- Keyera reported a basic EPS of C$0.37 for the third quarter, missing the estimate of C$0.51, and significantly lower than the previous year’s C$0.81.
- Adjusted EBITDA was C$280.6 million, which is a 13% decline compared to the previous year and under the estimated C$300.8 million.
- Distributable cash flow fell by 7.1% year-over-year to C$181.3 million, below the expected C$198.1 million.
- Cash flow from operations decreased dramatically by 38% year-over-year to C$173.3 million, missing the forecasted C$245.8 million.
- Capital expenditure was slightly up by 0.6% from the previous year at C$82.4 million, but below the expected C$132.4 million.
- Growth capital expenditures more than doubled from last year to C$63.7 million, though falling short of the C$113.8 million estimate.
- Maintenance capital expenditures dropped by 64% year-over-year to C$18.7 million, lower than the expected C$23 million.
- There is a revised expectation for maintenance capital expenditures to range between C$60 million and C$70 million, due to the deferral of some spending to 2026.
- Keyera is on track to meet its 7%-8% fee-based adjusted EBITDA compound annual growth rate target from 2024 to 2027.
- The company is focused on executing its strategy to enhance its value chain, including advancing growth projects and completing a significant acquisition.
- Dean Setoguchi, President and CEO, emphasized the strength and competitiveness of Keyera’s platform, which supports continued year-over-year growth.
- Analyst recommendations for Keyera include 9 buys and 5 holds with no sell recommendations.
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, is poised for a positive long-term outlook. Based on the Smartkarma Smart Scores, which rates companies on various factors, Keyera Corp achieves strong scores across the board. With a notable score of 4 for Dividend, investors can expect steady income streams from this company. While Value, Growth, Resilience, and Momentum all score a respectable 3, indicating a balanced performance in multiple aspects. This suggests an overall positive outlook for Keyera Corp as it continues to provide a range of essential services to the oil and gas industry.
Keyera Corp‘s diverse range of gathering, processing, fractionation, storage, transportation, and marketing services positions it well for sustainable growth in the long run. The company’s emphasis on dividends, combined with solid scores in key factors such as Resilience and Momentum, indicate a stable and potentially lucrative investment opportunity. As an integral player in the western Canadian natural gas sector, Keyera Corp‘s strategic position and strong performance metrics bode well for its continued success and potential returns for investors in the future.
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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