Keyera (TSE:KEY) Releases Earnings Results

Keyera (TSE:KEY) released its quarterly earnings results on Thursday. The company reported C($0.53) EPS for the quarter, FiscalAI reports. Keyera had a return on equity of 15.39% and a net margin of 6.34%.The company had revenue of C$1.30 billion for the quarter.

Here are the key takeaways from Keyera’s conference call:

• Keyera successfully closed the Plains Canadian NGL business acquisition, which management says is a transformative deal that expands its integrated platform, strengthens cross-Canada connectivity, and should create significant synergies over time.
• The company posted record first-quarter fee-for-service results, including record Gathering and Processing realized margin of CAD 118 million and strong Liquids Infrastructure margin of CAD 141 million, supported by record throughput at Wapiti and the condensate system.
• Adjusted EBITDA was CAD 232 million and distributable cash flow was CAD 133 million, while net earnings were a loss of CAD 122 million. Marketing results were weaker due to the AEF outage and related butane risk management activity.
• Keyera reiterated confidence in its growth pipeline, saying the KFS Frac II debottleneck remains on schedule for completion by the end of June and is now expected to come in below budget, while Frac III and KAPS Zone 4 are also progressing on time and on budget.
• Management said the AEF facility is being repaired and should return to full operating capacity by the end of May, but reliability has been below expectations. The company plans to add a smaller planned outage between major turnarounds to improve maintenance and maximize iso-octane output.

Keyera Price Performance

Shares of Keyera stock traded up C$1.28 on Friday, hitting C$56.39. The company’s stock had a trading volume of 193,924 shares, compared to its average volume of 1,390,658. The company has a market capitalization of C$12.93 billion, a P/E ratio of 29.84, a price-to-earnings-growth ratio of 1.35 and a beta of 0.56. Keyera has a 52-week low of C$40.09 and a 52-week high of C$56.44. The firm has a fifty day moving average price of C$52.26 and a 200-day moving average price of C$47.64. The company has a quick ratio of 0.57, a current ratio of 1.76 and a debt-to-equity ratio of 227.74.

Keyera Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 31st were paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend was Monday, March 16th. Keyera’s payout ratio is 112.17%.

Analyst Upgrades and Downgrades

KEY has been the subject of several recent analyst reports. National Bank Financial reduced their target price on shares of Keyera from C$48.00 to C$46.00 and set a “sector perform” rating for the company in a research note on Tuesday, January 20th. TD Securities boosted their price target on shares of Keyera from C$52.00 to C$56.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Barclays increased their price target on shares of Keyera from C$48.00 to C$53.00 and gave the stock an “equal weight” rating in a report on Thursday, April 9th. TD lowered their price objective on Keyera from C$62.00 to C$60.00 and set a “buy” rating on the stock in a report on Thursday, May 7th. Finally, Citigroup boosted their target price on Keyera from C$51.00 to C$58.00 and gave the stock a “buy” rating in a research report on Monday, February 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of C$54.08.

About Keyera

Keyera is a midstream energy business that operates primarily out of Alberta, Canada. Its primary lines of business consist of the gathering and processing of natural gas in western Canada, the storage, transportation, and liquids blending for NGLS and crude oil, and the marketing of NGLs, iso-octane, and crude oil. The firm currently has interests in about a dozen active gas plants and operates over 4,000 km of pipelines.