, we're doing the same thing. That is what Plains is all about. We're consolidating, and we're going to be more efficient. We're going to provide a more competitive service. That is going to make our basin more competitive.
That should help us export more products with the additional market access that we're going to be getting in the future. I think it's a good thing overall.
Okay, great. Thank you very much.
Yeah, thanks for the questions. Have a good weekend.
Thank you. Your next question comes from the line of Theresa Chen from Barclays. Please go ahead.
Good morning. Just a quick follow-up one from me on the Marketing segment. Octane Premium seemed to be improving so far in fourth quarter 2025, despite what should be a seasonally soft period. What are some of the factors contributing to this dynamic in your view? Is it octane demand related, alluding to some of the long-term trends you mentioned earlier, or have there been supply disruptions in octane observed in the market?
Hey, good morning, Theresa, and you're very astute to be watching that market. I'll turn that over to Jamie to provide more color on.
Yeah. Good morning, Theresa. As Dean said, yeah, you're bang on. Q4 premiums are actually trading above historical levels. Our view is that it's really attributed to both the supply and the demand side. On the supply side, we're seeing some significant refinery outages, also some closures of refineries, specifically on the West Coast, which is an area where a lot of our products in the Western US are sold. Demand is being strong. Certainly, our Bobcracks as well have really had some tailwinds over the last period of time. It's interesting with respect to gasoline pricing, and octanes are not necessarily always limited to North America and what's going on in North America. Long term, we have a really strong view that both our Bobcracks and isooctane premiums, octane premiums are going to be robust.
They're going to continue to be above historic levels, not to the levels that we would have seen in 2022 or through 2024 based on some very unique geopolitical events on the planet. We expect that the strength in isooctane premiums will persist into 2026.
Thank you.
Thank you. Your next question comes from the line of A.J. O'Donnell from TPH . Please go ahead.
Hey, morning, everyone. I was hoping to maybe just start on the macro and just kind of what's going on right now in Q4. Wondering if you could talk to maybe some of the activity levels you're seeing across the north and south in light of LNG Canada starting to ramp up that second train and AECO prices starting to improve.
Yeah. Morning, A.J. And thanks for the question. I think from a big picture standpoint, I mean, most of the growth in the basin has been and will continue to happen up in the Montney. And a lot of value is derived from the liquids. So even though they are up in that area, it's not really that sensitive to natural gas prices. It's probably more sensitive to crude oil prices. Even at CAD 60 WTI for condensate, roughly, you multiply that by the FX rate in Canadian dollar terms, it's still a pretty good price, which is still a good price incentive for producers to continue to drill and grow. I think up in that area, too, there is not as much infrastructure capacity, and that's from gas plants and all the way through that value chain.
Whenever you have scarcity of supply, the producers want to make sure they secure that in order to fulfill their growth plans in the future. What we can say is that demand has been very high for the remaining capacity that we have. We expect to continue to add volumes and grow even in the price environment that we're in. Obviously, adding the second train at LNG Canada is going to help. We are going to look beyond that. We think that there is going to be more LNG developed off the West Coast, which is going to, again, create further demand for more processing capacity and cap service in our downstream business. Overall, we think that demand will remain strong. In the south, I think that's where it is a little bit more sensitive to natural gas prices.
Our volumes have been relatively steady, especially when you consider what AECO prices have been. I think that if we catch a little bit of a period with stronger gas prices, I'm sure the producers down there are probably hedging forward too with some of the curves that you can see. There is a lot of gas still in place down in the south. Over time, we expect that to get drilled up and see some more volume growth there as well. Anything you want to add, Jamie?
Yeah. The only thing I'd add is I agree with everything Dean said on the north. In the south, I think we're seeing some really positive tailwinds there. As a result, there was a bunch of consolidation two, three years ago. It takes a company a period of time to understand the resource that they're inheriting and ultimately putting drilling programs together. What we've seen is those companies then really starting to get after what they purchased two, three years ago and seeing some very, very good results as a result of applying their technology, their competency. Frankly, one of the reasons why they would have bought those assets is because they believe they could do bigger things with the land base and the prospectivity of those assets. We are seeing some really positive results in the south as well.
Okay. Great. Then maybe just one more kind of on the medium or longer term. We've seen a handful of refined products pipelines being announced in the U.S., pulling from Pad 2 and then going into some of those refinery closure markets that you talked about into Pad 5. I'm just curious, as you guys kind of think about your isooctane business, how you anticipate one or multiple of these projects impacting those margins or having an impact on that business?
