Keyera (KEY) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformational year with record results in Liquids Infrastructure and Gathering & Processing, driven by higher utilization, sanctioned major growth projects, and the announced $5.15 billion acquisition of Plains' Canadian NGL business, expected to close in Q1 2026.

• Fully integrated liquids infrastructure platform supports growth from Montney and Duvernay, with a deep inventory of capital-efficient projects and a focus on optimizing the asset base.

• Leadership structure was reorganized to enhance competitiveness and execution ahead of the Plains acquisition closing.

Financial highlights

• Annual Adjusted EBITDA (excluding Plains deal/integration costs) was CAD 1.16 billion; distributable cash flow reached CAD 767 million ($3.35/share); annual net earnings totaled CAD 432 million.

• Gathering & Processing realized margin was CAD 439 million, up from CAD 413 million year-over-year; Liquids Infrastructure realized margin was CAD 593 million, up from CAD 558 million in 2024.

• Marketing segment realized margin was CAD 300 million, down from CAD 485 million last year, due to lower iso-octane prices and volumes.

• Dividend payout ratio was 66% (63% adjusted for acquisition-related items); dividends declared totaled $486 million ($2.12/share).

• Net debt to adjusted EBITDA at year-end was 1.8x, below the 2.5–3.0x target range.

Outlook and guidance

• Growth capital for 2026 expected between CAD 400 million and CAD 475 million; maintenance capital projected at CAD 140 million–CAD 160 million; cash taxes anticipated at CAD 60 million–CAD 70 million.

• Marketing segment margin guidance for 2026 will reflect a CAD 110 million impact from the AEF outage, with updated guidance to be provided in Q1 2026.

• Pro forma guidance and outlook for the combined platform to be issued after Plains acquisition closes; reiterated 7%-8% fee-for-service EBITDA growth outlook through 2027.