All financial figures are in Canadian dollars unless otherwise noted
"We are pleased to announce a strong start to the year, driven by stable, high-quality cash flows from our Infrastructure segment, which includes both our Canadian assets and our now fully integrated
Financial Highlights:
- Revenue of
$3,289 million in the first quarter, a$923 million or 39% increase relative to the first quarter of 2023, primarily due to higher sales volumes within the Marketing segment and revenue contribution from theGateway Terminal - Infrastructure adjusted EBITDA(1) of
$151 million in the first quarter, a$43 million or 40% increase from the first quarter of 2023, primarily driven by the contribution from theGateway Terminal - Marketing adjusted EBITDA(1) of
$34 million in the first quarter, a$25 million or 43% decrease from the first quarter of 2023, due to weaker contributions from both Refined Products and Crude Marketing - Adjusted EBITDA(1) on a consolidated basis of
$170 million in the first quarter, a$15 million or 10% increase over the first quarter of 2023, as a result of the factors described above - Net income of
$40 million in the first quarter, a$48 million or 54% decrease over the first quarter of 2023, due to the impact of unrealized gains and losses on financial instruments, higher finance and executive transition costs, as well as depreciation and amortization expenses, partially offset by lower income tax expense and higher adjusted EBITDA(1), as noted above - Distributable cash flow(1) of
$114 million in the first quarter, a$7 million or 7% increase from the first quarter of 2023, as a result of the factors described above - Dividend payout ratio(2) on a trailing twelve-month basis of 63%, below the Company’s 70% – 80% target
- Net debt to adjusted EBITDA ratio(2) at
March 31, 2024 of 3.5x, which is within the Company’s 3.0x – 3.5x target range, notwithstanding adjusted EBITDA(1) only including eight months of contribution from theGateway Terminal ; the net debt to adjusted EBITDA ratio(2) is expected to be temporarily elevated until twelve months of adjusted EBITDA(1) from theGateway Terminal is reflected in the Company's net debt to adjusted EBITDA ratio(2)
Strategic Developments and Highlights:
- Fully integrated the operations and maintenance functions of the
Gateway Terminal from Buckeye to Gibson effectiveJanuary 1, 2024 - Announced
Steve Spaulding's intention to retire as President and Chief Executive Officer. Gibson's Board has engaged a search firm to evaluate internal and external candidates; to ensure a smooth transition,Mr. Spaulding will continue to serve in his current role and remain on the Board until a successor has been identified and appointed - Appointed
Craig V. Richardson to Gibson's Board;Mr. Richardson brings extensiveU.S. commercial and regulatory experience, and serves on the Audit Committee and Health andSafety Committee - Announced that Gibson achieved top quartile safety performance among peers for the third consecutive year, including record low Total Recordable Injury Frequency of 0.22 in 2023
(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 2024 first quarter and year-end 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 months ended
Earnings Conference Call & Webcast Details
A conference call and webcast will be held to discuss the 2024 first quarter financial and operating results at
To register for the call, view dial-in numbers, and obtain a dial-in PIN, please access the following URL:
- https://register.vevent.com/register/BI43329aad838a4f1db0d187dde158bb87
Registration at least five minutes prior to the conference call is recommended.
This call will also be broadcast live on the Internet and may be accessed directly at the following URL:
- https://edge.media-server.com/mmc/p/n679ps8v
The webcast will remain accessible for a 12-month period at the above URL.
Annual General Meeting & Webcast Details
Gibson is holding its Annual Meeting of Shareholders on
Attending In-Person:
Lumi Experience Studio - Suite 1410, 225 6 Ave SW,
Calgary, Alberta
Attending virtually can be accessed using the following URL:
- https://web.lumiagm.com/420003534
- Password: gibson2024
The webcast will remain accessible for a 12-month period at the above URL.
Additionally, information and materials related to the annual general meeting of shareholders can be accessed using the following URL:
- https://www.gibsonenergy.com/investor-centre/shareholder-information/2024-annual-meeting-of-shareholders/
Supplementary Information
Gibson has also made available certain supplementary information regarding the 2024 first quarter financial and operating results, available at www.gibsonenergy.com.