Yeah, that's a good question.
Yeah. I love the fact that you guys are on top of our business because, yeah, there are two pipelines that are being proposed, refined pipelines that are being proposed to serve sort of the Nevada, Arizona, but primarily the California market. The California market is seeing some refinery closures happening. That is really creating a pull for those refined products likely out of Texas and even further to the east. Those two projects, we think, have a lot of merit. We currently serve a bunch of the refineries that would have connectivity, and we would expect to supply into the markets that they are being built into. We have relationships. Net, we see that as a very positive development for our business on the isooctane front.
We like the markets that are served, the continental markets that are not served off the water because we are advantaged. We are moving our rail cars down south. We can certainly save on the transportation cost if we do not have to take it all the way to the US Gulf Coast, and we can hit one of those inland refineries or places where they blend gasoline. We like the developments of what is happening with the closures in California of refineries. We also like the gasoline demand growth that we are seeing, as Jamie discussed, in Arizona, Nevada, Salt Lake City, that area, and also in the Denver area as well.
Okay. Thank you very much for the detail. I'll turn it back.
Thank you.
Thank you once again. Should you have a question, please press star or follow up by the one on your telephone keypad. Your next question comes from the line of Maurice Choy from RBC Capital Markets. Please go ahead.
Thank you. Good morning, everyone. Just wanted to think about the world beyond the Plains transaction and then more big picture about how you view partnerships. Can you talk to what's worked well, what you'll be looking for when establishing a new partnership, or alternatively, maybe you don't see that many new partnerships being formed over the coming years?
Yeah. Good morning, Maurice. That's a really good question. I think one thing that we have a reputation for is that we're a good partner. We work well with others. We understand the need for a win-win if we want to have a successful partnership that's sustainable. When we look at our business in the long term, I think that we really believe in the value of partnering with indigenous groups and recognizing that they have unique needs and investment criteria. When I think about future partnerships and if there's an opportunity that, again, would work for us and work for them, it's something that I think that we should definitely be exploring.
Understood. If I could just finish off on the marketing side of the business, I think you touched on the AEF turnaround. You touched on the strengthening cracks as well as isooctane premiums. Anything in terms of the market dynamics that you highlighted today for marketing that you think will continue negatively into the new year, or do you think most of that will unwind?
Yeah. I'll turn that over to Jamie.
Yeah. Sorry, Maurice. To understand your question, is there any negative market dynamics that we expect to persist?
To carry on, yeah.
Yeah. We did highlight the fact that we've seen a reduction in condensate imports into Western Canada. That's something that we think is likely short-lived based on the oil sands growth and the demand for diluent. Other than that, we're very bullish with respect to the demand for Spec Propane in particular and excited about the export deal that we put in place with AltaGas. As Dean said, getting the assets from Plains to access markets in Eastern Canada and the US. Yeah, no, we don't see any major headwinds on the commodities that we touch for our marketing business going forward.
Yeah. I just say, though, that I think everything's all relative. If you compare it to 2023 and 2024, those were outsized years. I mean, we delivered CAD 480 million, CAD 485 million in those years. We certainly don't want anyone to think that that's the norm. I think we have a business that there will be years where we have outsized performance. I just want to make sure that everyone understands that we have the discipline when we have those outsized years. We take those extra marketing dollars and we pay down our debt. That afforded us that and our free cash flow afforded us the ability to sanction or KAPS Zone 4, our two frac projects and also pursue Plains, the Plains' Canadian NGL business, which really is a big game changer for our company.
I think we have to think about marketing and our business in a more holistic macro manner and what it does for overall business. It has been a very successful model from day one. I think it will be in the future as well.
That makes sense. Thank you very much.
Yeah. Thanks very much. Have a great weekend.
Thank you. Your next question comes from the line of Patrick Kenny from National Bank Capital Markets. Please go ahead.
Thank you. Good morning, everyone. Maybe just on the CapEx budget here through 2026 and looking at the balance sheet still in really good shape heading into the Plains acquisition. Just given the slippage in commodity prices and some near-term marketing contributions, any thoughts on how much you'd be willing to flex your growth capital program over the near term if new opportunities arise? On the flip side, any thoughts around building any further cushion over the near term just until commodity prices normalize?
