- Keyera reported very disappointing net income, but this was caused by a high impairment charge and severance payments.
- On an underlying basis, the company reported almost C$700M of underlying sustaining free cash flow.
- That's in excess of C$3/share, despite reporting an operating cash flow 10% lower than the 2019 Operating cash flow.
- This means the monthly dividend is fully covered, and the cash flows are sufficient to cover about 75% of the growth capex.
- I acquired a position in Keyera at C$10.24 but would be interested in adding to this position in the low-C$20s.
For further details see:
Keyera: Self-Funded Growth With A Very Attractive 7.6% Dividend Yield (And A 159% Coverage Ratio)