CALGARY, Alberta, May 08, 2018 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”), (TSX:GEI), announced today its operating and financial results for the three months ended March 31, 2018.
- Infrastructure segment profit of $69 million, a 15% increase over the first quarter of 2017, primarily due to additional tankage entering service at the beginning of 2018 under take-or-pay, stable fee-based contracts
- Segment profit from continuing operations of $102 million, a 21% increase relative to the first quarter of 2017, driven by a higher contribution from Infrastructure and the impact of IFRS 16
- Adjusted EBITDA from continuing operations(1) increased by 31% to $93 million relative to the $71 million earned in the first quarter of 2017, due to the same factors as segment profit as well as the impact of cost savings initiatives completed in 2017
- Distributable cash flow from combined operations(2) of $65 million, an increase of 48% over the first quarter of 2017, resulting in a payout ratio on a trailing twelve month basis of approximately 92%
- Incurred $26 million in growth capital expenditures, with nearly the entire amount attributable to the construction of new tankage and related infrastructure at the Hardisty and Edmonton Terminals
Strategic Developments and Highlights:
- During the quarter, announced the corporate strategy to accelerate Gibson’s transition to an oil infrastructure focused company, targeting 10% distributable cash flow per share growth while paying a secure, growing dividend
- As part of the strategy, the Company announced its intention to divest of its NGL Wholesale, Canadian Truck Transportation, non-core Canadian Environmental Services and non-core U.S. Injection Stations and Truck Transportation businesses
- Placed an 800,000 barrel expansion of the Edmonton Terminal into service on January 3, 2018, and continued to advance the construction of 1.1 million barrels of new tankage at the Hardisty Terminal that is expected to be in-service in mid-2019
- On February 21, 2018, announced the sanction of the Viking Pipeline Project, which is expected to be in-service in the first quarter of 2019 at a capital cost of approximately $50 million
- On March 19, 2018, announced the sale of its U.S. energy services businesses, including its U.S. Environmental Services and its U.S. seismic assets, for approximately US$96 million prior to closing adjustments or approximately $125 million at current exchange rates. Subsequent to the end of the quarter, the Company closed both transactions
“The solid financial and operational results in the first quarter provide a strong start to 2018, helping to push down our payout ratio and leverage as we focus on realigning and growing the business,” said Steve Spaulding, President and Chief Executive Officer. “The sanction of the Viking Pipeline Project and the sale of our U.S. energy services businesses were important first steps in executing our strategy, and we are confident that the non-core divestitures will be completed on or ahead of schedule with proceeds within or above our target range. Additionally, we are optimistic we will sanction additional capital projects over the balance of the year to provide growth visibility into 2020 and beyond. With the progress we have made over the last several months, we are very well positioned to deliver on our strategy.”
|(1)||Adjusted EBITDA from continuing operations is defined in Gibson’s Management’s Discussion and Analysis (“MD&A”). See MD&A section “Results of Continuing Operations” for segment profit from continuing operations discussion, which is the most closely related additional GAAP measure and disclosed in note 1 of the consolidated financial statements.|
|(2)||Distributable cash flow from combined operations is defined in Gibson’s MD&A. See MD&A sections “Liquidity and Capital Resources” and “Results of Discontinued Operations” for cash flow from operations discussion, which is the most closely related GAAP measure.|
Management’s Discussion and Analysis and Financial Statements
The first quarter 2018 Management’s Discussion and Analysis and unaudited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s operating results for the three months ended March 31, 2018, as compared to the three months ended March 31, 2017. These documents are available at www.gibsonenergy.com and at www.sedar.com.
2018 First Quarter Results Conference Call
A conference call and webcast will be held to discuss the 2018 first quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, May 9, 2018.
The conference call dial-in numbers are:
- 478-219-0003 / 844-358-6759
- Participant Pass Code: 4373469
This call will also be broadcast live on the Internet and may be accessed directly at the following URL:
The webcast will remain accessible for a 12 month period at the above URL. Additionally, a digital recording will be available for replay two hours after the call’s completion until May 15, 2018, using the following dial-in numbers:
- 404-537-3406 / 855-859-2056
- Participant Pass Code: 4373469
Annual General Meeting & Webcast Details
Gibson is holding its annual meeting of shareholders on Wednesday, May 9, 2018 at 10:00am Mountain Time at The Westin Calgary, 320 – 4th Avenue S.W., Calgary, Alberta. Following the conclusion of the formal proceedings of Gibson’s annual meeting of shareholders, Steve Spaulding, President and Chief Executive Officer, will address shareholders and provide an update on Gibson’s 2017 accomplishments, remarks on the current state of the business and discuss highlights of the Company’s key initiatives.
To listen to a live broadcast of the presentation on the Internet, please access the following URL:
The webcast will remain accessible for a 12 month period at the above URL.
Gibson is a Canadian-based oil infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and injections stations in Texas and Oklahoma.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.