Latest news with #Keyera
Edmonton Journal
9 hours ago
- Business
- Edmonton Journal
Varcoe: On eve of new era for Canadian energy exports, Keyera CEO welcomes Ottawa's push to fast-track major projects
Article content 'It creates the possibility, but a very clear process, which has at its heart consultation — full consultation with Indigenous peoples — to define what is a nation-building project.' At Keyera, the midstream company said its deal with Houston-owned Plains will see the firm buy the assets and strengthen 'domestic energy infrastructure and energy security . . . and (it) establishes a strong, cross-Canada NGL corridor.' The acquisition will give Keyera more size and scale, noted the company's CEO. As for the country's broader energy sector, Canada has tremendous advantages to export more products from the Pacific Coast, including shorter shipping time to get LNG, crude oil and liquefied petroleum gas (LPG) — propane and butane — to Asia than from the U.S. Gulf Coast. But the country needs regulations and policies to enable more exports. 'Hopefully, we can be more competitive in the international space as we expand our LNG and hopefully export a growing amount of crude barrels to Asian markets,' Setoguchi said. 'I'm hearing positive things from our prime minister. I hope he follows through and makes it happen.'
Globe and Mail
9 hours ago
- Business
- Globe and Mail
Keyera Announces Closing of $2.07 Billion Bought-Deal Offering of Subscription Receipts
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ CALGARY, AB, June 20, 2025 /CNW/ - Keyera Corp ("Keyera" or the "Company") (TSX: KEY) today announced that it has completed its previously announced offering (the "Offering") of subscription receipts ("Subscription Receipts"). Pursuant to the Offering, the Company issued 52,874,700 Subscription Receipts, including 6,896,700 Subscription Receipts issued pursuant to the exercise in full by the underwriters of their over-allotment option. The Subscription Receipts were issued at a price of $39.15 per Subscription Receipt, for total gross proceeds of approximately $2.07 billion.
Cision Canada
10 hours ago
- Business
- Cision Canada
Keyera Announces Closing of $2.07 Billion Bought-Deal Offering of Subscription Receipts
CALGARY, AB, June 20, 2025 /CNW/ - Keyera Corp ("Keyera" or the "Company") (TSX: KEY) today announced that it has completed its previously announced offering (the "Offering") of subscription receipts ("Subscription Receipts"). Pursuant to the Offering, the Company issued 52,874,700 Subscription Receipts, including 6,896,700 Subscription Receipts issued pursuant to the exercise in full by the underwriters of their over-allotment option. The Subscription Receipts were issued at a price of $39.15 per Subscription Receipt, for total gross proceeds of approximately $2.07 billion. Each Subscription Receipt will entitle the holder thereof, without payment of any additional consideration or further action on the part of the holder, to receive one common share of Keyera ("Common Share") upon closing of the Acquisition (as defined below). In addition, while the Subscription Receipts remain outstanding, holders will be entitled to receive cash payments ("Dividend Equivalent Payments") per Subscription Receipt that are equal to dividends declared by Keyera on each Common Share. Such Dividend Equivalent Payments will have the same record date and payment date as the related Common Share dividends. The Subscription Receipts will begin trading on the Toronto Stock Exchange ("TSX") under the symbol "KEY.R" today. The net proceeds from the Offering will be held in escrow and are expected to be used to finance a portion of the purchase price of Keyera's previously announced acquisition of substantially all of Plains' Canadian natural gas liquids business and select U.S. assets (the "Acquisition"). The Acquisition is expected to close in the first quarter of 2026, subject to the satisfaction or waiver of customary closing conditions, including clearance under the Competition Act (Canada) and other applicable regulatory reviews. For further information regarding the Acquisition and the Subscription Receipts, including related risk factors, refer to the Company's prospectus supplement dated June 18, 2025 (the "Prospectus Supplement") to the base shelf prospectus of the Company dated December 12, 2023 (the "Base Shelf"). The Base Shelf and the Prospectus Supplement are accessible on SEDAR+ at The Subscription Receipts were offered through a syndicate of underwriters, led by RBC Capital Markets, together with CIBC Capital Markets, National Bank Financial Markets, Scotiabank and TD Securities as Joint Bookrunners. This news release does not constitute an offer to sell or the solicitation of an offer to buy the Subscription Receipts. The