ATB Capital Markets raised its price target on Keyera Corp. (KEY.TO) to $61 from $58.
Analyst Nate Heywood maintained a Sector Perform rating on shares of the Calgary-based oil and gas company after it closed its $604 million equity offering and $1 billion note offering associated with its acquisition of the remaining 50% non-operating interest in the KAPS Pipeline.
"The funding plan near 50/50 equity to debt is not expected to impact KEY's target to return toward the 2.5x-3.0x net debt to EBITDA range by 2028," Heywood said in a note to clients.
"The acquisition provides greater flexibility and efficiency for customers enhances KEY's long-term cash flow quality with an average contract term of ~12 years and 75% under take-or-pay," the analyst said.
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