Keyera Corp T.KEY

keyera delivers great 1Q23 results

[junglejames]

perhaps we will now see the share price break out of the $32.00 range.

First Quarter Highlights

• Strong Quarterly Results – Net earnings were $138 million (Q1 2022 – $114 million), adjusted earnings before interest, taxes, depreciation, and amortization¹ ("adjusted EBITDA") were $292 million for the quarter (Q1 2022 – $257 million), and distributable cash flow¹ ("DCF") was $227 million (Q1 2022 – $178 million). The year-over-year increases were driven by record quarterly contributions from the Gathering and Processing ("G&P") and Liquids Infrastructure segments.
• KAPS In Service and Within Latest Cost Estimate – KAPS construction is complete, and costs are within the latest cost estimate of $1.0 billion net to Keyera. The condensate line is now in service with the first volumes shipped in April. Linefill activities are underway on the natural gas liquids line which is expected to be in service in June.
• Record Fee-For-Service Contributions – The Gathering and Processing segment delivered record quarterly realized margin^1,3 of $100 million (Q1 2022 – $77 million), driven by record volumes. This includes approximately $3 million related to the recovery of maintenance turnaround costs. The Liquids Infrastructure segment delivered record quarterly realized margin^1,3 of $119 million (Q1 2022 – $105 million) driven by contributions from newly acquired incremental capacity at the Keyera Fort Saskatchewan complex ("KFS") combined with strong asset utilization.
• Marketing Guidance Increased – 2023 realized margin^1,3 for the Marketing segment is now expected to range between $330 million and $370 million⁴ (previously $250 million to $280 million). The increase is due to lower butane feedstock costs and the continued strength of iso-octane premiums, which benefit the company's iso-octane business.
• Strong Financial Position – The company continues to maintain its strong financial position with net debt to adjusted EBITDA² at 2.6 times, well within the target range of 2.5 to 3.0 times.
• Capital Allocation Priorities – The company's capital allocation priorities remain unchanged. They are, to first ensure the financial strength of the business, and then to balance increasing returns to shareholders with disciplined capital investment.
• New KAPS Partner – Keyera is pleased to welcome Stonepeak as its new 50 percent partner in KAPS following the closing of their acquisition in April. Keyera and Stonepeak look forward to working closely together to deliver a much

 More details here:

https://www.stockwatch.com/News/Item/Z-C!KEY-3403372/C/KEY

[oreface]

Amen. Great company-just had to get KAPS up and running - Should get a run up to about $35 over the next couple of months

[Puma1back]

i bet we get hit as they were not predicting a date for dividend increase - traders can use that to push it down off the results notwithstanding they were , as you both pointed out, good.    

[Puma1back]

It is often very nice to be wrong - strong market reaction to the beats on all metrics. debt of 2.6 times after all the cost of KAPS - well done Key.  

[hawk35]

Don't feel bad about being wrong.  Short position were up 25% so a lot of big time investors got this one wrong.