Keyera (TSE:KEY) Announces Quarterly Earnings Results

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

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 Trading Up 1.5%

Shares of TSE:KEY opened at C$58.06 on Friday. The company has a current ratio of 1.60, a quick ratio of 0.57 and a debt-to-equity ratio of 249.10. The stock has a market capitalization of C$17.04 billion, a PE ratio of 73.49, a P/E/G ratio of 1.35 and a beta of 0.48. Keyera has a 1 year low of C$40.09 and a 1 year high of C$61.41. The firm has a fifty day moving average price of C$58.15 and a 200 day moving average price of C$53.86.

Keyera Announces Dividend

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

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on KEY. Jefferies Financial Group set a C$65.00 price target on shares of Keyera and gave the company a “buy” rating in a report on Tuesday, May 19th. Scotiabank raised their price objective on shares of Keyera from C$65.00 to C$66.00 and gave the stock a “sector outperform” rating in a research note on Tuesday, July 21st. Scotia lifted their price objective on shares of Keyera from C$55.00 to C$60.00 and gave the stock a “sector outperform” rating in a research report on Friday, May 15th. National Bank Financial boosted their target price on shares of Keyera from C$61.00 to C$62.00 and gave the company an “outperform” rating in a research note on Tuesday, June 23rd. Finally, Royal Bank Of Canada increased their target price on Keyera from C$60.00 to C$62.00 and gave the company an “outperform” rating in a report on Tuesday, June 16th. Eleven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Keyera currently has a consensus rating of “Moderate Buy” and an average price target of C$60.93.

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.