Follow Us! Like Our Page!

Keyera Announces 2024 First Quarter Results, Increases Marketing Guidance

Press Release

CALGARY, AB, May 14, 2024– Keyera Corp. (TSX: KEY) (“Keyera”) announced its 2024 first quarter financial results today, the highlights of which are included in this news release. To view Management’s Discussion and Analysis (the “MD&A”) and financial statements, visit either Keyera’s website or its filings on SEDAR+ at

“We’ve had a solid start to the year, as the disciplined execution of our strategy continues to drive strong performance across all three of our business segments” said Dean Setoguchi, President and CEO.  “Our integrated value chain makes us more competitive, allowing us to fill available capacity and pursue capital efficient growth opportunities. We are well positioned to maximize shareholder value by continuing to compound returns over the long-term.”

First Quarter Highlights
  • Financial Results – Net earnings were $71 million (Q1 2023 – $138 million), adjusted earnings before interest, taxes, depreciation, and amortization1 (“adjusted EBITDA”) were $314 million (Q1 2023 – $292 million), and distributable cash flow1 (“DCF”) was $205 million (Q1 2023 – $227 million). These results include another record contribution from the Liquids Infrastructure segment and continued strong performance from Gathering and Processing (“G&P”) and Marketing.
  • Continued Growth from Fee-for-Service Segments – The Liquids Infrastructure segment delivered record realized margin1 of $137 million (Q1 2023 – $119 million). The year-over-year increase is attributable to increased contributions from KAPS as contracted volumes continue to ramp up, and strong demand for Keyera’s fractionation, storage, and condensate services. The G&P segment delivered realized margin1 of $104 million (Q1 2023 – $100 million) which includes the first full quarter contribution from the Pipestone gas plant expansion project.
  • Solid Marketing Segment Performance, AEF Back Online – The Marketing segment delivered $114 million of realized margin1 (Q1 2023 – $117 million). AEF is now operating at full capacity following the completion of a 6-week planned outage which began in early April.
  • Strong Financial Position – The company ended the quarter with net debt to adjusted EBITDA2 at 2.2 times, below the targeted range of 2.5 to 3.0 times. The company remains well positioned to equity self-fund future growth opportunities when they are ready for sanctioning.
Updated 2024 Guidance
  • Following the conclusion of the NGL contracting season, 2024 realized margin1 for the Marketing segment is expected to range between $430 million and $470 million (previous base guidance of $310 million to $350 million) including the impact of the 6-week AEF outage. This outlook reflects lower butane feedstock costs and the continued strength of the iso-octane business as demand for high octane gasoline blending products remains strong.
  • Reaffirming growth capital expenditures are expected to range between $80 million and $100 million. This includes $20 million to $40 million of capital that is contingent on sanctioning of KAPS Zone 4 and the continued advancement of fractionation capacity expansion opportunities at KFS.
  • Reaffirming maintenance capital expenditures are expected to range between $90 million and $110 million, of which about $20 million is recoverable in 2024 with another $15 million recoverable within the next few years.
  • Cash tax expense is now expected to range between $85 million and $95 million (previously $45 million and $55 million). This new range reflects the increase in expected earnings contribution from the Marketing segment.
Maintenance Schedule

2024 Planned Turnarounds and Outages

Alberta EnviroFuels outage (Complete)

6 weeks

Q2 2024

Keyera Fort Saskatchewan Fractionation Unit 1 outage

5 days

Q2 2024

Keyera Fort Saskatchewan Fractionation Unit 2 outage

7 days

Q2 2024

Keyera Fort Saskatchewan Fractionation Unit 1 outage

7 days

Q3 2024

Strachan Gas Plant turnaround

2 weeks

Q3 2024

Wapiti Gas Plant turnaround

3 weeks

Q3 2024

Summary of Key Measures

Three months ended

March 31,

(Thousands of Canadian dollars, except where noted)



Net earnings



   Per share ($/share) – basic



Cash flow from operating activities



Funds from operations1



Distributable cash flow1



   Per share ($/share)1



Dividends declared



   Per share ($/share)



   Payout ratio %1

56 %

48 %

Adjusted EBITDA1



Operating margin



Realized margin1



Gathering and Processing

   Operating margin



   Realized margin1



Gross processing throughput3 (MMcf/d)



Net processing throughput3 (MMcf/d)



Liquids Infrastructure

   Operating margin



   Realized margin1



Gross processing throughput4 (Mbbl/d)



Net processing throughput4 (Mbbl/d)



AEF iso-octane production volumes (Mbbl/d)




   Operating margin



   Realized margin1



Inventory value



Sales volumes (Bbl/d)





Growth capital expenditures



Maintenance capital expenditures



Total capital expenditures



Weighted average number of shares outstanding –
basic and diluted



As at March 31,



Long-term debt5



Credit facility


Working capital surplus (current assets less current liabilities)



Net debt



Common shares outstanding – end of period



CEO’s Message to Shareholders

Carrying positive momentum into 2024. We had an excellent start to the year, leveraging the advantages of our integrated value chain to drive solid performance across all three business segments. Our strategy has focused on maintaining financial discipline while building a stronger and more competitive business. Keyera remains in a position of financial strength, with net debt to adjusted EBITDA at 2.2 times, below our targeted range of 2.5 to 3.0 times. This provides optionality to pursue opportunities that will further strengthen our business and continue to drive shareholder value.

