All financial figures are in Canadian dollars unless otherwise noted
CALGARY, Alberta, May 05, 2025 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today its financial and operating results for the three months ended March 31, 2025.
Key Highlights:
- All-time high volumes at both the Gateway and Edmonton terminals drove record Infrastructure Adjusted EBITDA(1) of $155 million
- Realized recurring and non-recurring cost savings of approximately $6 million, increasing DCF per share in the first quarter by 7%, with line of sight to $18 million of total savings, relative to our target of over $25 million
- Secured a strategic long-term partnership with Baytex Energy Corp. (“Baytex”)
- Appointed Riley Hicks as Senior Vice President and Chief Financial Officer effective February 4, 2025, and Dave Gosse as Senior Vice President and Chief Operating Officer to become effective May 20, 2025
- Subsequent to the quarter, completed the Gateway dredging project safely, on time and on budget
“We are off to a solid start to 2025, delivering record quarterly Infrastructure EBITDA,” said Curtis Philippon, President & Chief Executive Officer. “Our cost focus efforts continue to deliver results, and we are seeing great progress on our key capital projects at Gateway. With a revitalized leadership team in place and disciplined execution underway, we are well positioned to deliver a strong finish to the year.”
Financial Highlights:
- Revenue of $2,748 million decreased by $541 million in the first quarter, compared to $3,289 million in the first quarter of 2024, primarily due to the impact of reduced sales volumes and lower commodity prices within the Marketing segment
- Infrastructure Adjusted EBITDA(1) of $155 million in the first quarter, a $4 million or 2% increase from the first quarter of 2024, primarily due to increased throughput at the Edmonton Terminal and Gateway, and lower operating and other costs, partially offset by lower volume at the Hardisty Terminal, and the disposal of non-core assets in the prior period
- Marketing Adjusted EBITDA(1) of $0 in the first quarter, a $33 million decrease from the first quarter of 2024, primarily due to the Crude Marketing business’ lower contribution as continued increased demand for Canadian heavy oil has maintained steep backwardation and limited volatility, impacting storage, quality and time-based opportunities. For the Refined Products business, slightly stronger crack spreads during the quarter were offset by higher feedstock costs driven by continued strength in the WCS differential, as well as the impact of seasonal reduction in demand for asphalt products
- Adjusted EBITDA(1) on a consolidated basis of $142 million in the first quarter, a $28 million or 16% decrease from the first quarter of 2024, primarily due to lower contributions from the Marketing segment and the other factors impacting segment EBITDA noted above, as well as the impact of unrealized gains and losses on derivative financial instruments recorded in both periods
- Net income of $50 million in the first quarter, a $9 million or 23% increase from the first quarter of 2024, primarily due to the impact of items affecting segment EBITDA noted above as well as lower general and administrative costs primarily due to executive transition and restructuring costs in the prior period, partially offset by higher corporate foreign exchange losses
- Distributable Cash Flow(1) of $91 million in the first quarter, a $24 million or 21% decrease from the first quarter of 2024, primarily due to lower Adjusted EBITDA from the Marketing segment, partially offset by increased Infrastructure Adjusted EBITDA
- Dividend Payout ratio(2) on a trailing twelve-month basis of 77%, which is within the 70% – 80% target range
- Net debt to Adjusted EBITDA(2) ratio of 3.7x at March 31, 2025, compared to 3.5x at March 31, 2024, primarily due to lower contributions from the Company’s Marketing segment and higher interest expenses compared to the same period last year
Strategic Developments:
- Appointed Riley Hicks as Senior Vice President and Chief Financial Officer, effective February 4, 2025; Riley joined Gibson in 2018 and has held various finance and commercial roles, including most recently Senior Vice President Corporate Development, Marketing and Strategy
- Entered into a long-term strategic partnership with Baytex; under the initial 10-year take-or-pay and area dedication agreement, Gibson will invest approximately $50 million in new liquids infrastructure and Baytex will direct production to Gibson’s core Edmonton terminal, enhancing the Company’s quality of cash flows
- Surpassed a major safety milestone, with over 9 million hours worked without a lost time injury
- Subsequent to the quarter, Dave Gosse was appointed as Senior Vice President and Chief Operating Officer, to become effective May 20, 2025; with more than 30 years of operational and engineering leadership, in roles including President of Energy Transfer Canada, Dave adds strong expertise to Gibson’s executive team
- Subsequent to the quarter, successfully completed the dredging project at Gateway safely, on time and on budget, making Gateway one of only two terminals in Texas capable of loading up to 1.6 million barrels on a Very Large Crude Carrier and up to full capacity on a Suezmax vessel
(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 2025 first 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 months ended March 31, 2025, as compared to the three months ended March 31, 2024. These documents are available at www.gibsonenergy.com and on SEDAR+ at www.sedarplus.ca.
Earnings Conference Call & Webcast Details
A conference call and webcast will be held to discuss the 2025 first quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Tuesday, May 6, 2025.
