Topic: How To Invest

Q: Pat, I would like your thoughts on Keyera (KEY), please.

Article Excerpt

A: Keyera Corp. $34.77, symbol KEY on Toronto (Shares outstanding: 204.5 million; Market cap: $7.1 billion; www.keyera.com), provides a number of services to the oil and gas industry, including the collection, processing, storage and shipment of oil and gas. The company operates through two main segments: Keyera’s Gathering and Processing business owns and operates raw gas-gathering pipelines and processing plants. They collect and process natural gas and remove waste products to isolate natural gas liquids (NGLs). The NGL is then pumped through long-distance pipelines to clients. The Liquids business uses a network of facilities to process, store and transport by-products of natural gas processing, including ethane, propane and butane. It then markets those products, including condensate, or “drip gas.” It’s used as a solvent, cleaner and fuel. For fiscal 2017, Keyera reported revenue of $3.41 billion. That’s up 36.5% from $2.5 billion in 2016. Earnings climbed 33.7%, to $289.9 million from $216.9 million. Due to more shares outstanding, earnings per share rose…