CALGARY, AB, May 14, 2024 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced its 2024 first quarter financial results today, the highlights of which are included in this news release. To view Management's Discussion and Analysis (the "MD&A") and financial statements, visit either Keyera's website or its filings on SEDAR+ at www.sedarplus.ca. "We've had a solid start to the year, as the disciplined execution of our strategy continues to drive strong performance across all three of our business segments" said Dean Setoguchi, President and CEO.  "Our integrated value chain makes us more competitive, allowing us to fill available capacity and pursue capital efficient growth opportunities. We are well positioned to maximize shareholder value by continuing to compound returns over the long-term." First Quarter Highlights Financial Results – Net earnings were $71 million (Q1 2023 – $138 million), adjusted earnings before interest, taxes, depreciation, and amortization1 ("adjusted EBITDA") were $314 million (Q1 2023 – $292 million), and distributable cash flow1 ("DCF") was $205 million (Q1 2023 – $227 million). These results include another record contribution from the Liquids Infrastructure segment and continued strong performance from Gathering and Processing ("G&P") and Marketing. Continued Growth from Fee-for-Service Segments – The Liquids Infrastructure segment delivered record realized margin1 of $137 million (Q1 2023 – $119 million). The year-over-year increase is attributable to increased contributions from KAPS as contracted volumes continue to ramp up, and strong demand for Keyera's fractionation, storage, and condensate services. The G&P segment delivered realized margin1 of $104 million (Q1 2023 – $100 million) which includes the first full quarter contribution from the Pipestone gas plant expansion project. Solid Marketing Segment Performance, AEF Back Online – The Marketing segment delivered $114 million of realized margin1 (Q1 2023 – $117 million). AEF is now operating at full capacity following the completion of a 6-week planned outage which began in early April. Strong Financial Position – The company ended the quarter with net debt to adjusted EBITDA2 at 2.2 times, below the targeted range of 2.5 to 3.0 times. The company remains well positioned to equity self-fund future growth opportunities when they are ready for sanctioning. Updated 2024 Guidance Following the conclusion of the NGL contracting season, 2024 realized margin1 for the Marketing segment is expected to range between $430 million and $470 million (previous base guidance of $310 million to $350 million) including the impact of the 6-week AEF outage. This outlook reflects lower butane feedstock costs and the continued strength of the iso-octane business as demand for high octane gasoline blending products remains strong. Reaffirming growth capital expenditures are expected to range between $80 million and $100 million. This includes $20 million to $40 million of capital that is contingent on sanctioning of KAPS Zone 4 and the continued advancement of fractionation capacity expansion opportunities at KFS. Reaffirming maintenance capital expenditures are expected to range between $90 million and $110 million, of which about $20 million is recoverable in 2024 with another $15 million recoverable within the next few years. Cash tax expense is now expected to range between $85 million and $95 million (previously $45 million and $55 million). This new range reflects the increase in expected earnings contribution from the Marketing segment. Maintenance Schedule 2024 Planned Turnarounds and Outages Alberta EnviroFuels outage (Complete) 6 weeks Q2 2024 Keyera Fort Saskatchewan Fractionation Unit 1 outage 5 days Q2 2024 Keyera Fort Saskatchewan Fractionation Unit 2 outage 7 days Q2 2024 Keyera Fort Saskatchewan Fractionation Unit 1 outage 7 days Q3 2024 Strachan Gas Plant turnaround 2 weeks Q3 2024 Wapiti Gas Plant turnaround 3 weeks Q3 2024   Summary of Key Measures Three months ended March 31, (Thousands of Canadian dollars, except where noted) 2024 2023 Net earnings 70,914 137,789    Per share ($/share) – basic 0.31 0.60 Cash flow from operating activities 398,040 311,489 Funds from operations1 231,725 247,306 Distributable cash flow1 205,338 227,367    Per share ($/share)1 0.90 0.99 Dividends declared 114,577 109,994    Per share ($/share) 0.50 0.48    Payout ratio %1 56 % 48 % Adjusted EBITDA1 314,304 292,158 Operating margin 283,031 332,436 Realized margin1 355,415 335,454     Gathering and Processing    Operating margin 103,767 99,422    Realized margin1 104,329 100,306 Gross processing throughput3 (MMcf/d) 1,534 1,692 Net processing throughput3 (MMcf/d) 1,331 1,447   Liquids Infrastructure    Operating margin 135,145 117,406    Realized margin1 136,563 118,665 Gross processing throughput4 (Mbbl/d) 203 194 Net processing throughput4 (Mbbl/d) 118 98 AEF iso-octane production volumes (Mbbl/d) 14 14   Marketing    Operating margin 44,056 115,642    Realized margin1 114,460 116,517 Inventory value 239,801 210,127 Sales volumes (Bbl/d) 192,400 206,100     Acquisitions — 366,537 Growth capital expenditures 19,106 80,732 Maintenance capital expenditures 12,891 8,252 Total ...