(KEY) Keyera - Ratings and Ratios

Keyera Corp. is a midstream energy company operating in Canada and the United States, providing critical infrastructure for the gathering, processing, and transportation of natural gas and natural gas liquids (NGLs). The companys diversified business model is segmented into Gathering and Processing, Liquids Infrastructure, and Marketing, allowing it to capture value across the energy value chain.

The Gathering and Processing segment is crucial for collecting and processing raw natural gas, removing waste products, and separating economic components. Keyeras extensive network of raw gas gathering pipelines and processing plants positions it well to capitalize on the growing demand for natural gas. Key performance indicators (KPIs) to watch include the volume of natural gas processed and the utilization rate of its processing plants.

The Liquids Infrastructure segment is a significant contributor to Keyeras revenue, providing a range of services including NGL fractionation, storage, and transportation. The production of iso-octane, a high-value product used in the gasoline blending process, adds to the segments profitability. KPIs to monitor include the fractionation capacity utilization rate, NGL storage capacity, and the volume of iso-octane produced.

The Marketing segments performance is closely tied to the price of commodities such as propane, butane, condensate, and iso-octane. Keyeras ability to market these products effectively is critical to its overall profitability. KPIs to track include the margin on sales of these commodities and the companys market share in key regions.

From a financial perspective, Keyeras market capitalization stands at approximately CAD 9.85 billion, with a forward price-to-earnings ratio of 20.00, indicating a moderate valuation relative to its expected earnings growth. The companys return on equity (RoE) of 19.35% is a strong indicator of its ability to generate profits from shareholder capital. Other key financial metrics to monitor include the debt-to-equity ratio, interest coverage ratio, and the dividend yield.

Overall, Keyera Corp.s diversified business model, extensive infrastructure network, and strong financial performance position it well for long-term success in the midstream energy sector. As the demand for natural gas and NGLs continues to evolve, Keyeras ability to adapt and capitalize on emerging trends will be critical to its future growth and profitability.