To register for the call, view dial-in numbers, and obtain a dial-in PIN, please access the following URL:
- https://register-conf.media-server.com/register/BI54f3e11188eb4adc8c83e50ee0865bab
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/s5n8uio6
The webcast will remain accessible for a 12-month period at the above URL.
Supplementary Information
Gibson has also made available certain supplementary information regarding the 2025 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 storage, optimization, processing, and gathering of liquids and refined products, as well as waterborne vessel loading. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside and Wink, Texas, and a facility in Moose Jaw, Saskatchewan.
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). 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, future cost savings to be realized by the Company, the future effective date of appointment of the Company’s new Senior Vice President and Chief Operating Officer, results through the remainder of the current fiscal year, and the capital expenditure in relation to the project with Baytex, and Gibson’s ability to achieve the anticipated benefits of such project, including the enhancement of the quality of the Company’s cash flows. 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 dated February 18, 2025, and Management’s Discussion and Analysis dated May 5, 2025, as filed on SEDAR+ and available on the Gibson website at www.gibsonenergy.com.
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 March 31, 2025 and 2024, which is incorporated by reference herein and is available on Gibson’s SEDAR+ profile at www.sedarplus.ca 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 months ended March 31, 2025, and 2024:
| Three months ended March 31, | Infrastructure | Marketing | Corporate and Adjustments | Total | ||||||||||||
| ($ thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||
| Segment profit | 154,079 | 145,663 | 13,860 | 19,381 | — | — | 167,939 | 165,044 | ||||||||
| Unrealized (gain) loss on financial instruments | (455 | ) | 4,149 | (13,746 | ) | 14,217 | — | — | (14,201 | ) | 18,366 | |||||
| General and administrative | — | — | — | — | (14,323 | ) | (21,920 | ) | (14,323 | ) | (21,920 | ) | ||||
| Adjustments to share of profit from equity accounted investees | 1,173 | 1,481 | — | — | — | — | 1,173 | 1,481 | ||||||||
| Executive transition and restructuring costs | — | — | — | — | 2,405 | 7,135 | 2,405 | 7,135 | ||||||||
| Renewable power purchase agreement | — | — | — | — | (806 | ) | — | (806 | ) | — | ||||||
| Adjusted EBITDA | 154,797 | 151,293 | 114 | 33,598 | (12,724 | ) | (14,785 | ) | 142,187 | 170,106 | ||||||
| Three months ended March 31, | ||||
| ($ thousands) | 2025 | 2024 | ||
| Net Income | 49,953 | 40,489 | ||
| Income tax expense | 14,044 | 12,455 | ||
| Depreciation, amortization, and impairment charges | 42,532 | 43,431 | ||
| Finance costs, net | 33,658 | 35,403 | ||
| Unrealized (gain) loss on derivative financial instruments | (14,201 | ) | 18,366 | |
| Unrealized loss on renewable power purchase agreement | 6,787 | 9,476 | ||
| Share-based compensation | 3,128 | 5,064 | ||
| Acquisition and integration costs | — | 1,305 | ||
| Adjustments to share of profit from equity accounted investees | 1,173 | 1,481 | ||
| Corporate foreign exchange loss (gain) and other | 2,708 | (4,499 | ) | |
| Executive transition and restructuring costs | 2,405 | 7,135 | ||
| Adjusted EBITDA | 142,187 | 170,106 | ||
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 March 31, | ||||
| ($ thousands) | 2025 | 2024 | ||
| Cash flow from operating activities | 121,852 | 192,833 | ||
| Adjustments: | ||||
| Changes in non-cash working capital and taxes paid | 15,417 | (26,078 | ) | |
| Replacement capital | (5,808 | ) | (4,372 | ) |
| Cash interest expense, including capitalized interest | (31,549 | ) | (33,878 | ) |
| Acquisition and integration costs(1) | — | 1,305 | ||
| Executive transition and restructuring costs(1) | 2,405 | — | ||
| Lease payments | (6,317 | ) | (8,034 | ) |
| Current income tax | (5,226 | ) | (7,312 | ) |
| Distributable cash flow | 90,774 | 114,464 | ||
c) Dividend Payout Ratio
| Twelve months ended March 31, | ||||
| 2025 | 2024 | |||
| Distributable cash flow | 351,583 | 392,853 | ||
| Dividends declared | 270,630 | 247,946 | ||
| Dividend payout ratio | 77 | % | 63 | % |
d) Net Debt To Adjusted EBITDA Ratio
| Twelve months ended March 31, | ||||
| 2025 | 2024 | |||
| Current and long-term debt | 2,619,116 | 2,643,464 | ||
| Lease liabilities | 47,752 | 58,480 | ||
| Less: unsecured hybrid debt | (450,000 | ) | (450,000 | ) |
| Less: cash and cash equivalents | (46,090 | ) | (108,858 | ) |
| Net debt | 2,170,778 | 2,143,086 | ||
| Adjusted EBITDA | 582,223 | 605,095 | ||
| Net debt to adjusted EBITDA ratio | 3.7 | 3.5 | ||
