Keyera (KEY) Q1 2026 earnings summary

Executive summary

• Closed the acquisition of Plains' Canadian NGL business, significantly expanding the integrated platform, enhancing connectivity, flexibility, and market access, and focusing on disciplined integration and synergy capture.

• Achieved record contributions and realized margin in the Gathering and Processing segment, driven by high utilization, Wapiti and Simonette East plants, and new asset integration.

• Maintained a strong balance sheet with net debt to adjusted EBITDA at 2.2x, below the long-term target range, supporting financial flexibility.

• Focused on integrating new assets, supporting Canadian energy security, and delivering on strategic and financial commitments.

• Demonstrated resilience through financial crises and commodity price cycles, with 7% CAGR in distributable cash flow per share and 6% CAGR in dividends per share since 2008.

Financial highlights

• Adjusted EBITDA was CAD 232 million (excluding acquisition costs), with distributable cash flow of CAD 133 million or CAD 0.58 per share; net loss for the quarter was CAD 122 million.

• Gathering and Processing segment delivered record realized margin of CAD 118 million; Liquids Infrastructure realized margin was CAD 141 million, with record condensate throughput.

• Marketing segment realized margin was CAD 13 million, down sharply due to the AEF outage and risk management losses.

• Cash flow from operating activities increased to CAD 322 million from CAD 165 million year-over-year.

• Payout ratio (adjusted) was 93%, up from 63% in Q1 2025; dividends declared at CAD 0.54 per share.

Outlook and guidance

• Marketing segment realized margin for 2026 expected between CAD 210 million and CAD 250 million, with most contributions in the second half.

• Fee-based adjusted EBITDA CAGR target of 7–8% between 2024 and 2027 reaffirmed.

• Growth capital expenditures forecasted at CAD 400–475 million; maintenance capital at CAD 140–160 million; cash taxes at CAD 60–70 million.

• Updated fee-based EBITDA growth guidance for the combined entity to be provided mid to late June, extending CAGR outlook to the end of the decade.

• Wapiti expected to reach effective capacity in 2026, a year ahead of schedule; major projects (KFS Frac II/III, KAPS Zone 4) progressing on time and on budget.