CALGARY, AB – Gibson Energy Inc. announced today its financial and operating results for the three and six months ended June 30, 2022.
“We are pleased to report another solid quarter from both an operational and financial perspective, with both the Infrastructure and Marketing segments performing in-line with our expectations,” said Steve Spaulding, President and Chief Executive Officer. “Beyond our consistent financial results in the first half of 2022, we are pleased to have placed the Biofuels Blending Project into service and have seen meaningful progress in our buyback initiative through the repurchase of approximately 1.6% of our outstanding shares, or $60 million, through the second quarter. We are also excited to have recently added Diane Kazarian, who brings extensive audit and risk experience, to our Board. Looking through the balance of the year, in refining our timing expectations of capital sanctions, we now expect to deploy between $100 million and $125 million of growth capital and intend to continue our share repurchases, with the potential to increase amounts allocated towards our buyback initiative as our improving business outlook is realized.”
- Revenue of $3,196 million in the second quarter, a $1,521 million or 91% increase over the second quarter of 2021, a result of higher commodity prices increasing contribution from the Marketing segment
- Infrastructure Adjusted EBITDA(1) of $112 million in the second quarter, a $6 million or 5% decrease from the second quarter of 2021, principally due to a $20 million payment for the present value of the remaining term of a rail loading contract benefitting the second quarter of 2021, which was partially offset by non-recurring fees of $5 million within the second quarter of 2022
- Marketing Adjusted EBITDA(1) of $12 million in the second quarter, a $6 million or 33% decrease from the second quarter of 2021, with a weaker environment for the Crude Marketing business partly offset by a stronger contribution from Refined Products
- Adjusted EBITDA(1) on a consolidated basis of $114 million in the second quarter, a $14 million or 11% decrease over the second quarter of 2021, primarily as result of the factors described above
- Net Income of $36 million in the second quarter, a $4 million or 11% increase over the second quarter of 2021, due to higher depreciation expense in the comparative period partly offset by the factors described above
- Distributable Cash Flow(1) of $74 million in the second quarter, a $19 million or 20% decrease from the second quarter of 2021, a result of the factors described above and a slight increase in current income tax expense
- Dividend Payout ratio(2) on a trailing twelve-month basis of 73%, at the lower end of its 70% – 80% target range
- Net Debt to Adjusted EBITDA ratio(2) at June 30, 2022 of 3.0x, at the bottom end of the Company’s target range
Strategic Developments and Highlights:
- Placed the Biofuels Blending Project at its Edmonton Terminal into service on schedule and within budgeted capital on a fixed-fee basis and a 25-year term
- Completed the Fuel Switching Project at the Moose Jaw Facility on schedule and within budgeted capital, increasing throughput capacity to 24,000 bbl/d, or by 10%, while reducing emissions intensity by 15%
- Subsequent to the quarter, announced the addition of Ms. Diane Kazarian to the Company’s Board of Directors
- Repurchased 1.5 million shares for an aggregate $40 million in the second quarter, and a total of approximately 2.4 million shares or 1.6% of outstanding shares to date this year
- Performed a review of capital expenditures in 2022, with an updated outlook for growth capital of $100 million to $125 million, given timing of the sanction of certain growth opportunities, and maintenance capital of $25 million to $30 million
- Targeted share repurchases in 2022 of up to $100 million, with the potential to increase if current expectations of business performance are realized, reflecting Gibson’s commitment to returning capital to shareholders
- 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 second 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 June 30, 2022, as compared to the three and six months ended June 30, 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 second quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, August 3, 2022.
The conference call dial-in numbers are:
- 416-764-8659 / 1-888-664-6392
- Conference ID: 31070574
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 August 17, 2022, using the following dial-in numbers:
- 416-764-8677 / 1-888-390-0541
- Replay Entry Code: 070574#
Gibson has also made available certain supplementary information regarding the 2022 second quarter 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.