Keyera Earnings: Firm Reports Solid Fourth Quarter and Full-Year Results

Keyera's integrated business model is now finally benefiting from the Key Access Pipeline System or KAPS. The pipeline will connect the firm’s northern plants to its Fort Saskatchewan liquids hubs and will consist of pipelines for condensate and natural gas liquids mix. We think the firm has done well in capturing growth opportunities via KAPS, and it has an attractive slate of new efforts to pursue. Future growth other than KAPS can come from the Trans Mountain Expansion, LNG Canada, West Coast LPG exports, and higher condensate volumes from its North region gas plants serving the Montney and Duvernay basins. The physical marketing business will continue to serve as a way for Keyera to capture incremental margins off a highly integrated asset base to deliver product throughout North America.