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Keyera Corp T.KEY

Alternate Symbol(s):  KEYUF

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.


TSX:KEY - Post by User

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Post by retiredcfon Nov 15, 2024 9:11am
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Post# 36314585

Citi

CitiOther changes include: Citi’s Spiro Dounis to $50 from $46 with a “buy” rating.

“We expect KEY to grow its fee-based EBITDA by over 6 per cent per year through 2029; that said, we see upside to a nearly 10-per-cent CAGR if excess cash flows are reinvested in the business,” said Mr. Dounis. “More specifically, we expect projects like KAPS Zone 4, KFS II de-bottleneck, and KFS III to cumulatively cost less than $0.8-billion and drive base-line growth of 6 per cent per annum. Through 2029 we expect KEY to generate excess cash flow of $1.7-billion, which if re-invested (or used for M&A) could upgrade the CAGR to nearly 10 per cent. Alternatively, this cash flow could be utilized for share buybacks which could drive double digit EPS growth. KEY currently trades at 10.6 times ‘26 EBITDA which is a modest discount to integrated peers trading closer to 11.0 times. We see room for KEY to upgrade its growth CAGR with the December update.”



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