Subscription Receipts have not been approved or disapproved by any regulatory authority. About Keyera Corp. Keyera Corp. (TSX: KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and a depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner. Additional Information For more information about Keyera Corp., please visit our website at or contact: Investor Inquiries Dan Cuthbertson, General Manager, Investor Relations Katie Shea, Senior Advisor, Investor Relations Email: [email protected] Telephone: 1-403-205-7670 Toll free: 1-888-699-4853 Media Inquiries Brandon Wood, Director, External Affairs Email: [email protected] Telephone: 1-855-797-0036 Forward-Looking Information Certain statements contained herein constitute "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). Such forward-looking statements are intended to provide readers with information regarding Keyera, including the expected use of the net proceeds of the Offering, the listing of the Subscription Receipts on the TSX, anticipated entitlements associated with the Subscription Receipts including anticipated Dividend Equivalent Payments, the expected closing date of the Acquisition, Keyera's efforts to provide high-quality services to customers and Keyera's commitment to conducting its business ethically, safely and in an environmentally-friendly and financially-responsible manner. The forward-looking statements contained herein may not be appropriate for other purposes. These forward-looking statements relate to future events or Keyera's future performance. Such statements are predictions only and actual events or results may differ materially. Forward-looking statements are typically identified by words such as "expect", "may", "will", "should", "intend", "deliver", "subject", "commit" and similar expressions, including the negatives thereof. All statements other than statements of historical fact contained in this document are forward-looking statements. The forward-looking statements reflect management's current beliefs and assumptions with respect to such things as the completion of the Acquisition in a timely manner, including receipt of all necessary approvals, the success of Keyera's operations, general and industry economic trends remaining in line with management's current expectations, favorable commodity prices and market conditions, future operating costs and predictability in the governmental, regulatory, and legal environments in which Keyera operates. In some instances, forward-looking statements contained herein may be attributed to third-party sources. Management believes that its assumptions herein are reasonable and that the expectations reflected in the forward-looking statements contained herein are also reasonable based on the information available on the date such statements were made, and the process used to prepare the information. However, Keyera cannot assure readers that these expectations will prove to be correct. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, levels of activity and achievements to differ materially from those anticipated in the forward-looking statements. For information about the risk factors that could cause actual results to differ materially from forward-looking statements, as well as other assumptions used to develop the forward looking statements, please refer to Keyera's filings made with Canadian provincial securities commissions, including Keyera's 2024 Year-End Report dated February 13, 2025 and in Keyera's Annual Information Form, dated March 5, 2025 which can be viewed on SEDAR+ at and on Keyera's website at Further information about the factors affecting forward-looking statements and management's assumptions and analysis thereof, is available in filings made by Keyera with Canadian provincial securities commissions, which can be viewed on SEDAR+ at
Yahoo
a day ago
- Business
- Yahoo
A $3.8 Billion Deal Is Making These Ultra-High-Yielding Dividend Stocks Even Safer
Plains All American Pipeline is selling its Canadian NGL business. The deal will lower its earnings volatility and leverage ratio. It will provide the MLP with a huge windfall to allocate in growing shareholder value. 