SYS-CON MEDIA Authors: Pat Romanski, Elizabeth White, PagerDuty Blog, Michael Jannery, Javier Paniza

News Feed Item

Gibson Reports Record 2013 Financial Results and Announces a 9% Dividend Increase

CALGARY, ALBERTA -- (Marketwired) -- 03/04/14 -- All financial figures are in Canadian dollars unless otherwise stated.

Gibson Energy Inc. ("Gibson" or the "Company") (TSX: GEI) announced today a dividend increase and operating and financial results for the three and twelve months ended December 31, 2013.

Highlights:


--  Earlier today, the Company's Board of Directors approved a 9% increase
    to its quarterly dividend. The increase to $0.30 per common share is
    payable on April 17, 2014 to shareholders of record at the close of
    business on March 31, 2014;

--  Adjusted EBITDA(1) increased by 20% to $115.3 million in the fourth
    quarter of 2013 compared to 2012;

--  Annual Adjusted EBITDA increased by 41% to a record $427.0 million in
    2013;

--  Annual Distributable Cash Flow(2) increased by 39% to $253.2 million
    ($2.09 per share(3)) in 2013 compared to $182.5 million ($1.78 per
    share(3)) in 2012;

--  Total dividends declared in 2013 were $133.7 million ($1.10 per share)
    and represented 53% of Distributable Cash Flow;

--  Capital expenditures were $247.0 million in 2013, of which $177.4
    million was related to growth capital. Growth capital expenditures were
    primarily for the construction of tanks and pipeline and connection
    infrastructure at the Company's facilities; and

--  On December 10, 2013, the Company announced its capital spending plans
    for 2014 at a record $410 million of which $340 million is allocated to
    growth spending. Expected growth capital spending for 2015 is estimated
    to be in excess of $250 million.

"The results announced today represent record fourth quarter and annual profitability for the Company. Continued strong performance across all of our business segments reinforces the advantage of our integrated portfolio to deliver stable and growing cash flow," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "2014 is expected to be another strong year for Gibson as we continue to witness strong industry fundamentals, successfully execute on our business plan and generate increased revenue from our growth capital investments. This growth outlook provides us the confidence to increase our quarterly dividend as we continue to provide a compelling total return to Gibson shareholders."


1.  Adjusted EBITDA is defined in Gibson's 2013 Management's Discussion and
    Analysis.
2.  Distributable Cash Flow is defined in Gibson's 2013 Management's
    Discussion and Analysis.
3.  Per share amounts utilize basic weighted average common shares
    outstanding as calculated in note 24 of Gibson's 2013 Consolidated
    Financial Statements.

Management's Discussion and Analysis and Financial Statements

The 2013 Management's Discussion and Analysis and Consolidated Financial Statements provide a detailed explanation of Gibson's operating results for the year ended December 31, 2013 as compared to the year ended December 31, 2012. These documents are available at www.gibsons.com and at www.sedar.com.

2013 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 5, 2014 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 June 5, 2014, using the following dial in process:


--  905-694-9451 / 800-408-3053
--  Pass code: 7939281#

About Gibson

Gibson is a large, independent midstream energy company in Canada and an integrated service provider to the oil and gas industry in the U.S. Gibson is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, NGLs, water, oilfield waste and refined products. The Company transports energy products by using 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 U.S. The Company also provides environmental and production services, including fluid handling, emulsion treating, water disposal and oilfield waste management services in Canada and the U.S., and is the second largest retail propane distribution company in Canada.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, statements concerning the Company's future payment of dividends and the amount thereof and management's expectation with respect to the Company's business and financial prospects and opportunities. 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 4, 2014 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, 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 determined in accordance with IFRS as an indication of the Company's performance.

Selected Financial Highlights


                                    Three months ended
                                          Dec 31         Year ended Dec 31
                                   ------------------- --------------------
                                        2013      2012      2013       2012
-------------------------------------------- --------- ---------- ----------
(in thousands)

Segment Profit(i):
Terminals and Pipelines            $  25,065 $  20,329 $  95,613  $  79,229
Truck Transportation                  22,165    21,634    83,674     85,499
Environmental Services                22,564    11,185    83,094     16,689
Propane and NGL Marketing and
 Distribution                         23,204    20,886    62,277     49,671
Processing and Wellsite Fluids        13,612    10,132    48,720     40,068
Marketing                             16,733    17,918    83,004     58,737
                                   --------- --------- ---------- ----------
Total Segment Profit               $ 123,343 $ 102,084 $ 456,382  $ 329,893
                                   --------- --------- ---------- ----------

Adjusted EBITDA                    $ 115,284 $  96,134 $ 427,037  $ 302,076

Capital Expenditures:
Growth Capital                     $  55,313 $  34,404 $ 177,443  $ 125,662
Upgrade and Replacement Capital       21,347    13,406    69,513     56,536
Acquisitions                               -   466,724         -    479,026
                                   --------- --------- ---------- ----------
Total                              $  76,660 $ 513,534 $ 246,956  $ 661,224
                                   --------- --------- ---------- ----------


Dividends:
Dividends Declared to Shareholders                     $ 133,632  $ 106,074
Distributable Cash Flow                                $ 253,178  $ 182,512
Payout Ratio                                                  53%        58%


Leverage Metrics:
Net Debt                                               $ 670,200  $ 613,122
Pro Forma Adjusted EBITDA                              $ 427,037  $ 370,612
Ratio of Net Debt to EBITDA                                  1.6        1.7

(i) 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For the past 4 years we have been working mainly to export. For the last 3 or 4 years the main market was Russia. In the past year we have been working to expand our footprint in Europe and the United States," explained Andris Gailitis, CEO of DEAC, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
At 15th Cloud Expo, Shrikant Pattathil, Executive Vice President at Harbinger Systems, demos a video delivery platform that helps you do interactive videos. He discusses how Harbinger is accomplishing it in the cloud world, the problems they faced and the choices they made to get around these problems.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.