Keyera (KEY) Q2 2026 earnings summary

Executive summary

• Closed the Plains Canadian NGL business acquisition and acquired the remaining 50% of KAPS, expanding the integrated value chain; priorities are integration, execution, and synergy realization.

• Record results in Gathering & Processing and Liquids Infrastructure partly offset lower Marketing contributions, primarily due to the AEF outage and risk-management timing.

Financial highlights

• Adjusted EBITDA was CAD 267 million, or CAD 309 million excluding acquisition and transaction costs; net earnings were CAD 308 million, up from CAD 127 million in Q2 2025.

• Distributable cash flow was CAD 65 million, or CAD 0.25/share; adjusted DCF was CAD 101 million, or CAD 0.39/share, down from CAD 159 million in Q2 2025.

• Fee-based realized margin rose 37% year-over-year to CAD 350 million; realized margins reached records of CAD 128 million in Gathering & Processing and CAD 222 million in Liquids Infrastructure.

• Quarterly dividend increased 4.17% to CAD 0.5625/share.

Outlook and guidance

• Reaffirmed 2026 Marketing realized-margin guidance of CAD 360–390 million, weighted toward H2; 90% of 2026 and 65% of 2027 frac-spread margins are hedged.

• Fee-based adjusted EBITDA/share CAGR outlook is 16%–18% for 2025–2027 and 7%–8% for 2027–2029; 2026 growth capital guidance is CAD 650–725 million, maintenance capital CAD 240–260 million, and cash taxes CAD 70–90 million.

• Synergy target is CAD 120–140 million; CAD 90 million had been achieved to date. Further opportunities include G&A, operating, maintenance, turnaround, logistics, and commercial efficiencies.

• Management expects strong Marketing contributions in H2 2026 and a favorable 2027 setup, including hedged RBOB cracks, frac spreads, and propane exports.