CALGARY, AB – Gibson Energy Inc. announced today its financial and operating results for the three and twelve months ended December 31, 2021.
“We are pleased to report another strong year in 2021, highlighted by Adjusted EBITDA from our Infrastructure segment increasing 17% both relative to the prior year and as a compound annual growth rate over the past five years,” said Steve Spaulding, President and Chief Executive Officer. “During the year, we were able to resume the sanction of incremental growth projects while maintaining the 5x to 7x EBITDA build multiples that we have consistently achieved over the past several years. We also meaningfully advanced Sustainability and ESG at Gibson, setting expanded 2025 and 2030 targets and adopting a Net Zero by 2050 target, with our progress recognized by third party ratings agencies, including being the only company in North America in our sector to receive a “AAA” rating from MSCI ESG Ratings and being only one of four in our industry category globally to receive a Bronze Class distinction from S&P Global.”
- Revenue of $7,211 million for the full year, including $2,119 million in the fourth quarter, a $2,273 million or 46% increase over full year 2020, a result of higher commodity prices and volumes increasing contribution from the Marketing Segment
- Infrastructure Adjusted EBITDA(1) of $436 million for the full year, including $106 million in the fourth quarter, a $63 million or 17% increase over full year 2020, due to strong performance at the Hardisty and Edmonton Terminals, additional tankage in service at Hardisty and a partial year contribution from the DRU in 2021
- Marketing Adjusted EBITDA(1) of $43 million for the full year, including $6 million in the fourth quarter, a $61 million or 59% decrease over full year 2020, reflecting a challenging environment for the Crude Marketing business in 2021 and the significant market volatility present in 2020
- Adjusted EBITDA(1) on a consolidated basis of $445 million for the full year, including $104 million in the fourth quarter, is effectively in-line with full year 2020, with the increased contribution from the Infrastructure segment offsetting the decrease in opportunities within the Marketing segment
- Net Income of $145 million for the full year, including $44 million in the fourth quarter, a $24 million or 20% increase over full year 2020, due to debt extinguishment costs in 2020 and the factors described above
- Distributable Cash Flow(1) of $291 million for the full year, including $64 million in the fourth quarter, an $8 million or 3% decrease over full year 2020, a result of the factors described above impacting Adjusted EBIDTA, as well as higher income tax expense and lower lease payments in 2021
- Dividend Payout ratio(2) on a trailing twelve-month basis of 70%, at the low end of its 70% – 80% target range
- Net Debt to Adjusted EBITDA(2) at December 31, 2021 of 3.2x, within the Company’s 3.0x – 3.5x target range
Strategic Developments and Highlights:
- Commenced operation of the DRU on-schedule and within expected capital cost, with in-service in December
- Entered into a long-term agreement with Suncor Energy Inc. for services at the Company’s Edmonton Terminal, and sanctioned the related Biofuels Blending Project on a fixed-fee basis and a 25-year term
- Sanctioned the construction of a new 435,000 barrels tank at its Edmonton Terminal underpinned by a long-term, take-or-pay and stable fee-based agreement with a new Investment Grade energy customer
- Established expanded Sustainability and ESG targets focused around reducing GHG emissions, including an ambitious Net Zero by 2050 target, diversity and inclusion, health and safety as well as community impact targets, with an overarching goal of being a Sustainability and ESG leader relative to Gibson’s peers
- Subsequent to the quarter, Gibson’s Board of Directors approved a quarterly dividend of $0.37 per common share, an increase of $0.02 per common share, beginning with the dividend payable in April
|(1)||Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. See the “Specified Financial Measures” section of this release.|
|(2)||Net debt to Adjusted EBITDA ratio and Dividend Payout ratio are non-GAAP financial ratios. See the “Specified Financial Measures” section of this release.|
Management’s Discussion and Analysis and Financial Statements
The 2021 fourth quarter Management’s Discussion and Analysis and audited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s financial and operating results for the three and twelve months ended December 31, 2021, as compared to the three and twelve months ended December 31, 2020. These documents are available at www.gibsonenergy.com and at http://www.sedar.com .
2021 Fourth Quarter and Year-End Results Conference Call
A conference call and webcast will be held to discuss the 2021 fourth quarter and year-end financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, February 23, 2022.
The conference call dial-in numbers are:
- 416-764-8659 / 888-664-6392
- Participant Pass Code: 90331437
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 March 9, 2022, using the following dial-in numbers:
- 416-764-8677 / 888-390-0541
- Participant Pass Code: 331437#
Gibson has also made available certain supplementary information regarding the 2021 fourth quarter and full year financial and operating results, available at www.gibsonenergy.com.
Gibson Energy Inc. (“Gibson” or the “Company”) (TSX: GEI), is a Canadian-based liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids 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 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.