11:07 AM EST, 12/10/2024 (MT Newswires) -- (Adds analyst comment.)

Keyera (KEY.TO) on Tuesday released its 2025 capital guidance and growth strategy for the three years to 2027.

The oil and gas pipeline and processing company's growth capital expenditures are expected to range between $300 million and $330 million. Maintenance capital is projected at $70 million to $90 million. Growth capital in 2026 and 2027 is expected to average between $350 million and $450 million.

The company said it is on track for another record year for adjusted EBITDA. Keyera expects to achieve the upper end of its compound annual growth rate (CAGR) target for adjusted EBITDA, holding the Marketing segment constant, of 6% to 7% over the 2022 to 2025 time frame.

Keyera is adjusting its growth target to a fee-based adjusted EBITDA calculation, which now excludes the Marketing segment. On this new basis, the company has implemented a target for fee-based adjusted EBITDA to reach 7% to 8% CAGR through 2027.

National Bank of Canada maintained its sector-perform rating and $39.00 price target on Keyera's ( KEYUF ) shares following the news.

The bank said its price target was based on a risk-adjusted dividend yield of 5.5% applied to its estimated 2025 dividend of $2.08 per share, an 12.0x multiple of its estimated 2025 Free-EBITDA and its discounted cash flow per share valuation of $38.00.

Keyera shares were last seen up $0.41 to $44.98 on the Toronto Stock Exchange.

Price: 44.90, Change: +0.33, Percent Change: +0.74