Tudor, Pickering, Holt on Thursday maintained its buy rating on the shares of Keyera (KEY.TO) with a C$62.00 price target after the oil and gas processing and infrastructure company reported first-quarter results.
"Q1'26 results came in below Street and TPH expectations on a standalone basis, with Adj. EBITDA of C$203MM compared to TPHe of C$222MM and consensus of C$216MM. Excluding acquisition related costs, the results would've been a slight beat at C$232MM. Segment realized margins were mixed versus our estimates, with G&P of C$118MM (TPHe C$119MM), Liquids Infrastructure of C$141MM (TPHe C$139MM), and Marketing of C$13MM (TPHe C$10MM). Net processing throughput across KEY's G&P systems came in at 1,545 MMcf/d versus TPHe of 1,632 MMcf/d, with the shortfall partly attributable to our model assumptions around the recently acquired Simonette East plants. Notably, G&P delivered a record quarter on realized margin, driven by record throughput at Wapiti and incremental Simonette East contributions. The Marketing segment was heavily impacted by the AEF outage, which has been offline since early January, along with C$163MM in unrealized hedging losses tied to butane inventory as Middle East supply disruptions pushed energy prices higher in March," analyst AJ O'Donnell wrote.
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Price: $53.35, Change: $+0.33, Percent Change: +0.62%