Keyera: A Transformational Acquisition

The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryKeyera is set to acquire Plains' Canadian NGL business for CAD 5.15B, potentially transforming its market position.The subscription receipts trade at a 2% discount to common shares, offering an attractive entry point if the deal closes.Post-acquisition, KEY targets a debt/EBITDA ratio of 2.9x by 2026, declining to 2.5x by 2028, supporting balance sheet strength.DCF per share is projected to exceed CAD 4 in 2024 and reach at least CAD 5 before 2030, supporting dividend growth.Looking for a portfolio of ideas like this one? Members of European Small-Cap Ideas get exclusive access to our subscriber-only portfolios. Learn More » AscentXmedia/iStock via Getty Images Introduction Keyera (KEY:CA) (KEYUF) is a Canadian energy infrastructure company focusing on Natural Gas Liquids. The company’s business is divided into three subdivisions: gathering and processing (Keyera owns and operates natural gas pipelines and plantsThis article was written byThe Investment Doctor23.62K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.