Click here to close now.


News Feed Item

Gibson Reports Record First Quarter Financial Results

CALGARY, ALBERTA -- (Marketwired) -- 05/06/14 -- All financial figures are in Canadian dollars unless otherwise stated

Gibson Energy Inc. ("Gibson" or the "Company") (TSX: GEI) announced today operating and financial results for the three months ended March 31, 2014.


--  Adjusted EBITDA(1) increased by 13% to $136.9 million in the first
    quarter of 2014, compared to the same period in 2013. For the twelve
    month period ended March 31, 2014, Pro Forma Adjusted EBITDA(1) was
    $442.9 million representing an 11% increase over the same period in
--  Capital expenditures were $100.8 million in the first quarter of 2014,
    of which $89.0 million was related to internal growth projects,
    primarily the construction of storage tanks and connection
    infrastructure that are back stopped by long-term contracts at the
    Company's Hardisty Terminal;
--  Distributable Cash Flow(2) for the twelve month period ended March 31,
    2014 increased by 17% to $257.1 million ($2.11 per share(3)) compared to
    the same period in 2013;
--  Dividends declared in the first quarter of 2014 were $36.9 million
    ($0.30 per share). This represented a 9% increase from the prior
    quarterly distribution and resulted in a trailing twelve month payout
    ratio of 53%;
--  On April 14, 2014, the Company announced an expansion of its Canwest
    propane business with the closing of the purchase of Stittco Energy
    Limited, a leading supplier of propane in Northern Manitoba and the
    Northwest Territories and the signing of a letter of intent to acquire
    Cal-Gas Inc., a national retail propane company; and
--  On April 30, 2014, the Company announced it had received long-term
    committed customer support for the construction of two additional
    300,000 barrel oil storage tanks at its Hardisty Terminal. These are the
    fifth and sixth large capacity storage tanks to be announced since
    initiating the expansion of this facility in the third quarter of 2012.
    Total new storage capacity under development at the Company's Hardisty
    Terminal is now 2.3 million barrels representing a 53% increase in total

"This record quarter for the Company provides a tremendous start to the year for our financial and operating performance," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "The results announced today also highlight the benefits of our integrated business model that continues to provide consistent and stable results. Additionally, we are pleased with the progression of our current infrastructure growth projects and the expansion of our retail propane business. We look forward to capturing incremental opportunities that expand and strengthen our business in 2014 and beyond."

(1)  Adjusted EBITDA and Pro Forma Adjusted EBITDA are defined in Gibson's
     Management's Discussion and Analysis.
(2)  Distributable Cash Flow is defined in Gibson's Management's Discussion
     and Analysis.
(3)  Per share amounts are based on basic weighted average common shares

Management's Discussion and Analysis and Financial Statements

The Management's Discussion and Analysis and Condensed Consolidated Financial Statements provide a detailed explanation of Gibson's operating results for the three months ended March 31, 2014 as compared to the three months ended March 31, 2013. These documents are available at and at

2014 First Quarter Results Conference Call

A conference call to discuss Gibson's first quarter results will be held at 7:00 a.m. MT (9:00 a.m. ET) on Wednesday, May 7, 2014 for interested investors, analysts and media representatives. The conference call dial-in numbers are:

--  416-340-2217 or 866-696-5910
--  Participant Pass Code: 8111827#

Shortly after the call, an audio archive will be posted on the Investors/News section at The call will also be recorded and available for playback 60 minutes after the meeting end time, until August 5, 2014, using the following dial in process:

--  905-694-9451 or 800-408-3053
--  Participant Pass Code: 5148008#

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

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
                                                                     Mar 31
                                                           2014        2013
                   (in thousands)

Segment Profit(i):
Terminals and Pipelines                              $   26,731  $   22,742
Truck Transportation                                     19,884      20,679
Environmental Services                                   21,979      16,935
Propane and NGL Marketing and Distribution               34,405      19,465
Processing and Wellsite Fluids                           17,084      17,658
Marketing                                                25,777      29,489
Total Segment Profit                                 $  145,860  $  126,968

Adjusted EBITDA                                      $  136,945  $  121,044
Pro Forma Adjusted EBITDA                            $  442,938  $  398,925

Capital Expenditures:
Growth Capital                                       $   89,031  $   34,205
Upgrade and Replacement Capital                          11,815      12,455
Total                                                $  100,846  $   46,660

Trailing Twelve Month Metrics:
Dividends Declared to Shareholders                   $  137,345  $  114,592
Distributable Cash Flow                              $  257,125  $  220,051
Payout Ratio                                                 53%         52%

Leverage Metrics:
Total Debt Ratio(ii)                                        1.9         1.5
Interest Coverage Ratio                                     8.6        10.9

(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.
(ii)  Total Debt Ratio is defined as total debt obligations minus
      unrestricted cash and cash equivalents divided by Pro Forma Adjusted

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
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...