Welcome!

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.

Highlights:


--  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
    2013;
--  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
    capacity.

"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
     outstanding.

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 www.gibsons.com and at www.sedar.com.

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 www.gibsons.com. 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 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
                                                                     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
      EBITDA.

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
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, d...
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...
SYS-CON Events announced today that WineSOFT 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. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, S...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
SYS-CON Events announced today that App2Cloud 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. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyer belt between the Software Factory and production stages. Artifacts are m...
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...
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.