PR Newswire
CALGARY, AB, July 31, 2023
All financial figures are in Canadian dollars unless otherwise noted
CALGARY, AB, July 31, 2023 /PRNewswire/ - Gibson Energy Inc. announced today its financial and operating results for the three months ended June 30, 2023.
"Exiting the first half of 2023, we are pleased to report strong results from both the Infrastructure and Marketing segments, with Marketing segment profit above previously communicated expectations," said Steve Spaulding, President and Chief Executive Officer. "Beyond our financial results, we are very excited to have announced the expansion of our Infrastructure platform with the acquisition of the South Texas Gateway Terminal which is expected to close in the very near term. In addition, during the quarter, we continued to expand our existing Infrastructure business in Edmonton with the sanctioning of two tanks underpinned by a 15 year contract with Cenovus Energy Inc."
Financial Highlights:
Strategic Developments and Highlights:
(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 2023 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 and six months ended June 30, 2023, as compared to the three and six months ended June 30, 2022. 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 2023 second quarter and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Tuesday, August 1, 2023.
The conference call dial-in numbers are:
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 15, 2023, using the following dial-in numbers:
Supplementary Information
Gibson has also made available certain supplementary information regarding the 2023 second quarter financial and operating results, available at www.gibsonenergy.com.
About Gibson
Gibson Energy Inc. is a leading 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 currently focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw facility in Saskatchewan 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.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information and statements (collectively, forward-looking statements) including, but not limited to, statements concerning Gibson's dividend payment, share repurchase and growth capital targets and sanction of incremental infrastructure projects and continued progress in Gibson's sustainability journey. 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. The forward-looking statements reflect Gibson's beliefs and assumptions with respect to, among other things, dividend payment, ability to meet share repurchase and growth capital targets and ability to sanction incremental infrastructure projects. 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 press release should not be unduly relied upon. These statements speak only as of the date of this press release. 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 Information" and "Risk Factors" included in the Company's Annual Information Form and Management's Discussion and Analysis, each dated February 21, 2023, as filed on SEDAR and available on the Gibson website at www.gibsonenergy.com.
For further information, please contact:
Beth Pollock
Vice President, Capital Markets & Risk
Phone: (403) 992-6472
Email: [email protected]
Media Relations
Phone: (403) 476-6374
Email: [email protected]
Specified Financial Measures
This press release refers to certain financial measures that are not determined in accordance with GAAP, including non-GAAP financial measures and non-GAAP financial ratios. Readers are cautioned that non-GAAP financial measures and non-GAAP financial ratios do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other entities. 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 industries with similar capital structures.
For further details on these specified financial measures, including relevant reconciliations, see the "Specified Financial Measures" section of the Company's MD&A for the three and six months ended June 30, 2023 and 2022, which is incorporated by reference herein and is available on Gibson's SEDAR profile at www.sedar.com and Gibson's website at www.gibsonenergy.com.
