Keyera (TSE:KEY) Announces Earnings Results

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

KEY traded down C$1.68 during trading hours on Friday, reaching C$57.11. The company’s stock had a trading volume of 1,129,118 shares, compared to its average volume of 1,481,253. The company’s 50-day moving average is C$58.15 and its 200-day moving average is C$53.89. The firm has a market cap of C$16.76 billion, a PE ratio of 72.29, a price-to-earnings-growth ratio of 1.35 and a beta of 0.48. Keyera has a 52 week low of C$40.09 and a 52 week high of C$61.41. The company has a debt-to-equity ratio of 249.10, a quick ratio of 0.57 and a current ratio of 1.60.

Keyera Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 30th were issued a dividend of $0.54 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.8%. Keyera’s payout ratio is presently 270.89%.

Analysts Set New Price Targets

A number of research firms recently issued reports on KEY. BMO Capital Markets increased their target price on Keyera from C$60.00 to C$65.00 in a research note on Tuesday, June 16th. National Bank Financial boosted their price target on Keyera from C$61.00 to C$62.00 and gave the company an “outperform” rating in a report on Tuesday, June 23rd. Scotiabank boosted their target price on Keyera from C$65.00 to C$66.00 and gave the company a “sector outperform” rating in a research note on Tuesday, July 21st. Raymond James Financial reduced their price target 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. Finally, Jefferies Financial Group set a C$65.00 price objective on shares of Keyera and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Eleven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of C$61.29.

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.