Keyera (KEY) Q4 2024 earnings summary

Executive summary

• Achieved record annual adjusted EBITDA of $1.28 billion and net earnings of $487 million in 2024, driven by strong operational performance and volume growth across all business segments.

• Fee-for-service realized margin grew 9% year-over-year to $970 million, with new throughput records across the integrated system.

• Maintained a strong safety record with no lost-time incidents for the second consecutive year.

• Demonstrated long-term value creation with a 7% CAGR in distributable cash flow per share and 3–6% CAGR in dividends per share since 2008.

• Strong ESG performance, including a 21% reduction in emissions intensity since 2019 and robust governance practices.

Financial highlights

• Adjusted EBITDA reached $313 million in Q4 and $1.28 billion for the year, up from $1.21 billion in 2023.

• Net earnings were $89 million in Q4 and $487 million for the year, compared to $49 million and $424 million last year.

• Distributable cash flow was $168 million in Q4 and $771 million for the year ($3.36/share), down from $234 million and $855 million ($3.73/share) last year, mainly due to higher cash taxes.

• Dividend payout ratio was 61% in 2024, up from 53% in 2023, with dividends per share increased 4% to $2.08 annualized.

• Total liquidity at year-end was $1.62 billion, with no draws on the $1.5 billion credit facility and $118 million cash on hand.

Outlook and guidance

• 2025 guidance: growth capital expenditures of $300–$330 million, maintenance capital of $70–$90 million, and cash taxes of $100–$110 million.

• Base Marketing realized margin guidance for 2025 is $310–$350 million, with a $40 million reduction expected due to a planned AEF outage.

• Targeting 7–8% annual fee-based adjusted EBITDA CAGR from 2024–2027, primarily by filling available capacity and capital-efficient projects.

• Annual growth capital spending from 2026–2027 expected to average $350–$450 million, equity self-funded.

• Long-term base marketing margin guidance remains $310–$350 million, with updates expected in May.