All financial figures are in Canadian dollars unless otherwise noted
CALGARY, Alberta, May 06, 2019 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”), (TSX: GEI), announced today its financial and operating results for the three months ended March 31, 2019.
“Gibson delivered strong, consistent financial and operational results in the first quarter, with Infrastructure benefiting from 1.1 million barrels of new tankage at Hardisty as well as the Viking Pipeline entering service during the quarter,” said Steve Spaulding, President and Chief Executive Officer. “In the first few months of 2019, we also executed agreements that will conclude our non-core divestitures on schedule, with proceeds in-line with our initial expectations, and we continued to sanction additional tankage. We remain very well positioned to continue executing our strategy, including being fully-funded for all sanctioned capital, with our leverage and payout ratios well below target levels.”
- Infrastructure segment profit of $75 million in the first quarter, a $6 million increase compared to the first quarter of 2018, primarily due to additional tankage at Hardisty, the expansion of the HURC Unit Rail Facility and the Viking Pipeline entering service
- Marketing segment profit of $61 million in the first quarter, a $34 million increase over the first quarter of 2018, due to higher margins earned from the Refined Product and the Crude Marketing businesses
- Adjusted EBITDA from continuing operations(1) of $118 million in the first quarter, a $32 million increase relative to the first quarter of 2018
- Distributable cash flow from combined operations(2) of $83 million in the first quarter, a $26 million increase over the first quarter of 2018, resulting in a payout ratio on a trailing twelve month basis of approximately 62%, below the Company’s 70% to 80% target range
Strategic Developments and Highlights:
- Placed the first phase of development at the Top of the Hill portion of the Hardisty Terminal into service in mid-February ahead of schedule with capital cost in-line with budget, adding 1.1 million barrels of storage and increasing Gibson’s tankage in service at the Hardisty Terminal to approximately 10 million barrels
- Put the Viking Pipeline into service ahead of schedule at a capital cost in-line with budget
- Announced the sanction of an additional 500,000 barrel tank at Top of the Hill under a long-term agreement, resulting in a total of five tanks, representing 2.5 million barrels of storage, currently under construction
- Closed the sale of non-core Environmental Services North businesses on February 28, 2019
- Subsequent to the end of the quarter, announced agreements for the sale of its Canadian Truck Transportation business for aggregate proceeds of approximately $100 million prior to closing adjustments and contingent bonus payments to Gibson, successfully completing all of the non-core divestitures announced at the January 2018 Investor Day for total proceeds of approximately $325 million, at the mid-point of the initial target range
- Subsequent to the end of the quarter, DBRS Limited assigned Gibson an Issuer Rating of “BBB (low)” with a “Stable” trend. DBRS also assigned the same rating and trend to the Company’s Senior Unsecured Notes
- Remain fully funded for all sanctioned capital through a combination of disposition proceeds and retained distributable cash flow from combined operations, with a strong balance sheet and a Net Debt to Pro Forma Adjusted EBITDA at March 31, 2019 of 2.3x, below the Company’s 3.0x – 3.5x target range
|(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 GAAP measure and disclosed in note 1 of the condensed 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 2019 first quarter Management’s Discussion and Analysis and unaudited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s financial and operating results for the three months ended March 31, 2019, as compared to the three months March 31, 2018. These documents are available at www.gibsonenergy.com and at www.sedar.com.
2019 First Quarter Results Conference Call
A conference call and webcast will be held to discuss the 2019 first quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Tuesday, May 7, 2019.
The conference call dial-in numbers are:
- 478-219-0003 / 844-358-6759
- Participant Pass Code: 9590537
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 13, 2019, using the following dial-in numbers:
- 404-537-3406 / 855-859-2056
- Participant Pass Code: 9590537
Annual General Meeting & Webcast Details
Gibson is holding its annual meeting of shareholders on Tuesday May 7, 2019 at 11:00am Mountain Time at The Metropolitan Conference Centre, 333 – 4th Avenue S.W., Calgary, Alberta. At approximately 11:15am Mountain Time, and following the conclusion of the formal proceedings of Gibson’s annual shareholder meeting, Mr. Steve Spaulding, President and Chief Executive Officer, will address shareholders and provide an update of Gibson’s 2018 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 has also made available certain supplementary information regarding the first quarter financial and operating results, available at www.gibsonenergy.com.
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 an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.