Overview

* Energy midstream company Keyera ( KEYUF ) 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 ( KEYUF ) 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 ( KEYUF ) 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/Mis Actual Consensu

s s

Estimate

Q2 Net C$126.52

Income mln

Q2 C$251.54

Adjusted mln

EBITDA

Q2 FFO C$187.12

mln

Q2 C$145.82

Adjusted mln

Free

Cash

Flow

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 ( KEYUF ) 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:

(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.)