Improving cash flow quality with fee-for-service growth. We remain on track to reach the upper end of our CAGR target for adjusted EBITDA holding Marketing constant of 6-7% from 2022 to 2025. This growth largely comes from strategic investments made in prior years. Our G&P segment delivered strong quarterly results, supported by the first full quarter contribution from the Pipestone gas plant expansion project. More than 70% of G&P realized margin now comes from our North region gas plants, where higher condensate content has strengthened customer economics and made them less sensitive to natural gas pricing. Our Liquids Infrastructure segment delivered another quarterly record for realized margins. This was driven by the continued ramp up of long-term contracted volumes on KAPS and growing demand for our fractionation, storage, and condensate businesses.

Marketing segment is a valuable differentiator. In the last five years, our Marketing segment has delivered more than $1.8 billion in realized margin. Today, we announced an increase to our 2024 Marketing segment guidance, indicating another strong year. Marketing is a natural extension of our value chain which allows us to generate outsized corporate returns relative to peers. This physical business leverages our integrated assets and logistics expertise to deliver products throughout North America. The cash flow generated from this segment is reinvested in our fee-for-service business, supporting further growth in high quality, long-term contracted cash flows.

Reaffirming strong free cash flow outlook and capital allocation priorities. We expect to generate significant free cash flow in 2024. Our capital allocation priorities have not changed and remain grounded in a long history of prudent financial management. Our balance sheet is strong, allowing us to further create value through investing in capital efficient growth opportunities and increasing returns to shareholders.

Platform for further capital efficient investment. KAPS Zone 4 and fractionation expansion opportunities at the Keyera Fort Saskatchewan complex represent capital efficient investment opportunities that can leverage and enhance our existing core asset position in Western Canada. Any decision to proceed on incremental investments will  be supported by long-term contracts and strong returns.

Positive Long-term fundamentals. The outlook for basin volume growth is strong. This growth will be supported by the Trans Mountain Pipeline Expansion, LNG Canada, a growing Petrochemical industry and increasing NGL exports from the West Coast. Keyera’s strategically located assets will continue to play an integral role in enabling this growth.

On behalf of Keyera’s board of directors and management team I want to thank our employees, customers, shareholders, Indigenous rights holders, and other stakeholders for their continued support.

Dean Setoguchi
President and CEO
Keyera Corp.



Keyera uses certain non-Generally Accepted Accounting Principles (“GAAP”) and other financial measures such as EBITDA, adjusted EBITDA, funds from operations, distributable cash flow, distributable cash flow per share, payout ratio, realized margin and compound annual growth rate (“CAGR”) for adjusted EBITDA holding Marketing constant. Since these measures are not standard measures under GAAP, they may not be comparable to similar measures reported by other entities. For additional information, and where applicable, for a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measure, refer to the section of this news release titled “Non-GAAP and Other Financial Measures”. For the assumptions associated with the realized margin guidance for the Marketing segment, refer to the section titled “Segmented Results of Operations: Marketing” of Management’s Discussion and Analysis for the period ended March 31, 2024.


Ratio is calculated in accordance with the covenant test calculations related to the company’s credit facility and senior note agreements and excludes hybrid notes.


Includes gas volumes and the conversion of liquids volumes handled through the processing facilities to a gas volume equivalent. Net processing throughput refers to Keyera’s share of raw gas processed at its processing facilities.


Fractionation throughput in the Liquids Infrastructure segment is the aggregation of volumes processed through the fractionators and the de-ethanizers at the Keyera and Dow Fort Saskatchewan facilities.


Long-term debt includes the total value of Keyera’s hybrid notes which receive 50% equity treatment by Keyera’s rating agencies. The hybrid notes are also excluded from Keyera’s covenant test calculations related to the company’s credit facility and senior note agreements.

First Quarter 2024 Results Conference Call and Webcast

Keyera will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the financial results for the first quarter of 2024 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Tuesday, May 14, 2024. Callers may participate by dialing 888-664-6392 or 416-764-8659. A recording of the conference call will be available for replay until 10:00 PM Mountain Time on May 28, 2024 (12:00 AM Eastern Time on May 29, 2024), by dialing 888-390-0541 or 416-764-8677 and entering passcode 215638.

To join the conference call without operator assistance, you may register and enter your phone number here to receive an instant automated call back. This link will be active on Tuesday, May 14, 2024, at 7:00 AM Mountain Time (9:00 AM Eastern Time).

A live webcast of the conference call can be accessed here or through Keyera’s website at Shortly after the call, an audio archive will be posted on the website for 90 days.

Additional Information

For more information about Keyera Corp., please visit our website at or contact:

Dan Cuthbertson, Director, Investor Relations
Calvin Locke, Manager, Investor Relations
Rahul Pandey, Senior Advisor, Investor Relations Email:
Telephone: 403.205.7670
Toll free: 888.699.4853

For media inquiries, please contact:

Amanda Condie, Manager, Corporate Communications
Telephone: 1.855.797.0036

About Keyera Corp.

Keyera Corp. (TSX:KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its 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 an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.



NationTalk Partners & Sponsors Learn More