Keyera (KEY) Q2 2026 earnings summary

Executive summary

• Closed two major acquisitions: Plains' Canadian NGL business and the remaining 50% of KAPS, significantly expanding the integrated value chain and supporting long-term growth strategy.

• Integration of acquired assets is progressing, with early identification of synergies and operational improvements, and a focus on disciplined execution.

• Achieved record financial results in Gathering & Processing and Liquids Infrastructure segments, offsetting lower Marketing segment results due to a five-month AEF outage.

• Growth projects such as KFS Frac II Debottleneck were delivered ahead of schedule and under budget, with other projects on track.

• Board approved a 4.17% annual dividend increase, reflecting confidence in business outlook and balance sheet strength.

Financial highlights

• Adjusted EBITDA (excluding acquisition costs) was $309 million for Q2 2026, up from $252 million in Q2 2025.

• Distributable cash flow (adjusted) was $101 million ($0.39/share), down from $159 million ($0.69/share) in Q2 2025, reflecting higher maintenance capital and finance costs.

• Net earnings for the quarter were $308 million, up from $127 million year-over-year.

• Fee-based realized margin rose 37% year-over-year to $350 million, driven by expanded asset base and strong utilization.

• Gathering & Processing segment delivered record realized margin of $128 million; Liquids Infrastructure also set a record with $222 million, including contributions from new acquisitions.

Outlook and guidance

• 2026 Marketing realized margin guidance reaffirmed at $360–$390 million, with 90% of 2026 and 65% of 2027 frac spread margins hedged.

• Fee-based adjusted EBITDA per share CAGR guidance: 16%-18% (2025–2027), 7%-8% (2027–2029).

• Growth capital expenditures for 2026 projected at $650–$725 million; maintenance capital at $240–$260 million; cash taxes at $70–$90 million.

• Growth outlook supported by synergy targets, system capacity fill, and sanctioned capital projects.

• Guidance for growth capital, maintenance capital, and cash taxes remains unchanged.