Brief: Keyera Q2 FFO CAD 187.124 Million

Keyera

07/08/2025 11:00

Overview

Energy midstream company Keyera Q2 adjusted EBITDA falls to C$252 mln, impacted by acquisition costs

Net earnings for Q2 decline to C$127 mln, reflecting lower Marketing segment contributions

Co raises dividend by 4%, supported by fee-for-service business growth

Outlook

Keyera expects 2025 Marketing segment margin of C$310 mln to C$350 mln

Growth capital expenditures for 2025 lowered to C$275 mln-C$300 mln

Maintenance capital expenditures for 2025 remain at C$70 mln-C$90 mln

Keyera anticipates mid-teens accretion to DCF per share post-acquisition

Result Drivers

FEE-FOR-SERVICE GROWTH - Fee-for-service realized margin increased by 8.4% due to strong performance in Gathering and Processing and Liquids Infrastructure segments

MARKETING DECLINE - Marketing segment's realized margin fell due to lower commodity prices

ACQUISITION IMPACT - Plains Canadian NGL assets acquisition expected to enhance service offerings and shareholder value

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
C$126.52 mln
Q2 Adjusted EBITDA
C$251.54 mln
Q2 FFO
C$187.12 mln
Q2 Adjusted Free Cash Flow
C$145.82 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

Wall Street's median 12-month price target for Keyera Corp is C$51.00, about 16% above its August 6 closing price of C$42.84

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nCNWpmYwwa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)