About Gibson
Gibson 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
Gibson shares trade under the symbol GEI and are listed on the
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 ability to enter into contracts for the
For further information, please contact:
Investor Relations:
(403) 776-3077
investor.relations@gibsonenergy.com
Media Relations:
(403) 476-6334
communications@gibsonenergy.com
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 months ended
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 months ended
Three months ended | Infrastructure | Marketing | Corporate and Adjustments | Total | |||||||||
($ thousands) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||
Segment profit | 145,663 | 106,571 | 19,381 | 71,831 | — | — | 165,044 | 178,402 | |||||
Unrealized loss on derivative financial instruments | 4,149 | — | 14,217 | (13,081 | ) | — | — | 18,366 | (13,081 | ) | |||
General and administrative | — | — | — | — | (21,920 | ) | (11,917 | ) | (21,920 | ) | (11,917 | ) | |
Adjustments to share of profit from equity accounted investees | 1,481 | 1,435 | — | — | — | — | 1,481 | 1,435 | |||||
Executive transition costs | — | — | — | — | 7,135 | — | 7,135 | — | |||||
Adjusted EBITDA | 151,293 | 108,006 | 33,598 | 58,750 | (14,785 | ) | (11,917 | ) | 170,106 | 154,839 |
Three months ended | ||||
($ thousands) | 2024 | 2023 | ||
Net Income | 40,489 | 88,251 | ||
Income tax expense | 12,455 | 27,047 | ||
Depreciation, amortization, and impairment charges | 43,431 | 28,155 | ||
Net finance costs | 35,403 | 18,419 | ||
Unrealized loss (gain) on derivative financial instruments | 18,366 | (13,081 | ) | |
Corporate unrealized loss on derivative financial instruments (1) | 9,476 | — | ||
Stock based compensation | 5,064 | 4,146 | ||
Adjustments to share of profit from equity accounted investees | 1,481 | 1,435 | ||
Acquisition & integration costs | 1,305 | — | ||
Corporate foreign exchange (gain) loss and other | (4,499 | ) | 467 | |
Executive transition costs | 7,135 | — | ||
Adjusted EBITDA | 170,106 | 154,839 |
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 | ||||
($ thousands) | 2024 | 2023 | ||
Cash flow from operating activities | 192,833 | 159,527 | ||
Adjustments: | ||||
Changes in non-cash working capital and taxes paid | (26,078 | ) | (4,879 | ) |
Replacement capital | (4,372 | ) | (5,335 | ) |
Cash interest expense, including capitalized interest | (33,878 | ) | (16,799 | ) |
Acquisition and integration costs | 1,305 | — | ||
Lease payments | (8,034 | ) | (9,572 | ) |
Current income tax | (7,312 | ) | (15,541 | ) |
Distributable cash flow | 114,464 | 107,401 |
Twelve months ended | ||||
($ thousands) | 2024 | 2023 | ||
Cash flow from operating activities | 608,162 | 452,103 | ||
Adjustments: | ||||
Changes in non-cash working capital and taxes paid | (28,633 | ) | 104,198 | |
Replacement capital | (34,965 | ) | (25,408 | ) |
Cash interest expense, including capitalized interest | (117,212 | ) | (62,996 | ) |
Acquisition and integration costs | 23,347 | — | ||
Lease payments | (34,358 | ) | (34,373 | ) |
Current income tax | (23,488 | ) | (49,034 | ) |
Distributable cash flow | 392,853 | 384,490 |
c) Dividend Payout Ratio
Twelve months ended | ||||
2024 | 2023 | |||
Distributable cash flow | 392,853 | 384,490 | ||
Dividends declared | 247,946 | 216,452 | ||
Dividend payout ratio | 63 | % | 56 | % |
d) Net Debt To Adjusted EBITDA Ratio
Twelve months ended | ||||
2024 | 2023 | |||
Long-term debt | 2,643,464 | 1,577,069 | ||
Lease liabilities | 58,480 | 67,910 | ||
Less: unsecured hybrid debt | (450,000 | ) | (250,000 | ) |
Less: cash and cash equivalents | (108,858 | ) | (40,586 | ) |
Net debt | 2,143,086 | 1,354,393 | ||
Adjusted EBITDA | 605,095 | 555,158 | ||
Net debt to adjusted EBITDA ratio | 3.5 | 2.4 |
Source:
2024 GlobeNewswire, Inc., source