Keyera Corp

Latest Results (28.09.2025):

Keyera Corp reported strong financial results for the second quarter of 2025, highlighting robust performance across its integrated value chain and continued customer demand growth. The company successfully advanced key strategic projects and announced a significant acquisition to enhance its market position and shareholder value.

Financial Performance

In Q2 2025, Keyera Corp reported adjusted EBITDA of $252 million, a decrease from $326 million in Q2 2024, influenced by transaction costs from the Plains acquisition. Distributable cash flow stood at $159 million ($0.69 per share), down from $202 million ($0.88 per share) the previous year. Net earnings were $127 million, compared to $142 million in Q2 2024.

Sustainable Dividend Growth

Keyera increased its dividend by 4%, supported by the growth in its fee-for-service business and maintaining a payout ratio within the target range. This increase underscores the company's confidence in the stability and growth of its cash flows.

Growth in Fee-For-Service Margins

The fee-for-service realized margin rose by 8.4% to $255 million, driven by strong performances in the Gathering and Processing and Liquids Infrastructure segments. The Gathering and Processing segment saw a realized margin of $111 million, while Liquids Infrastructure achieved $143 million.

Strong Financial Position and Acquisition

Keyera ended the quarter with a net debt to adjusted EBITDA of 2.0 times, below the target range. The company announced the acquisition of Plains' Canadian NGL business for $5.15 billion, expected to close in Q1 2026, enhancing Keyera's value chain and operational efficiency.

2025 Guidance Update

Keyera maintained its marketing segment realized margin guidance between $310 million and $350 million for 2025. Growth capital expenditures were adjusted to $275-$300 million, reflecting a shift in project timelines, while maintenance capital expenditures and cash tax estimates remained unchanged.

Contracting Momentum and Future Growth

The company remains on track to achieve a 7–8% fee-based adjusted EBITDA CAGR from 2024 to 2027, securing additional long-term contracts and advancing key expansion projects like KFS Frac III and KAPS Zone 4 to support continued growth beyond 2027.