Keyera Corp. (TSE: KEY) and Shell (NYSE: SHEL) have signed an agreement to advance clean energy.
Developing Low-Carbon Energy Projects
The two companies signed a memorandum of understanding in which they will leverage existing assets and adjacent land towards low-carbon goals and attract new investment opportunities in Alberta’s Industrial Heartland.
In addition, Keyera will leverage an existing pipeline able of transporting hydrogen to complement a hydrogen distribution and manufacturing network in the region.
Together, Keyera, an experienced midstream player, and Shell will explore opportunities to build a future open-access collection and distribution network to transport captured CO2 from Keyera and other operations in the region to the proposed Polaris CCS storage facility by Shell.
CEO Commentary
Keyera president and CEO Dean Setoguchi said, “Our strategic collaboration with Shell is founded on a shared vision to advance continued decarbonization of the energy industry, Alberta’s economic resiliency, and Canada’s objective to achieve a net zero future. This opportunity supports the collective decarbonization ambitions of Keyera and our many industrial neighbors. We believe that together, Keyera and Shell can successfully build on our respective expertise and existing assets in the Heartland to enable the development of a low-carbon project in Alberta.”
Wall Street’s Take
On February 17, TD Securities analyst Linda Ezergailis kept a Buy rating on KEY and C$36 price target. This implies 16.7% upside potential.
Consensus among analysts is that KEY is a Strong Buy based on six Buys and two Holds. The average Keyera price target of C$34.38 implies 11.5% upside potential to current levels.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Related News:
Crescent Point Energy Swings to Profit in Q4
Whitecap Resources Swings to Profit in 2021
Keyera Swings to Profit in Q4