a) Adjusted EBITDA
Noted below is the reconciliation to the most directly comparable GAAP measures of the Company's segmented and consolidated adjusted EBITDA for the three and six months ended June 30, 2023, and 2022:
Three months ended June 30, | Infrastructure | Marketing | Corporate & | Total | ||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Segment Profit | 92,185 | 109,817 | 34,231 | 6,271 | — | — | 126,416 | 116,088 |
Unrealized loss on derivative financial instruments | — | — | 150 | 6,124 | — | — | 150 | 6,124 |
General and administrative | — | — | — | — | (12,502) | (10,650) | (12,502) | (10,650) |
Adjustments to share of profit from equity accounted investees | 1,426 | 2,010 | — | — | — | — | 1,426 | 2,010 |
Other | — | — | — | — | 218 | — | 218 | — |
Adjusted EBITDA | 93,611 | 111,827 | 34,381 | 12,395 | (12,284) | (10,650) | 115,708 | 113,572 |
Six months ended June 30, | Infrastructure | Marketing | Corporate & | Total | ||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Segment Profit | 198,756 | 216,794 | 106,062 | 36,919 | - | - | 304,818 | 253,713 |
Unrealized gain on derivative financial instruments | - | - | (12,931) | (3,916) | - | - | (12,931) | (3,916) |
General and administrative | - | - | - | - | (24,419) | (19,586) | (24,419) | (19,586) |
Adjustments to share of profit from equity accounted investees | 2,861 | 4,021 | - | - | - | - | 2,861 | 4,021 |
Other | - | - | - | - | 218 | - | 218 | - |
Adjusted EBITDA | 201,617 | 220,815 | 93,131 | 33,003 | (24,201) | (19,586) | 270,547 | 234,232 |
Three months ended June 30, | ||
($ thousands) | 2023 | 2022 |
Net Income | 52,026 | 35,919 |
Income tax expense | 16,139 | 11,055 |
Depreciation, amortization, and impairment charges | 28,091 | 38,015 |
Net finance costs | 11,716 | 15,765 |
Unrealized loss on derivative financial instruments | 150 | 6,124 |
Stock based compensation | 4,743 | 4,703 |
Adjustments to share of profit from equity accounted investees | 1,426 | 2,010 |
Corporate foreign exchange loss (gain) and other | 1,417 | (19) |
Adjusted EBITDA | 115,708 | 113,572 |
Six months ended June 30, | ||
($ thousands) | 2023 | 2022 |
Net Income | 140,277 | 87,889 |
Income tax expense | 43,186 | 27,057 |
Depreciation, amortization, and impairment charges | 56,246 | 76,454 |
Net finance costs | 30,135 | 30,686 |
Unrealized gain on derivative financial instruments | (12,931) | (3,916) |
Stock based compensation | 8,889 | 10,858 |
Adjustments to share of profit from equity accounted investees | 2,861 | 4,021 |
Corporate foreign exchange loss and other | 1,884 | 1,183 |
Adjusted EBITDA | 270,547 | 234,232 |
b) Distributable Cash Flow
The following is a reconciliation of distributable cash flow from operations to its most directly comparable GAAP measure, cash flow from operating activities:
Three months ended June 30, | Six months ended June 30, | |||
($ thousands) | 2023 | 2022 | 2023 | 2022 |
Cash flow from operating activities | 69,712 | 15,847 | 229,239 | 321,583 |
Adjustments: | ||||
Changes in non-cash working capital and taxes paid | 51,378 | 96,932 | 46,499 | (93,721) |
Replacement capital | (7,491) | (5,660) | (12,826) | (7,828) |
Cash interest expense, including capitalized interest | (16,588) | (14,137) | (33,387) | (27,756) |
Lease payments | (8,121) | (9,524) | (17,693) | (20,120) |
Current income tax | (6,399) | (9,520) | (21,940) | (19,101) |
Distributable cash flow | 82,491 | 73,938 | 189,892 | 153,057 |
Twelve months ended June 30, | ||
($ thousands) | 2023 | 2022 |
Cash flow from operating activities | 505,968 | 418,188 |
Adjustments: | ||
Changes in non-cash working capital and taxes paid | 58,644 | 13,880 |
Replacement capital | (27,239) | (23,818) |
Cash interest expense, including capitalized interest | (65,447) | (55,539) |
Lease payments | (32,970) | (36,308) |
Current income tax | (45,913) | (28,435) |
Distributable cash flow | 393,043 | 287,968 |
c) Dividend Payout Ratio
Twelve months ended June 30, | ||
2023 | 2022 | |
Distributable cash flow | 393,043 | 287,968 |
Dividends declared | 217,490 | 211,379 |
Dividend payout ratio | 55 % | 73 % |
d) Net Debt to Adjusted EBITDA Ratio
Twelve months ended June 30, | ||
2023 | 2022 | |
Long-term debt | 1,642,367 | 1,576,186 |
Lease liabilities | 63,092 | 73,917 |
Less: unsecured hybrid debt | (250,000) | (250,000) |
Less: cash and cash equivalents | (55,215) | (38,753) |
Net debt | 1,400,244 | 1,361,350 |
Adjusted EBITDA | 557,294 | 448,710 |
Net debt to adjusted EBITDA ratio | 2.5 | 3.0 |
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SOURCE Gibson Energy Inc.