Keyera (TSE:KEY) Posts Earnings Results

Keyera (TSE:KEY) issued its quarterly earnings data on Tuesday. The company reported C($0.23) EPS for the quarter, FiscalAI reports. Keyera had a return on equity of 10.81% and a net margin of 5.02%. The firm had revenue of C$2.44 billion during the quarter.

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

• Plains assets are performing ahead of expectations, with CAD 115 million in run-rate synergies delivered by September against a CAD 120 million–CAD 140 million target for the first 12 months after closing. Management also cited further potential from operating improvements and capital-efficient investments.
• Fee-based businesses remained strong: gathering and processing realized margin was CAD 125 million, while liquids infrastructure posted a record CAD 272 million, supported by acquired assets and strong throughput. A contracted Fort Saskatchewan condensate-system debottleneck is expected to add about 15% capacity early next year.
• Keyera raised its 2026 marketing realized-margin guidance to CAD 400 million–CAD 430 million, citing stronger isooctane and butane contributions and about CAD 50 million of benefits from acquired-inventory and hedge revaluations.
• AEF reliability remains a significant concern. Keyera expects an approximately four-week outage in early January for interim repairs, followed by permanent heat-exchanger replacement in May 2027; full production is expected by the end of that month.
• Net debt to adjusted EBITDA ended the quarter at about 3.6 times, above Keyera’s long-term target range; management expects to return to the range in 2028 as major project spending winds down. The company said major growth projects remain on schedule and at or below budget, and reiterated its targeted fee-based EBITDA-per-share growth through 2029.

Keyera Stock Up 0.3%

Shares of TSE:KEY opened at C$51.26 on Wednesday. The firm has a market capitalization of C$15.04 billion, a PE ratio of 33.50, a price-to-earnings-growth ratio of 1.35 and a beta of 0.67. The business has a 50 day simple moving average of C$54.18 and a two-hundred day simple moving average of C$54.54. Keyera has a 1 year low of C$40.09 and a 1 year high of C$61.41. The company has a debt-to-equity ratio of 160.65, a current ratio of 1.22 and a quick ratio of 0.57.

Keyera Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 29th were paid a $0.5625 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This is an increase from Keyera’s previous quarterly dividend of $0.54. This represents a $2.25 annualized dividend and a yield of 4.4%. Keyera’s payout ratio is 141.18%.

Insider Buying and Selling at Keyera

In other Keyera news, Director Taylor Timothy Kitchen purchased 500 shares of Keyera stock in a transaction dated Friday, September 4th. The shares were purchased at an average cost of C$55.74 per share, for a total transaction of C$27,870.00. Following the completion of the acquisition, the director owned 7,500 shares in the company, valued at C$418,050. This represents a 7.14% increase in their position. Insiders own 0.39% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on KEY. Barclays lifted their price objective on Keyera from C$56.00 to C$61.00 in a research report on Friday, August 7th. Citigroup boosted their price target on shares of Keyera from C$102.00 to C$106.00 and gave the stock a “buy” rating in a research note on Friday, September 4th. TD decreased their price target on shares of Keyera from C$70.00 to C$67.00 and set a “buy” rating on the stock in a research note on Friday, September 4th. Desjardins increased their price objective on shares of Keyera from C$103.00 to C$112.00 and gave the company a “buy” rating in a report on Friday, September 4th. Finally, Scotiabank raised their price objective on Keyera from C$65.00 to C$66.00 and gave the company a “sector outperform” rating in a research report on Tuesday, July 21st. Ten research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of C$73.00.

About Keyera

Keyera Corp. (TSX:KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.