In This Article:
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Adjusted EBITDA: $313 million in Q4; $1.3 billion for the full year.
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Net Earnings: $89 million for Q4; $487 million for the full year.
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Distributable Cash Flow: $168 million in Q4; $771 million for the full year.
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Dividend Increase: Raised by 4%.
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Dividend Payout Ratio: 61%.
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Net Debt to EBITDA: 2x on a covenant basis.
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Growth Capital Expenditures: Expected between $300 million and $330 million for 2025.
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Maintenance Capital Expenditures: Expected between $70 million and $90 million for 2025.
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Cash Taxes: Expected between $100 million and $110 million for 2025.
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Marketing Realized Margin Guidance: Long-term base guidance of $310 million to $350 million.
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Corporate Return on Invested Capital: 16% for 2024.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Keyera Corp (KEYUF) achieved record annual adjusted EBITDA and net earnings in 2024, demonstrating strong financial performance.
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The company raised its dividend by 4% and received approval for a normal course issuer bid, indicating confidence in its financial stability.
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Keyera Corp (KEYUF) set new volume records across many core assets, contributing to record margin contributions across all business segments.
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The company announced the sanctioning of the KFS frac 2 debottleneck project, expected to add 8,000 barrels per day of capacity by mid-2026.
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Keyera Corp (KEYUF) maintains a strong financial position with a net debt to EBITDA ratio of 2x, providing flexibility for capital allocation.
Negative Points
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An unexpected operational issue will take AEF offline for approximately six weeks, with an anticipated margin impact of $40 million.
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Distributable cash flow decreased year-over-year due to higher cash taxes, despite record earnings.
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The threat of U.S. tariffs creates near-term uncertainty, although Keyera Corp (KEYUF) expects minimal material impact.
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The company faces potential challenges in the construction environment due to high activity levels, which could impact future projects.
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The marketing contracting season is delayed due to tariff uncertainties, affecting the timing of contract finalizations.
Q & A Highlights
Q: Can you provide more details on the recent agreement with AltaGas and its potential for future expansion? A: Dean Setoguchi, President and CEO, explained that the agreement with AltaGas is aimed at creating a more efficient service for customers, benefiting both companies. The partnership leverages complementary assets to enhance service offerings, including moving barrels to downstream terminals and using storage facilities. There is potential for further collaboration to provide better service for the industry.