CALGARY, ALBERTA–(Marketwired – July 20, 2016) – Gibson Energy Inc. (“Gibsons” or the “Company”) (TSX:GEI) announced today that it has engaged RBC Capital Markets as a financial advisor to assist the Company with a potential sale of its Industrial Propane business.
“The initiation of a process to divest our Industrial Propane business is consistent with the Company’s efforts to increasingly focus both investment capital and management attention on attractive growth opportunities within our Infrastructure business, including the current project backlog as well as additional projects we expect to secure shortly,” said Stewart Hanlon, Gibsons’ President and Chief Executive Officer. “Since entering the industrial propane market with the acquisition of James Propane in 1988, we have successfully grown the business into one of Canada’s largest propane distributors, with a strategic footprint focused on oilfield applications in Western Canada. While the Company has identified further growth opportunities within this business line, allocating resources to pursue these opportunities falls outside our corporate strategy of focusing on integrated midstream solutions along the North American oil and liquids production value chain.”
The Company is making a public announcement of this initiative after receiving certain unsolicited inquiries into the possible sale of the Industrial Propane business, as well as to broaden the divestment universe and maximize value for its shareholders. While there is no assurance that a transaction will be completed, the Company anticipates it would reinvest the net sales proceeds from this potential divestiture into growth opportunities within its Infrastructure business. The Company does not intend to comment further on this initiative until such time as it is appropriate to make a public announcement, if any.
About Gibsons
Gibsons is a Canadian-based midstream energy company with operations in most of the key hydrocarbon-rich basins in North America. For over 60 years, Gibsons has delivered integrated midstream solutions to customers in the oil and gas industry. With headquarters in Calgary, Alberta, the Company’s North American operations include the storage, blending, processing, transportation, marketing and distribution of crude oil, natural gas liquids and refined products. The Company also provides oilfield waste and water management services. Gibsons is the second largest industrial propane distribution company operating in Canada under the Canwest Propane and Stittco Energy brands.