Welcome!

News Feed Item

Gibson Reports Second Quarter 2014 Financial Results and Increases Growth Capital Spending Estimates for 2014 and 2015

CALGARY, ALBERTA -- (Marketwired) -- 08/06/14 --

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 second quarter of 2014.

Highlights:

--  Segment Profit(1) in the second quarter was $92 million. Marketing
    segment profitability returned to more normal levels, while strong gains
    in all other business segments contributed to a net overall increase of
    3% over the same period in 2013; 
--  The Company increased its 2014 growth capital spending forecast,
    excluding acquisitions, by 10% from $340 million to $375 million.
    Additionally, the Company's preliminary estimate for growth capital
    spending in 2015 has been increased by 50% from $250 million to $375
    million, with continued emphasis on expansion of the Hardisty and
    Edmonton Terminals; 
--  After the successful commissioning of the Hardisty Unit Train project in
    June 2014, the Company, together with US Development Group LLC,
    announced its intention to solicit customer commitments to proceed with
    an expansion of the facility, doubling capacity to 240,000 barrels per
    day; 
--  Capital expenditures of $83 million in the second quarter included $72
    million of growth capital spending primarily for the construction of
    storage tanks and connection infrastructure at the Company's Hardisty
    Terminal, including the Unit Train loading facility, and the
    construction of new infrastructure within the Environmental Services
    segment; 
--  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, bringing
    storage capacity under development to a total of 2.3 million barrels.
    This will increase total storage capacity by 53% upon completion; 
--  The Company closed the acquisition of Cal-Gas Inc. on August 1, 2014,
    for cash consideration of approximately $100 million. This acquisition,
    when combined with the earlier $32 million acquisition of Stittco Energy
    Limited, completed the Company's previously announced expansion of its
    Canwest propane business; 
--  Pro Forma Adjusted EBITDA(2) for the twelve month period ended June 30,
    2014 increased by 11% to $443 million compared to the same period in
    2013; and 
--  Distributable Cash Flow(3) for the twelve month period ended June 30,
    2014 increased by 4% to $251 million ($2.05 per share(4)) compared to
    the same period in 2013. 

"We are pleased to announce healthy second quarter results which highlight the strength of Gibson's integrated model with all business segments continuing to perform at expected levels. Most importantly, we are excited about our recent accomplishments which include the successful commissioning of our unit train facility, the expansion of our retail propane business and the faster than expected progression of our organic growth projects," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "While we remain focused on executing on our strategic growth initiatives in the second half of 2014, continued customer demand for Gibson's integrated midstream solutions has improved our visibility for capturing increased growth opportunities in 2015 and beyond."

(1)  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.              
(2)  Pro Forma Adjusted EBITDA is defined in Gibson's Management's          
     Discussion and Analysis.                                               
(3)  Distributable Cash Flow is defined in Gibson's Management's Discussion 
     and Analysis.                                                          
(4)  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 and six months ended June 30, 2014 as compared to the three and six months ended June 30, 2013. These documents are available at www.gibsons.com and at www.sedar.com.

2014 Second Quarter Results Conference Call

A conference call to discuss Gibson's second quarter results will be held at 7:00 a.m. MT (9:00 a.m. ET) on Thursday, August 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 November 4, 2014, using the following dial in process:

--  905-694-9451 or 800-408-3053 
--  Participant Pass Code: 8014837# 

About Gibson

Gibson is a large independent integrated service provider to the oil and gas industry with operations across major producing regions throughout North America. Gibson is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids ("NGLs"), water, oilfield waste, and refined products. The Company transports energy products by utilizing its integrated network of terminals, pipelines, storage tanks, and trucks located throughout western Canada and through its significant truck transportation and injection station network in the United States. The Company also provides emulsion treating, water disposal and oilfield waste management services in Canada and the United States 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       Six months ended
                                              June 30                June 30
                                      2014       2013        2014       2013
----------------------------------------------------------------------------
                                               (in thousands)               
                                                                            
Segment Profit:                                                             
Terminals and Pipelines          $  24,691  $  22,000   $  51,422  $  44,742
Truck Transportation                20,033     17,996      39,917     38,675
Environmental Services              21,675     19,260      43,654     36,195
Propane and NGL Marketing and                                               
 Distribution                        7,159      6,462      41,564     25,927
Processing and Wellsite Fluids       5,521      5,361      22,605     23,019
Marketing                           12,775     17,937      38,552     47,426
                                --------------------------------------------
Total Segment Profit             $  91,854  $  89,016   $ 237,714  $ 215,984
Adjusted EBITDA                  $  82,684  $  87,176   $ 219,629  $ 208,220
                                                                            
Capital Expenditures, excluding                                             
 acquisitions:                                                              
Growth Capital                   $  71,799  $  32,192   $ 160,830  $  66,397
Upgrade and Replacement Capital     10,781     16,396      22,596     28,851
                                --------------------------------------------
Total                            $  82,580  $  48,588   $ 183,426  $  95,248
                                                                            
                                                                            
Trailing Twelve Month Metrics:                                              
                                                                            
Pro Forma Adjusted EBITDA        $ 443,160  $ 400,426                       
Distributable Cash Flow            251,495    240,875                       
Dividends Declared to                                                       
 Shareholders                      141,060    122,996                       
Payout Ratio                            56%        51%                      
                                                                            
Leverage Metrics:                                                           
Total Debt Ratio(i)                    1.8        1.6                       
Interest Coverage Ratio                7.7       11.2                       

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

Contacts:
Gibson Energy Inc.
Tammi Price
Vice President Investor Relations & Corporate Development
(403) 206-4212
[email protected]

Gibson Energy Inc.
Cam Deller
Manager, Investor Relations
(403) 776-3041
[email protected]
www.gibsons.com

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
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and 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. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
"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.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.