CALGARY, ALBERTA–(Marketwired – April 19, 2016) – Gibson Energy Inc. (“Gibsons” or the “Company”), (TSX:GEI), announced today a new management structure and changes to its segmented reporting beginning with the three month period ending March 31, 2016.
New Management Structure
Following a review of the management of the Company’s operations, and in support of improved customer interface and enhanced internal efficiencies, we have reorganized our business which will now be reported under four key segments: Infrastructure, Logistics, Wholesale and Industrial Propane. The changes to our segments reflect a recent internal restructuring of the Company’s operations. This process has resulted in a structural headcount reduction, including an approximate 20% reduction in executive level positions. The following is a summary of each segment:
Included in this segment is Gibsons’ network of midstream infrastructure, including oil terminals, rail loading and unloading facilities, injection stations, gathering pipelines and processing facilities that collects, stores, treats, and processes oil and other liquid hydrocarbon products and by-products before eventual distribution to end-use markets. By consolidating the management of our fixed infrastructure assets, we are able to create operational efficiencies and reduce management overlap in the organization.
This segment includes the Company’s suite of logistical, transportation and ancillary wellsite services that enable oil and liquids production to access fixed midstream infrastructure. Within this new segment, we will capture synergies across our physical network of operating locations and be better able to cost effectively deliver integrated services to our customers.
This segment encompasses Gibsons’ broad transactional capabilities which enable the distribution of hydrocarbon products to end markets throughout North America. By consolidating the Company’s purchases and sales of hydrocarbon products, including crude oil, condensate, NGLs and refined products from our Moose Jaw facility, we will create efficiencies, increase flexibility to capture arbitrage opportunities and enable greater cross selling opportunities.
This business is one of the largest industrial propane suppliers in Canada with a diverse customer base including a focus on oil and gas customers in western Canada. The Company’s industrial propane business operates under the brand names of Canwest Propane and Stittco Energy.
“Today’s announcement underscores our commitment to create a more efficient operation while enhancing our ability to provide valuable midstream solutions to our customers. The new structure offers improved management oversight of similar business lines while creating better alignment with our customers’ needs,” said Stewart Hanlon, Gibsons’ President and Chief Executive Officer. “Looking further ahead, by aligning our complementary capabilities and leveraging our core strengths, we are confident that we will deliver enhanced returns for our shareholders.”
Changes to Segmented Reporting
For the upcoming release of the Company’s first quarter 2016 financial statements, the Company will reflect the changes to its segmented reporting. For comparative purposes, the Company is providing historical financial disclosure for the periods Q1 2014 through Q4 2015, reflecting the segmented reporting changes. A presentation to summarize the management changes, including the reclassification of key historical financial results, is available in the Investor Relations section at www.gibsons.com.
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 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 gibsons.com.