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All financial figures are in Canadian dollars unless otherwise noted
CALGARY, AB, Feb. 21, 2023 /PRNewswire/ - Gibson Energy Inc. announced today its financial and operating results for the three and twelve months ended December 31, 2022.
"We are pleased to report another strong year in 2022, highlighted by Adjusted EBITDA from our Infrastructure segment, Consolidated Adjusted EBITDA and Distributable Cash Flow all reaching new high-water marks," said Steve Spaulding, President and Chief Executive Officer. "This solid business performance has allowed us to repurchase over 4% of our outstanding shares while maintaining our leading financial position with a payout ratio of 60% and leverage of 2.7x, both of which would be below our target ranges. We have also continued to progress Sustainability and ESG at Gibson through the release of our 2021 Sustainability Report and strengthening our Board with the additions of Heidi Dutton and Diane Kazarian."Financial 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 2022 fourth quarter Management's Discussion and Analysis and audited Consolidated Financial Statements provide a detailed explanation of Gibson's financial and operating results for the three months and year ended December 31, 2022, as compared to the three months and year ended December 31, 2021. These documents are available at www.gibsonenergy.com and at www.sedar.com.Earnings Conference Call and Webcast Details
A conference call and webcast will be held to discuss the 2022 fourth quarter and year-end financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, February 22, 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 March 8, 2023, using the following dial-in numbers:
Gibson has also made available certain supplementary information regarding the 2022 fourth quarter and full year financial and operating results, available at www.gibsonenergy.com.About Gibson
Gibson Energy Inc. ("Gibson" or the "Company") (TSX: GEI), is a Canadian-based 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 focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw Facility 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 and a continued focus on safety, further embedding ESG into Gibson's culture and business. 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, a continued focus on ESG and the funding sources thereof. 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 23, 2022 and Management's Discussion and Analysis dated February 21, 2023, as filed on SEDAR and available on the Gibson website at www.gibsonenergy.com.
For further information, please contact:
Mark Chyc-Cies
Vice President, Strategy, Planning & Investor Relations
Phone: (403) 776-3146
Email: mark.chyc-cies@gibsonenergy.comSpecified 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 years ended December 31, 2022 and 2021, 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 twelve months ended December 31, 2022, and 2021:
Three months ended December 31
Infrastructure
Marketing
Corporate &
Adjustments
Total
($ thousands)
2022
2021
2022
2021
2022
2021
2022
2021
Segment Profit
108,855
105,307
40,315
15,360
-
-
149,170
120,667
Unrealized gain on derivative financial instruments
-
-
(3,000)
(9,683)
-
-
(3,000)
(9,683)
General and administrative
-
-
-
-
(10,236)
(7,836)
(10,236)
(7,836)
Adjustments to share of profit from equity
accounted investees
1,400
614
-
-
-
-
1,400
614
Adjusted EBITDA
110,255
105,921
37,315
5,677
(10,236)
(7,836)
137,334
103,762
Years ended December 31
Infrastructure
Marketing
Corporate &
Adjustments
Total
($ thousands)
2022
2021
2022
2021
2022
2021
2022
2021
Segment Profit
434,998
433,929
122,020
41,267
-
-
557,018
475,196
Unrealized (gain)/loss on derivative financial
instruments
-
-
(4,027)
1,952
-
-
(4,027)
1,952
General and administrative
-
-
-
-
(40,196)
(34,481)
(40,196)
(34,481)
Adjustments to share of profit from equity
accounted investees
7,442
2,551
-
-
-
-
7,442
2,551
Other
-
-
-
-
742
-
742
-
Adjusted EBITDA
442,440
436,480
117,993
43,219
(39,454)
(34,481)
520,979
445,218
Three months ended December 31,
($ thousands)
2022
2021
Net Income
63,891
43,917
Income tax expense
19,244
6,897
Depreciation, amortization, and impairment charges
30,834
41,255
Net finance costs
17,827
14,961
Unrealized gain on derivative financial instruments
(3,000)
(9,683)
Stock-based compensation
5,116
5,235
Adjustments to share of profit from equity accounted investees
1,400
614
Corporate foreign exchange loss and other
2,022
566
Adjusted EBITDA
137,334
103,762
Years ended December 31,
($ thousands)
2022
2021
Net Income
223,245
145,053
Income tax expense
66,890
36,184
Depreciation, amortization, and impairment charges
144,479
173,861
Net finance costs
64,939
61,344
Unrealized (gain)/loss on derivative financial instruments
(4,027)
1,952
Stock-based compensation
20,543
23,335
Adjustments to share of profit from equity accounted investees
7,442
2,551
Corporate foreign exchange (gain) / loss and other
(2,532)
938
Adjusted EBITDA
520,979
445,218b) 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 December 31,
Years ended December 31,
($ thousands)
2022
2021
2022
2021
Cash flow from operating activities
70,058
3,186
598,312
216,806
Adjustments:
Changes in non-cash working capital and taxes paid
62,733
94,678
(81,576)
212,825
Replacement capital
(6,857)
(8,399)
(22,241)
(22,600)
Cash interest expense, including capitalized interest
(16,289)
(14,149)
(59,816)
(54,218)
Lease payments
(7,767)
(7,008)
(35,397)
(36,694)
Current income tax
(13,418)
(3,912)
(43,074)
(25,046)
Distributable cash flow
88,460
64,396
356,208
291,073c) Dividend Payout Ratio
Years ended December 31,
2022
2021
Distributable cash flow
356,208
291,073
Dividends declared
215,446
205,154
Dividend payout ratio
60 %
70 %
d) Net Debt To Adjusted EBITDA Ratio
Years ended and as at December 31,
2022
2021
Long-term debt
1,646,772
1,660,609
Lease liabilities
71,700
81,779
Less: unsecured hybrid debt
(250,000)
(250,000)
Less: cash and cash equivalents
(83,596)
(62,688)
Net debt
1,384,876
1,429,700
Adjusted EBITDA
520,979
445,218
Net debt to adjusted EBITDA ratio
2.7
3.2
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SOURCE Gibson Energy Inc.