Keyera Corp’s network of interconnected gas plants, pipelines and facilities, as well as its marketing services, continued to generate solid results in the second quarter of 2018. The company reported an EBITDA of $210m, compared to $133m reported in the second quarter of the previous year. Net earnings for the period were $107m compared to $67m in the second quarter of 2017.
“Our results reflect the strength of our integrated business model and contributions from our growth capital program,” said the company. “During the quarter, Keyera announced a number of capital investments to advance both our liquids-rich Montney strategy and its U.S. strategy focused on major liquids hubs.
In 2018 it expects to invest between $1bn and $1.1bn in growth capital, including the acquisition of the South Grand Rapids diluent pipeline. With a disciplined strategy, strategically located assets and a strong balance sheet, Keyera is well positioned to continue to create shareholder value.
The Gathering and Processing segment recorded operating margin of $64m (Q2 2017 – $67 million) in the second quarter. Even though processing volumes increased over the same period last year, the three scheduled turnarounds and weak natural gas prices reduced operating margin in the quarter.
The Liquids Infrastructure segment reported operating margin of $77m (Q2 2017 – $67 million) for the quarter, as new assets such as the Norlite diluent pipeline and the Base Line Terminal generated incremental operating margin.
During the quarter, Keyera continued to execute on its strategy in the U.S. with two new assets. Keyera announced it is developing the Wildhorse Terminal, a crude oil storage and blending project at Cushing, Oklahoma, and acquired the Oklahoma Liquids Terminal, a nearby logistics and liquids blending facility. The Oklahoma Liquids Terminal is now generating incremental cash flow, while the Wildhorse Terminal is expected to be in service by mid-2020, based on the current schedule.
For more information, visit: www.keyera.com
14th August 2018
