06:14 AM EST, 02/10/2025 (MT Newswires) -- AltaGas ( ATGPF ) and Keyera ( KEYUF ) have a "win-win" exchange of unique value-added infrastructure services with their recent long-term agreements, National Bank of Canada said in a Sunday note.

Keyera ( KEYUF ) has committed to a 15-year tolling contract at AltaGas' ( ATGPF ) REEF facility for 12,500 barrels per day of propane export capacity. The facility is expected to be operational by late 2026.

The agreement will allow Keyera ( KEYUF ) to mitigate potential downward pressure on its propane marketing margins from selling into U.S. markets amid a threat of tariffs on the energy sector, the bank said.

AltaGas ( ATGPF ) has secured an 18-year agreement for 8,000 b/d of fractionation capacity at KFS, which includes natural gas liquids produced from its Pipestone II plant in Alberta, with construction on track for completion by the end of 2025.

The agreements leverage each of AltaGas ( ATGPF ) and Keyera's ( KEYUF ) infrastructure for processing and diversifying Canadian NGL exports to access Asian markets, the bank noted.

The deals also help to de-risk the long-term cash flow profiles of each company by securing long-term contracts with investment-grade counterparties, National Bank said.

National Bank confirmed AltaGas' ( ATGPF ) Outperform rating with a $41 target and Keyera's ( KEYUF ) Sector Perform rating with a $41 target.