Keyera Corp T.KEY

Alternate Symbol(s): KEYUF

Energy Oil & Gas Refining & Marketing

Keyera Corp. operates an integrated Canadian energy infrastructure business with interconnected assets and expertise in delivering energy solutions. The Company's predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales, and a condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Its segments include Gathering and Processing, Liquids Infrastructure and Marketing. Gathering and Processing segment owns and operates raw gas gathering pipelines and processing plants, which collect and process raw natural gas, remove waste products and separate the economic components, primarily natural gas liquids (NGLs). Liquids Infrastructure segment owns and operates a network of facilities for the gathering, processing, storage and transportation of the by-products of natural gas processing. Marketing segment is involved in the marketing of NGLs.

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Keyera Corp > Citi Raises Target

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Comment by Puma1backon Sep 23, 2024 10:31am

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Post# 36236280

RE:Citi Raises Target

beat me to the post ! It was a tough few years there before covid when costs on the buildout were growing and the balance sheet got stretched - well worh it.

still no scuttle on getting gobbled

retiredcf wrote:
Citi analyst Spiro Dounis thinks Keyera Corp. is poised to benefit from a “a wave of impending capital efficient growth ahead, namely the filling of spare capacity on existing assets and downstream expansions across the current asset base.”

“We impute an unlevered 15-per-cent capex return and estimate these opportunities will drive a 7-per-cent fee-based EBITDA CAGR [compound annual growth rate] through ‘28, which could be the low-end of KEY’s updated guidance range (potential announcement coming in December),” he said in a research note released Monday titled Filling Up the Pipe.

“Accretive M&A and projects beyond Zone 4, KFSII/III present upside, in our view. We expect KEY to generate .3-billion of excess cash flow annually through ‘28, some of which may be returned in the form of a buyback. At 10.3 times, KEY now trades roughly inline with U.S. G&P peers compared to a historical 1.0 times premium since ‘22. We believe the tighter valuation spread and capital efficient growth outlook retains the compelling valuation offering.”

Reiterating a “buy” recommendation for Keyera shares, Mr. Dounis raised his target to $46 from $40 following an updated to his net present value (NPV) methodology. The average on the Street is $41.