Keyera (TSE:KEY) Announces Earnings Results

Keyera (TSE:KEY) announced its quarterly earnings data on Thursday. The company reported C$1.19 earnings per share for the quarter, FiscalAI reports. The company had revenue of C$2.40 billion for the quarter. Keyera had a return on equity of 6.59% and a net margin of 2.73%.

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

• Record fee-based performance: Gathering & Processing realized margin reached CAD 128 million and Liquids Infrastructure realized margin reached CAD 222 million, supported by the Plains Canadian NGL assets and full KAPS ownership.
• The Plains Canadian NGL business is performing above initial expectations, with strong volumes and extraction rates across its pipeline, Fort Saskatchewan fractionation, and Empress operations; management also sees substantial integration and commercial synergy opportunities.
• Keyera reaffirmed its 2026 Marketing realized-margin guidance of CAD 360 million–CAD 390 million and maintained its fee-based adjusted EBITDA-per-share growth outlook of 16%–18% for 2025–2027 and 7%–8% for 2027–2029.
• KFS Frac II Debottleneck entered service more than a month early and 20% below its original budget, while other contracted growth projects remain on time and on budget; the board also approved a 4% annual dividend increase.
• Net debt to adjusted EBITDA rose to 3.3 times following the acquisitions and weaker first-half Marketing contributions, above Keyera’s long-term target range; management expects to deleverage back within the range in 2028, while additional maintenance spending may be needed for acquired assets and the Competition Tribunal litigation remains unresolved.

Keyera Price Performance

Shares of TSE:KEY traded up C$1.59 during trading on Thursday, reaching C$58.79. 1,276,143 shares of the company traded hands, compared to its average volume of 1,483,601. The company’s 50 day moving average is C$58.11 and its two-hundred day moving average is C$53.77. The firm has a market capitalization of C$17.25 billion, a PE ratio of 74.42, a PEG ratio of 1.35 and a beta of 0.48. The company has a quick ratio of 0.57, a current ratio of 1.60 and a debt-to-equity ratio of 249.10. Keyera has a 52 week low of C$40.09 and a 52 week high of C$61.41.

Keyera Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 30th were given a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Monday, June 15th. Keyera’s payout ratio is presently 270.89%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. BMO Capital Markets boosted their price objective on shares of Keyera from C$60.00 to C$65.00 in a research note on Tuesday, June 16th. Scotia lifted their price target on Keyera from C$55.00 to C$60.00 and gave the company a “sector outperform” rating in a report on Friday, May 15th. Scotiabank boosted their price target on shares of Keyera from C$65.00 to C$66.00 and gave the company a “sector outperform” rating in a report on Tuesday, July 21st. ATB Cormark Capital Markets raised their price objective on Keyera from C$55.00 to C$58.00 and gave the stock a “sector perform” rating in a research report on Tuesday, June 16th. Finally, Raymond James Financial cut their price objective on Keyera from C$66.00 to C$65.00 and set an “outperform” rating for the company in a research report on Tuesday, June 23rd. Eleven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of C$60.93.

Keyera Company Profile

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.