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Gibson Energy Reports Record Infrastructure EBITDA as Throughput Improves, TPH Says

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Gibson Energy increased throughput across key assets and delivered record infrastructure earnings in Q21, while stronger marketing margins lifted overall results, TPH Energy Research said in a Tuesday note.

Higher throughput at the Gateway and Edmonton terminals, the initial contribution from the Chauvin Infrastructure Assets, and ongoing restructuring benefits lifted infrastructure adjusted EBITDA to a record CA$169 million ($119.8 million), TPH said.

Infrastructure adjusted EBITDA increased CA$17 million from a year earlier and came in slightly above TPH's and the Street's CA$168 million estimates, the report added.

Gibson completed the CA$400 million Chauvin acquisition in May and approved the Hardisty Connection project.

The marketing segment generated adjusted EBITDA of CA$15 million, topping TPH's CA$6 million estimate and the Street's CA$7 million forecast. TPH attributed the outperformance to stronger crack spreads and improved refined product margins.

Adjusted EBITDA reached CA$169 million, exceeding TPH's CA$157 million estimate and matching a beat versus the Street's CA$157 million forecast. TPH said stronger marketing performance accounted for the entire upside.

Distributable cash flow totaled CA$96 million, above TPH's and the Street's CA$88 million estimates.

In July, the company also issued CA$400 million of 4.45% senior unsecured notes due 2034, which management said achieved the tightest credit spread across any tenor in the company's history.

Net income increased CA$22 million from a year earlier to CA$83 million, supported by stronger operating performance and lower taxes. Higher general and administrative expenses, Chauvin acquisition costs and unrealized corporate mark-to-market partially offset the gain.

General and administrative expenses totaled CA$16 million, below management's guided quarterly run rate of CA$17 million-CA$18 million, TPH said.

Net debt to adjusted EBITDA stood at 4.2x, while the trailing 12-month dividend payout ratio measured 88%. Management expects both metrics to normalize as the Chauvin assets contribute over a full year, TPH Energy added.

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