- Keyera’s Basic EPS for Q2 was C$0.55, higher than the estimated C$0.41, but lower compared to C$0.62 from the previous year.
- Adjusted EBITDA fell by 23% year-over-year to C$251.5 million, missing the estimate of C$261.6 million.
- Distributable cash flow decreased by 21% year-over-year to C$158.8 million, slightly below the estimate of C$160.5 million.
- Cash flow from operations experienced a significant drop of 47% year-over-year to C$145.8 million, against an estimate of C$187.6 million.
- Keyera reported a capital expenditure increase of 36% year-over-year, totaling C$61.9 million, below the estimated C$108.7 million.
- Growth capital expenditures almost doubled, increasing by 97% year-over-year to C$35.7 million, but were still below the estimated C$84.9 million.
- Maintenance capital expenditures dropped by 50% year-over-year to C$13.7 million, lower than the expected C$22.1 million.
- Keyera remains on track to achieve a 7-8% fee-based adjusted EBITDA compound annual growth rate from 2024 to 2027.
- Dean Setoguchi, President and CEO, highlighted strong quarterly results and increased customer demand.
- Analyst recommendations include 9 buys, 5 holds, and no sells for Keyera.
A look at Keyera Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Keyera Corp, an independent natural gas and natural gas liquids midstream company operating in western Canada, presents a mixed outlook based on its Smartkarma Smart Scores. While the company scores well in Dividend and Resilience at 4 and 3 respectively, its Value, Growth, and Momentum scores all stand at a moderate 3. This indicates a stable dividend payout and resilience in operations, but suggests room for improvement in areas such as growth potential and market momentum.
Keyera Corp offers a solid dividend and demonstrates operational resilience in the face of market challenges. However, the company may need to focus on enhancing its overall value, seeking avenues for growth, and boosting market momentum to garner better long-term prospects in the competitive oil and gas industry. Balancing these factors will be crucial for Keyera Corp to position itself favorably in the evolving energy sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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