CALGARY, ALBERTA–(Marketwired – Aug. 2, 2016) –
All financial figures are in Canadian dollars
Gibson Energy Inc. (“Gibsons” or the “Company”) (TSX:GEI) announced today operating and financial results for the three months ended June 30, 2016.
Highlights:
- Adjusted EBITDA(1) of $44 million in the second quarter of 2016 was supported by strong performance of the Infrastructure segment despite overall results being negatively impacted by a management estimated $10 million related to certain non-recurring headwinds resulting from forest fire production curtailments and a longer than expected annual turnaround at the Moose Jaw processing facility;
- Capital expenditures were $63 million in the second quarter of 2016, of which $53 million was related to the on-going terminal infrastructure expansions at Hardisty and Edmonton;
- The Company expects 2016 growth capital spending, excluding acquisitions, to be approximately $225 million of which 95% will be allocated to construction projects currently underway within the Infrastructure segment. All of these projects remain on track for scheduled in-service dates. Additionally, the Company confirms its preliminary estimate for growth capital spending in 2017 of between $200 and $300 million as well as its confidence in securing additional projects to underpin this level of investment; and
- On July 20, 2016, the Company announced it had engaged a financial advisor to assist with a potential sale of the Company’s Industrial Propane segment.
“In the continued challenging operating environment, Gibsons has made significant strides to manage our businesses more cost efficiently and has doubled efforts to simplify the business and focus investment capital on our highest risk-adjusted return growth projects,” said Stewart Hanlon, Gibsons’ President and Chief Executive Officer. “The decision to explore the potential sale of our Industrial Propane segment fits with this strategy.”
Mr. Hanlon added, “While we remain confident in an eventual recovery, we will continue to focus organic growth capital towards infrastructure projects which further underpins our long-term strategy to transition investment away from activity sensitive businesses towards stable, fixed fee infrastructure projects. These projects provide good visibility to cash flow growth in 2016 and construction is well underway in support of 2017 cash flow growth. Furthermore, we are confident that we will be securing additional projects shortly which will provide cash flow growth for 2018 as well. Accordingly, in step with the commissioning schedule of our infrastructure projects, we expect our payout ratio to move back into a more sustainable range.”
(1) Adjusted EBITDA is defined in Gibsons’ Management’s Discussion and Analysis.
Management’s Discussion and Analysis and Financial Statements
The Second Quarter 2016 Management’s Discussion and Analysis and Consolidated Financial Statements provide a detailed explanation of Gibsons’ operating results for the three and six months ended June 30, 2016, as compared to the three and six months ended June 30, 2015. These documents are available at www.gibsons.com and at www.sedar.com.
2016 Second Quarter Results Conference Call
A conference call to discuss Gibsons’ first quarter results will be held at 9:00 a.m. MT (11:00 a.m. ET) on Wednesday, August 3, 2016, for interested investors, analysts and media representatives.
The conference call dial-in numbers are:
- 866-696-5910 from Canada and the US
- 416-340-2217 from Toronto and International
- Participant Pass Code: 9822539
Shortly after the call, an audio archive will be posted on the Investor/News section at www.gibsons.com. The call will also be recorded and available for playback 60 minutes after the meeting end time, until November 2, 2016, using the following dial in process:
- 905-694-9451 / 800-408-3053
- Pass code: 6754251
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, liquids and refined products. The Company also provides oilfield waste and water management services. Gibsons is the second largest industrial propane distribution company in Canada operating under the Canwest Propane and Stittco Energy brands.
Gibson Energy Inc. shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsons.com.