Keyera Posts C$67.7 Million Quarterly Loss as Costs Rise

Keyera reported a third-quarter net loss of C$67.7 million, reversing year-earlier earnings, as higher financing and depreciation costs and weaker operating margin weighed on results. Adjusted EBITDA rose sharply, however, as the Canadian energy-infrastructure company recorded its first full-quarter contributions from recent acquisitions.

November 10, 2026, 04:00 PM 429 0

Keyera Posts C$67.7 Million Quarterly Loss as Costs Rise

The Calgary-based company posted a loss of C$0.23 a share for the quarter, compared with earnings of C$82.2 million, or C$0.37 a share, a year earlier. Operating margin fell C$140 million, mainly because of an unrealized loss on risk-management contracts in the marketing segment, despite C$160 million of higher realized margin. An unexpected disruption on Enbridge’s Line 5 pipeline, which carries natural-gas-liquids mix from Alberta to Keyera’s Sarnia fractionation facility in Ontario, also offset earnings growth.

Adjusted earnings before interest, taxes, depreciation and amortization climbed to C$462 million from C$280.6 million, beating the C$424 million expected by analysts polled by FactSet. Excluding transaction and integration costs tied to the Plains All American Pipeline acquisition, adjusted EBITDA was C$466 million, Keyera said. Distributable cash flow increased to C$244 million, or C$0.83 a share, from C$181 million, or C$0.79 a share.

Keyera completed its C$5.3 billion purchase of Plains’ Canadian natural-gas-liquids business in May, establishing an NGL corridor in Canada. In June, it bought the remaining 50% stake in the KAPS pipeline, which connects production in the Montney and Duvernay resource plays with downstream markets. Chief Executive and President Dean Setoguchi called the quarter an important milestone, citing the first full-quarter contributions from both acquisitions. He said integration and growth-project work is progressing, while reliability at the Alberta EnviroFuels iso-octane facility remains a challenge.

After the quarter, heat-exchanger performance at the facility deteriorated faster than expected, further limiting production. Keyera plans an interim outage of about four weeks in early January for repairs and expects full production to resume by the end of May. It estimates the outages and reduced output will cut its 2027 marketing realized margin by roughly C$85 million. The company expects Alberta EnviroFuels to average about 50% utilization for the rest of 2026.

Keyera raised its 2026 marketing realized-margin forecast to C$400 million to C$430 million, from a previous range of C$320 million to C$350 million. The revised outlook reflects revalued Plains inventory and associated hedges, stronger-than-expected iso-octane margins and higher butane margins. Third-quarter realized margin in the marketing segment was C$95 million, up from C$73 million a year earlier.

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