Morning, Pat. Thanks for the question. I'll turn that over to Eileen.
Sure. Thanks, Pat. Just as a general comment, I'd say kind of reiterating what Dean said earlier, the strength of our balance sheet and the low leverage has been a competitive advantage for us. We intend to maintain that advantage. It is because of this philosophy that we were able to pursue Plains this year, which, again, Dean touched on. When we plan our future capital allocation, whether it is growth capital or dividends, etc., we always assume a more normalized marketing. We never plan for exceptional results. The lower contribution this year or a more muted contribution would not impact what we put out in terms of our leverage, which is still, once we close Plains within the first 12 months, to be still within our target range, that 2.5x - 3x , albeit at the higher end.
The only other thing maybe I'd add is that when we did the funding plan for Plains, it contemplated that we remain within those bands, and we quickly deleverage really once we're through this growth capital so that we are keeping our options open for other opportunities, especially with the base in growth that we see. We absolutely are able to still continue to grow and leverage those options as they come along. Opportunities.
Yeah. Pat, just to add to that, I mean, certainly the Frac projects and KAPS Zone 4, I mean, that's already built into our internal forecasts. We still remain within our guidance range or our goal post of 2.5x - 3x debt to EBITDA. I also point out that the 2.5x -3x where we like to be is more conservative than sort of the industry infrastructure peers. If we get to the higher end of that range, I do not think that's the end of the world because we're still in a very good range relative to our peers. Again, we always like the ability to pay it back down, restore flexibility, and it enables us to be more opportunistic.
Okay. I appreciate that. Dean, maybe just back on the 3.5 BCF a day of LNG projects being of national interest. Would you be able to help us just distill what opportunities, say, over and above filling your existing assets you might be looking at from a brownfield or even a greenfield perspective just to take advantage of this long-overdue window in political support?
Yeah. No, I think it's tremendously exciting. First of all, a lot of it is that there's not enough gas gathering and processing capacity to process that gas. You think about where the bulk of that growth is going to come from. It's that Montney fairway. The most economic parts of the fairway where we're located are going to get developed disproportionately. We see an opportunity to provide that integrated service right from the gas plants. We're going to look at debottlenecks. We're going to look at potential greenfield expansions up there. We also consider a tuck-in acquisition that could also support our network up in the north and, again, provide that full integrated service to our customers to offer them the best economic netback for their product.
Okay. Last one for me, just a housekeeping item. You touched on your confidence in the normalized marketing guidance range. Eileen, you mentioned this is based on, I guess, a return to a more normalized commodity price environment of, looks like, CAD 65-CAD 75 per barrel. Just wondering, as we look at the strip, having a hard time breaking through CAD 60 here, or at least for the next couple of years, once the downs confirm or walk us through what other positive margin tailwinds you could point to, whether it's butane feedstock costs or perhaps other products that you market that might help offset some of these existing headwinds for now and firm up that confidence in the CAD 310-CAD 350 range for at least 2026 and 2027?
Yeah. It's changing. You hit on one of the big ones. It's butane as an input into isooctane and also in a complement to our blending business. We do look at butane being in an oversupply. Our market in Western Canada is oversupplied in butane, and it's forecast to be so. As we've talked about, there's more development in our basin. All those developments are fairly rich in natural gas liquids. Ultimately, with all the frac expansions that are happening with ourselves and some of our peers, we expect that there's going to be additional butane and we'll continue to see that market oversupplied. We expect that butane prices will be relatively soft relative to historic levels, and that will be a positive for our business. We've touched on it, I think, based on fundamentals worldwide with respect to the pull for propane.
Ultimately, with the assets that we're inheriting with the Plains acquisition, we see some opportunities to create value for our customer and also our shareholders on the propane side. Those would be the two big ones other than what we talked about, which is the strength in our view around our Bobcracks and isooctane premiums. Yeah. Ultimately, we'll provide an update like we usually do in the second quarter of next year.
Okay. No, that's great color. I appreciate all the comments. Thanks, everybody.
Yeah. Thanks a lot.
Thank you. There are no further questions at this time. I want to hand the call back to Mr. Dan Cuthbertson for any closing remarks.
Thank you all again for joining us today. Please feel free to reach out to our Investor Relations team if you have any additional questions. Have a good weekend, everybody.
This concludes today's call. Thank you for participating. You may all disconnect.