10 stocks we like better than Plains All American Pipeline › Dividend sustainability has been an issue for master limited partnership (MLP) Plains All American Pipeline (NASDAQ: PAA) and its general partner (GP) Plains GP Holdings (NASDAQ: PAGP) over the years. The MLP has cut its distribution several times over the years due to earnings volatility and balance sheet issues, causing its GP to cut its dividend. However, Plains All American Pipeline has taken several steps to reduce its earnings volatility and leverage ratio. Those actions have paid big dividends for investors, as the MLP has steadily rebuilt its payment level. That payout -- which yields over 8% at PAA and is more than 7.5% at PAGP -- is now growing even stronger after the oil pipeline company agreed to sell its Canadian natural gas liquids (NGLs) business for nearly $3.8 billion. It makes these high-yielding dividend stocks a lot safer for income-seeking investors. Plains All American has agreed to sell nearly all of its NGL business to Keyera for about 5.15 billion Canadian dollars (US$3.8 billion). It will retain most of its U.S. NGL business and all its crude oil assets in Canada. The deal has several benefits, including: Sharpen its focus: Plains will become even more of a pure-play crude oil midstream company. Reduce earnings volatility: The Canadian NGL business had direct exposure to commodity price volatility, which caused fluctuations in Plains' earnings. A strong exit point: The MLP is selling the business at 13 times free cash flow, which is a strong valuation. Enhanced free cash flow: Plains will produce more excess free cash flow in the future due to lower capital investments and taxes related to the Canadian NGL business. Increased financial flexibility: The MLP expects to net about $3 billion in proceeds from the sale after taxes, transaction expenses, and a potential one-time special distribution to investors to offset their tax liability related to the sale. Following the transaction, Plains All American Pipeline will produce more durable cash flows to support its distribution payments. It expects to get 85% of its earnings from predictable fee-for-service agreements, up from 80% before the deal. It will also have an even stronger financial profile. The MLP expects its leverage ratio to be at or below the low end of its 3.25-3.75 times target range (it was 3.3x at the end of the first quarter). Plains can use its enhanced financial flexibility to make bolt-on acquisitions, repurchase preferred units, and buy back common units. The sale of Plains' Canadian NGL business continues its transformational strategy to enhance its free cash flow and reduce its leverage ratio so that it can pay a sustainable, growing distribution. This strategy has delivered results. The company has generated a cumulative $8.3 billion of adjusted free cash flow since 2021, which has enabled it to repay debt and grow its distribution. Its leverage ratio has declined by 31%, while the MLP has grown its payout at a 21% compound annual rate. Plains had planned to continue increasing its payout at a healthy rate until it reached its target payout level (about 1.6 times coverage). With its coverage level expected to be around 1.75x this year, Plains estimated that it could increase its payout at around a 10% annual rate in 2026 and beyond before eventually hitting its targeted payout level. While the sale of its Canadian assets will initially cause it to generate less free cash flow this year, it can offset the lost income by wisely allocating the proceeds from the sale to increase its free cash flow per unit. The MLP has a strong record of making accretive investments. For example, earlier this year, Plains bought Ironwood Midstream Energy, Medallion Midstream's Delaware Basin crude oil gathering business, and the remaining 50% interest in the Midway Pipeline for a combined $670 million. In addition, the MLP spent $330 million to repurchase 18% of its Series A Preferred Units. These transactions boosted its free cash flow, enabling Plains to hike its distribution payment by 20%. Plains All American Pipeline has taken significant strides to enhance the durability of its cash flows while reducing its leverage ratio. As a result, its high-yielding payout is on a much more sustainable level, which has also enhanced the safety of Plains GP Holdings' dividend. Because of that, they're attractive options for those seeking a sustainable and steadily rising income stream. Plains All American is best for those desiring a higher yield and are comfortable dealing with the potential tax complications of the Schedule K-1 federal tax form the MLP sends its investors each year. Meanwhile, Plains GP Holdings is best for those seeking ease in filing their taxes with a Form 1099-DIV. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. A $3.8 Billion Deal Is Making These Ultra-High-Yielding Dividend Stocks Even Safer was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Why Plains All American Pipeline Stock Was a Winner on Wednesday
It announced a deal to hive off its Canadian natural gas liquids assets. It will be paid nearly $3.8 billion for these assets. 10 stocks we like better than Plains All American Pipeline › Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. Why Plains All American Pipeline Stock Was a Winner on Wednesday was originally published by The Motley Fool Sign in to access your portfolio
