Welcome!

News Feed Item

Gibson Reports Record 2013 Financial Results and Announces a 9% Dividend Increase

CALGARY, ALBERTA -- (Marketwired) -- 03/04/14 -- All financial figures are in Canadian dollars unless otherwise stated.

Gibson Energy Inc. ("Gibson" or the "Company") (TSX: GEI) announced today a dividend increase and operating and financial results for the three and twelve months ended December 31, 2013.

Highlights:


--  Earlier today, the Company's Board of Directors approved a 9% increase
    to its quarterly dividend. The increase to $0.30 per common share is
    payable on April 17, 2014 to shareholders of record at the close of
    business on March 31, 2014;

--  Adjusted EBITDA(1) increased by 20% to $115.3 million in the fourth
    quarter of 2013 compared to 2012;

--  Annual Adjusted EBITDA increased by 41% to a record $427.0 million in
    2013;

--  Annual Distributable Cash Flow(2) increased by 39% to $253.2 million
    ($2.09 per share(3)) in 2013 compared to $182.5 million ($1.78 per
    share(3)) in 2012;

--  Total dividends declared in 2013 were $133.7 million ($1.10 per share)
    and represented 53% of Distributable Cash Flow;

--  Capital expenditures were $247.0 million in 2013, of which $177.4
    million was related to growth capital. Growth capital expenditures were
    primarily for the construction of tanks and pipeline and connection
    infrastructure at the Company's facilities; and

--  On December 10, 2013, the Company announced its capital spending plans
    for 2014 at a record $410 million of which $340 million is allocated to
    growth spending. Expected growth capital spending for 2015 is estimated
    to be in excess of $250 million.

"The results announced today represent record fourth quarter and annual profitability for the Company. Continued strong performance across all of our business segments reinforces the advantage of our integrated portfolio to deliver stable and growing cash flow," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "2014 is expected to be another strong year for Gibson as we continue to witness strong industry fundamentals, successfully execute on our business plan and generate increased revenue from our growth capital investments. This growth outlook provides us the confidence to increase our quarterly dividend as we continue to provide a compelling total return to Gibson shareholders."


1.  Adjusted EBITDA is defined in Gibson's 2013 Management's Discussion and
    Analysis.
2.  Distributable Cash Flow is defined in Gibson's 2013 Management's
    Discussion and Analysis.
3.  Per share amounts utilize basic weighted average common shares
    outstanding as calculated in note 24 of Gibson's 2013 Consolidated
    Financial Statements.

Management's Discussion and Analysis and Financial Statements

The 2013 Management's Discussion and Analysis and Consolidated Financial Statements provide a detailed explanation of Gibson's operating results for the year ended December 31, 2013 as compared to the year ended December 31, 2012. These documents are available at www.gibsons.com and at www.sedar.com.

2013 Fourth Quarter and Year End Results Conference Call

A conference call to discuss Gibson's fourth quarter and year end results will be held at 7:00 a.m. MT (9:00 a.m. ET) on Wednesday, March 5, 2014 for interested investors, analysts and media representatives.

The conference call dial-in numbers are:


--  866-696-5910 from Canada and the US
--  416-340-2217 from Toronto and International
--  Participant Pass Code: 7015666#

Shortly after the call, an audio archive will be posted on the Investor Relations and Media section at http://www.gibsons.com.

The call will also be recorded and available for playback 60 minutes after the meeting end time, until June 5, 2014, using the following dial in process:


--  905-694-9451 / 800-408-3053
--  Pass code: 7939281#

About Gibson

Gibson is a large, independent midstream energy company in Canada and an integrated service provider to the oil and gas industry in the U.S. Gibson is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, NGLs, water, oilfield waste and refined products. The Company transports energy products by using its network of terminals, pipelines, storage tanks and trucks located throughout western Canada and through its significant truck transportation and injection station network in the U.S. The Company also provides environmental and production services, including fluid handling, emulsion treating, water disposal and oilfield waste management services in Canada and the U.S., and is the second largest retail propane distribution company in Canada.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, statements concerning the Company's future payment of dividends and the amount thereof and management's expectation with respect to the Company's business and financial prospects and opportunities. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. The Company does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in the Company's Annual Information Form dated March 4, 2014 as filed on SEDAR and available on the Gibson website at www.gibsons.com.

This news release refers to certain financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA and Pro Forma Adjusted EBITDA are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of the Company's performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industries with similar capital structures. See "Summary of Quarterly Results" in the Company's MD&A for a reconciliation of EBITDA to net income, the IFRS measure most directly comparable to EBITDA, and for a reconciliation of Adjusted EBITDA and Pro Forma Adjusted EBITDA to EBITDA. Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends. See "Distributable Cash Flow" in the Company's MD&A for a reconciliation of distributable cash flow to cash flow from operations, the IFRS measure most directly comparable to distributable cash flow. Investors are encouraged to evaluate each adjustment and the reasons the Company considers it appropriate for supplemental analysis. Investors are cautioned, however, that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of the Company's performance.

Selected Financial Highlights


                                    Three months ended
                                          Dec 31         Year ended Dec 31
                                   ------------------- --------------------
                                        2013      2012      2013       2012
-------------------------------------------- --------- ---------- ----------
(in thousands)

Segment Profit(i):
Terminals and Pipelines            $  25,065 $  20,329 $  95,613  $  79,229
Truck Transportation                  22,165    21,634    83,674     85,499
Environmental Services                22,564    11,185    83,094     16,689
Propane and NGL Marketing and
 Distribution                         23,204    20,886    62,277     49,671
Processing and Wellsite Fluids        13,612    10,132    48,720     40,068
Marketing                             16,733    17,918    83,004     58,737
                                   --------- --------- ---------- ----------
Total Segment Profit               $ 123,343 $ 102,084 $ 456,382  $ 329,893
                                   --------- --------- ---------- ----------

Adjusted EBITDA                    $ 115,284 $  96,134 $ 427,037  $ 302,076

Capital Expenditures:
Growth Capital                     $  55,313 $  34,404 $ 177,443  $ 125,662
Upgrade and Replacement Capital       21,347    13,406    69,513     56,536
Acquisitions                               -   466,724         -    479,026
                                   --------- --------- ---------- ----------
Total                              $  76,660 $ 513,534 $ 246,956  $ 661,224
                                   --------- --------- ---------- ----------


Dividends:
Dividends Declared to Shareholders                     $ 133,632  $ 106,074
Distributable Cash Flow                                $ 253,178  $ 182,512
Payout Ratio                                                  53%        58%


Leverage Metrics:
Net Debt                                               $ 670,200  $ 613,122
Pro Forma Adjusted EBITDA                              $ 427,037  $ 370,612
Ratio of Net Debt to EBITDA                                  1.6        1.7

(i) Segment profit is defined as revenue minus (i) cost of sales; and (ii) operating costs. It excludes depreciation, amortization, impairment charges, stock based compensation and corporate expenses.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...