Overview

* Keyera ( KEYUF ) Q3 adjusted EBITDA falls to C$281 mln, down from C$322 mln in 2024

* Net earnings for Q3 drop to C$85 mln from C$185 mln last year

* Fee-for-service realized margin grows over 10% yr/yr, driven by higher throughput

Outlook

* Keyera ( KEYUF ) revises 2025 Marketing margin guidance to C$280 mln-C$300 mln from C$310 mln-C$350 mln

* Growth capital expenditures for 2025 now expected at C$220 mln-C$240 mln, down from C$275 mln-C$300 mln

* 2026 growth capital expenditures expected to be C$400 mln-C$475 mln

Result Drivers

* FEE-FOR-SERVICE MARGIN - Co's fee-for-service realized margin increased by over 10% yr/yr, driven by higher throughput in Gathering & Processing and Liquids Infrastructure segments

* MARKETING SEGMENT DECLINE - Marketing segment realized margin fell due to lower liquids blending, reduced condensate imports, and weaker iso-octane premiums

* PLAINS ACQUISITION IMPACT - Plains acquisition transaction costs affected adjusted EBITDA, but the acquisition is expected to enhance the value chain

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net C$85.22

Income mln

Q3 C$280.58

Adjusted mln

EBITDA

Q3 FFO C$209.77

mln

Q3 C$173.32

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$53.00, about 21.1% above its November 13 closing price of C$41.80

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(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.)