Two closes. One rail story still in the dirt
Keyera (TSX: KEY) reported second-quarter 2026 results on August 6. Dean Setoguchi, president and CEO, called it a quarter that extended the value chain. The Plains Canadian NGL business closed May 12. The remaining 50 percent of KAPS closed June 17, taking Keyera to 100 percent. Fee-based realized margin was $350 million, up 37 percent from $255 million a year earlier. Gathering and processing set a record $128 million. Liquids infrastructure set a record $222 million, helped by Plains.
Adjusted EBITDA was $267 million, or $309 million if you strip Plains transaction costs. Distributable cash flow was $65 million, or $0.25 a share, versus $159 million a year ago. Ex-transaction costs it was $101 million, or $0.39. Net earnings were $308 million. Net debt to adjusted EBITDA sat at 3.3 times, above the 2.5 to 3.0 target. Management says it wants back inside that band in 2028. The quarterly dividend rose 4.17 percent to $0.5625, payable September 29.
What ACE actually is
In May, Keyera sanctioned the Alberta Corridor Energy rail terminal in Strathcona County with CN and AltaGas. The May 20 joint release put Keyera's initial spend around $240 million, about $100 million over prior 2026 growth capital. Product would move from the Fort Saskatchewan area to AltaGas west-coast export docks. That is the same AltaGas platform Tourmaline is using for LPG. Do not write ACE as steel. Write it as a sanctioned rail plan with a 2028-ish in-service talk from the spring note.
Marketing was soft. Alberta EnviroFuels was down five months and only restarted in early June, so iso-octane sales were thin. Marketing realized margin was $36 million versus $60 million. Full-year marketing guidance is still $360 million to $390 million. Keyera says it has locked about 90 percent of 2026 frac-spread margins.
Neutral read
KEY and ALA are both on the listed midstream list. Fee-based margin up 37 percent is the Plains and KAPS print. Leverage at 3.3 times is the bill. ACE only matters when unit trains actually leave Heartland for the coast. Watch synergy dollars on Plains, KAPS volumes, and whether AEF stays up. The dividend hike is a board choice on a stretched ratio, not proof the rail dock exists.