CALGARY, AB – Gibson Energy Inc. announced today its financial and operating results for the three months ended March 31, 2022.
“We are pleased to report a strong start to 2022 from both an operational and financial perspective, with the Infrastructure segment delivering another steady quarter, Marketing performance slightly above our outlook and the continued advancement of numerous discussions around the potential sanction of tankage, additional phases of the DRU and energy transition-aligned opportunities,” said Steve Spaulding, President and Chief Executive Officer. “We remain focused on other key aspects of our business including, advancing sustainability and ESG at Gibson, continuing to maintain a very solid financial position, as well as returning capital to shareholders through the repurchase of $22 million in Gibson common shares through the end of April and increasing our dividend by six percent during the quarter.”
- Revenue of $2,688 million in the first quarter, a $1,079 million or 67% increase over the first quarter of 2021, a result of higher commodity prices and volumes increasing contribution from the Marketing segment
- Infrastructure Adjusted EBITDA(1) of $109 million in the first quarter, in-line with the first quarter of 2021, with an increase from the DRU being in-service in the current quarter largely offsetting the first quarter of 2021 having benefitted from the reversal of an accrual pertaining to a regulatory matter
- Marketing Adjusted EBITDA(1) of $21 million in the first quarter, a $17 million increase over the first quarter of 2021, reflecting a strengthening environment for Refined Products and the Crude Marketing business benefitting from increased market volatility
- Adjusted EBITDA(1) on a consolidated basis of $121 million in the first quarter, an $18 million or 17% increase over the first quarter of 2021, as result of the factors described above
- Net Income of $52 million in the first quarter, a $19 million or 59% increase over the first quarter of 2021, due to the factors described above partly offset by higher income tax expense in the current quarter
- Distributable Cash Flow(1) of $79 million in the first quarter, a $15 million or 24% increase over the first quarter of 2021, a result of the factors described above
- Dividend Payout ratio(2) on a trailing twelve-month basis of 68%, below Gibson’s 70% – 80% target range
- Net Debt to Adjusted EBITDA ratio(2) at March 31, 2022 of 2.7x, below the Company’s 3.0x – 3.5x target range
Strategic Developments and Highlights:
- Repurchased 776,100 shares for an aggregate $19 million in the first quarter of 2022, with additional repurchases subsequent to the quarter to reach $22 million year to date, reflecting the Company’s commitment to both its capital allocation philosophy and desire to return capital to shareholders given its strong financial position
- Announced that Gibson’s Board of Directors approved a quarterly dividend of $0.37 per common share, an increase of $0.02 per common share or 6%, beginning with the dividend payable in April
- Added by Global Listed Infrastructure Organization to its benchmark Index, where its member-investors across the world manage approximately US$145 billion in assets
- Subsequent to the quarter, placed the Biofuels Blending Project at its Edmonton Terminal into service ahead of schedule and within budgeted capital on a fixed-fee basis and a 25-year term
- Subsequent to the quarter, renewed the Company’s principal $750 million syndicated credit facility, which features sustainability-linked terms, extending its maturity into 2027
|(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 2022 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, 2022, as compared to the three months ended March 31, 2021. These documents are available at www.gibsonenergy.com and at www.sedar.com.
Earnings Conference Call & Webcast Details
A conference call and webcast will be held to discuss the 2022 first quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Tuesday, May 3, 2022.
The conference call dial-in numbers are:
- 416-764-8659 / 1-888-664-6392
- Conference ID: 08819166
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 17, 2022, using the following dial-in numbers:
- 416-764-8677 / 1-888-390-0541
- Replay Entry Code: 819166#
Annual General and Special Meeting & Webcast Details
Gibson is holding its annual meeting of shareholders on Tuesday, May 3, 2022 at 10:00am Mountain Time (12:00 noon Eastern Time). Due to the ongoing nature of the COVID-19 pandemic, this meeting will be held as a virtual-only meeting conducted via live audio webcast to ensure the upmost safety for our attendees. Shareholders will have an equal opportunity to participate at the virtual-only meeting regardless of their geographic location. Participants are encouraged to register for the live audio webcast at least 10 minutes prior to the presentation start time.
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 brief remarks on the current state of the business and discuss the highlights of the Company’s key initiatives.
The live audio webcast can be accessed using the following URL:
- Password: gibson2022
The webcast will remain accessible for a 12-month period at the above URL.
Additionally, information and materials related to the annual general meeting of shareholders can be accessed using the following URL:
Gibson has also made available certain supplementary information regarding the 2022 first quarter financial and operating results, available at www.gibsonenergy.com.