Gibson Energy Inc. Reports Record 2012 Financial Results and Increases Quarterly Dividend
All financial figures are in Canadian dollars unless otherwise stated
CALGARY, March 5, 2013 /PRNewswire/ - Gibson Energy Inc. ("Gibson" or the "Company"), TSX: GEI, announced today record annual results for 2012 supported by large profit increases across four businesses.
Adjusted EBITDA1 increased by 43% to $96.1 million for the three months ended December
31, 2012 compared to $67.4 million in the three months ended December
31, 2011. For the full year, 2012 Adjusted EBITDA increased by 31% to
$302.1 million compared to $231.3 million in 2011;
Earlier today, the Company's Board of Directors approved a 5.8% increase
to its quarterly dividend. The quarterly increase to $0.275 per
common share is payable on April 17, 2013 to shareholders of record at
the close of business on March 29th, 2013;
On October 31, 2012, the Company acquired all of the issued and
outstanding common shares of the parent company of OMNI Energy Services
Corp. ("OMNI") for total cash consideration of $439.7 million; and
In December, the Company received committed support from a large oil
sands producer for a 300,000 bbl oil storage tank at Hardisty Terminal
and plans to immediately begin construction of this tank on its eastern
Hardisty lands. The new 300,000 bbl tank is expected to be commissioned
in mid-2014. This commitment is in addition to the two 400,000 bbl oil
storage tanks announced in September, 2012.
Our integrated midstream services model delivered outstanding results in 2012," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "This achievement provides a great start to 2013, which represents Gibson's 60th anniversary as an operating entity. Despite some economic and industry headwinds, I expect another strong year for the Company as we develop additional infrastructure to meet customer needs and build upon our recent acquisition in the U.S."
Other Highlights for the fourth quarter and year ended December 31, 2012:
Cash provided by operations for the three months and year ended December
31, 2012 was $125.2 million and $308.9 million, respectively, compared
to $35.9 million and $207.3 million in the three months and year ended
December 31, 2011, respectively;
Capital expenditures, excluding acquisitions, were $182.2 million in the
year ended December 31, 2012, of which $125.7 million related to
internal growth projects. The internal growth project expenditures were
primarily related to the construction of tankage and pipeline
connections at the Company's facilities, in particular at Hardisty, the
expansion of the Canadian Environmental Services and the growth of the
Truck Transportation and Canwest fleets;
- In December 2012, the Company announced approval of 2013 capital expenditures of $304.0 million. Of the total capital expenditures $235.0 million or 77% is directed towards growth investments of which $137.0 million or 58% is earmarked for the Terminals and Pipelines segment. The other significant capital expenditures are primarily comprised of growth capital investment in the Truck Transportation and the Environmental Services segments;
On October 29, 2012, the Company closed a bought deal offering of
subscription receipts which on closing of the acquisition of OMNI were
automatically exchanged into common shares of the Company. As a result,
the Company issued 18,216,000 common shares at a price of $22.10 per
common share for gross proceeds of approximately $402.6 million which
were used to finance a portion of the purchase price of OMNI;
The Company also completed five other acquisitions in the truck
transportation and propane businesses in 2012, totalling $39.3 million;
On May 24, 2012, through an amendment of its existing credit agreement,
the Company replaced its U.S.$645.0 million senior secured first lien
term loan facility with a U.S.$650.0 million senior secured first lien
term loan facility and re-priced such loan to reflect a decrease in the
interest rate from LIBOR plus 4.5% to LIBOR plus 3.75% and a decrease
in the LIBOR Floor from 1.25% to 1.0%. Also, the Company's U.S.$275.0
million revolving credit facility was expanded by U.S.$100.0 million to
U.S.$375.0 million; and
On March 27, 2012, the Company completed a secondary offering of common
shares of the Company held by R/C Guitar Coöperatief U.A., a Dutch
cooperative owned by investment funds affiliated with Riverstone
Holdings LLC, pursuant to which Co-op sold 28,107,782 common shares at
a price of $20.70 per common share for total gross proceeds to Co-op of
$581.8 million. As a result, Co-op and Riverstone no longer own any
common shares of the Company.
|(1)||Adjusted EBITDA is defined as consolidated net income (loss) before interest expense, income taxes, depreciation, amortization, other non-cash expenses and charges deducted in determining consolidated net income (loss), including movement in the unrealized gains and losses on the Company's financial instruments, stock based compensation expense, impairment of goodwill and intangible assets, and non-cash inventory write-downs. It also takes into account the impact of foreign exchange movements in the Company's U.S. dollar denominated long-term debt, management fees, debt extinguishment costs and other adjustments that are considered non-recurring in nature.|
Management's Discussion and Analysis and Financial Statements
The Management's Discussion and Analysis and the December 31, 2012 Consolidated Financial Statements provide a detailed explanation of Gibson's operating results for the year ended December 31, 2012 as compared to the year ended December 31, 2011. These documents are available at www.gibsons.com and at www.sedar.com.
2012 Fourth Quarter and Year End Results Conference Call
A conference call to discuss Gibson's fourth quarter and year end results will be held at 7:00 a.m. MT (9:00 a.m. ET) on Wednesday, March 6, 2013 for interested investors, analysts and media representatives.
The conference call dial-in numbers are:
- 866-696-5910 from Canada and the US
- 416-340-2217 from Toronto and International
- Participant Pass Code: 7015666#
Shortly after the call, an audio archive will be posted on the Investor Relations and Media section at http://www.gibsons.com.
The call will also be recorded and available for playback 60 minutes after the meeting end time, until May 7, 2013, using the following dial in process:
- 905-694-9451 / 800-408-3053
- Pass code: 3806944#
Gibson is one of the largest independent midstream energy companies in Canada and an integrated service provider to the oil and gas industry in the United States. Gibson is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste and refined products. Gibson transports energy products by utilizing 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 United States. Gibson 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.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements"). 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 5, 2013 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 (loss), 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 (loss) determined in accordance with IFRS as an indication of the Company's performance.
|Fourth Quarter- Selected Financial Highlights|
|Three months ended Dec 31||Year ended Dec 31|
|Terminals and Pipelines...................................||$22,753||$22,309||$87,157||$72,081|
|Propane and NGL Marketing and Distribution..||20,866||14,532||49,671||40,385|
|Processing and Wellsite Fluids........................||10,132||9,607||40,068||46,905|
|Total Segment Profit........................................||102,084||74,655||329,893||256,658|
|Statement of Cash Flows Data:|
|Cash flows provided by (used in):|
|Other Financial Data:|
|Internal Growth Projects...................................||$34,404||$34,018||$125,662||$111,352|
|Upgrade and Replacement Capital..................||13,406||7,702||56,536||36,686|
Dec 31, 2012
|Pro Forma Adjusted EBITDA............................||$370,612|
|*||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.|
SOURCE Gibson Energy Inc.
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